South Korea's fixated weak won calls for a long-term policy reset SEOUL, December 09 (AJP) - South Korea is running out of quick fixes. With the local currency stuck in the band of 1,470 won per dollar for nearly a month and inflation pressures reawakening, economists say the country can no longer rely on ad-hoc tools, verbal interventions, or temporary tax cuts to stabilize forex. Instead, the entrenched weakness of the won is exposing the need for a fundamental, long-term overhaul of the nation’s macroeconomic, energy-import, and capital-flow policies. The won slipped below 1,470 won on Monday, presumably through interventionist hands. The currency has risen for five straight months—from an average of 1,366.95 won in June to 1,469.48 won in December, a 7.5 percent jump—enough to unsettle inflation that had only recently begun to stabilize. Already, the import price index spiked 1.9 percent in October, the fastest pace since January, pushing domestic supply prices up 0.9 percent. Consumer inflation, at 2.4 percent, risks drifting higher as companies face steeper dollar-denominated input costs and begin passing them on. The Bank of Korea and global investment banks now expect inflation to hover near or slightly above 2 percent next year. When a Weak Won Stops Being a “Phase” The deeper concern is that the weak-won environment may no longer be a passing cycle but the country’s new structural baseline. A Bank of Korea study estimates that if a 10 percentage-point depreciation persists for more than three months, annual inflation rises 1.61 percentage points—a hit that could dull any nascent recovery in private consumption. That emerging pattern is already visible at the small-business level. Even after government-backed spending coupons lifted third-quarter sales by 5.3 percent year-on-year, profits still fell 4.63 percent from the previous quarter because of elevated costs, according to KB Securities. “Domestic demand is improving, but inflation pressure is strengthening in parallel, weakening the elasticity of the recovery,” said economist Ryu Jin-i. She expects consumer prices to peak in the third quarter of next year, pushing the central bank into a difficult trade-off between growth and inflation. Policy Ambiguity Is Becoming Its Own Risk Markets say they cannot tell whether the government sees the won’s weakness as structural or temporary—and that uncertainty is beginning to carry its own costs. Standard verbal warnings about “excessive one-sided moves” have had virtually no effect, largely because foreign inflows remain tepid and dollar demand remains firm. A brief episode involving the National Pension Service’s (NPS) hedging strategy fueled further confusion. Officials suggested higher hedging ratios could stabilize the won by increasing demand for the currency, only to backtrack after public pushback over using pension assets for currency management. Deputy Prime Minister Koo Yun-cheol later stressed that the government had no intention of “mobilizing the pension fund as a temporary tool”—a clarification that left markets questioning the strategic coherence of the policy framework. Other inflation-containment tools—fuel tax cuts, emergency tariffs, and public-fee restraint—have been stretched to their limits. The country’s longest-standing fuel-tax reduction is still in effect. Tariff relief for grains and raw materials has been repeated so often its impact is fading. And public-utility price controls are hard to sustain if the weak-won trend continues. At a recent policy briefing, Presidential Policy Chief Kim Yong-beom outlined three priorities: encouraging the repatriation of Korean companies’ overseas profits, examining retail investors’ overseas investment risks, and reassessing the NPS’s hedging framework. Yet each carries structural tension—tax architecture, capital-market liberalization principles, and pension-fund fiduciary duty—that makes them difficult to execute swiftly. Structural Pressures Mount Behind the Scenes Economists warn that the country’s 40-month run of Korea–U.S. interest-rate inversion continues to siphon funds into higher-yielding foreign assets. “Intervening with ten billion dollars stabilizes the market for a day or two at most,” said Hansung University’s Kim Sang-bong. “These are not fundamental solutions.” Corporate hedging behavior also reflects the shift: currency-risk insurance purchases fell 32.7 percent in the first 11 months of the year, and plunged 45.8 percent in October alone—evidence that companies now see the high exchange rate as the new normal. Meanwhile, Korea’s heavy dependence on imported energy and food magnifies its exposure. A government plan to import 100 billion dollars of U.S. energy over four years diversifies away from the Middle East but raises transportation and logistics costs. Japan and China have aggressively pursued food-supply diversification; Korea’s efforts remain tentative by comparison. Even raw-material reserves are feeling the squeeze. The Public Procurement Service raised its nonferrous metal stockpiling budget to 80 billion won, but the same money now buys less because of rising global prices and the weaker currency. A Moment to Rebuild Fundamentals Although Korea’s current-account surplus—bolstered by a rebound in semiconductor exports—helps cushion capital outflows, economists emphasize that a long-term remedy lies not in patchwork interventions but in reinforcing macroeconomic fundamentals and improving the domestic investment environment. “Instead of relying on short-lived measures, it is time to redesign the policy framework from the ground up,” said Seoul National University economist Ahn Dong-hyun. “Korean companies are investing more abroad than they are reshoring. Regulatory improvements and a stronger domestic base are essential to reversing that trend.” For now, the won remains pinned near 1,470 won per dollar—an indicator not just of currency markets but of a broader strategic question: whether Korea’s policymakers can shift from crisis response to a durable, forward-looking policy architecture that prevents the weak-won, high-inflation cycle from becoming a structural feature of the economy. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-09 07:36:00

For South Korean stars, fame comes with a lasting moral burden SEOUL, December 08 (AJP) - Comedian Park Na-rae has become the latest South Korean celebrity to disappear from public view after failing to withstand the country’s notoriously unforgiving ethical expectations for public figures. After a monthlong barrage of online criticism and allegations of workplace mistreatment from former managers, Park announced Monday she would “step away” from entertainment until the controversy is fully resolved. Her departure leaves a slate of major shows abruptly vacant — including MBC’s “I Live Alone” and “Where Is My Home,” tvN’s “Amazing Saturday,” and JTBC’s YouTube series “Narae-sik.” MBC also canceled production of its upcoming variety program “I’m Excited Too,” which had planned to feature Park as a lead. The scandal escalated after entertainment outlet Dispatch reported Thursday that Park’s former managers filed a provisional seizure application against her property at the Seoul Western District Court and are preparing a damages suit, citing alleged workplace bullying, verbal abuse, “special assault,” and improper requests such as picking up medical prescriptions. Park’s fall comes amid a widening wave of celebrity reckonings. Just days earlier, actor Cho Jin-woong admitted he spent time in a juvenile detention center for crimes committed as a teenager — a revelation that immediately put the airing of tvN’s highly anticipated “Signal 2” in doubt despite the series already being completed. Comedian Cho Se-ho is also under intense scrutiny after online posts linked him to an organization behind illegal online gambling operations. A Fame Economy Built on Morality The swift collapses reflect something deeply embedded in South Korean popular culture: celebrities are expected to embody a standard of moral cleanliness that far exceeds that of ordinary citizens. A 2024 Korea Research survey found: 71 percent of Koreans consider entertainers to be public figures, second only to politicians (90%). Nearly 9 in 10 expect celebrities to demonstrate modesty and good manners, 88 percent believe the public has a right to know about alleged drug use or involvement in illegal sex trade, 82 percent say infidelity or bullying should be exposed, and more than 75 percent say even “minor offenses” such as public drunkenness justify public disclosure. This moral rigor is part of what Professor Shim Seok-tae, chair of the Korean Society for Media Law and professor at Semyung Graduate School of Journalism, calls “a society that consumes morality.” “Entertainers make a living off people’s curiosity. Popularity isn’t a right — it’s something they earn and must maintain,” Shim said. “The more they attract attention, the more people feel entitled to know about them. It’s a form of voluntary exposure.” He notes that modern entertainment — reality TV, vlogs, Instagram — thrives on curated intimacy. Home tours, daily routines, and personal confessions become commodities, blurring the boundary between private and public selves. “It’s hard to say public interest in their private lives is always wrong,” Shim added. “The problem is excess — when coverage becomes invasive rather than relevant to their public image or work.” The Higher the Fame, the Heavier the Fall The moral demand is not merely theoretical. It has produced devastating consequences. Actor Lee Sun-kyun, celebrated globally for his role in Parasite, took his own life in 2023 amid a ferocious media storm over drug allegations — a sharp rupture from the “gentle, earnest” persona he embodied in “My Mister.” Cho Jin-woong’s case carries cultural weight of its own. “Cho wasn’t an ordinary actor — he is associated with works tied to Korea’s independence fighters,” Shim noted, implying that the moral expectations rise further when a star’s repertoire intertwines with national narrative. South Koreans also do not easily forgive or forget: Actress Kim Min-hee has not appeared in commercial films or advertisements since her affair with director Hong Sang-soo became public in 2016. Actor Yoo Ah-in has been unable to work domestically for nearly three years due to ongoing drug-related investigations. In each case, an individual controversy transformed into a career-halting judgment rendered by the broader public. Cultural Identity, Trust, and K-pop’s Global Legacy At its core, Korea’s moral scrutiny reflects deeper questions about representation, aspiration, and trust. Celebrities here are not treated merely as entertainers; they are brand ambassadors, moral symbols, and often extensions of a collective national identity. This perception has long underpinned K-pop’s universal appeal — discipline, civility, decency, and emotional intelligence — values that are marketed globally as quintessentially Korean. But the double-edged sword is evident. “Our society’s double standards are part of the problem,” Shim said. “We consume scandal like entertainment, yet insist the entertainers themselves remain spotless. The same attention that creates stars can also kill them.” In an economy of fame where intimacy is currency and morality is a performance, the price of being famous in South Korea remains extraordinarily high — and increasingly, unsustainable. 2025-12-08 17:59:32

KOSPI closes higher on LGES battery deal while Chinese and Japanese markets stay flat SEOUL, December 8 (AJP) - The South Korean stock market saw gains on Monday, while other major Asian markets including Japan and China, remained flat. South Korea's benchmark KOSPI rose 1.3 percent to close at 4,154.85, while the junior KOSDAQ edged up 0.3 percent to finish at 927.79. Memory chip giant Samsung Electronics gained 0.9 percent, closing at 109,400 won (US$75), and rival SK hynix rose 5.2 percent to 573,000 won. LG Energy Solution, the third-largest company in terms of market capitalization, climbed 5.6 percent to 450,000 won, apparently buoyed by its announcement of signing a major supply deal with German automaker Mercedes-Benz AG worth 2.06 trillion won ($1.4 billion). The deal, which covers markets including North America and Europe, will run from March 2028 to June 2035. Despite the overall rise of KOSPI, stocks of major talent mills all declined, with HYBE falling 0.3 percent to 289,000 won, JYP Entertainment 1.2 percent to 67,600 won, SM Entertainment 2.3 percent to 102,000 won, and YG Entertainment 1 percent to 61,500 won. Notably, eco-friendly battery maker EcoPro's stock hit a new 52-week high during mid-trading, which many speculated was driven by the anticipated move of the tech-heavy KOSDAQ's top-ranked Alteogen to the KOSPI. This sparked investor interest in the No. 2 and No. 3 stocks — EcoPro BM and EcoPro — as they were expected to become the next leading stocks. EcoPro BM surged 8.5 percent to 173,300 won, while its holding company, EcoPro, jumped 21.3 percent to 117,500 won. Meanwhile, in Japan, the Nikkei 225 rose 0.2 percent to 50,581.94. Among major Japanese firms, Toyota rose 0.9 percent to 3,060 yen ($20), and Hitachi gained 0.6 percent to 4,911 yen. Mitsubishi UFJ Financial Group, Japan's second-largest company by market value, fell 1.2 percent to 2,498.5 yen. SoftBank dropped 3.3 percent to 18,655 yen, and Sony edged down 0.7 percent to 4,300 yen. Looking at other major market players, Nintendo fell 1.4 percent to 12,320 yen, Honda rose 0.6 percent to 1,528.5 yen, and Canon gained 1.0 percent, ending at 4,576 yen. In China, the Shanhai Composite Index gained 0.5 percent to 3,924.08. 2025-12-08 17:58:33

KAIST researchers develop water spray purifier capable of removing dust without filters SEOUL, December 08 (AJP) - A research team at the Korea Advanced Institute of Science and Technology (KAIST) announced on December 8 that developers had created a novel air purification technology capable of removing 99.9% of fine dust without the use of filters, mechanical pumps, or noise, while emitting zero ozone. The research team, led by Department of Materials Science and Engineering Professor Kim Il-Doo and Department of Mechanical Engineering Professor Lee Seung-Seop, successfully created a "self-pumping water electrospray" device. The system combines ultra-low power consumption with high-efficiency particulate removal, addressing the limitations of traditional HEPA filters and electrostatic precipitators. Conventional air purifiers rely heavily on High Efficiency Particulate Air (HEPA) filters, which require regular replacement and significant energy to force air through dense material. Alternatively, existing electrostatic purifiers often generate ozone—a harmful respiratory irritant—as a byproduct of corona discharge. The KAIST team’s innovation circumvents these issues by utilizing "water electrospray" technology, which generates microscopic, electrically charged water droplets to trap dust particles in the air. According to the researchers, the core of the innovation lies in the integration of Professor Lee’s "ozone-free water electrospray" and Professor Kim’s "hygroscopic nanofiber" technology. The system features a unique "self-pumping" mechanism where water is drawn up through a nanofiber wick and polymer microchannels via capillary action, eliminating the need for a mechanical pump. In laboratory tests conducted in a 0.1 m³ chamber, the device successfully removed 99.9% of particulate matter ranging from PM0.3 to PM10 within 20 minutes. Notably, it eliminated 97% of PM0.3—particles less than 0.3 micrometers in diameter, which are notoriously difficult for standard filters to capture—in just five minutes. The system demonstrated high stability, operating continuously for 50 hours without performance degradation. It is also exceptionally energy-efficient, consuming only 1.3 Watts of power—roughly half the energy required by a standard HEPA purifier and less than a smartphone charger. Water consumption was recorded at less than 0.4 milliliters per hour. Crucially, the team confirmed the device produces no detectable ozone, maintaining a safe indoor environment while filtering pollutants. The technology is currently being commercialized through A2US Co., Ltd., a faculty startup founded by Professor Lee Seung-Seop. The company has already been recognized with an Innovation Award ahead of CES 2025. A2US plans to release a portable air purifier based on this technology in 2026. The commercial unit is expected to handle not only fine dust but also odors and airborne pathogens. Research findings were published on November 14 in Advanced Functional Materials, a leading international journal in the field of materials science, under the title "Self-pumped Hygroscopic Nanofiber Emitter for Ozone-free Water Electrospray-based Air Purification." The study was supported by the National Research Foundation of Korea, the Ministry of Science and ICT, and the KAIST-MIT Future Energy Research Center. 2025-12-08 17:57:21

Korean big-box retailers shrink under decade-old regulations SEOUL, December 08 (AJP) - South Korea’s largest hypermarket chains are steadily losing ground as long-standing regulatory constraints undermine their competitiveness while e-commerce and less-regulated rivals expand, industry data show. The total number of outlets operated by major chains — including E-Mart, Lotte Mart and Homeplus — fell 7.5 percent to 392 this year from 424 in 2017. E-Mart reduced its store count from 159 to 157, Lotte Mart from 123 to 112, and Homeplus from 142 to 123. The contraction has been accompanied by declining revenues. Combined annual sales at the three chains fell below 30 trillion won last year, down about 3.3 trillion won from a decade earlier, according to industry estimates. Industry officials attribute much of the pressure to the industry regulatory framework, introduced in 2012 to protect traditional markets and small merchants. The law mandates two monthly shutdown days, bans operations between midnight and 10 a.m., and restricts new store openings within a one-kilometer radius of traditional markets. It also prohibits online deliveries by large retailers during restricted hours, effectively excluding them from the rapidly expanding early-morning delivery market. By contrast, e-commerce platforms such as Coupang have expanded rapidly, while brick-and-mortar formats exempt from the rules have gained market share. Last month, the National Assembly extended the law’s sunset clause to Nov. 23, 2029, effectively locking in the current regulatory framework. Policy experts and industry groups say the rules no longer serve their original purpose. A report by the Korea Institute for Industrial Economics and Trade found little evidence that mandatory holiday closures revive traditional markets and said the law is rooted in an outdated, offline-centric view of retail that fails to match current consumer behavior. “Applying rigid, decades-old rules only to hypermarkets is increasingly disconnected from market realities where online and offline channels have converged,” an industry official said. “The framework for coexistence with traditional markets needs to be redesigned to restore competitiveness.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-08 17:32:23

PHOTOS: Yeongjong tidal flats busy with oyster harvesting SEOUL, December 08 (AJP) - 2025-12-08 17:28:18

PHOTOS: Strolling through Jeju's Yakcheonsa temple SEOUL, December 08 (AJP) - Yakcheonsa Temple gets its name from a spring that flows from spring to fall and a pond with medicinal water that runs year-round. The temple boasts the largest dharma hall in East Asia. Currently, it is beloved for its extensive temple grounds walks and temple stay programs. 2025-12-08 17:27:48

Rise in vaping keeps smoking rate from declining further, survey finds SEOUL, December 8 (AJP) - Although conventional cigarette smoking has decreasing, the rising use of e-cigarettes means that overall tobacco consumption is not declining as much as it could be, a new survey suggests. The Korea Disease Control and Prevention Agency surveyed 230,000 adults between May and July and released its findings on Monday. According to the survey, the smoking rate for traditional cigarettes dropped to 17.9 percent, down 1 percentage point from the previous year. But the proportion of e-cigarette smokers rose 0.6 percentage points to 9.3 percent, causing overall tobacco consumption to fall by only 0.5 percentage points to 22.1 percent. By region, North Chungcheong Province had the highest rate of tobacco smokers, while Sejong had the lowest. Alcohol consumption showed a slight decrease as well. The proportion of people who drink at least once a month dropped 1.2 percentage points to 57.1 percent. The proportion of high-risk drinkers, those who consume seven or more drinks (for men) or five or more (for women) at least twice per week also fell slightly to 12 percent. Obesity rates, however, continue to rise. The proportion of people with a BMI of 25 or higher increased 1 percentage point to 35.4 percent. Despite more people trying to lose or maintain weight, those efforts have failed to curb rising obesity rates. Walking and moderate physical activity have seen a slight decline, with walking at 49.2 percent and moderate activity at 26 percent, suggesting a drop in daily activity levels. More people were diagnosed with chronic diseases such as hypertension (21.2 percent) and diabetes (9.6 percent), although treatment rates have remained stable at around 93 percent. More than half of respondents were aware of the symptoms of heart attacks and the signs of strokes, though the agency stressed the need for enhanced public education to further boost awareness. Those suffering from depression dropped to 5.9 percent, a slight decrease from last year, while stress levels saw a slight increase to 23.9 percent. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-12-08 17:20:31

As U.S. and China drop denuclearization language, Seoul downplays shift SEOUL, December 08 (AJP) - The United States and China have both subtly or explicitly backed away from the long-held principle of "complete denuclearization" of North Korea, yet Seoul appears largely unconcerned — a stance that is raising alarms among security watchers. Analysts say the shift is not abrupt but rather an unmistakable acknowledgment of a transformed strategic landscape. North Korea is now a constitutionally protected nuclear-armed state; the United States is drifting toward a more transactional alliance centered on burden-sharing; China has effectively deprioritized denuclearization; and Russia has deepened military cooperation with Pyongyang, including missile transfers. Against this backdrop, Seoul remains committed to a framework designed for a very different era — one in which denuclearization seemed at least theoretically possible, major powers worked in loose alignment, and North Korea still engaged in negotiations. Dr. Cheong Seong-chang, vice president of the Sejong Institute's Center for Korean Peninsula Strategy, said recent signals from Washington and Beijing represent not a policy reversal but a public recognition of this structural shift. "North Korea is developing multiple-warhead ICBMs and a strategic nuclear submarine. Expecting Pyongyang to give up nuclear weapons at this stage is unrealistic," he told AJP in a phone interview Monday, stressing that any meaningful window for rollback "closed long ago." Washington's new National Security Strategy, released last week, reflects that recalibration. The document makes no mention of North Korea and drops the familiar phrase "denuclearization of the Korean Peninsula," instead focusing on deterring China and maintaining stability in the Taiwan Strait. It also excludes the term "extended deterrence," a shift many interpret as a sign that allies are expected to shoulder more of their own defense burdens. China has also moved further from the denuclearization agenda. Since March 2024, Beijing has omitted the term from its external statements and again avoided it in its September summit readout with Pyongyang. For the first time in nearly two decades, China removed "complete denuclearization" from its arms-control white paper. Russia, meanwhile, has strengthened military ties with North Korea, trading weapons and technology in ways that further undercut the conditions that once sustained a denuclearization framework. Despite these changes, the South Korean government maintains that nothing fundamental has changed. National Security Director Wi Sung-lac on Sunday downplayed the meaning of the NSS language, telling reporters that the omission of North Korea stemmed from structural choices in drafting rather than reduced American interest. "There is no need to view this as meaning the U.S. has no interest in resolving the North Korean nuclear issue or in resuming U.S.–North Korea dialogue," he said. Wi explained that the NSS was organized around an "America First" framework, with detailed regional content expected in subordinate documents. He added that Seoul has "strengthened its international connections" with neighboring countries and intends to build on that groundwork to reopen dialogue with Pyongyang. Asked whether joint military exercises might be adjusted as part of that effort, Wi said "many possible cards" exist, but stressed the government is "not directly considering reduction of joint drills." Speculation about a shift in Seoul's own phrasing emerged after President Lee Jae Myung used the term "a nuclear-free Korean Peninsula" during a press conference with foreign correspondents in Seoul on Dec.2. At a briefing Monday, Ministry of Unification spokesperson Yoon Min-ho clarified that "a nuclear-free Korean Peninsula" and "denuclearization of the Korean Peninsula" carry the same meaning. He added that South Korea will continue working with key countries toward denuclearization, regardless of how other governments frame the issue in their internal documents. Cheong of Sejong argues that Seoul's current framework is increasingly misaligned with the strategic environment. "If North Korea has made clear it will never give up nuclear weapons, then a policy that depends on asking Pyongyang to do so will not lead to dialogue," he said. He believes South Korea should adopt a deterrence-centered approach while leaving room for negotiations built on a balance of power rather than expectations of disarmament. One option he highlighted is building nuclear latency comparable to Japan's — strengthening industrial and technological capacity to enable rapid nuclear armament if circumstances require it. With full state mobilization, he estimated, weaponization could be technically achievable in about a year. He also pointed to the recent U.S.–South Korea agreement allowing reprocessing and enrichment of used nuclear fuel, which enhances low-enriched uranium capability and reduces barriers to future high enrichment. 2025-12-08 17:09:28

Half of Korea's AI startups fail within three years, report shows SEOUL, December 08 (AJP) - Nearly half of South Korean artificial intelligence startups fail to survive beyond three years, underscoring structural weaknesses in funding and commercialization, according to a report released on Monday by the Korea Industrial Technology Association. The association said the three-year survival rate of AI startups stood at 56.2 percent as of the end of 2023, well below the 72.7 percent survival rate of general AI companies and the 68.8 percent average across all industries. The report found that AI startups remain highly dependent on external funding, with 22.9 percent of their research and development budgets coming from government grants and subsidies. “Government grants and subsidies are essential for sustaining AI startup R&D,” the report said, adding that heavy reliance on external capital reflects weak internal financial capacity. While average R&D spending by AI startups grew at an annual rate of 15.4 percent over the past three years, the amount reached only 590 million won in 2023, lagging behind other industrial sectors. “Bold R&D support and a stronger innovation ecosystem are needed for our AI startups to build global competitiveness,” said Ko Se-gon, executive vice president of the association. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-08 16:32:16