PHOTOS: Sculptures mark 'Year of Red Horse' SEOUL, January 02 (AJP) - To mark the start of 2026, the Year of the Red Horse, World Cup Park in Mapo-gu, Seoul, has unveiled horse sculptures crafted entirely from silver grass, drawing crowds of local residents and tourists alike. The centerpiece installations, symbolizing the "Red Horse," were constructed using natural silver grass harvested from the park. The eco-friendly displays blend traditional zodiac symbolism with the seasonal beauty of the park’s natural resources. 2026-01-02 14:08:33

Seoul's lantern festival extended for two more weeks SEOUL, January 2 (AJP) - Seoul's annual lantern festival along the Cheonggye Stream will be extended by two more weeks, organizers said on Friday. In its 17th year, the festival featuring around 500 lanterns made from traditional handmade paper, as well as glowing displays and other festive decorations, was supposed to close this weekend but will now continue to illuminate the capital until mid-January. The extension came as the festival has drawn nearly 300 million people including foreign travelers, in about three weeks since its opening on Dec. 12. "Thanks to the strong interest and support from citizens and tourists, we decided to extend the festival," said Kil Ki-yeon, CEO of Seoul Tourism Organization. Except for next Monday, when it will be closed for maintenance and preparations, the festival runs nightly from 6 p.m. to 11 p.m. until Jan. 18, with closing extended by one hour to accommodate after-work crowds. But visitors should hurry to see some of the highlights such as a 73-meter-long installation featuring Magikarp, a piscine Pokémon with reddish-orange scales before it is removed this week to make way for new displays. 2026-01-02 14:05:41

A freezing first day of work in 2026 SEOUL, January 02 (AJP) -The first working day of 2026 dawned in an Arctic freeze, sending Seoulites hurrying through Gwanghwamun not so much to resume work as to get out of the cold. Beneath a pale winter sky, commuters crossed the intersection in central Seoul, bundled in heavy coats as icy air settled over the city. A surge of cold air from the northwest had pushed morning temperatures to around minus 12 degrees Celsius, forcing people into thick coats, scarves and gloves as they hurried to offices and subway entrances. The scene — brisk, muted and tightly choreographed — marked the return to routine after the holiday break, as the city eased back into motion under one of the coldest mornings of the season. 2026-01-02 13:50:56

Hanwha chairman pledges AI defense push, deeper Korea-US shipbuilding ties SEOUL, January 02 (AJP) - South Korea's Hanwha Group is eager to strengthen its long-term competitiveness by securing core technologies in key businesses, including artificial intelligence-driven defense systems, while playing a leading role in South Korea-U.S. shipbuilding cooperation, Chairman Kim Seung-youn said in a New Year's message on Friday. Kim said Hanwha had spearheaded bilateral industrial cooperation symbolized by the MASGA initiative and grown into a national champion in defense and shipbuilding over the past year. He said the group is now “recognized as an essential engine for industry and society,” adding that this status carries greater responsibility. Kim emphasized a shift toward a technology-led growth strategy. “To secure competitiveness over the next 50 or 100 years, we must possess the foundational technologies that will shape the future in key business areas such as AI defense,” he said. He called on Hanwha to focus on future-leading technologies across its portfolio, including defense, aerospace, maritime, energy, materials, finance, machinery and services. By business unit, Kim urged the energy and materials divisions to respond proactively to global policy changes and ongoing restructuring in the petrochemical sector. In finance, he proposed expanding global operations by combining digital assets and artificial intelligence, while the services unit should develop new growth models through closer integration with machinery businesses, including AI-based solutions. Kim also highlighted MASGA as a central pillar of Korea-U.S. shipbuilding cooperation, saying Hanwha must position itself as a trusted strategic partner in global markets. He said the initiative should be planned and executed with a sense of full responsibility, centered on the company’s U.S.-based Philly Shipyard, and that cooperation in warship and nuclear-powered submarine construction should further deepen bilateral ties. Pointing to Hanwha Ocean’s decision to pay performance bonuses to workers at partner companies at the same rate as those for directly employed staff, he stressed that partner-company employees and local communities are integral to the group’s operations. On safety, Kim delivered a firm message, calling it a core value for sustainable management. “Results cannot replace a life,” he said. Kim also said Hanwha has turned a long-envisioned future into reality by entering the era of private space and establishing itself as a key player in the global defense industry. He credited employees for their continued dedication and urged them to work together to further strengthen the group. 2026-01-02 13:46:01

South Korea splits economy ministry in major overhaul of economic governance SEOUL, January 02 (AJP) - South Korea on Friday formally split the Ministry of Economy and Finance into two separate ministries, a move the government says will strengthen fiscal discipline and policy accountability but that raises questions about coordination in economic crisis management. The reorganization creates the Ministry of Planning and Budget and the Ministry of Finance and Economy, separating budget authority from macroeconomic, financial and tax policy. The two ministries officially launched at the Government Complex in Sejong, marking one of the most significant changes to South Korea’s economic governance in nearly two decades. The Ministry of Finance and Economy began operations following a signboard ceremony at the former ministry’s main building, while the Ministry of Planning and Budget moved into Building 5, previously occupied by the Ministry of Oceans and Fisheries. The physical separation underscores the institutional overhaul, which divides budget and economic policy functions that had operated under one roof. Under the new structure, the Ministry of Planning and Budget will be responsible for national fiscal management, including budget formulation, execution and performance evaluation. The Ministry of Finance and Economy will serve as the government’s economic “control tower,” overseeing macroeconomic management, financial and tax policy, and external economic affairs. It is the first time since the Ministry of Economy and Finance was launched in 2008 that budget and economic policy functions have been separated, ending an 18-year combined system. The government said the change was driven by concerns that concentrating budget, tax and economic policy in a single ministry had led to excessive power and reduced policy flexibility. With large-scale fiscal spending becoming more routine, officials said an independent budget authority would help reinforce fiscal discipline, while a dedicated finance and economy ministry could respond more nimbly to economic cycles and focus on industrial and financial policy. However, questions remain over whether the Ministry of Finance and Economy can function effectively as an economic control tower without direct budget authority. Critics warn that policy impact could be limited if growth strategies and crisis responses cannot be backed by swift budgetary action. Policy coordination between the two agencies is also emerging as a key test. Because fiscal policy plays a central role in economic stabilization, misalignment between budget planning and macroeconomic policy could weaken outcomes. Past periods of institutional separation were marked by coordination failures and disputes over responsibility, some observers say. The Ministry of Planning and Budget faces immediate challenges from population aging, rising welfare spending and mounting calls for expansionary budgets to support a slowing economy, while being tasked with preserving fiscal soundness. Its effectiveness will likely depend on strengthening midterm fiscal planning and maintaining tighter control over spending demands from other ministries. The Ministry of Finance and Economy is launching amid heightened global uncertainty, including shifting interest-rate trends, intensifying U.S.-China technology rivalry and ongoing supply-chain restructuring. It must balance inflation control with efforts to revive growth, while managing tax policy, financial-market stability and external economic negotiations without direct budget levers. Analysts say the reorganization risks confusion and accountability gaps. But if clear roles and a permanent coordination mechanism are established, the split could enhance both fiscal discipline and economic responsiveness. The government has said it plans to limit policy friction through regular consultations and joint response systems. 2026-01-02 11:19:52

KOSPI kicks off new year while most Asian markets stay closed SEOUL, January 2 (AJP) - Most Asian bourses remained closed for New Year celebrations on Friday, while South Korea's stock market opened an hour later than usual, amid expectations of reaching a new all-time high for the year. With Taiwan's TAIEX and Hong Kong's Hang Seng Index open, South Korea's benchmark KOSPI opened higher, up 0.57 percent at 4,238. Having already surpassed its previous intraday peak, attention now turns to whether it can close above its record high of 4,221.87. The rally is being led by retail investors, who have net purchased 110.6 billion Korean won (US$76.7 million) worth of shares. In contrast, foreign and institutional investors have offloaded 81 billion won and 35 billion won, respectively. Blue-chip stocks gained ground across the board. Samsung Electronics rose 2.6 percent to 123,000 won, continuing its record-breaking streak, while SK hynix posted a more modest gain of 0.8 percent to trade at 657,000 won. The semiconductor sector maintains its upward momentum as global demand remains robust and domestic and foreign brokerages continue to raise earnings forecasts for both tech giants. Celltrion emerged as the standout performer, surging 9.5 percent to 198,500 won. The surge followed a preliminary disclosure projecting a more than 140 percent increase in operating profit compared to the same period last year. However, some firms faced significant headwinds. Korea Zinc dropped 2.4 percent to 1,285,000 won during the morning trade following the Chinese government's announcement of export controls on silver. The move raised concerns over supply disruptions and potential margin erosion for the non-ferrous metal producer. In the currency market, the won weakened slightly against the greenback, trading at 1,440.50 per dollar. Meanwhile, Taiwan's TAIEX rose 0.4 percent to 29,050.75, with Taiwan Semiconductor Manufacturing Co. (TSMC) gaining 0.3 percent to 1,555 Taiwan dollars ($49.6). MediaTek led the gains on the index, jumping 1.75 percent to 1,455 Taiwan dollars. The Hang Seng Index opened 0.87 percent higher at 25,860, recording the strongest start among Asian markets. Heavyweight Tencent Holdings edged up 0.25 percent to 600 Hong Kong dollars ($77), while Alibaba Group gained 0.28 percent to 143 Hong Kong dollars. Tech giant Xiaomi also traded up 0.3 percent at 39.5 Hong Kong dollars. 2026-01-02 11:16:53

Korea's growth reliant on IT sector as inflation risks linger: BOK chief SEOUL, January 02 (AJP) - South Korea’s economy would grow just 1.4 percent this year if the information technology sector were excluded, the country’s central bank chief said Friday, warning that uneven recovery across industries could leave households feeling worse off than headline growth figures suggest. Bank of Korea Governor Rhee Chang-yong said in a New Year’s message that overall economic growth is projected at 1.8 percent this year, up from 1 percent last year and close to the economy’s potential growth rate. However, he cautioned that uncertainty remains high on both the upside and downside. Rhee said the outlook will hinge on factors including the global trade environment, the semiconductor cycle and the strength of the recovery in domestic demand. Describing the current rebound as “hardly sustainable or complete,” Rhee urged continued structural transformation to prevent economic expansion from becoming repeatedly concentrated in a single sector. He stressed the need to foster new industries to broaden the growth base. The governor also highlighted lingering uncertainty over an investment agreement with the United States, saying it is difficult to conclude the issue has been fully resolved as details on investment targets and implementation methods still require coordination. Addressing concerns that annual investment flows of about $20 billion to the United States could weaken the Korean won, Rhee said the funds would not flow out in a fixed or mechanical manner each year. He added that the BOK, together with the government, would not agree to any arrangement that undermines stability in the foreign-exchange market. On inflation, which has recently risen to the low-to-mid 2 percent range, Rhee warned that persistent weakness in the won could reignite inflationary pressure. He noted that cumulative price increases since the pandemic have significantly raised living costs, disproportionately burdening lower-income households. Rhee said stabilizing inflation cannot be achieved through monetary policy alone. He called for parallel structural reforms aimed at lowering overall price levels, including improving distribution systems and expanding import liberalization for goods that remain expensive by international standards. 2026-01-02 10:39:12

Seoul shivers through freezing start to new year SEOUL, January 2 (AJP) - Biting cold continues to linger, with morning lows in Seoul and other metropolitan areas plunging to -12 degrees Celsius on Friday. According to the Seoul Metropolitan Government, the freezing temperatures brought plenty of incidents including burst pipes, although no cold-related illnesses such as hypothermia were reported. As the cold wave advisory issued by the Korea Meteorological Administration on New Year's Eve remained in place, the city government deployed about 247 staff and workers to operate emergency shelters and other facilities, in collaboration with some 25 local districts and agencies, while maintaining around-the-clock monitoring. It also provided temporary housing, along with free meals and medical care to around 63 homeless people, and checked on the safety of over 10,000 elderly citizens living alone. "Vulnerable people such as the elderly are advised to stay indoors. If going outside is unavoidable, make sure to bundle up warmly," the city urged. 2026-01-02 10:29:00

Taiwan, Singapore surge on chip boom while Korea lags at 1% amid regulatory drag SEOUL, January 02 (AJP) -Taiwan and Singapore posted markedly stronger economic growth in 2025, powered by the global semiconductor boom, while South Korea lagged far behind despite being one of the world’s leading chip producers, highlighting the growing role of regulatory and policy conditions in shaping economic performance. Taiwan’s economy is projected to have expanded by 7.37 percent last year, according to last estimate by the Directorate-General of Budget, Accounting and Statistics, while the Ministry of Trade and Industry on Friday placed preliminary annualized growth of Singapore at 4.8 percent for 2025, accelerated from 4.4 percent in 2024. The Bank of Korea estimate for South Korea's growth in 2025 despite record exports is at around 1 percent. The widening gap underscores how differently Asia’s export-driven economies are translating the semiconductor upcycle into broader growth. “The wide gap in last year’s growth rates for South Korea and Taiwan — 1 percent and 7 percent — largely reflects differences in how aggressively companies invest and the regulatory environment that supports that investment,” said Jang Sang-sik, head of the Institute for International Trade at the Korea International Trade Association, in a survey conducted by Aju Business Daily. Although South Korea and Taiwan share similar industrial structures and heavy reliance on exports, Taiwan has taken a more proactive role in removing bottlenecks related to land, electricity, water supply and permits, Jang said. He added that Taiwan also enhances policy predictability by giving advance notice of regulatory changes and collecting feedback before implementation. Regulation weighs on Korea’s growth outlook Survey respondents to New Year's survey by the Aju Business Daily pointed to South Korea’s regulatory environment as a key factor holding back investment, especially as new technologies converge with traditional industries. Experts warned that preemptive or overly restrictive regulation in areas such as autonomous driving, artificial intelligence, drones and biotechnology could stifle innovation before it reaches commercial scale. They argued that allowing companies to compete within clearly defined boundaries is more effective than imposing broad preventive controls. Criticism has also focused on South Korea’s reliance on after-the-fact enforcement. Lee Su-won, a member of the Korea Chamber of Commerce and Industry’s corporate policy team, said uncertainty over legal liability discourages bold investment decisions, mergers and acquisitions, and corporate restructuring, ultimately weakening competitiveness. Labor and governance reforms raise business concerns Concerns have intensified under the Lee Jae Myung administration as a series of labor and corporate governance reforms move forward. In the New Year survey conducted on major business organizations, corporate groups and academic experts, respondents overwhelmingly identified the so-called Yellow Envelope Act — revisions to the Trade Union and Labor Relations Adjustment Act — as the most serious risk to corporate management this year. All respondents said the law would undermine companies’ ability to make independent management decisions, with 42.9 percent saying its impact would be “very large.” The legislation expands bargaining obligations to subcontractors and limits liability for damages related to labor disputes, raising concerns about increased labor conflicts and legal uncertainty. Business groups also expressed strong reservations about revisions to the Commercial Act, including expanded directors’ fiduciary duties to shareholders, strengthened audit committee rules and mandatory cancellation of treasury shares. More than 70 percent of respondents said the first two revisions would negatively affect corporate management, while a majority also viewed the treasury-share rule unfavorably. Views were more divided on raising the mandatory retirement age to 65. While many companies said they could adapt through rehiring or internal adjustments, they warned of higher labor costs and reduced flexibility. Experts stressed that any reform should be phased in carefully and tailored by industry and company size. Call for productivity-led reform Despite differing views on specific policies, experts broadly agreed that productivity gains — particularly through artificial intelligence — will be critical to sustaining growth as Korea faces demographic decline. “We need to combine the experience of older workers with efficiency gains driven by AI,” said Yoon Won-joo, a professor at Hankuk University of Foreign Studies, calling for a “productivity revolution through AI collaboration.” Business groups urged policymakers to slow the pace of regulatory changes and clarify standards before enforcement, warning that uncertainty itself has become a major drag on investment. Several executives said clearer distinctions are needed between intentional wrongdoing and normal business judgment, arguing that excessive legal risk discourages long-term decision-making. 2026-01-02 09:53:33

Kim Jong-un's daughter makes first public visit to family mausoleum SEOUL, January 2 (AJP) - North Korean leader Kim Jong-un ushered in the new year with a visit to the mausoleum where the embalmed bodies of his grandfather and regime founder Kim Il-sung, and his father Kim Jong-il lie in state, state media reported on Friday. According to the state-run and the promotion of the people's wellbeing, true to the ideas and leadership of Kim Jong-un with single-minded loyalty," KCNA said. His customary visit drew particular attention after photos released later showed his daughter Ju-ae in attendance along with her mother Ri Sol-ju. It was the teenage girl's first attendance at such an event since making her first public appearance in 2022 in the reclusive country, while Kim has visited the mausoleum almost every year, with only occasional exceptions. Ju-ae appears to be being groomed as North Korea's next leader, although rumors persist that Kim has a son whom nobody has ever seen. Some pundits speculated that Ju-ae's front-row presence during the tribute could signal a possible succession, coming just hours after she publicly kissed her father at a New Year's Eve event. 2026-01-02 09:41:45