KITA expands global network with new offices in Vietnam, Brazil SEOUL, November 21 (AJP) - The Korea International Trade Association (KITA) has opened new offices in Hanoi and São Paulo, advancing its strategy to deepen ties with emerging markets across the Global South. KITA held an opening ceremony for its Hanoi office on Nov. 20 at the Lotte Hotel Hanoi. The event drew some 90 officials, including KITA Chairman Yoon Jin-sik, Vu Ba Phu, director general of Vietnam’s Trade Promotion Agency, and Jang Ho-seung, South Korea’s consul general in Vietnam. “South Korea and Vietnam are among each other’s top three trading partners, with bilateral trade reaching $86.8 billion annually,” Yoon said. “The Hanoi office will play a key role within the comprehensive industrial cooperation framework established by both governments.” The new facility is KITA’s second in Vietnam after Ho Chi Minh City. Situated in the capital, it will provide support for South Korean companies navigating regulatory and market-entry challenges in northern and central Vietnam, while strengthening KITA’s on-the-ground marketing and advisory services. Two days earlier, on Nov. 18, KITA marked the opening of its São Paulo office in Brazil. The ceremony was attended by KITA Executive Director Jang Seok-min and South Korea’s consul general in São Paulo, Chae Jin-won, alongside about 50 officials. The São Paulo office is expected to help Korean companies improve market access and identify new business opportunities across Latin America, with Brazil serving as the region’s anchor economy. The openings in Vietnam and Brazil follow the launch of a Johannesburg office last month, part of KITA’s plan to build a network of strategic bases across Africa, Latin America and ASEAN. The trade association says the expanded footprint will strengthen support for South Korean companies seeking to grow in emerging markets and broaden their global reach. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 09:54:52

Korean president unveils SHINE doctrine as new backbone of foreign policy in Egypt SEOUL, November 21 (AJP) - South Korean President Lee Jae Myung on Thursday branded "SHINE" - stability, harmony, innovation, network, and education - as the backbone in his foreign policy, offering it as a framework for mediating peace in the Middle East and positioning Korean defense capabilities to complement tool in the role during his state visit to Egypt. Lee highlighted stability and harmony as the centerpiece of the twin pillars guiding Seoul's posture toward the Korean Peninsula and conflict-ridden Middle East during his speech at Cairo University. He cast Korea as a country uniquely positioned to contribute to regional peace while expanding its role as a technology and manufacturing partner. After a two-hour summit with Egyptian President Abdel Fattah El-Sisi, the two leaders found common ground on the need for de-escalation and deterrence. Discussions included potential cooperation on South Korea’s advanced defense systems — notably K-9 self-propelled howitzers — as Egypt accelerates its military modernization. Lee announced $10 million in humanitarian aid through the Egyptian Red Crescent to support Gaza recovery efforts. He also proposed launching a Comprehensive Economic Partnership Agreement (CEPA) to upgrade the bilateral economic relationship, offering Korea’s development playbook — the so-called “Miracle on the Han River” — to help Egypt pursue its own “Miracle of the Nile.” Lee suggested active human-capital exchanges through education and networking among students and scholars and regulator collaboration between the Grand Egyptian Museum and the National Museum of Korea. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 09:52:53

OPINION: South Korea's youth losing faith in job market South Korea is wrestling with a quiet crisis: the steady erosion of job prospects for its young people. The National Data Office’s latest employment report, released on Nov. 12, paints a stark picture. The employment rate for people ages 15 to 29 has been negative for a year and a half. The number of unemployed 30-somethings has climbed to 310,000 — a 22-year high — while roughly 400,000 people in their 20s are also out of work. In total, more than 700,000 young adults in their 20s and 30s now find themselves idle. Add to that another 660,000 in their 40s and 50s, and the toll becomes even more sobering. The number of people who have given up looking for work rose to 366,000, up 21,000 from a year earlier. These are not simply economic statistics; they are signals of a deeper social strain. And they reflect a risk that the country’s most promising talent will seek opportunity abroad. On the surface, October’s data offers a glimmer of progress: the number of employed people rose by 193,000 from a year earlier. But the underlying structure is troubling. Monthly job growth has become volatile, dipping sharply late last year after the declaration of martial law and swinging widely since. Job gains of more than 300,000 a month — once routine — are now rare. With more than 300,000 students graduating from college every year, South Korea needs sustained, not sporadic, job creation. The distribution of employment gains is even more concerning. Jobs increased among those 60 and older — by 334,000 — and modestly for those in their 30s, but they declined sharply among people in their 20s. Most new positions for seniors are government-subsidized, low-wage roles, a stopgap rather than a solution. The sectors driving job growth underscore this imbalance. Health care and social welfare services added 280,000 jobs, followed by gains in culture, leisure, retail and education — all industries with heavy demand for older workers or public funding. Meanwhile, agriculture, forestry and fishing shed 124,000 jobs; construction lost 123,000; and manufacturing declined by 51,000. Employment in construction and manufacturing has been falling for 18 and 16 consecutive months, respectively — an ominous trend for an economy long anchored by industrial exports. Construction, in particular, has contracted for five straight years. Combined with faltering manufacturing, this slump has deepened job insecurity, especially for younger workers. Temporary jobs fell by another 55,000 in October, continuing a multi-year decline. The government has responded with consumer coupons and cultural vouchers — measures that may provide short-term relief but little lasting impact. Officials have pledged to expand “quality jobs” for young people and strengthen support for vulnerable industries, while leaning on digital transformation and artificial intelligence to fuel a new wave of investment. Yet the country’s more immediate challenge is to loosen the regulatory grip that has discouraged business investment for more than a decade. South Korea’s per capita income has now fallen behind Taiwan’s, reflecting stark differences in industrial strategy. Taiwan’s bipartisan “Semiconductor Act,” passed last year, offers substantial tax benefits for corporate research and capital investment. In South Korea, similar proposals have stalled in the National Assembly, wrapped up in debates over exceptions to the 52-hour workweek for researchers. South Korea’s per capita gross national income peaked at $37,898 in 2021 and has since drifted lower, hitting $36,624 last year. The coveted $40,000 threshold remains frustratingly out of reach, 11 years after the country crossed $30,000. Despite slowing growth, recent legislation risks weighing the economy down further. Amendments to the Commercial Act passed this summer mandate cumulative voting and expand the appointment of outside auditors for large companies. The ruling party is now pushing additional requirements, such as compulsory share buybacks, while sidestepping more competitive measures like differential voting rights. These rules risk diluting controlling shareholders’ influence, potentially exposing domestic companies to foreign takeovers. At the same time, powerful labor unions have gained additional leverage under new laws, including the contentious “Yellow Envelope Act,” which broadens the definition of employers and limits companies’ ability to seek damages for illegal strikes. The law permits subcontractor employees to negotiate directly with primary contractors and allows strikes over managerial decisions — steps that many businesses fear will intensify labor disputes. Without complementary reforms, such as alternative employment systems, job creation could suffer. Rigid work-hour rules present another stumbling block. The 52-hour workweek has already curtailed flexibility in research-intensive industries. Proposals for a 4.5-day workweek remain detached from any meaningful discussion of productivity — which already lags behind other advanced economies. Seniority-based pay and talk of extending the retirement age to 65 could further tighten the labor market for young adults. Fiscal strains compound these problems. With corporate tax revenues sagging amid a semiconductor downturn, some lawmakers have floated tax increases rather than reforms to improve the business environment. Meanwhile, government spending continues to swell — on regional currency programs, basic income for farmers and fishermen, and renewable energy projects. The national debt-to-GDP ratio is projected to reach 58 percent by 2029 and could surpass 80 percent by 2040. In such an environment, companies and capital are increasingly looking abroad. That exodus threatens South Korea’s ability to generate the high-quality jobs young people need. Reviving the country’s job engine will require a fundamental shift: dismantling regulations that restrict business activity, reining in excesses that discourage investment, and confronting the anti-business sentiment that has hardened across politics and society. Only then can South Korea begin to restore confidence — and opportunity — for a generation losing both. About the author -Ph.D. in Economics, University of Manchester -Former Director, Monetary Research Division, Bank of Korea -Former Deputy Director, Korea Institute of Finance -Former President, Korea International Finance Association * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 09:48:53

Lee departs for Johannesburg to attend G20 summit SEOUL, November 21 (AJP) - President Lee Jae Myung on Friday headed to Johannesburg to attend the Group of 20 (G20) summit, which will be held in South Africa this weekend, after wrapping up his visit to Egypt. During his stay in Egypt earlier this week, Lee met with President Abdel Fattah el-Sisi to discuss expanding trade and cultural cooperation as the two countries mark 30 years of diplomatic relations. He also delivered a speech at Cairo University. In a joint press statement following the summit, Lee said, "South Korea and Egypt have agreed to work together to promote international peace in regions including the Korean Peninsula and the Middle East." The leaders also agreed to enhance bilateral cooperation and exchanges under the Comprehensive Economic Partnership Agreement (CEPA). After arriving in Johannesburg later in the day, Lee is expected to meet with leaders of the cross-regional consultative group known as MIKTA, which includes Mexico, Indonesia, South Korea, Turkey and Australia, on the sidelines of the G20 gathering. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 09:41:22

Korea celebrates defense advance and explores sustainability strategy: Aju Defense Forum '25 SEOUL, November 20 (AJP) - South Korea’s defense industry is enjoying an unprecedented heyday as demand for self-defense in a nation still technically at war converges with its rapidly advancing technological capabilities. Amid simultaneous military confrontations in Ukraine and the Middle East, Korea’s defense exports have tripled and are likely to easily top 30 trillion won ($20 billion) this year. Yet despite the rediscovery of Korea’s firepower — from tanks to howitzers to fighter jets — the sector must strengthen its long-term sustainability strategy for peacetime, experts said Thursday at the Aju Defense Forum '25, held in western Seoul and co-hosted by Aju Business Daily, the Korea Defense Industry Association (KDIA), Jeonbuk National University, and D&A Advisory. The discussion highlighted sweeping challenges confronting Korea’s defense industry: rapid shifts in global security, shrinking military manpower, force-structure reforms, and the rise of commercial artificial intelligence. Participants included lawmakers, defense manufacturers, policy institutions, analysts, and defense attachés from around 20 countries. Artificial intelligence — vividly demonstrated in the ongoing war in Ukraine — has become a decisive metric in combat. The global defense AI market, valued at US$13.2 billion last year, is expected to grow to US$35.5 billion by 2031, intensifying competition as major powers integrate AI into weapons manufacturing, battlefield decision-making, and unmanned operations. Korean companies such as Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries (KAI), and LIG Nex1 are accelerating development of unmanned platforms, drones, and autonomous systems. R&D spending among Korea’s five major defense firms reached 1.3293 trillion won this year, up 8.1 percent from 2023. Wars in Ukraine and Gaza are speeding the real-world deployment of AI, robotics, and drone systems, said Kwak Ki-ho, who heads the AI Center at the Agency for Defense Development (ADD). He stressed that Korea must lean into innovation-driven strategies to stay ahead of emerging battlefield trends. Data from the Stockholm International Peace Research Institute (SIPRI) shows Korea has emerged as the second-largest arms supplier to NATO member states over the past five years — underscoring its accelerating presence in Europe. Platforms such as the K2 tank, K9 howitzer, and FA-50 fighter jet are rapidly expanding across the continent, led by Poland’s landmark US$22 billion procurement deal. Exports to Romania and Saudi Arabia are also increasing, solidifying Korea’s role as a global defense player. Lim Kwu-jin, CEO of Aju Business Daily, said Korea’s defense exports — including the K9 and FA-50 — "have grown significantly in recent years, elevating the country’s global standing." He added that government moves to ease export controls and support technology innovation "are strengthening Korea’s ability to enter new markets," and that the forum served as "a meaningful venue to discuss future battlefield requirements and long-term strategies for the sustainable growth of K-defense." National Assembly Deputy Speaker Lee Hack-young noted that Korea’s rapid rise has placed it among the world’s leading arms exporters and said the legislature would fully support the government’s drive to elevate Korea into the world’s top four defense powers. Still, participants stressed that Korea must bolster mid- and long-term strategic capabilities — including nuclear-powered submarines, advanced unmanned and autonomous systems, and next-generation ISR (intelligence, surveillance and reconnaissance) technologies — to maintain an edge in an era increasingly defined by AI-driven command, control, and operational systems. 2025-11-20 17:43:24

Korea braces up for travel boon during winter holiday season from China–Japan fallout SEOUL, November 20 (AJP) - Korean travel agencies and the industry are bracing up to seize a potential boon from the fallout and escalating hostility between China and Japan over remarks by Japanese Prime Minister Sanae Takaichi in early November on a potential Taiwan contingency that have led to a series of boycott-driven cancellations. Nearly 500,000 Chinese travelers have reportedly canceled Japan-related bookings — 32 percent of all Japan-bound reservations — after Beijing issued a warning against travel to Japan. Independent aviation analyst Li Hanming said cancellation rates surged to 82.1 percent on Sunday and 75.6 percent on Monday, noting that "the number of cancellations was 27 times higher than new bookings — a flurry of withdrawals unseen since the early months of the COVID-19 pandemic." Chinese travel agencies, in compliance with the state advisory, are offering full refunds for canceled Japan tour packages. Korea has quickly emerged as the top alternative destination in the region. Data released Sunday by Chinese travel platform Qunar showed Korea ranking first among overseas destinations for Chinese travelers over the weekend of November 15 to 16, overtaking long-time No. 1 Japan. Korea also led in flight payments and travel-related search volume, with Seoul recording the highest number of queries. Thailand, Hong Kong, Malaysia, Singapore, Vietnam, and Indonesia followed. The travel disruption stems from remarks Prime Minister Takaichi made during a parliamentary budget committee session on November 7, in which she suggested that a Chinese blockade of Taiwan — and subsequent U.S. military intervention — could constitute an "existential crisis" for Japan and potentially invoke Japan's right to collective self-defense. Beijing demanded an immediate retraction and issued a de facto travel ban urging citizens to avoid Japan from November 14 after Tokyo refused. Korea stands to benefit most on the tourism front, as Chinese and Japanese travelers together make up nearly half of foreign arrivals. According to the Korea Tourism Organization's Data Lab, of 18,316,412 foreign visitors to Korea between October 2024 and September 2025, 5,233,649 were from China and 3,583,533 from Japan — a combined 48.1 percent of all inbound travelers. "We are carrying out our annual plans as scheduled. For the Chinese market, we are continuing pre-planned promotions targeting the winter vacation period and long holidays, particularly through online campaigns," said a spokesperson for the Korea Tourism Organization, adding that it was too early to assess the direct impact of China's travel advisory. Still, the travel industry is bracing up for a potential surge in traffic during the year-end holiday season and leading up to the Lunar New Year. Korean Air recently formed a strategic partnership with Chinese online travel giant Ctrip, part of the Trip.com Group, which has more than 300 million registered users. Korean Air already operates the largest number of Korea–China routes among carriers from both countries. As of August this year, the airline operates over 200 weekly flights between the two nations. 2025-11-20 17:29:46

K-pop groups once again caught in diplomatic crossfire amid China–Japan fallout SEOUL, November 20 (AJP) - K-pop groups that have recently become regulars on Japanese television are once again caught in the crossfire between China and Japan, as renewed tensions under Tokyo's new hawkish leadership spill over into pop culture. The diplomatic standoff has revived decades-old antipathy between the two countries and is sending ripple effects across multiple fronts — from tourism to entertainment. Chinese music platform QQ Music announced Monday via social media that a fan event for Japanese boy band JO1 scheduled for later this month in Guangzhou was canceled due to "force majeure." The 11-member group, formed through Produce 101 Japan in 2020 — the Japanese adaptation of the Korean idol audition franchise — is managed by Lapone Entertainment, a joint venture between CJ ENM and Yoshimoto Kogyo. K-pop girl group aespa, which includes Chinese member Ningning, also received a direct hit. After news broke that the group would appear on NHK's year-end "Kōhaku" music program, a petition demanding their removal surfaced on change.org on Monday. Ningning had previously drawn ire in Japan after posting mushroom-shaped lighting in 2022 that some interpreted as resembling an "atomic bomb." Petitioners argue her appearance would "damage Japan's international image" and "hurt victims of the Hiroshima bombing." The petition gathered more than 50,000 signatures within 24 hours, rising to 70,000 as of Thursday. The four-member group has become "one of the biggest cultural casualties of the current diplomatic rift," Hong Kong–based Sing Tao Daily wrote, adding that whether aespa ultimately performs on "Kōhaku" could serve as a barometer of the depth of the China–Japan conflict. Beijing's reaction is rooted in its strict adherence to the "One China" policy, under which Taiwan is considered part of greater China. Ahead of his third term, President Xi Jinping emphasized ideological discipline and cultural purification, leading to heightened censorship since 2021 under the stated goals of protecting youth from "harmful cultural consumption" and restoring "proper values." Korean pop culture has faced de facto sanctions under this framework. Japanese Prime Minister Sanae Takaichi's recent comments align with long-standing defense views — that Japan may need to adopt a self-defense posture should Chinese actions toward Taiwan create a "survival-threatening situation." Beijing denounced the remarks as provocative and insulting. This is far from the first time Korean entertainers have been drawn into political tensions. Tzuyu of TWICE was forced to issue a public apology in 2016 after holding a Taiwanese flag on Korean television, triggering intense backlash from Chinese netizens. EXO's Lay terminated an endorsement deal with Samsung after the company listed Taiwan and Hong Kong as separate entities on its website. In 2019, during a Korean boycott of Japanese goods following Japan's export restrictions on semiconductor materials, some online communities demanded the removal of TWICE's Japanese members — Sana, Momo, and Mina — from Korean broadcasts. "Asia is fundamentally collectivist. They cannot separate individuals from the actions of their group or nationality," said Yu Hyun-jae, professor at Sogang University's College of Communication, explaining that such reactions reflect deeper cultural patterns in East Asia. "Social media is extremely powerful. Information spreads fast regardless of facts or nuance, making it an ideal environment for agitation. Fan communities that grow under these conditions can easily become distorted or extreme," he added. 2025-11-20 17:29:21

Asian market rebounds on Nvidia halo, Kospi recovers 4,000-mark led by chips SEOUL, November 20 (AJP) - Asian markets rebounded Thursday after Nvidia delivered another set of stunning earnings, muting much of the overheated AI chatter and giving regional stocks their first solid lift this week. In Seoul, the benchmark Kospi advanced 1.9 percent to close at 4,004.85, reclaiming the psychologically important 4,000 mark for the first time in three sessions. The tech-heavy Kosdaq added 2.4 percent, finishing at 891.94. Foreign investors bought a net 560.7 billion won ($381 million) worth of shares, while institutions purchased 967.7 billion won. Retail investors, however, turned heavy sellers, offloading 1.51 trillion won. Analysts said renewed foreign buying — centered on semiconductor names — was the main catalyst behind the rebound. The surge followed Nvidia Corp.’s record-breaking quarterly earnings, which helped dispel concerns of an overheating AI-driven rally. The U.S. chipmaker posted third-quarter revenue of $57 billion and earnings per share of $1.30, beating market estimates of $54.9 billion and $1.25, respectively. Revenue jumped 62 percent from a year earlier. During the earnings call, CEO Jensen Huang underscored rising demand for memory and AI infrastructure, saying the company is preparing “a big year ahead” with memory partners — remarks that further fueled optimism for Korean chipmakers. Shares of Samsung Electronics rose 4.3 percent to 100,600 won ($68.5), while SK hynix gained 1.6 percent to 571,000 won. Most large-cap stocks advanced: LG Energy Solution up 0.8 percent to 441,000 won; HD Hyundai Heavy Industries up 1.6 percent to 583,000 won; and Doosan Enerbility up 4.4 percent to 77,700 won. Automakers lagged the broader rally, with Hyundai Motor slipping 0.8 percent to 262,000 won and Kia retreating 1 percent to 113,400 won. AI infrastructure-related stocks surged across the board. Daewon Cable soared 18 percent to 3,940 won; LS ELECTRIC climbed 6.5 percent to 506,000 won; Gaon Cable rose 6 percent to 70,600 won; Taihan Electric Wire gained 4.8 percent to 24,100 won; and HD Hyundai Electric added 4.1 percent to 815,000 won. Tourism and cosmetics shares also rallied amid growing expectations of a rebound in Chinese visitors, as travel tensions between China and Japan prompt widespread cancellations of trips to Japan and shift demand toward South Korea. Able C&C jumped 16.6 percent to 10,810 won; Lotte Tour Development rose 15 percent to 22,350 won; and resort operator Paradise gained 13.7 percent to 18,400 won. CJ surged 8.3 percent, TonyMoly climbed 7.2 percent, Jin Air rose 6.2 percent, and GKL added 5.9 percent. Entertainment stocks joined the upswing. HYBE rose 3 percent to 296,000 won; JYP Entertainment added 1.8 percent to 67,800 won; SM Entertainment advanced 4.3 percent to 105,700 won; and YG Entertainment climbed 2.3 percent to 62,500 won. Samsung Biologics remains temporarily suspended from trading through Nov. 21 due to its pending corporate split. Elsewhere in Asia, Japan’s Nikkei 225 jumped 2.6 percent to 49,794.33, lifted by the Nvidia halo. SoftBank rose 1.9 percent to 19,180 yen ($122); Toyota edged up 0.2 percent to 3,044 yen; and Sony gained 3 percent to 4,461 yen. In China, the Shanghai Composite Index slipped 0.4 percent to 3,931.05. 2025-11-20 17:29:11

South Korea's NPS wins tax exemption in Sweden, recovers $8.6 million in dividend taxes SEOUL, November 20 (AJP) - South Korea’s National Pension Service (NPS) is set to recover roughly $8.6 million in dividend taxes from Sweden after Swedish authorities formally acknowledged the fund’s tax-exempt status for investments in listed stocks. The decision, announced Thursday, covers taxes paid between 2016 and 2020 and is expected to save the NPS an additional $6.4 million annually going forward. The pension fund is also seeking refunds for about $8.8 million in taxes paid from 2021 through 2024. Although Sweden’s Social Insurance Fund is exempt from such taxes, the NPS was initially denied the same treatment as a foreign institution. The Korean fund applied for exemption in 2021 under the European Union’s non-discrimination rules, but its request remained unresolved for nearly five years due to ambiguous regulations. Momentum shifted earlier this year when Finland’s public pension fund won a similar case, prompting the NPS to push Swedish authorities for action in May. The NPS ultimately secured its exemption and refund without resorting to litigation, becoming only the second foreign pension fund — after Finland’s — to receive recognition of tax-exempt status in Sweden. The latest win follows similar successes in Europe. The NPS previously reclaimed $5.9 million in taxes from Finland under the EU’s non-discrimination clause and is now pursuing comparable refunds in Germany, Italy, Austria and Poland. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-20 16:42:33

First mate, helmsman held over ferry accident SEOUL, November 20 (AJP) - The first mate and helmsman of a passenger ferry that ran aground on an uninhabited islet off the southwestern coast overnight were arrested on Thursday over their alleged negligence, according to police. Police detained the first mate in his 40s, and the helmsman, an Indonesian also in his 40s, after both were found to have neglected their duties, causing the 26,000-ton ferry Queen Zenobia II to run aground. Initial investigations revealed that the first mate missed a crucial moment to change the ship's course because he was distracted by his cellphone. The vessel was supposed to alter its direction, but he failed to do so, leading to the accident. The area is known for its narrow and dangerous passages, requiring manual navigation instead of autopilot. However, he allegedly did not switch to manual mode while being distracted. Initially, he claimed a malfunction in the steering gear but later admitted he missed the turn while searching for news on his phone. Police seized their phones to investigate their activities at the time of the accident. The vessel's captain is also under investigation, though he has not been detained. He was not in the steering room at the time, as he was off duty. The vessel carrying 46 passengers and 21 crew members departed from the southern resort island of Jeju at 4:45 p.m. the previous day and ran aground near Sinan in South Jeolla Province at around 8:17 p.m., becoming stranded. All passengers were safely rescued several hours later, although some reported minor injuries or stress and were taken to hospitals. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-20 16:34:22