Lee meets Japanese and Chinese leaders at G20 in South Africa SEOUL, November 24 (AJP) - President Lee Jae-myung held a marathon round of meetings with global leaders on the sidelines of the Group of 20 (G20) in South Africa over the weekend. According to the presidential office on Monday, Lee on Sunday met with Japanese Prime Minister Sanae Takaichi again after their previous meeting at the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju late last month. The two leaders emphasized the importance of their bilateral relationship amid rising global tensions and reaffirmed their commitment to future-oriented cooperation. Lee stressed the shared responsibility to manage bilateral relations in a stable manner and called for tangible progress in key areas of cooperation. The two leaders also agreed to continue their shuttle diplomacy and strengthen communication on major economic and security issues. In his subsequent meeting with Chinese Premier Li Qiang, Lee proposed further consolidating the recently restored relations between Seoul and Beijing, building on the momentum from Chinese President Xi Jinping's visit to South Korea for the APEC summit. Li expressed hope for deeper cooperation and the long-term development of bilateral ties. Lee extended his regards to Xi and expressed his desire to meet him in Beijing soon, with Li promising to pass the message. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 09:06:16

OPINION: Rising drunk-driving incidents spark calls for tougher laws in South Korea SEOUL, November 24 (AJP) - Recent incidents involving drunk driving in South Korea have drawn international attention, particularly after a Japanese tourist died in a crash. This tragedy, along with a similar incident involving a Canadian a week earlier, has highlighted the country's lenient penalties for drunk driving. Despite the 2018 law allowing life sentences for fatal drunk driving cases, actual sentences range from two to eight years, much lower than Japan's 20-year sentences. South Korea, with less than half Japan's population, reports six times more drunk driving accidents, with a recidivism rate over 40 percent. Criticism also targets the lack of penalties for passengers and alcohol providers. Another growing concern is accidents involving elderly drivers. A recent crash in Bucheon caused by an elderly driver killed four people. According to the Korea Road Traffic Authority, accidents involving drivers aged 65 and older rose 36.4 percent from 2020 to last year, with their accident rate increasing from 14.8 percent to 21.6 percent. This issue is not unique to South Korea; Japan reported a record 17 percent of traffic accidents involving elderly drivers in 2022. While aging affects cognitive and motor skills, the effectiveness of driving aptitude tests is questioned. Additionally, lenient sentences for traffic offenses remain problematic, as seen in a case where an elderly driver received a maximum five-year sentence for a fatal wrong-way crash. From 2020 to last year, South Korea recorded 71,279 drunk driving accidents, resulting in 1,004 deaths. Elderly drivers caused 3,678 fatalities, the highest among all age groups. These issues have become serious social problems, creating widespread anxiety about road safety. As South Korea advances globally with its culture and industry, it must also modernize its traffic laws to address these challenges effectively. * This article, published by Aju Business Daily, was translated by AI. 2025-11-24 08:41:16

South Korea's Strategic Edge in AI Amid Potential Bubble Nvidia announced record earnings on Nov. 19, with third-quarter revenue reaching $57 billion, a 62% increase from the previous year. Despite a net profit margin of 53% and net income of $31.9 billion, its stock fell 6.8% the next day. Wall Street attributes this to extended collection periods for big tech companies like Google, Meta, Microsoft, and Amazon, indicating uncertain returns on AI investments. OpenAI faces more severe challenges. Microsoft, its parent company, has invested $13 billion since 2023, with $11.6 billion already spent. OpenAI's quarterly losses are estimated at $11.5 billion, based on Microsoft's third-quarter report. Nvidia's $100 billion investment in OpenAI involves building data centers and purchasing GPUs, creating a cycle that inflates revenue. Wall Street labels this an 'AI Ponzi Scheme.' Experts warn of a potential collapse if OpenAI fails to monetize. The bubble is expected to burst between 2026 and 2027. Companies that survive will be those integrating AI into manufacturing, healthcare, energy, and defense, not those boasting about large language model parameters. High Bandwidth Memory (HBM) is crucial for AI infrastructure. Jensen Huang, Nvidia's CEO, stated in October 2025, "Without HBM, there is no AI." A single Blackwell B200 GPU requires 192GB of HBM3e, costing $20,000. Over 50% of Nvidia's data center revenue costs are HBM-related, proving its importance. South Korea's SK Hynix and Samsung Electronics control 80% of the global HBM market. SK Hynix's stable yield of HBM3e and exclusive supply to Nvidia drive this dominance. Micron lags in technology, and China is still developing. Yole Group predicts the HBM market will grow from $34 billion in 2025 to $100 billion by 2030. If South Korea maintains its 80% market share for five years, annual exports could reach $80 billion by 2030, doubling the country's 2024 semiconductor exports. A drop to 40% market share would cut exports to $40 billion, with a $200 billion cumulative profit difference. HBM is not just an economic asset but a strategic resource in the AI era, enhancing South Korea's geopolitical standing. The U.S. is investing $52.7 billion through the CHIPS Act, with Intel receiving $8.5 billion, TSMC $6.6 billion, Samsung $4.7 billion, and Micron $6.2 billion. China is investing $48.4 billion in semiconductors. South Korea's control of 80% of the HBM market is akin to the Middle East's hold on oil during the manufacturing era. However, this lead is not permanent. Samsung's HBM3e approval from Nvidia was delayed by eight months, affecting its market share. China's CXMT aims to mass-produce HBM3 by 2026 and HBM3e by 2027, with state funding. Micron plans to catch up with HBM4 by 2026. A single misstep could be costly, as seen with Japan's reliance on rare earths from China. TrendForce warns of potential HBM oversupply and price drops post-2026, advising South Korea to maintain market dominance through production expansion. The solution is simple: elevate HBM to a national strategic asset and legislate an 'HBM Sovereignty Act' to secure South Korea's lead. This support should be viewed as 'defense spending' in the AI race, not corporate welfare. Five steps are needed: establish six HBM4 and HBM5 plants in the Yongin Semiconductor Cluster under a separate entity, with 49% state ownership and 51% Samsung and SK technology. Half the profits would be distributed as national dividends. This approach mirrors U.S. and Chinese strategies, doubling factory output through government and societal participation. Second, invest 50 trillion won in 'HBM defense spending' from 2026 to 2030, offering 60% investment tax credits and 100% R&D tax credits. Yole's forecast suggests this could yield a 400 trillion won profit over five years. Third, designate HBM as a controlled export item, similar to the U.S.'s control over ASML's EUV technology. This would allow South Korea to adjust supply as needed, positioning HBM as an 'AI weapon' and maintaining a neutral advantage in U.S.-China tech conflicts. Fourth, achieve 100% domestic production of key materials and equipment within five years, reducing reliance on Japanese materials and American equipment through focused investment in materials and components. Fifth, address the talent shortage, the greatest risk to maintaining a lead. Secure 10,000 domestic and international Ph.D. holders, offer immediate permanent residency to foreign talent, expand semiconductor department enrollment at universities like KAIST fivefold, and provide government-funded tuition support. During the California Gold Rush, it was the jeans sellers who profited, regardless of who found gold. Similarly, HBM guarantees stable demand, regardless of who strikes gold in AI. To avoid future regret, South Korea must pass bold semiconductor support laws and an 'HBM Sovereignty Act.' This is a once-in-a-century opportunity, and the decision lies with political leaders. South Korea's choice will determine whether it becomes a 'memory empire' in the AI era or remains a parts supplier. About the author ​ Master's from Tsinghua University, Ph.D. from Fudan University, Senior Researcher at Daewoo Economic Research Institute, Semiconductor IT Analyst, Adjunct Professor at Sungkyunkwan University's Graduate School of China, Director of the China Economic and Finance Research Institute * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-24 07:16:55

K-pop anime qualifies for animated Oscar race SEOUL, November 23 (AJP) - Netflix’s animated film "KPop Demon Hunters," the first foreign-made animation centered on South Korean K-pop idols, has been listed among the titles eligible for consideration in the Academy Awards’ best animated feature category this year. According to the Academy of Motion Picture Arts and Sciences (AMPAS), 35 films qualified for the category at the upcoming 98th Oscars. The film earned its spot by completing a limited theatrical run in New York, Los Angeles and San Francisco in June, a requirement for all entries seeking eligibility in the animated feature race. Released globally on Netflix, the 100-minute film follows fictional K-pop stars who use secret powers to fight supernatural forces, blending K-pop themes with action-driven fantasy elements. Alongside "KPop Demon Hunters," this year’s eligibility list includes major studio titles such as Disney’s "Elio" and "Zootopia 2," as well as Japanese hits like "Demon Slayer: Kimetsu no Yaiba – The Movie: Infinity Castle" and "Chainsaw Man – The Movie: Reze Arc." The final slate of nominees will be unveiled early next year, ahead of the 98th Academy Awards ceremony set for mid-March 2026. 2025-11-23 17:39:38

S.Korean won drops to lowest level versus the U.S. dollar since 2009 SEOUL, November 23 (AJP) - The South Korean won’s real value has slipped to its lowest point, risking the deterioration of Korea's purchasing power in global trade. Data from the Bank of Korea and the Bank for International Settlements showed that the country’s real effective exchange rate — or REER — stood at 89.09 at the end of October against the reference year of 2020 as 100. The index was down 1.44 points from a month earlier and marked the lowest reading since August 2009. It is even below the 89.29 in March amid political uncertainty due to presidential impeachment following a short-lived martial law declaration. The REER measures a currency’s real purchasing power compared with those of major trading partners. A reading below 100 indicates the currency is undervalued relative to the base year. The decline in the won’s real value reflects broader global currency trends. A strong U.S. economy has kept the dollar firm, while the Japanese yen and Chinese yuan have weakened, putting additional pressure on the won. South Korea’s REER, which was above 100 in 2020 and 2021, has steadily fallen and dipped below 95 in the second half of last year. The U.S. dollar has spiked this month amid heavy foreign stock selling to near 1,500 won. It climbed to 1,476.0 during Friday trading, the highest since early April, when it briefly hit 1,487.6. Unlike the sharp but short-lived jump in April, recent movements have shown a gradual upward trend. Analysts say stronger demand for the dollar — partly due to increased investment in the U.S. stock market — and delayed currency conversion by exporters are contributing to the won’s structural weakness. Market watchers believe government intervention alone won't be able to reverse the trend, projecting that the exchange rate is likely to remain in the 1,400 range per dollar well into next year. 2025-11-23 16:49:15

Korean president speaks up on climate action and AI at G20 summit SEOUL, November 23 (AJP) - South Korean President Lee Jae Myung attended the Group of 20 summit in Johannesburg on Saturday, as part of a regional tour of the Middle East and Africa designed to broaden South Korea's diplomatic engagement. During the two-day meeting, he outlined South Korea's views on climate and disaster response, artificial intelligence (AI) cooperation and inclusive economic growth. After visiting the United Arab Emirates and Egypt, Lee joined the annual gathering of the world's major economies. The G20 consists of 19 countries plus the European Union and the African Union, representing about 85 percent of global GDP and 75 percent of global trade. This year's summit was the first to be held on the African continent and unfolded under unusual circumstances, with the leaders of the United States, China and Russia all absent. On the opening day, member states adopted the leaders' declaration — normally approved at the end of the meetings — in an effort to avoid potential last-minute opposition from Washington. The statement also confirmed that South Korea will host the G20 summit in 2028. Lee attended every official session, presenting South Korea's policy priorities and contributions to the international community. In the first session, he introduced Seoul's initiative — a domestic policy vision promoting the safe and inclusive use of artificial intelligence — and stressed that technological benefits must be shared widely. On the second day, he highlighted the growing risks of climate change and natural disasters, calling for stronger international cooperation. Citing an assessment by the U.N. Office for Disaster Risk Reduction, he warned that complex and overlapping disasters are becoming more frequent. "If we strengthen our resilience and ability to absorb shocks, new opportunities for growth will emerge," he said. Lee also reaffirmed South Korea's goal of reducing greenhouse gas emissions by 2035 and pledged to support global climate efforts "as a responsible member of the international community." He urged countries to shift disaster-response systems toward prevention and resilience, pointing to South Korea's early flood-warning assistance programs for Asia-Pacific nations. "A single country's resilience leads to the resilience of the world," he said, emphasizing cooperation on global food security and the transition to clean energy. Lee also held a series of bilateral and small-group meetings. He met leaders from MIKTA — a consultative group of middle-power countries including Mexico, Indonesia, Türkiye and Australia — to discuss closer cooperation. He also held separate talks with the French and German leaders. On Sunday, the final day of the summit, Lee is expected to again underscore the need for global coordination on AI and digital transformation. He plans to highlight South Korea's vision for integrating AI into basic social systems, a concept the country promoted during its leadership of the APEC summit. After wrapping up his schedule in South Africa, Lee will travel to Türkiye on Monday, the last stop of his four-nation tour. He is set to meet President Recep Tayyip Erdoğan for discussions on defense industry cooperation and nuclear energy. 2025-11-23 13:13:00

The ancient Korean ideal that could heal a polarized world The world today is being torn apart by widening polarization. Few places illustrate this more vividly than the United States. President Donald Trump’s “MAGA (Make America Great Again)” agenda—centered on reviving American manufacturing, cutting taxes, and tightening border controls—did produce short-term economic gains and job growth. Yet it also deepened the divides between the wealthy and the working poor, between regions, and across racial and cultural lines. The political aftershocks were unmistakable: the election of a progressive Democrat as mayor of New York and the rise of a 30-something female mayor in Seattle signaled a powerful pushback against elite-centered conservatism. This pattern is hardly confined to America. Across Europe, far-right and far-left parties are gaining ground simultaneously, hollowing out the political center. In Asia and Latin America, economic and social fractures are growing deeper. More troubling still, global polarization is increasingly intertwined with international conflict. The wars in the Middle East have ignited explosive combinations of religious rivalry and geopolitical competition, destabilizing economies far beyond the region. The Russia–Ukraine conflict has revealed how ethnic and national tensions can metastasize into global fractures with alarming speed. These are not merely territorial disputes—they are collisions of faith, identity, culture, and history. And they push the world further into darkness. How do we reverse this trajectory? No single policy or institutional fix will suffice. Polarization is not only about wealth gaps or political disagreements. At its core, it is a crisis of values—a loss of shared purpose, a fading sense of community, a withering belief that humanity is bound together rather than broken apart. This is where an ancient Korean philosophy, passed down from the era of 'Dangun', offers a surprisingly relevant guide. The principle of 'Hongik Ingan'—rooted in the teachings of 'Cheonbu-gyeong', 'Samil-singo', and 'Chamjeon-gye-gyeong'—is often translated as “to broadly benefit humankind.” But its meaning runs far deeper. The 'Cheonbu-gyeong' emphasizes the harmony of the universe and reminds humanity that its prosperity is inseparable from balance with nature and society. The 'Samil-singo' teaches that the human mind is fundamentally one—a call for unity over division. The 'Chamjeon-gye-gyeong' lays out principles of righteous leadership, insisting that true authority serves all people, not just privileged groups. Far from being a narrow cultural concept, Hongik Ingan is a universal ethic—a framework for a world searching for cohesion. The global conflicts we face today arise from losing the ability to see others as part of “us.” Politicians manipulate anger to win votes. Economies sacrifice the vulnerable in the name of efficiency. Nations elevate national interest above global responsibility. The result is isolation for individuals, fragmentation of communities, and escalating confrontation among nations. 'Hongik Ingan' offers a counter-current powerful enough to slow this tide. It calls for politics that serve the many, not the few; economies that value fairness as much as growth; and societies that pursue coexistence rather than perpetual conflict. It is a philosophy that aligns remarkably well with the moral imperatives of the 21st century. To put the world back on a path toward integration, what we need is not merely structural reform, but a deeper shift—an ethic of empathy, a restoration of values, a renewed commitment to coexistence. The ancient Korean ideal of Hongik Ingan may be centuries old, but its relevance today is striking. It offers a vision capable of addressing the crises that define our era: inequality, religious conflict, ethnic wars, and national division. What the world needs now is not the politics of “Who will win?” but the philosophy of “How can we live together?” 'Hongik Ingan' is not only an ancient principle. It may be the starting point for global healing. The author is the chairman of Asia-Pacific Economic and Culture Association. 2025-11-22 08:09:07

School cooks speak up and walk out as Korea's free-lunch system strains livelihoods SEOUL, November 21 (AJP) - In South Korea, school lunches are free — but the expectations are anything but modest. The national obsession with high-quality meals for students, coupled with strict hygiene standards and demanding palates of children and their parents, has long placed the burden squarely on the shoulders of cafeteria staff. This week, many of them stepped away from the steam-filled kitchens and into the streets. On Friday, about 94,000 members of the National Solidarity Council of School Irregular Workers launched a nationwide strike. The group represents non-teaching staff who keep schools running — cafeteria cooks and assistants, childcare workers, meal distributors, administrative aides. Negotiations with the Education Ministry and 17 provincial and metropolitan education offices have stalled over wages, safety conditions, and benefits. The strike began in Seoul, Incheon, Gangwon, Sejong, and North Chungcheong, and will expand southward over the coming days: Gwangju, Jeolla, and Jeju on Saturday; Gyeonggi, Daejeon, and South Chungcheong on Dec. 4; and the Yeongnam region on Dec. 5. Many traveled for hours in winter weather to join the walkout — even if it meant leaving behind the children they feed daily. None of their long-standing demands — from raising meager base pay to installing basic ventilation systems — have been met. “People think we just serve food,” said Baek Jin-hee, 57, a kitchen worker at Bitgaram Elementary School in Naju, South Jeolla Province. “Some say we are holding children hostage. That hurt deeply. Anyone who has seen how sincerely we feed our kids would never say that.” Baek joined the strike after the local education office backed out of its promise to install ventilation systems following the diagnosis of a Gwangyang cook with lung cancer. Another colleague, aged 49, lost her hand in a kitchen accident last year. “We grind garlic and ginger by hand to make kimchi every day,” she said. “When friends die of lung cancer, it’s terrifying to return to that kitchen.” Progressive teacher unions and 125 civic, labor, and political groups expressed solidarity. The conservative Korean Federation of Teachers’ Associations (KFTA), the country’s largest teachers’ body, condemned the walkout for disrupting school operations and students’ rights. Due to the strike, about 1,000 of the nation’s 3,298 schools couldn’t provide proper meals. Many replaced hot lunches with bread and juice; some after-school care programs — known as Neulbom classes — were suspended. The Education Ministry largely kept its distance. “Since this is a legitimate strike under the Labor Union Act, it is difficult for us to comment,” a ministry official said. “However, even if lawful, it would be best if there were no disruptions to meal services for students.” Below-minimum pay — and carcinogenic fumes According to the Seoul education office, a kitchen worker’s base monthly salary is 2,066,000 won ($1,403) — lower than the legal minimum wage when converted into a standard monthly rate of 2,096,270 won for a 40-hour week. Even with seniority, family, and hazard allowances, an 11-year veteran earns roughly 2.7 million won, and many receive no pay during school holidays. The gap is sharper for roles involving hot oil, boiling trays, and 20–30 kg rice sacks. This year’s base pay for “Type-2 education public employees” — cooks, administrative assistants, office support staff — remains 30,270 won below the minimum wage. Hazard pay is 50,000 won ($34) per month, despite daily exposure to toxic cooking fumes. The World Health Organization classifies cooking fumes as a Group 2A carcinogen. To date, 175 cafeteria workers have had lung cancer recognized as an occupational disease; at least 15 have died. Mixed reactions inside schools On campuses, the mood ranged from resigned to supportive. “Kids actually enjoy eating bread for once. Some bring their own meals — one even brought mala xiangguo,” said a teacher at an elementary school in Bucheon. “Most teachers understand the strike’s purpose and quietly support it.” Working parents face the sharpest inconvenience. A mother in her 40s said, “I’m a working mom. If I have to pack lunch, I need to wake up at dawn before work. It’s exhausting.” Another mother in her 50s said, “It breaks my heart to think about how hungry my boys must be when they can’t eat properly.” Others sympathized with the workers. A father in his 50s said, “My daughter will also become a worker one day. If improving labor conditions means a few days of inconvenience, that’s worth it.” A mother with two high school daughters added, “As a parent, I support them. Eating bread for a few days won’t harm their health.” A growing workforce with shrinking visibility Today, around 180,000 people work in non-teaching education roles — roughly 40 percent of the country’s 450,000 teachers. Job categories have ballooned to more than 80, from sports instructors to childcare aides, yet their struggles often fade from public conversation, overshadowed by debates on teacher rights and educational reform. Their walkout this week forces a closer look at a system that offers free lunches for students — but leaves those who prepare them fighting for a living wage, a ventilated kitchen, and recognition of their role in schools. 2025-11-21 17:41:59

Coupang, latest breach in Korea, with no effective guardrail in sight SEOUL, November 21 (AJP) - Coupang has emerged as the latest flashpoint in Korea's widening cybersecurity crisis, with customer data leaking yet again as major companies — from telecom operators to card issuers — continue to fall victim to preventable attacks under a regulatory system that seldom imposes meaningful penalties. Coupang said late Thursday that an "unauthorized third party" accessed the personal information of more than 4,500 customers. According to the company's emergency notice, the exposed data included names, email addresses, phone numbers, delivery addresses, and each user's five most recent order records. The company said it immediately blocked the intrusion route and has so far found no evidence of misuse. It apologized to affected customers and advised them to contact its service center for assistance. The breach comes amid a series of major security incidents across Korea's telecommunications and financial sectors this year, intensifying concerns over the country's ability to safeguard personal information despite its reputation as one of the world's most digitalized societies. SK Telecom is preparing for legal disputes over a large-scale USIM-related leak disclosed in April. The company has rejected a state mediation panel's recommendation to compensate the 23 million individuals affected at 300,000 won ($203.28) per person. It has already incurred more than 1 trillion won in costs related to the incident. KT customers experienced more direct financial losses after illegally smuggled femtocell devices were used to impersonate cell towers, intercept authentication codes, and trigger unauthorized small-sum mobile payments. Hundreds of victims have filed official complaints, and both police and the Korea Communications Commission are investigating the case. LG Uplus reported suspicious access attempts to its internal network around the same period, resulting in the confirmed leak of 300,000 customer records and fines exceeding 6 billion won. In the financial sector, Lotte Card suffered a major cyberattack that compromised nearly 300 million customer data files, amounting to about 200 gigabytes of internal records. Government data points to the scale of the problem. According to the Personal Information Protection Commission, 88.54 million pieces of personal information have been leaked across public and private institutions over the past five years. Public-sector breaches alone rose from 650,000 cases in 2022 to 3.52 million in 2023 and 3.91 million in 2024. Penalties, however, remain limited. Between 2021 and July 2025, Korea recorded 451 data-security incidents but issued only 87.7 billion won in fines and 2.49 billion won in administrative penalties, averaging just 1,019 won per leaked data entry. Korean law allows fines of up to 3 percent of company revenue, but firms may exclude revenue deemed unrelated to the violation when calculating penalties. This contrasts sharply with the European Union's General Data Protection Regulation, which permits fines of up to 20 million euros ($23.2 million) or 4 percent of annual global turnover. In 2021, Luxembourg imposed a 746 million-euro fine on Amazon for GDPR violations. A recent KAIST study found that widely used security plug-ins required by Korean financial and public institutions can themselves become attack pathways. These non-standard programs often conflict with the built-in security architecture of global web browsers such as Chrome, Safari, Edge and Firefox, which follow unified W3C and WHATWG standards designed to maintain consistent security protocols. The study concluded that the vulnerabilities stem from Korea's continued reliance on proprietary, mandatory security software that can undermine rather than strengthen consumer protection, even as companies claim compliance with existing regulations. 2025-11-21 17:31:59

KOSPI, this year's stellar winner, crashes into year-end on AI bubble scare and FX pressures SEOUL, November 21 (AJP) - South Korea’s KOSPI has been the strongest-performing major Asian index this year, but this week’s rout has laid bare its structural fragility — an equity market dominated by a few tech bellwethers and increasingly shunned by foreign investors as the won sinks to new lows. Until just days ago, enthusiasm bordered on euphoria. Forecasts that the KOSPI could surge to 5,000 or even 7,000 became commonplace. Even after Friday’s 3.8 percent plunge — the sharpest drop among major Asian markets — the benchmark is still up 60.5 percent for the year, rising from 2,399.49 at the end of 2024 to 3,853.26. Outsized weight of mega-caps and the AI fad Korea’s equity market has become more concentrated than ever. According to Leaders Index, the combined market-cap share of the top five conglomerates — Samsung, SK, Hyundai Motor Group, LG, and HD Hyundai — rose from 45.9 percent at the start of the year to 52.2 percent as of Nov. 3. More than half of the KOSPI is effectively tied to a handful of corporate groups. AI-driven semiconductor giants Samsung Electronics and SK hynix alone account for over a quarter of total capitalization. When they fall, the entire index buckles. On Friday, SK hynix plunged 8.76 percent to 521,000 won, while Samsung Electronics slid 5.77 percent to 94,800 won — the two steepest drops among Korea’s market heavyweights. Traders call it a “follow-the-leaders market,” with sector performance rarely diverging from the megacaps. Even power-related stocks — which should benefit from surging AI electricity demand — remain dominated by conglomerates. Hyundai Motor Group controls key nuclear-construction player Hyundai Engineering & Construction, while HD Hyundai owns transformer leader HD Hyundai Electric. Both fell sharply Friday: HD Hyundai Electric slid 7.85 percent to 751,000 won, and Hyundai E&C dropped 3.73 percent to 59,300 won. The squeeze on smaller companies is intensifying. A joint survey by the Korea Chamber of Commerce and Industry and the Korea Venture Capital Association found that 91.8 percent of VCs dependent on policy financing struggled to raise private capital this year. The IPO market, meanwhile, is frozen. As of Nov. 21, only seven companies had listed on the KOSPI — the same anemic tally as last year, when the index barely moved. FX volatility fans foreign outflows Tech concentration alone does not fully explain the KOSPI’s vulnerability. Taiwan’s TAIEX is similarly top-heavy — TSMC represents roughly 40 percent of the index, and the top five names exceed half of total market cap. Yet Taiwan has suffered far less from the global AI correction. The critical difference is currency risk. On Friday, the Korean won traded at 1,475.1 per U.S. dollar, down nearly 8 percent from the June average of 1,366.92. With Korea’s benchmark rate at 2.50 percent — far below the U.S. Fed Funds target range of 3.75–4.00 percent — the carry disadvantage leaves Korean assets exposed. A persistently weak won also deprives foreign investors of the chance to earn FX gains. Rate hikes are largely off the table. Korea’s economy is expanding at under 1 percent annualized, and household debt remains one of the highest among advanced economies. Bank of Korea Governor Rhee Chang-yong has repeatedly noted the limits of intervention, saying the won’s weakness reflects external forces such as broad dollar strength and heavy Korean retail investment in U.S. equities. “Given Korea’s internal constraints, the country has little choice but to hope for external relief such as U.S. rate cuts,” said Cho Yong-gu, a researcher at Shinyoung Securities. Weaker FX buffers than regional peers South Korea’s foreign-exchange reserves stand at $420 billion, or about 23 percent of GDP — well below Taiwan’s $600.2 billion, which equals 77.4 percent of its GDP. The gap gives Taipei far stronger firepower to defend its currency or cushion capital-flow shocks. 2025-11-21 17:31:38