North Korean leader inspects factory producing multiple rocket launchers SEOUL, December 30 (AJP) - North Korean leader Kim Jong-un has urged officials to "bring about a revolution" in upgrading an artillery weapons system while inspecting a munitions factory that produces multiple rocket launchers, state media reported on Tuesday. According to the state-run Korean Central News Agency (KCNA), Kim, accompanied by a slew of military brass and key officials, visited the factory last Sunday and inspected the "production of weapons and combat equipment" to be supplied to key military units. Kim hailed the rocket launchers as a "super-powerful weapon system" that can "annihilate the enemy through a sudden, precise strike with high accuracy and devastating power, and can also be used as a strategic attack means." He also called for "further expanding the successes achieved this year and achieving greater successes through strenuous efforts" in strengthening the country’s defense capabilities in the coming year. Kim has recently made a series of public appearances including a visit to a construction site for nuclear-powered submarines and on-site inspections of missile launches and drills, in an apparent effort to promote year-end achievements ahead of the country's key party congress scheduled for early next year. 2025-12-30 10:49:50

Fractured NewJeans as Danielle and ADOR head toward legal standoff SEOUL, December 30 (AJP) - The future of NewJeans as a full five-member act has been thrown into doubt after agency ADOR unilaterally notified member Danielle of the termination of her exclusive contract, raising concerns that the group could remain divided amid ongoing uncertainty over another member's return. With Danielle effectively ruled out of future activities under ADOR and Minji's status still undecided, prospects for NewJeans resuming activities as a complete lineup appear increasingly uncertain, industry observers say. Danielle now faces the possibility of substantial legal liability, as ADOR has indicated it will pursue legal action seeking contractual penalties and damages over alleged violations of the exclusive agreement. If the claims are upheld, the financial burden could amount to hundreds of billions of won. ADOR confirmed the termination of Danielle's contract on Monday, citing alleged breaches of contractual obligations. The agency said the violations may include entering into conflicting contracts, engaging in independent entertainment activities, and actions that undermine the credibility of the company or the group. ADOR did not disclose specific details regarding Danielle's alleged misconduct. The agency also said it plans to pursue legal action against one of Danielle's family members, believed to be her mother, as well as former ADOR CEO Min Hee-jin, whom it holds partly responsible for triggering the dispute and delaying the group’s return. An ADOR official told AJP, "The termination notice leaves little room for a future settlement, and Danielle's return to the group is now considered highly unlikely." At the same time, ADOR confirmed that member Hanni has decided to return to the agency. Minji, however, remains in talks with the company. "No final decision has been made" regarding her return, an ADOR official said. NewJeans' fandom, known as "Bunnies," then issued a strongly worded statement condemning ADOR's handling of the situation. The fan group said in a statement released Monday that HYBE and ADOR had notified the termination of only one member's contract, despite all members having expressed their intention to return together. The fandom further criticized ADOR CEO Lee Do-kyung, who has led the label since August following Min's dismissal, questioning whether the legal battle to retain NewJeans was ultimately intended "to fracture the group rather than preserve it." The group also accused HYBE, ADOR's largest shareholder, and its founder Bang Si-hyuk of exercising excessive influence over the decision. ADOR, meanwhile, said the members had been exposed over an extended period to what it described as "distorted and one-sided information," leading to misconceptions about the company, and said it would provide further explanations regarding the controversy at a later date. NewJeans first announced in November 2024 that it would seek to terminate its contracts with ADOR, citing the agency's alleged failure to fulfill its obligations. After months of legal proceedings, a court in October once again ruled in favor of ADOR in its lawsuit seeking confirmation of the contracts' validity. Last month, ADOR said members Haerin and Hyein had expressed their intention to return. 2025-12-30 10:44:17

South Korean business sentiment improves for second month, but services outlook slips SEOUL, December 30 (AJP) - South Korean companies reported improved business conditions for a second consecutive month in December, supported by year-end seasonal factors, the central bank said on Tuesday. However, sentiment for the coming month weakened sharply in the nonmanufacturing sector as the seasonal boost is expected to fade. According to the Bank of Korea’s December business survey and Economic Sentiment Index, the all-industry Corporate Business Sentiment Index (CBSI) rose 1.6 points from November to 93.7, extending gains recorded the previous month. The CBSI, which combines key Business Survey Index components for manufacturing and nonmanufacturing, remains below its long-term average of 100, indicating continued overall pessimism despite the recent improvement. Manufacturing sentiment improved, with the CBSI rising 1.7 points to 94.4, supported by better funding conditions and higher production. The nonmanufacturing index climbed 1.4 points to 93.2, driven by stronger sales and improved financing conditions. The central bank said year-end seasonal effects provided a lift to nonmanufacturing activity, while manufacturing benefited from improved conditions in industries linked to U.S. capital spending. Lee Hye-young, head of the Bank of Korea’s economic sentiment survey team, said sectors such as metal processing and machinery and equipment were positively affected by U.S. investment trends. She noted that these industries include a large number of small and medium-sized firms. On currency movements, Lee said the weak won likely boosted profitability for manufacturing exporters, while companies with a high reliance on imports faced pressure on margins. The exchange rate had a more limited impact on nonmanufacturing overall, though some sectors, including wholesale, retail and trade-related industries, were affected, she added. The all-industry CBSI outlook for next month fell 1.7 points to 89.4. Manufacturing expectations rose 1.9 points to 93.6, while nonmanufacturing sentiment dropped sharply by 4.1 points to 86.6, marking the largest monthly decline since January. Lee said manufacturing expectations remained supported by industries that improved this month, while nonmanufacturing sentiment weakened as sectors that benefited from temporary year-end demand anticipated a slowdown in early 2026. The Economic Sentiment Index fell 1.0 point to 93.1, while its cyclical component increased by 0.7 point, the central bank said. 2025-12-30 10:05:16

DP floor leader resigns amid snowballing bribery allegations SEOUL, December 30 (AJP) - Kim Byung-ki, floor leader of the ruling Democratic Party (DP), resigned from his post on Tuesday amid various bribery allegations and other misconduct. "Being at the center of snowballing allegations every day, I have become an obstacle to the party and the Lee Jae-myung administration, so I have decided to step down," he said. "I'm deeply sorry and apologize to the people," he said, adding, "My actions fell far short of the public's expectations and common sense, and the responsibility lies entirely with my shortcomings." "It was difficult to accept that a single allegation was being amplified and treated as fact, rather than properly seeking the truth," Kim explained. Among a spate of allegations, he was provided with free hotel accommodation and other services worth about 1.6 million Korean won (US$1,080) by flagship carrier Korean Air in November last year, when its merger talks with rival Asiana Airlines were pending. Soon after, another controversy arose over his spouse's use of a corporate credit card and alleged preferential treatment at a hospital for his eldest son. Despite denying all these mounting allegations, he seemed increasingly pressured to step down after a recording surfaced earlier this week, suggesting he had overlooked bribery involving several DP officials who allegedly received 100 million won for candidate nominations in 2022. The DP is expected to elect a new floor leader within a month, in accordance with its internal rules. 2025-12-30 10:03:31

Naver's new AI model ranks second among Korean models in global benchmark SEOUL, December 30 (AJP) - Korea's largest internet company Naver's new high-performance reasoning AI model has been listed on a global AI evaluation index for the first time, ranking second among domestic models. Naver Cloud's HyperCLOVA X SEED Think (32B) reasoning model scored 44 points Tuesday on the Intelligence Index compiled by Artificial Analysis (AA), a global AI performance evaluation organization. The language models are tested by AA through 10 evaluation datasets, testing each models' capabilities across reasoning, knowledge, math and programming. The model trailed only Motif Technologies' Motif-2-12.7B, which scored 45 points. Other Korean models included LG AI Research's EXAONE 4.0 32B with 43 points and Upstage AI's Solar Pro2 at 38 points. Google's Gemini3 Pro and OpenAI's ChatGPT 5.0 topped the index with 73 points each. Naver's model also achieved 87 percent in an evaluation that assessed agent tool usage capabilities through a simulated telecommunications customer support scenario, the highest score among Korean AI models. Industry observers said the results demonstrate the model's potential as an omni-modal agent, a next-generation AI technology that extends beyond conventional multi-modal capabilities. Naver Cloud unveiled two omni-modal models on Monday that can simultaneously understand and generate text, images and voice from the outset, including the reasoning model HyperCLOVA X SEED Think and an upgraded version of its HyperCLOVA X platform called the Native Omni Model. 2025-12-30 09:31:54

UPDATE: Korea's factory output rebounds on chips, domestic front remains slack *Updated with additional information and market response SEOUL, December 30 (AJP) - South Korea’s factory output rebounded in November after two consecutive monthly contractions, supported by a sharp pickup in semiconductor production and increased facility investment linked to AI-driven chip demand, government data showed Tuesday. Mining and manufacturing output rose 0.6 percent from the previous month, reversing declines of 4.2 percent in October and 1.0 percent in September, according to the Ministry of Data and Statistics. Factory activity heavily reliant on semiconductors The rebound largely owed to a 7.5 percent jump in semiconductor output and external demand. Output for export shipments climbed 4.6 percent, while production for domestic sales fell 4.5 percent. The report went largely unnoticed by the Korean markets on their last trading day for 2025. KOSPI was 0.2 percent lower at 4,212.61 as of 11:25 a.m. and the U.S. dollar at 1,434.40 won. By sector, pharmaceutical exports surged 23.7 percent from the previous month, while semiconductor exports rose 11.7 percent. In contrast, refined petroleum exports declined 4.1 percent as the petrochemical industry remained mired in a prolonged downturn. Overall industrial production increased 0.9 percent from October, compared with a 2.7 percent drop a month earlier. Service-sector output edged up 0.7 percent, but retail sales slid 3.3 percent, reflecting persistent weakness in private consumption. Facility investment rose 1.5 percent on month, led by machinery investment. The increase was driven by higher spending on precision equipment, including semiconductor inspection tools, as chipmakers expanded capacity to meet AI-driven demand. Manufacturing shipments climbed 1.6 percent from the previous month. Semiconductor shipments surged 12.1 percent on month and 9.1 percent on year, while machinery equipment shipments rose 3.5 percent and 2.3 percent, respectively. Output of “other transport equipment,” dominated by shipbuilding, fell 12.4 percent on month but remained on an upward trajectory year on year, rising 17.3 percent, reflecting the start of full-scale deliveries of LNG carriers ordered under Qatar-related projects. Manufacturing inventories increased 0.6 percent from the previous month. Semiconductor inventories, however, plunged 42.6 percent from a year earlier, reflecting aggressive stockpiling amid fears of supply shortages driven by AI demand. By contrast, inventories of electrical equipment such as batteries rose 12.6 percent on month, while output in the sector fell 8 percent on year, signaling accumulation amid the prolonged electric-vehicle slowdown and repeated overseas order cancellations faced by LG Energy Solution. Refined petroleum inventories also climbed 9.9 percent, pointing to continued weakness in the petrochemical industry. Construction rebound masks deep structural slump Construction output rose 6.6 percent from the previous month, largely due to a higher number of working days compared with October, which included the Chuseok holiday, as well as year-end project completions. Building construction increased 9.6 percent on month, while civil engineering output fell 1.1 percent. On a yearly basis, however, the sector remained deeply depressed. Building construction dropped 16.1 percent from a year earlier, while civil engineering fell 19.7 percent, effectively wiping out nearly one-fifth of last year’s activity. The downturn reflects weak orders throughout 2024, driven by high interest rates and elevated construction costs. Construction orders continued to shrink, falling 9.2 percent on year. Civil engineering orders, including power plants and communication facilities, plunged 17.3 percent, while building orders declined 7.3 percent, pointing to ongoing disruptions in housing supply. The weakness also spilled into services. Real estate-related services, centered on brokerage activity, fell 2.4 percent as tighter debt service ratio (DSR) regulations and supply constraints weighed on transactions. This made real estate the only major service category to contract, even as overall service output rose 3 percent on year. Consumers pull back as financial activity surges Retail sales reversed course, falling 3.3 percent on month after a temporary October rebound fueled by holiday demand. Sales of non-durable goods such as food declined 4.3 percent amid rising prices, while semi-durable goods like clothing dropped 3.6 percent. Durable goods sales, including communication devices and computers, also fell 0.6 percent, following a spike in general-purpose semiconductor prices in November. By retail channel, sales at supermarkets and department stores dropped 4.8 percent and 8.3 percent on year, respectively, underscoring continued pressure on household spending. In contrast, the financial sector continued to expand on buoyant equity trading. Output in finance and insurance rose 2.2 percent from the previous month and 4.2 percent from a year earlier. The combined daily average trading value of the KOSPI and KOSDAQ reached 38 trillion won ($26.2 billion) in November, more than double the level a year earlier. Margin trading also exceeded 26 trillion won as of Nov. 28, highlighting a growing polarization in the economy — with capital increasingly concentrated in financial markets while consumption, construction and real estate remain subdued. 2025-12-30 09:30:29

DP, PPP at odds over probe into Unification Church-related allegations SEOUL, December 30 (AJP) - The ruling Democratic Party (DP) and the main opposition People Power Party (PPP) remain at odds over the scope of a proposed probe by independent prosecutors into bribery allegations involving the Unification Church, also known as the Moonies. Their talks were further bogged down by the DP's demand to include suspicions involving another dubious religious sect Shincheonji, despite the party's initial opposition to the probe. DP leader Jung Chung-rae said earlier this week that the probe should cover Shincheonji, citing suspicious activities by the sect. He seemed to be referring to allegations that a large number of the sect's followers joined the PPP during the 2021 presidential primary to support a specific candidate. He further pressed the PPP, saying that the DP had already drafted a bill to allow an independent third party to select prosecutors for the probe. But the PPP criticized the DP for including Shincheonji's alleged involvement only while excluding DP-related allegations, calling it a "trick" to accept the probe in appearance, only to avoid it eventually. PPP leader Jang Dong-hyuk said that if there is enough evidence, allegations related to Shincheonji could be investigated without a special probe. PPP leader Jang Dong-hyuk said that allegations related to Shincheonji could be investigated without a special probe if there is enough evidence. However, he argued that allegations involving the Unification Church are a different matter, as independent prosecutors dismissed testimony implicating political figures from the DP in related incidents. Jang urged the DP not to "water down" the issue in order to buy time and shift responsibility to the PPP. He has reportedly been considering hardline steps including a hunger strike if the two parties fail to reach a deal by Tuesday. 2025-12-30 09:20:22

Samsung Electronics taps AI startup Nota for next Exynos mobile chip SEOUL, December 30 (AJP) - South Korean artificial intelligence software firm Nota has signed a contract with Samsung Electronics to embed its AI model optimization technology in the latter's next mobile application processor, the Exynos 2600. The deal, announced Tuesday, follows an earlier agreement covering the Exynos 2500, extending a partnership aimed at boosting on-device AI performance in Samsung’s flagship chipsets. Nota, led by Chief Executive Chae Myung-soo, said its AI optimization platform, NetsPresso, can shrink AI model sizes by more than 90 percent while preserving accuracy. Samsung selected Nota again to help maximize performance and efficiency in its next strategic mobile processor, the company said. As part of the collaboration, Nota will participate in developing the next version of Samsung’s in-house toolchain, Exynos AI Studio. The company said it will focus on maintaining precision so that large generative AI models can run smoothly on smartphones and other devices without relying on cloud connectivity. Nota also plans to further automate the optimization pipeline, allowing developers to deploy the latest AI models more quickly within the Exynos ecosystem. Devices powered by the Exynos 2600, including upcoming Galaxy smartphones, are expected to offer faster and more powerful on-device AI capabilities. “This collaboration, which has continued since the Exynos 2400, demonstrates that Nota’s technology delivers tangible value when combined with Samsung’s hardware,” Chae said in a press release. Nota said it is expanding its business beyond mobile chips into areas such as robotics, home appliances and autonomous driving, leveraging lightweight AI model technology developed over the past decade. 2025-12-30 09:10:49

Nota to supply AI optimization tech for Samsung's next-gen Exynos 2600 chip SEOUL, December 30 (AJP) - Korean AI model optimization firm Nota AI said Tuesday it has signed an agreement with Samsung Electronics to supply AI optimization platform technology for the tech giant's next-generation mobile application processor, the Exynos 2600. The deal marks a consecutive contract for Nota, following its previous partnership for the Exynos 2500. Under the agreement, Nota will participate in developing the next version of Samsung's proprietary toolchain, Exynos AI Studio. Nota's hardware-aware AI optimization platform, NetsPresso, is capable of reducing AI model sizes by up to 90 percent while maintaining accuracy. The technology is designed to enable large-scale generative AI models to run smoothly on mobile devices without cloud connectivity. The partnership will also focus on automating optimization pipelines, allowing developers to implement the latest AI models in the Exynos environment more efficiently. "This collaboration, which has continued since the Exynos 2400, proves that Nota's technology is creating tangible value when combined with Samsung hardware," Nota AI CEO Chae Myung-su said. The Exynos 2600 is expected to power Samsung's upcoming Galaxy smartphone lineup. 2025-12-30 08:42:37

Coupang falls under pan-government scrutiny in Seoul despite remedy program SEOUL, December 30 (AJP) -The South Korean government maintained that it will press ahead with a sweeping investigation into Coupang despite the e-commerce giant’s announcement of a large-scale compensation plan, vowing to leave “not a single suspicion” unresolved over a massive data breach affecting nearly all of its 34 million users. Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon, who chairs a pan-government task force on the case, on Monday said the incident would be treated not only as a cybersecurity failure but also as a potential case of serious legal violations and corporate irresponsibility. “A company that has grown on the public’s trust cannot justify behavior that evades responsibility,” Bae said at a task force meeting. He said the leak of personal information involving “more than 30 million” domestic users constitutes a clear violation of the Korean law, adding that authorities will act “strictly and without exception” if wrongdoing is confirmed, applying the same standards used for all companies. The stern stance was reaffirmed after Coupang announced a 1.7 trillion won compensation plan that drew more backlash than sympathy. Coupang offered to compensate users affected by the breach with vouchers worth 50,000 won ($35) each, following mounting criticism over its handling of the incident. The total compensation package amounts to 1.685 trillion won ($1.17 billion) to cover paid subscribers as well as non-subscribers and those who closed their accounts, according to Coupang. The vouchers will be split across multiple services on the platform: 5,000 won usable for Rocket Delivery, Rocket Direct Purchase, Seller Rocket and Marketplace purchases, 5,000 won for Coupang Eats, 20,000 won for Coupang Travel, and 20,000 won for R.LUX, the company’s luxury goods platform. The compensation plan, however, has drawn mixed reactions, with consumers questioning whether vouchers — rather than cash — adequately address potential harm from a breach involving sensitive personal data. The move also comes amid mounting scrutiny over the company’s broader governance and compliance practices. The government has formed an unusually large interagency task force involving 11 bodies: the Personal Information Protection Commission, National Police Agency, Fair Trade Commission, Financial Services Commission, National Intelligence Service, Korea Communications Commission, Ministry of Employment and Labor, Ministry of Land, Infrastructure and Transport, National Tax Service, Ministry of Foreign Affairs, and the Ministry of SMEs and Startups. Officials said such a broad joint response for a single company is rare, describing the case as a test of Korea’s ability to protect personal data in the platform economy while ensuring worker safety and fair market order. Under the coordinated probe, authorities plan to apply pressure through investigations, penalties and possible policy reforms. The science ministry will analyze the technical causes of the breach and vulnerabilities in Coupang’s security systems. The Personal Information Protection Commission will determine the precise scope of leaked data and whether the company violated the Personal Information Protection Act. Police will analyze seized materials and work with overseas agencies to identify suspects. The Financial Services Commission will review risks of fraudulent transactions stemming from the leak, including whether consumers were steered toward high-interest financial products. The Fair Trade Commission said it is considering sanctions — including possible business suspension — while assessing risks of identity theft and broader consumer harm. The Fair Trade Commission and the Korea Communications Commission are also investigating whether Coupang’s membership cancellation process violates the E-Commerce Act or the Telecommunications Business Act, including the possible use of so-called “dark patterns” that make it difficult for users to cancel subscriptions. Labor authorities will conduct on-site inspections into overnight work conditions and whether adequate measures were in place to protect workers’ health. The transport ministry said it will work with the National Assembly’s Euljiro Committee to prepare institutional measures to improve conditions for Coupang delivery workers. “This case goes beyond personal data,” Bae said. “It concerns public safety, fundamental rights and corporate responsibility.” He added that the government will respond “as one team” and pursue the investigation through to the end so the public can feel safe. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-30 08:02:57