UPDATE: SK hynix reaps record $8 billion Q3 OP, gears up for aggressive capex (Updated with comments from conference call) SEOUL, October 29 (AJP) - SK hynix plans to “significantly” ramp up facility investment next year after reporting a milestone operating profit of $8 billion in the third quarter, reinforcing its ambition to stay at the forefront of the global AI transition and ride what it calls an “unprecedented super cycle.” The Korean memory giant on Wednesday reported an operating profit of 11.38 trillion won ($7.9 billion) for the July–September period, up 62 percent from a year earlier and 24 percent from the previous quarter. Revenue rose 39 percent on year and 10 percent on quarter to 24.45 trillion won, underscoring its strengthened dominance in high-performance memory for AI servers and data centers. Operating margin as the result was as high as 47 percent, increased from 41 percent in the previous quarter to suggest widened lead over Samsung Electronics, whose decades-long No. 1 status in memory has been overtaken this year. Shares of SK hynix rose 5 percent and touched a record 547,000 won in Wednesday’s session as investors cheered the company’s robust outlook for the current chip boom. Chief executive Kim Woo-hyun drew a clear distinction between today’s market and the previous 2017–18 upcycle. “The biggest difference is the scope of demand,” he said during a conference call. “AI is creating entirely new application sources—from servers to self-driving vehicles—resulting in structurally constrained supply under explosive demand.” He dismissed speculation that the upcycle may fizzle out in its second year as typically done in the past rounds. The profit windfall boosted cash on hand to 27.9 trillion won as of end-September, with cash-equivalent assets up 10.9 trillion won from June. Net cash reached 3.8 trillion won while total debt stayed steady at 24.1 trillion won. The balance sheet resilience gives SK hynix "sufficient" room to push forward capacity expansion, Kim said, adding that next year's capex will rise “considerably” from this year— without specifying figures. SK hynix had earlier guided 29 trillion won in 2025 capex, 62 percent higher than 2024. SK hynix’s leap to the top of the global memory market stems from its early and aggressive bet on HBM, a high-bandwidth memory used in premium servers and AI systems. It accounted for 62 percent of global HBM bit shipments in the second quarter, ahead of Micron’s 21 percent and Samsung’s 17 percent, according to Counterpoint Research. The company’s rising profit share suggests its HBM lead has only deepened, given that HBM sells at several times the price of conventional DRAM and roughly five times that of DDR5. “Demand for memory across the board surged on AI infrastructure spending,” the company said in a statement, citing stronger prices for DRAM and NAND flash and sharp shipment increases of high-performance chips. Shipments of 128-GB-and-up DDR5 more than doubled from the second quarter, while enterprise SSDs for AI servers now account for a larger portion of NAND sales. The company will begin shipping HBM4 in the fourth quarter—destined for Nvidia’s next-generation processors—and has already secured full-year supply contracts for HBM, DRAM, and NAND for 2026. Its HBM breakout is rooted in its multi-story stacking technology, which has advanced from 3D to 4D through triple-level cell (TLC) architecture, enabling higher density and power efficiency suitable for Nvidia’s stringent specifications. SK hynix this week also began the world’s first commercialization of 321-layer NAND flash, aimed at rising AI mobile workloads. To meet undying global demand, the company will expedite cleanroom openings, expand output via the M15X fab, and accelerate the migration to sixth-generation 10-nanometer production across DRAM lines. It expects DRAM demand to grow more than 20 percent next year, following this year's estimated gain in high-10-percent range. 2025-10-29 08:56:44

OPINION: Promise and peril of 'productive finance' in South Korea Oh Jung-geun, head of Free Market Research Institute SEOUL, October 29 (AJP) - When Lee Eok-won, South Korea’s new chairman of the Financial Services Commission, unveiled his vision for “financial transformation” on Sept. 15, his message was both ambitious and urgent. Lee called for “productive finance,” “consumer-centered finance,” and “trust finance” — a sweeping reform agenda meant to propel the country’s economic future. At the heart of his proposal is a shift away from the collateral-based lending system that has long defined South Korea’s banking industry — one that has fueled property speculation and household debt — and a redirection of capital toward “productive sectors” such as innovation and industry. It is a bold vision, echoing the Lee Jae Myung administration’s push to rewire the economy for sustainable growth. But the reality is far more complicated. Redirecting capital into riskier, growth-oriented ventures while maintaining financial stability is no easy task. Banks, by design, are cautious intermediaries. They rely on collateral precisely because it protects them — and the broader system — from shocks. Asking them to become risk-takers overnight is asking them to act against their very DNA. That task is made harder by the need for skilled personnel and sophisticated risk assessment tools. “Productive finance” sounds promising, but on the ground, it demands an institutional overhaul that cannot be achieved quickly. History offers cautionary tales. The collapse of a Silicon Valley bank in 2023 revealed what happens when financial institutions overextend into venture lending without proper safeguards. More recently, several U.S. regional banks — including Zions Bancorporation and Western Alliance Bancorp — have reported substantial loan losses, while JPMorgan Chase suffered a $178 million hit from the bankruptcy of a car lender. Each case underscores a central truth: risk-taking must be matched by equally robust risk management. In South Korea, the banking sector remains sturdy but not without strain. During the first half of this year, banks’ operating profits rose a modest 1.1 percent to 18 trillion won, even as interest income — still their main source of profit — slipped slightly to 29.7 trillion won. The sector’s dependence on net interest margins leaves it vulnerable to shifts in global rates and domestic demand. With the U.S. Federal Reserve moving toward rate cuts and South Korea’s economy losing momentum, that vulnerability could deepen. Higher deposit insurance limits are likely to drive savers toward higher-yield accounts, pushing up banks’ funding costs just as lending margins narrow. Meanwhile, tighter restrictions on household loans and subdued corporate borrowing point to weaker interest income ahead. Adding to the pressure are regulatory and political headwinds. The Fair Trade Commission is investigating major banks for alleged collusion on loan-to-value ratios, a probe that could result in fines exceeding 1 trillion won. Penalties for mis-selling complex equity-linked securities may follow. And the government’s plan to double the education tax on profits above 1 trillion won could further dent earnings — an estimated 600 billion won hit to the country’s top financial groups, according to Sang Sang Securities. Despite robust profits, South Korea’s banks remain relatively uncompetitive globally. KB Bank’s return on equity stood at 8.86 percent at the end of 2024, less than half of JPMorgan’s 18 percent. The gap reflects not only differences in scale, but also the heavy weight of regulation and the limited risk appetite of South Korean institutions. The Lee Jae Myung administration’s “People’s Growth Fund,” which will draw half of its 150 trillion won from the private sector, and its “bad bank” initiative to clean up long-term delinquent loans, both depend heavily on bank contributions. President Lee has urged lenders to abandon “pawnshop-style” practices and embrace productive finance — but these mandates, however well-intentioned, could further squeeze margins and discourage innovation. Korea’s banking industry has long been both a pillar and a bottleneck of its economy: solid, conservative, and reluctant to change. For Lee Eok-won’s “financial transformation” to succeed, it must balance ambition with realism. Policymakers should remember that reform cannot be achieved simply by urging banks to take more risks — especially when those same banks face mounting costs, political scrutiny, and slowing growth. The lessons of 1997, when excessive risk-taking led to financial collapse, still loom large. South Korea’s challenge today is to find a middle path: one that rewards productive finance without repeating the mistakes of the past. About the Author The author holds a Ph.D. in Economics from the University of Manchester and previously served as Director of Monetary Research at the Bank of Korea, Vice President of the Financial Economics Research Institute, and President of the Korea International Finance Society. He is currently a professor at Korea University and Konkuk University, head of the Free Market Research Institute, and chairman of the Seoul Regional Development Committee. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-29 08:44:22

Korea–Japan drama pairings strike universal chord in streaming era SEOUL, October 28 (AJP) - New Japanese Prime Minister Sanae Takaichi expressed her liking for Korean food, beauty products, and dramas to brush aside concerns that her hawkish and nationalist posture might sour bilateral ties. Her comment reflects a broader trend in Japan, where audiences increasingly separate politics from cultural consumption as Korean pop culture gains deeper traction through social media and global streaming platforms. Not only have the two neighbors — long distanced by historical grievances — grown more receptive to each other's culture, they are now actively blending talent and IP to create stories that resonate not just with Korean and Japanese viewers but with global audiences. The latest standout collaboration is "Romantic Anonymous," starring Japan's Oguri Shun and Korea's Han Hyo-joo, which ranked No. 6 globally in Netflix's non-English TV category and No. 1 in Japan just a week after release, according to Netflix ranking site Tudum on Tuesday. The series — directed by Japanese filmmaker Sho Tsukikawa, known for "I Want to Eat Your Pancreas," and written by Korean screenwriter Kim Ji-hyun — follows a mysophobic man and a socially anxious genius chocolatier. It was produced by Korea's Yong Film, known for "The Handmaiden," under the supervision of Netflix Japan. Japan has become increasingly eager to recruit Korean talent and storytelling know-how after Korean works like "Parasite" and "Squid Game" demonstrated global impact, creative originality, and strong commercial returns. A generational shift is also powering the trend, with younger viewers in both countries far less constrained by historical sensitivities in admiring each other's culture. One of the clearest examples is Coupang Play's "What Comes After Love," released last September and based on a joint novel by Korea's Gong Ji-young and Japan's Hitonari Tsuji. The series was praised for opening a new chapter in Korean romance storytelling. It held the No. 1 spot on Coupang Play for weeks, with viewership jumping 783 percent in its final week compared with its debut. After launching on Amazon Prime Japan, it immediately took No. 1 in the drama category (No. 3 overall), and within two weeks rose to the top position in 103 countries. Disney+ also contributed early to the cross-border wave with "Connect" (2022), a Korea–Japan collaboration starring Jung Hae-in, produced by Studio Dragon and directed by Japanese filmmaker Takashi Miike. The success of such projects marks a shift from simple casting or IP exchanges to full-scale joint productions involving writers, directors, studios, and creative staff from both countries. "Korea and Japan share emotional narratives that both cultures easily relate to," said one OTT insider. "When the two countries merge their creative strengths — from acting talent to production expertise — the result can appeal far beyond Asia." Another industry official noted the strategic value of the partnership: "Japan offers long-lived IPs and strong domestic loyalty, while Korea has proven global appeal. Together, they can capture both local and international audiences." Streaming platforms show no intention of slowing the momentum. Netflix is developing "Soulmate," starring 2PM's Taecyeon and Japanese actor Hayato Isomura. Another highly anticipated project, "Road," based on the Japanese manga Ao no Michi, began production last month as a full Korea–Japan co-production, starring Son Suk-ku and Eita Nagayama as detectives investigating parallel murders in Seoul and Tokyo. As streaming giants widen their global slates, Korea–Japan creative pairings are emerging as one of the most effective formulas for delivering emotionally rich stories with universal appeal. 2025-10-28 17:04:37

Asian shares broadly down Tuesday as Seoul, Tokyo retreat on profit-taking SEOUL, October 28 (AJP) - Asian markets ended mostly lower on Tuesday, with Korea and Japan pulling back after their record-setting rally in the previous session. Korea’s benchmark KOSPI fell 0.8 percent to close at 4,010.41, pressured by heavy foreign selling. Overseas investors offloaded 1.64 trillion won ($1.14 billion) worth of shares, while retail investors bought 1.57 trillion won and domestic institutions added 311.4 billion won, signaling broad profit-taking after a near uninterrupted two-week surge. The pullback centered on biggest winners Samsung Electronics and SK hynix, which fell 2.45 percent to 99,500 won and 2.62 percent to 521,000 won, respectively. HD Hyundai Heavy Industries plunged 4.81 percent to 594,000 won after investors dismissed the possibility of U.S. President Donald Trump visiting a Korean shipyard during his APEC-week trip. Some stocks, however, bucked the decline. Doosan Enerbility jumped 5.49 percent to 86,400 won after announcing a supply contract with U.S. firm Fermi America for nuclear reactor components, reinforcing expectations that it will benefit from Washington’s “Make American Nuclear Cooperation Great Again (MANUGA)” initiative. Samsung Heavy Industries extended Monday’s rally, rising 2.92 percent to 29,950 won on strong momentum behind its self-developed LNG tank technology and recent floating LNG project wins. Samsung Biologics gained 2 percent to 1,232,000 won after reporting a 115.3 percent on-year jump in operating profit to 728.8 billion won. Investors also took positions ahead of its trading suspension starting Thursday due to a planned spin-off. In Japan, the Nikkei 225 slipped 0.58 percent to 50,219.18 as investors locked in profits following Monday’s record close. Defense-related stocks, which had rallied sharply in recent weeks, reversed course — Kawasaki Heavy Industries tumbled 5.03 percent to 11,995 yen ($78.83). By contrast, Furukawa Electric surged 6.34 percent to 10,460 yen on reports that the United States and Japan had agreed on a new rare-earth cooperation framework. Elsewhere in the region, losses were more modest. China’s Shanghai Composite slipped 0.22 percent to 3,988.22, while Taiwan’s TAIEX eased 0.16 percent to 27,949.11. As of 4:30 p.m., Hong Kong’s Hang Seng Index was down around 0.5 percent, trading near 29,260. 2025-10-28 17:04:11

Newly elected Japanese PM to meet Lee for first time at APEC summit SEOUL, October 28 (AJP) - Japan's newly elected Prime Minister Sanae Takaich will travel to South Korea later this week to attend the Asia-Pacific Economic Cooperation (APEC) summit, Japanese media reported on Tuesday. In a press briefing later in the day, Chief Cabinet Secretary Minoru Kihara said Takaichi, who took office as the island country's first female prime minister last week, will visit South Korea for three days from Thursday, just a day before the summit begins in the southeastern city of Gyeongju, which runs through Nov. 1. With the two sides still arranging their schedules, her first meeting with President Lee Jae Myung is expected to take place on the day of her arrival. Takaichi, known as a staunch right-winger, will also hold a series of talks with leaders of other countries during her three-day stay here. Meanwhile, Lee is scheduled to hold talks with U.S. President Donald Trump on Wednesday and Chinese President Xi Jinping on Saturday 2025-10-28 16:56:23

Global searches surge for APEC as world leaders arrive at Gyeongju SEOUL, October 28 (AJP) - South Korea and its ancient city Gyeongju have grabbed global attention as they ready to receive government and corporate leaders across Asia-Pacific region and host the two superpowers locked in high-stake trade confrontation, while speculation swirl about an uninvited featuring by the North Korean leader. This year's Asia-Pacific Economic Cooperation (APEC) summit has dominated news cycles, pulling headlines ranging from Japan's new Prime Minister Sanae Takaichi to BTS RM and rare-earth elements – an unusually broad mix of politics, celebrity culture, and industrial strategy converging on a single event. According to Google Trends on Tuesday, searches for "Asia-Pacific Economic Cooperation" have surged in the days leading up to the summit week. South Korea saw the highest search interest, followed by China, Hong Kong, Singapore and Taiwan. Global attention to APEC has climbed steadily in recent weeks, reaching its highest point this week. The previous peak came on Oct. 2, coinciding with the release of a promotional teaser for the APEC 2025 Korea summit, which featured South Korean President Lee Jae Myung, G-Dragon, Park Ji-sung and other Korean superstars. The uptick also followed remarks by U.S. President Donald Trump, who reaffirmed plans to meet Chinese leader Xi Jinping at the summit. Search interest in RM also jumped after it was announced that the BTS leader will deliver a keynote speech at the APEC CEO Summit. Top associated search terms such as "2025," "APEC South Korea 2025," "Gyeongju," and "Donald Trump" underscore growing attention to this year's high-profile participants. Offline, the host country and city are busy making the final checks on the packed schedule of bilateral meetings. Lee is set to meet Trump on Wednesday, Takaichi on Thursday and Xi on Saturday. Trump and Xi will also hold a separate U.S.-China summit on Thursday, expected to dominate the week's headlines. The Lee-Trump summit will focus on the long-delayed $350 billion investment and tariff negotiations, defense industry cooperation and semiconductor supply chains, along with extended deterrence against North Korea. Lee's meeting with Takaichi will focus on semiconductor cooperation, export controls and historical disputes, while the two countries navigate an ongoing diplomatic realignment. During Lee's first meeting with Xi — also Xi's first visit to South Korea in 11 years — both leaders are expected to explore ways to recalibrate their relationship amid intensifying U.S.-China rivalry. Meanwhile, the Trump-Xi meeting will mark the first face-to-face encounter since Trump's return to the White House. Officials have signaled discussions on tariff adjustments and export controls on rare-earth materials, as both sides seek to ease tensions while protecting strategic interests. Beyond the four key summits among South Korea, the U.S., China and Japan, most of the remaining 21 APEC economies will send top-level delegations to Gyeongju. Confirmed participants include Canadian Prime Minister Mark Carney, Australian Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto. Chilean President Gabriel Boric will be the only Latin American leader attending in person. Some economies are sending senior representatives instead of heads of state. Russia will be represented by Deputy Prime Minister Alexey Overchuk, while Taiwan plans to dispatch former Vice Premier Lin Hsin-i. Hong Kong Chief Executive John Lee and cabinet-level officials from Peru and Mexico will also join the sessions. Special guests include UAE Crown Prince Khalid bin Mohamed Al Nahyan and IMF Managing Director Kristalina Georgieva. 2025-10-28 16:56:11

Wemade rolls out 'Legend of YMIR' worldwide, blending epic battles with crypto rewards SEOUL, October 28 (AJP) - South Korean game developer Wemade announced on Tuesday the global launch of its new multiplayer online role-playing game, Legend of YMIR. The game is now available in 170 countries, excluding South Korea and China. Set in a mythical world torn apart after the fall of the gods, Legend of YMIR follows warriors fighting to restore order amid chaos. Players can engage in large-scale server battles and experience a new “Partners Server” model, which allows communities to manage and grow their own servers on both mobile and PC platforms. At the heart of the game’s design is a blockchain-based economy. Players can earn “gWEMIX,” an in-game currency that can be exchanged on a one-to-one basis with WEMIX Coin, Wemade’s cryptocurrency. Victorious clans in server battles will collect a share of gWEMIX as tax from all other servers, blending competitive gameplay with tangible rewards. To mark the launch, Wemade is hosting an airdrop event on its blockchain gaming platform, WEMIX PLAY, distributing NFT-based in-game items to participants. Players can also take part in the “Hero Qualification” event, which offers rewards for completing in-game missions. Wemade said it plans to host a global tournament, the YMIR Cup, to determine the strongest server across all regions. The company, best known for its MIR franchise, continues to expand its footprint in blockchain-integrated gaming as it seeks to attract a global audience to its play-and-earn ecosystem. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-28 16:40:48

KOSPI and Nikkei standout winners as foreign funds pivot away from U.S. market SEOUL, October 28 (AJP) - Seoul and Tokyo exchanges shed their longstanding labels of "Korea bargain" and "lost decades" this year, emerging as the world's two best-performing markets as global capital rotates out of an overheated U.S. equity space and into Asia's two technology powerhouses. According to Japan's Ministry of Finance, foreign investors bought ¥7.53 trillion ($49.9 billion) worth of Japanese equities in the week ending Oct. 18 — one of the largest weekly inflows this year. Cumulative net foreign purchases since January have reached ¥52.8 trillion ($349 billion), more than double the amount recorded a year earlier. The rally has pushed Japan's Nikkei 225 above the 50,000-point threshold for the first time, buoyed by a weaker yen, expectations of additional stimulus by the new pro-growth prime minister, and the Bank of Japan's ultra-loose monetary stance. The Nikkei has risen around 30 percent year-to-date, based on gains from the first trading day of 2025. Corporate reforms have further bolstered sentiment. Since the Tokyo Stock Exchange launched its capital-efficiency program in 2023, listed firms have markedly increased dividends and buybacks. Corporate repurchases topped ¥10 trillion ($66 billion) in 2024 — an all-time high. Korea, long snubbed and left out of last year's global rally, is also enjoying a breakout year. The benchmark KOSPI has surged nearly 70 percent, briefly crossing the 4,000 mark for the first time in its history. Foreign investors have been the main engine behind the rally. Data from the Bank of Korea and the Financial Supervisory Service show they purchased $4.34 billion of Korean equities in September — the largest monthly inflow in 19 months. According to KRX, foreign net buying reached ₩5.6 trillion ($4 billion) from Sept. 26 to Monday in KOSPI shares, suggesting a still-hot buying spree. By end-September, foreign holdings of listed Korean shares reached ₩1,014.6 trillion ($714 billion), representing 28.7 percent of total market capitalization — the highest proportion since 2022 and up from 27.5 percent a month earlier. Most of the buying was concentrated in semiconductor and AI-related names such as Samsung Electronics and SK hynix, which continue to benefit from a rebound in global chip demand. Net foreign purchases reached ₩6.28 trillion ($4.5 billion) in July, the strongest in more than a year. The eastward shift reflects a broader global portfolio reallocation. With U.S. stocks trading at stretched valuations and the dollar softening, investors are seeking more attractive pricing and stronger structural growth in Asia. LSEG Lipper data show that non-U.S. equity funds attracted $13.6 billion in July — the most in over four years. The International Monetary Fund projects that about 70 percent of global economic growth in 2025 will come from Asia, underscoring the region's increasing weight in the world economy. Near-zero interest rates in Japan and Korea's dovish 2.5 percent policy rate, coupled with weaker exchange rates, have also made their assets more attractive relative to the U.S., where average market yields hover around 4 percent. 2025-10-28 16:39:52

DB Insurance to acquire Florida-based insurer Fortegra in $1.65 billion deal SEOUL, October 28 (AJP) - DB Insurance said on Tuesday that it had agreed to acquire Fortegra Group, a Florida-based specialty insurer, for $1.65 billion, marking the first time a South Korean insurance company has purchased a U.S. insurer. The deal, valued at about 2.3 trillion won, represents the largest overseas acquisition by a South Korean insurer to date. The sellers are Tiptree Inc., Fortegra’s parent company, and the private equity firm Warburg Pincus. The transaction is expected to close by mid-2026, subject to regulatory approvals in both countries. The acquisition underscores DB Insurance’s ambitions to accelerate its global expansion and diversify its business beyond its home market. The company first entered the U.S. in 1984 with a branch in Guam. Founded in 1978 and headquartered in Jacksonville, Fortegra provides a range of specialty, credit, and warranty insurance products. The company operates across the United States and in eight European markets. Last year, it reported $3.07 billion in gross written premiums and $140 million in net income, and it currently holds an A- financial strength rating from AM Best. By acquiring Fortegra, DB Insurance aims to strengthen its foothold in the U.S. and European markets while enhancing its expertise in specialty insurance — a fast-growing segment within the global insurance industry. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-28 15:59:59

OPINION: What South Korea's MASGA initiative means for its alliance with US SEOUL, October 28 (AJP) - South Korea's alliance with the U.S., has long been a cornerstone of security on the Korean Peninsula, combining Washington's extended deterrence with Seoul's defense capabilities to counter North Korea's nuclear threats. But a confluence of new and complex issues is challenging the resilience of the alliance amid a rapidly shifting landscape in Asia and the broader Indo-Pacific region, driven by intensifying rivalry and trade disputes between U.S. and China, Russia's prolonged war in Ukraine, and North Korea's growing nuclear and missile arsenal. In the meantime, the U.S. Navy, which boasts the world's most formidable maritime force, is facing structural difficulties as its shipyards struggle to maintain and repair its vessels, exposing vulnerabilities in both quantity and quality. The U.S. aims to maintain at least 350 ships but currently has about 290, while China, which is flexing its muscle in the Indo-Pacific, appears to have already surpassed the U.S. in fleet numbers. It is no wonder that the U.S. welcomed Seoul's proposal, dubbed "MASGA" (Make America Shipbuilding Great Again) last July, as part of a broader deal to reduce reciprocal tariffs from 25 percent to 15 percent during tariff negotiations between the two countries. It includes a pledge to invest $150 billion to revitalize the American shipbuilding industry over the coming years, as part of a massive $350 billion investment in the U.S., along with the purchase of $100 billion worth of liquefied natural gas and other energy products. South Korea, with its prowess in shipbuilding, possesses advanced skills to not only rapidly build destroyers, submarines, and large transport ships but also maintain and repair them, a capacity the U.S. is eager to leverage. Integrating South Korean shipyards into the U.S. supply chain could ease bottlenecks and enhance fleet readiness, strengthening the bilateral alliance and reinforcing strategic ties beyond industrial cooperation. South Korea has expanded cooperation with its closest ally across various sectors including cyber defense and space security, with shipbuilding likely serving as a practical foundation for these efforts. MASGA is also line with the U.S.' call for fair contributions from allies by enabling South Korea to meet Washington's urgent shipbuilding needs in exchange for advanced U.S. technologies, creating a mutually beneficial partnership. There appear to be some legal and technical challenges, along with possible opposition from China, but these may be overcome with political leadership and institutional coordination. What is crucial is to recognize MASGA as a comprehensive strategic platform for the bilateral alliance, rather than merely a project. Amid the complex geopolitical environment of the Asia-Pacific, MASGA could elevate the alliance to a new level, as it is not just about building more ships but about demonstrating how the two allies will share roles and responsibilities for regional defense and security, serving as both a test and an opportunity. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-28 15:47:38