OPINION: Why Beijing cannot tolerate Tokyo's remark related to Taiwan Strait Recent comments by Japanese leaders linking a Taiwan Strait contingency to Japan’s “survival crisis” have triggered a strong response from China. During recent conversations, many South Korean acquaintances asked why Beijing reacted so forcefully. China considers a firm response not only necessary, but also legitimate — and I hope this commentary clarifies Beijing’s position for Korean readers. First, Japan is interfering in China’s internal affairs and challenging China’s core interests. For China, Taiwan is an inalienable part of its territory and the Taiwan question lies at the very core of China's national interests. The fact that national reunification has not yet been achieved remains a source of deep historical pain for 1.4 billion Chinese people. How the Taiwan question is eventually resolved is solely a matter for the Chinese people, and no external interference is acceptable. A Japanese leader’s statement that a Taiwan contingency would constitute “a crisis for Japan’s survival,” and could justify the exercise of collective self-defense, signals — for the first time in official context — an openness to using force over the Taiwan issue. This constitutes a clear violation of China’s sovereignty and a major provocation. Many within Japan and the international community have also expressed alarm. To safeguard its sovereignty and territorial integrity, China must respond resolutely. Second, Japan is evading historical responsibility and breaking its diplomatic commitments. Japan bears heavy historical responsibility for its occupation and colonization of Taiwan from 1895 to 1945, during which it carried out massacres, resource exploitation, forced assimilation and conscription. Japan must fully acknowledge and atone for these historical crimes. When China and Japan normalized diplomatic relations, Beijing established three basic principles centered on strict adherence to the one-China principle. All four political documents signed thereafter explicitly address Taiwan. These commitments — with the force of international law — leave no room for reinterpretation. Recent remarks by a Japanese leader disregard these obligations and undermine trust. To preserve the political foundation of China-Japan relations, China must respond firmly. Third, Japan is undermining the postwar order and signaling a revival of militarism. Major international legal documents — the Cairo Declaration, the Potsdam Declaration and Japan’s Instrument of Surrender — confirmed China’s sovereignty over Taiwan and compelled Japan to return territories it had taken. Together with U.N. Resolution 2758, these form the basis of the postwar order. Japan’s linkage of the Taiwan issue to its own “survival crisis” denies these documents and challenges the U.N. Charter. Historically, Japan invoked similar justifications to expand its military and wage aggression under the guise of self-defense. Today, less than a month after a new government took office, Japan has rolled out ambitious military expansion plans while amplifying tensions around Taiwan — raising legitimate concerns about the revival of militaristic tendencies. To protect the outcomes of World War II and uphold peace and stability, China must react decisively. China has consistently sought stable, mutually beneficial relations with Japan and values cooperation among the three Northeast Asian neighbors. But on fundamental issues of sovereignty, principle and historical truth, China will not compromise. This year marks the 80th anniversary of China’s victory in the War of Resistance Against Japanese Aggression and Korea’s liberation. Both China and Korea have actively commemorated this history to defend truth and uphold justice. Japan, as a defeated state with a legacy of militarist aggression, should have used this important year to reflect deeply, reaffirm its commitment to peaceful development and rebuild trust with its neighbors. Instead, its recent rhetoric has heightened regional anxiety, prompting strong reactions across Asia and the global community. China’s response is rational, lawful and entirely justified. It defends China’s dignity and interests, upholds international justice and contributes to regional peace. I trust that the South Korean public will understand and support China’s position. * The author is the Chinese ambassador to South Korea. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 11:03:46

Kakao Healthcare steps up digital healthcare push with distribution deal with US firm SEOUL, December 12 (AJP) - Kakao Healthcare said Friday it has signed an exclusive supply agreement with Dexcom, giving the South Korean digital health platform sole distribution rights for Dexcom's continuous glucose monitoring (CGM) products in South Korea. Dexcom is a U.S.-based medical technology company specializing in CGM systems for people with diabetes. Under the deal, the two companies will expand real-time blood glucose management services using Dexcom’s CGM lineup, including the Dexcom G7. Kakao Healthcare will oversee domestic distribution and market operations to broaden access to CGM devices and grow the user base amid rising demand for digital health services. Kakao Healthcare said it aims to integrate its platform technology with Dexcom’s biosensing capabilities to advance data-driven chronic disease management and develop more precise, personalized health models. The agreement follows roughly 18 months of collaboration. Dexcom reviewed Kakao Healthcare’s technology, digital infrastructure and distribution potential before formalizing the partnership. The companies also plan to widen their focus beyond glucose monitoring by incorporating lifestyle data — such as exercise, diet, sleep and stress — to enhance personalized care services. Kakao Healthcare said the partnership will help strengthen its AI- and mobile-based healthcare platform, improve digital tools and engagement systems, and expand its omnichannel care offerings to solidify its position in the domestic digital health market. “Through our partnership with Kakao Healthcare, access to Dexcom G7 in South Korea will improve and our vision for global digital connectivity will advance,” Jennifer Cho, Dexcom’s head of APAC, said in a press release. She said the collaboration reflects Dexcom’s commitment to incorporating AI-driven digital features into future products. Kakao Healthcare CEO Hwang Hee said the extended collaboration has deepened the relationship between the two companies and is expected to support expansion into hospital services through synergies with Cha CareS and Cha AI Healthcare under South Korea’s Cha Bio Group. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 10:57:23

South Korean crypto fraudster sentenced to 15 years in prison SEOUL, December 12 (AJP) - Crypto fraudster Kwon Do-hyeong, also known as Do Kwon, was sentenced to 15 years in prison on fraud charges by a U.S. federal court in New York on Thursday. The so-called "Cryptocrash King" was behind the spectacular collapse of the TerraUSD and Luna cyber that wiped out more than US$40 billion in losses to investors in the U.S. and around the world. "This was a fraud on an epic, generational scale. In the history of federal prosecutions, there are few frauds that have caused as much harm as you have," the court said. Kwon apologized to his victims, saying, "All of their stories were harrowing and reminded me again of the great losses that I've caused. I want to tell these victims that I am sorry." Thursday's sentencing is slightly higher than what was sought under part of a plea bargaining deal last August. At the time, the former entrepreneur of Singapore-based Terraform Labs, who faced a maximum penalty of 130 years in prison, admitted to charges of conspiracy to defraud and wire fraud, with prosecutors agreeing not to seek a sentence longer than 12 years while confiscating around $26.5 billion and other assets. U.S. authorities are also expected to allow him to serve the remainder of his prison term in South Korea under an international prisoner transfer program if he serves half of his sentence and abides by his plea deal. But there remains a chance that he could face separate charges here, if he eventually manages to return to Seoul. Kwon was extradited to the U.S. from Montenegro in last December, where he was arrested in March 2023 while attempting to board a flight using several forged passports. 2025-12-12 10:43:22

Hyundai Motor Group to supply 224 hydrogen buses to Guangzhou SEOUL, December 12 (AJP) - Hyundai Motor Group said Friday that its Chinese fuel-cell unit, HTWO Guangzhou, has won a contract to supply hydrogen-powered city buses to Guangzhou State-owned Bus Group, marking the largest single hydrogen bus procurement project in China to date. Under the project, HTWO Guangzhou will supply 224 buses to the Guangzhou operator. Hyundai said the order represents a significant milestone in its efforts to expand its hydrogen mobility footprint in China. The vehicles are 8.5-meter hydrogen electric buses jointly developed by HTWO Guangzhou and Chinese commercial vehicle maker Kaiwo Group, the company said. The buses are equipped with HTWO Guangzhou’s 90-kilowatt hydrogen fuel-cell system, which offers 64 percent power-generation efficiency — higher than conventional internal combustion engines — and a driving range of up to 576 kilometers under local testing standards. The latest contract follows a separate tender last month, in which HTWO Guangzhou and Kaiwo Group secured the largest share of orders — 25 out of 50 hydrogen buses — from the same public bus operator. An HTWO Guangzhou official said the deployment will reinforce the company’s position in the hydrogen energy sector. As Guangzhou designates hydrogen as a key tool to reduce transport emissions and improve energy efficiency, the project is expected to accelerate the city’s transition to cleaner public transport infrastructure, the official added. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-12-12 10:35:49

KakaoBank's collaboration with Indonesia's Superbank gains momentum with 'Lucky Card' rollout SEOUL, December 12 (AJP) - KakaoBank is deepening its partnership with Indonesian digital lender Superbank, its first overseas equity investment, as the South Korean internet-only bank steps up efforts to expand abroad. KakaoBank said on Friday it advised Superbank on the launch of a new financial product, following a financial consulting agreement signed between the two companies in November last year. Under the deal, KakaoBank has been sharing its mobile banking expertise and service-planning know-how to help Superbank introduce new digital services in Indonesia. Superbank, backed by Grab and in which KakaoBank acquired a 10 percent stake in 2023, represents the Korean bank’s first major push into international markets. Since its investment, KakaoBank has supported Superbank’s product design, app interface development and service rollout, using the collaboration to build its own overseas capabilities. The new product, “Kartu Untung (Lucky Card)," was developed over roughly a year based on an idea proposed by KakaoBank. The Korean lender participated in product planning and mobile design throughout the development process. The savings feature allows customers who deposit 50,000 rupiah (about 5,000 won) to draw a daily lottery-style cashback reward via the Superbank app. Kartu Untung incorporates KakaoBank’s experience in revamping savings offerings — such as its 26-week installment savings and group account products — and adds gamified elements designed to boost engagement. The product gained traction quickly, signing up more than 100,000 customers within two weeks of launch. Superbank has been growing rapidly, supported by access to the ecosystems of its major shareholders. The lender now has around 5 million users, with about 60% coming through Grab and digital wallet service OVO, underscoring the synergy among stakeholders. Its expansion is expected to improve KakaoBank’s investment returns. Superbank became profitable on a quarterly basis just nine months after launch and, on the back of its performance and growth momentum, plans to list on the Indonesia Stock Exchange this month. A KakaoBank official said the partnership has helped raise the company’s visibility in Southeast Asia and demonstrated the technological capabilities of South Korea’s digital finance sector. The bank plans to form consortiums with major international partners to pursue new business opportunities and extend its global footprint. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 10:14:42

Subway workers in Seoul call off strike after last-minute agreement SEOUL, December 12 (AJP) - Unionized subway workers in Seoul on Friday called off their planned full-scale strike after reaching a last-minute deal with management, averting major disruptions to the morning rush hour. Seoul Metro, which operates subway lines 1 through 8, said it reached an agreement early in the morning after overnight marathon negotiations. The workers had earlier threatened to strike from the first trains of the day unless their demands for higher wages, the hiring of more staff, and a halt to large-scale layoffs and pay cuts were met. Negotiations with workers from other unions also concluded in separate agreements later on. The key sticking point in the negotiations was staffing. Both sides agreed to hire approximately 820 workers to fill existing vacancies, with an additional 180 recruits for extended operations to be hired later through a separate process. The two sides also resolved other issues related to wages and working conditions by narrowing their differences. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 09:37:14

Celltrion secures major U.S. formulary deal for biosimilar Avtozma SEOUL, December 12 (AJP) - South Korean biopharmaceutical company Celltrion said Friday it has secured formulary inclusion for its autoimmune disease treatment Avtozma with Synergie Medication Collective, a major pharmacy benefit manager (PBM) formed by several Blue Cross and Blue Shield companies in the United States. The intravenous formulation of Avtozma, a biosimilar of Roche's tocilizumab, has been listed as a preferred drug across all public and private insurance formularies managed by Synergie Collective. Patient reimbursement coverage will take effect in January, paving the way for accelerated prescription growth in the world's largest pharmaceutical market. The agreement marks Celltrion's second major coverage win since launching Avtozma in October, following its earlier inclusion in Blue Cross and Blue Shield's Minnesota formulary. Celltrion's U.S. subsidiary has completed the deployment of specialized sales personnel for the rheumatoid arthritis segment, Avtozma's primary indication. A subcutaneous formulation of the drug is slated for release in the first half of next year, which the company expects will further strengthen its market position. "All products we launched in the U.S. market this year, including Avtozma, Stekima and Stoboclo-Osenvelt, have been smoothly listed on major PBM formularies, successfully laying the groundwork for accelerating patient prescriptions," said a Celltrion spokesperson. The top five PBMs control more than 90 percent of the U.S. prescription drug reimbursement market, making their formulary decisions a critical factor for commercial success in the country. 2025-12-12 09:33:09

Foreign investors turn net sellers of Korean stocks in November SEOUL, December 12 (AJP) - Foreign investors sold more than 13 trillion won ($9.7 billion) worth of South Korean equities in November, turning net sellers for the first time in six months, while resuming net purchases of local bonds. According to the Financial Supervisory Service (FSS) on Friday, offshore investors recorded net equity sales of 13.4 trillion won. They offloaded 13.5 trillion won on the Kospi but were modest net buyers on the Kosdaq, purchasing 118 billion won. Foreign investors held 1,193 trillion won in listed equities and 322 trillion won in listed bonds as of the end of November, a combined total of 1,515 trillion won. Equity holdings fell 56.1 trillion won from October due to the sell-off, while bond holdings rose 14.6 trillion won on renewed net investment. European investors posted the largest net equity sales at 5.7 trillion won, followed by investors from the Americas with 3.6 trillion won and Asia with 2.7 trillion won. By country, the United Kingdom and the United States were the biggest net sellers, unloading 4.5 trillion won and 4.1 trillion won, respectively. Canada and Ireland were net buyers, at 500 billion won and 400 billion won. U.S. investors remained the biggest equity holders with 489 trillion won, or 41 percent of the total, followed by European investors with 375.3 trillion won (31.5 percent), Asian investors with 164.8 trillion won (13.8 percent) and Middle Eastern investors with 19.8 trillion won (1.7 percent). In the bond market, foreigners bought a net 17.62 trillion won in listed bonds in November and saw 1.37 trillion won mature, resulting in net investment of 16.25 trillion won. European investors led net bond purchases with 9.6 trillion won, followed by Asian investors with 4.5 trillion won and investors from the Americas with 1.7 trillion won. By holdings, Asian investors accounted for the largest share at 42.7 percent (137.2 trillion won), while European investors held 37.1 percent (119.2 trillion won). * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 09:30:18

Weaker won sends Korea's import prices up to a 19-mo high SEOUL, December 12 (AJP) -South Korea’s import prices climbed in November despite a sharp pullback in global fuel costs, as the won’s depreciation against the U.S. dollar outweighed relief from cheaper energy, Bank of Korea data showed Friday. The import price index rose 2.6 percent on month and 2.2 percent on year to 141.82, accelerating from October’s 138.19 and posting the steepest monthly increase since April last year. The gains came even as Dubai crude averaged $64.47 per barrel in November, down from $65 in October, highlighting the dominant impact of exchange-rate movements on the country’s trade conditions. The dollar averaged 1,457.77 won in November — up 2.4 percent from the previous month and 4.6 percent from a year earlier — amplifying import costs across major categories. Raw materials rose 2.4 percent, led by higher natural gas prices, while intermediate goods such as computers and electronic components climbed 3.3 percent. Capital goods increased 1.5 percent and consumer goods 1.8 percent. Some inputs central to Korea’s industrial base posted sharp jumps. Lithium hydroxide surged 10 percent, and flash memory prices leapt 23.4 percent, reflecting a surge in chip-fabrication activity. Bank of Korea price statistics chief Lee Moon-hee cautioned that volatility remains elevated. “The average exchange rate from December 1 to 10 rose by 0.8 percent from the previous month,” he said. “Given the uncertainty, we need to monitor exchange rate fluctuations until the end of the month.” A weak won, however, proved supportive for exporters. The export price index climbed 3.7 percent on month and 7.0 percent on year to 139.73, boosted by a broad-based jump in semiconductor prices. DRAM led the gains with an 11.6 percent rise amid persistent supply tightness. When measured in U.S. dollars, import prices increased 0.7 percent in value and 4.3 percent in volume, while export prices surged 9.1 percent in value and 6.8 percent in volume, improving overall trade conditions. South Korea’s net terms of trade index rose 5.8 percent on year, marking 29 straight months of improvement. Export prices gained 2.1 percent, far outpacing the 3.4 percent decline in import prices, while the volume-based index jumped 13 percent, signaling strengthened purchasing power for the economy. 2025-12-12 07:53:01

OPINION: The compass for Seoul's FX policy now points to Tokyo The Federal Reserve has cut its rate target range again this week, but the news barely rippled across Korean markets. The dollar strengthened, Korean stocks softened and yields inched upward — hardly the reaction one expects after a major policy decision from Washington. That muted response reflected an important shift in global finance: the Fed may still set the rhythm, but it no longer commands the stage. Markets registered the U.S. rate cut and immediately turned their gaze to Japan, where far more consequential changes are brewing. For more than a decade, investors have been conditioned to read every signal from the Fed as a defining market event. This time, they moved on. And they were right to. The Fed’s third consecutive cut — bringing the policy range to 3.50–3.75 percent — was fully anticipated and delivered with unmistakable caution. This was not a return to accommodative policy; it was a technical adjustment in an environment where the Fed’s room for maneuver is limited. The narrowing of the U.S.–Korea rate gap may ease some pressure on the won, but it won’t reverse the powerful outward flow of Korean capital into global markets. Nor does it free the Bank of Korea from its domestic constraints, including a housing market sensitive to any hint of loosening. Simply put, the U.S. rate cut has already played its part. The story now moves elsewhere. Japan’s Shift Is the Real Disruptive Forc Japan, long the quiet spectator in global monetary dynamics, is suddenly the decisive variable. After decades of anchoring global liquidity with near-zero rates, the Bank of Japan is edging toward normalization. Even a modest rate hike — a move unremarkable in most economies — would send tremors through the global financial system. That is because the yen carry trade is not a niche strategy; it is a structural pillar of global liquidity. Trillions of dollars in positions worldwide have been built on the assumption that Japanese money will remain cheap, the yen will stay weak and volatility will remain low. These conditions are evaporating. Japan’s 10-year government yield has been pressing toward multi-decade highs, speculative yen shorts are stretched and the currency is no longer one-directional. Markets know the implications. Every major episode of global market stress over the last 25 years — from the 1998 Asian crisis to the 2008 collapse, to the 2015–16 turbulence and the early-2020 shock — involved a surge in the yen and a disorderly unwinding of leveraged positions. Japan’s normalization would not merely shift sentiment; it would reprice risk across every major asset class globally. In that sense, the Bank of Japan’s next step is not a regional issue. It is the defining global risk of the coming year. Korea Lies Directly on the Fault Line Korea is one of the markets most exposed to this shift — not because its fundamentals are weak, but because it sits at the intersection of global capital flows shaped by both the United States and Japan. A disorderly carry-trade unwind would push up volatility in the won, trigger foreign rebalancing and pressure both equities and bond yields. But Korea also stands to benefit if it positions itself strategically. As rate differentials across the United States, Japan and Korea narrow, and as weaker emerging markets struggle with instability, Korea’s institutional credibility and relative resilience could enhance its standing as a safe regional alternative. The opportunity is real — but only if it is earned through preparation, not assumed by default. Policy Must Catch Up With Reality Korea’s macro playbook must evolve as the global axis of risk shifts. First, monitoring Japan must become as central as tracking the Fed. The yen’s trajectory, Japanese government bond yields, shifts in speculative positioning — these are now core indicators, not peripheral curiosities. Second, Seoul must treat interest rates, currencies and capital flows as an integrated system. Fragmented management will not withstand the level of volatility Japan could unleash. Third, Korea must strengthen its market infrastructure. Thin liquidity in FX and derivatives markets amplifies shocks. That vulnerability is no longer tolerable. Fourth, the country must communicate risk more directly to households and retail investors, whose aggressive overseas allocations have become a structural feature of the Korean market. The volatility ahead is not cyclical; it is systemic. The U.S. rate cut may dominate headlines, but it is no longer the hinge on which the global financial system turns. Japan’s slow exit from ultra-loose monetary policy represents a far more consequential shift — one that could reshape liquidity, valuations and volatility across the world. Korea does not get to choose whether this transformation happens. It only gets to choose how prepared it will be. What is clear is that the axis of global financial risk has already begun to tilt. It is no longer aligned solely with Washington. It is moving unmistakably toward Tokyo. And Korea’s ability to navigate the next phase depends on how quickly it internalizes that change. * The author is the managing editor of AJP. 2025-12-11 19:52:42