South Korea Launches Public-Private Task Force to Draft K-GX Green Transition Strategy The South Korean government on Tuesday launched a public-private task force to draft its K-GX (green transition) strategy, bringing together relevant ministries and major industry associations at the Korea Chamber of Commerce and Industry. The task force was formed to steer policy discussions as South Korea works to implement its 2035 Nationally Determined Contribution, or NDC, and to turn those efforts into growth opportunities while strengthening coordination between the public and private sectors. At the launch event, participants shared the strategy’s drafting direction and the task force’s operating plan, and discussed ways to translate proposals from private-sector consultative groups into concrete policy tasks. The government outlined green-transition priorities aimed at ensuring implementation of the 2035 NDC, including expanding renewable energy, demonstrating hydrogen-based steelmaking, sharply increasing adoption of hydrogen and electric vehicles, electrifying thermal energy use, converting livestock manure into energy, and revitalizing the timber industry. It also said it will prepare a package of support measures, including technology development, certification and standards, financial and tax support, and regulatory easing, along with steps to deliver a “just transition.” The Korea Chamber of Commerce and Industry, presenting private-sector proposals, said 72% of its member companies believe a Korean-style GX policy is needed. It called the K-GX strategy a key national task to strengthen industrial competitiveness and future growth, and urged the government to create conditions that allow companies to view carbon neutrality as an opportunity and keep investing. Koo said a proactive green transition is a “core agenda” for South Korea’s manufacturing-centered economy. “I will fully support the K-GX strategy with strong determination so it becomes a driving force for future national competitiveness and a major economic leap,” he said. He also said the government will build a foundation for broad public participation and support the transition so it becomes central to regional growth alongside local industries. Climate, Energy and Environment Minister Kim Sung-hwan said the goal of the K-GX strategy is to cut carbon emissions through a green transition while drawing domestic investment by South Korean companies and maximizing growth potential based on the country’s technological capabilities. He said the government will mobilize all available policy tools — including technology development, fiscal measures, finance and tax policy — to support a major shift toward decarbonized, growth-oriented development. The government said it will actively incorporate industry input through the task force and plans to announce the K-GX strategy in the first half of this year. It also plans to set up a dedicated unit within the climate ministry to support the strategy’s development and implementation.* This article has been translated by AI. 2026-01-28 18:27:00

Trump admin pressures Seoul over "unfulfilled" trade commitments SEOUL, January 28 (AJP) - U.S. Trade Representative Jamison Greer told Fox Business on Tuesday that South Korea had yet to honor commitments made under last summer’s “framework agreement,” including a planned 350-billion-dollar investment in the U.S. over three years and steps to open its market to more American automobiles and agricultural products. “We showed good faith by lowering our tariff rate on Korea from 25 percent to 15 percent,” Greer said. “But they haven’t done their part—they haven’t passed the bill to support their investment, they’ve introduced new digital service laws, and they haven’t moved forward on agriculture or industry. It’s hard to keep our end of the bargain when they’re moving so slowly.” The remarks come amid escalating trade tensions between the two allies. The U.S.–Korea Free Trade Agreement (KORUS FTA) Joint Committee, which was supposed to meet last December in Washington for the first time since last fall’s summit, has been postponed indefinitely after Washington demanded “more concrete proposals” from Seoul on non-tariff barriers and digital regulation. According to Korean officials, the dispute centers partly on South Korea’s amended Information and Communications Network Act—a digital-services law aimed at curbing false online content, which U.S. tech firms argue imposes new restrictions on their operations. Trump, speaking during a campaign stop in Iowa on Tuesday, doubled down on his approach, saying that the threat of 25% tariffs has been effective in prompting other countries to return to the negotiating table. “When we mention tariffs, they move,” Trump said, suggesting that the policy remains a core component of his negotiation strategy. Strategic Leverage or Economic Self-Harm? Some experts view the move as an example of Trump’s reliance on tariff threats as leverage, a strategy largely absent from modern U.S. trade diplomacy. “President Trump is using tariffs as political and economic pressure in ways we haven’t seen before,” said J. Lawrence Broz, chair of the Department of Political Science at the University of California, San Diego. “Publicly singling out Korea’s National Assembly personalizes the dispute and justifies unilateral escalation. But protectionism harms U.S. consumers and distorts resource allocation—it’s economically counterproductive in the long term.” Broz added that the episode underscores the eroding influence of multilateral trade institutions like the WTO, which were designed to restrain powerful countries from acting unilaterally in trade conflicts. Domestic Politics in Play Other analysts suggested political motivations may also be at work. Eric A. Langenbacher, a professor at Georgetown University, noted that two rival bills are currently before South Korea’s National Assembly to create a mechanism for the pledged investments. “The timing may not be coincidental,” he said. “Trump might be trying to break the legislative impasse in his own way. His policy messages often follow from the most recent conversation he’s had, so the key question is—who raised the South Korean issue to him, and to what end?” Langenbacher added that it remains unclear whether Trump has a preferred political faction in South Korea, but drew parallels with his administration’s past signals of support for European right-wing populist parties, suggesting that “this might be a way to tilt the domestic debate.” 2026-01-28 18:20:40

Kim Keon Hee Says She Accepts Court’s Criticism After 1st Trial Sentence Kim Keon Hee said she would “humbly accept” the court’s stern criticism after she was sentenced to 1 year and 8 months in prison in a first trial on Tuesday. Her legal team said in a notice to reporters that attorneys met with Kim at Nambu Detention Center after the ruling and relayed her statement. “Today, I humbly accept the court’s stern criticism, and I will not take its weight lightly,” Kim said during the meeting. “Once again, I am sorry to everyone for causing concern because of me.” Earlier, the Seoul Central District Court’s Criminal Division 27, led by Presiding Judge Woo In-sung, sentenced Kim on charges of violating the Capital Markets Act, violating the Political Funds Act and receiving bribes in connection with influence peddling under the Act on the Aggravated Punishment of Specific Crimes. The court found her guilty on part of the influence-peddling charge involving money and valuables received from the Unification Church. It acquitted her of allegations tied to the Deutsch Motors stock manipulation case and claims that she received free opinion polling from political broker Myung Tae-kyun. The court ordered the confiscation of one seized Graff diamond necklace and imposed forfeiture of 12,815,000 won for a bag and concentrated Cheonsusam tea, which could not be confiscated.* This article has been translated by AI. 2026-01-28 18:12:26

SK hynix plans U.S. AI solutions unit to expand role in AI data centers SK hynix said Tuesday it is pushing ahead with plans to set up an AI solutions company in the United States, tentatively named “AI Company,” or AI Co. The company said it aims to move beyond being a memory chip maker and become a key partner in the AI data center ecosystem, building on its competitiveness in AI memory technologies such as high-bandwidth memory, or HBM. It said it will pursue strategic investments and partnerships with companies that have AI capabilities, strengthen its memory competitiveness and grow AI Co. into a business that can provide solutions across the AI data center sector. Global big tech companies have been competing aggressively to secure leadership in AI through investment and business restructuring, SK hynix said. With memory performance increasingly seen as a key factor in easing AI data bottlenecks, broader cooperation is needed to optimize AI systems, it added. SK hynix said it is considering using AI Co. to invest in AI innovators in the U.S. and expand collaboration, while linking capabilities gained there to synergies across SK Group. It also said the effort could help strengthen the competitiveness of South Korea’s AI and semiconductor industries, citing the value of a global network and experience in technology cooperation as global competition intensifies. AI Co. will be created by reorganizing Solidigm, which has positioned itself as a key player in AI data centers through high-capacity enterprise SSDs, the company said. Solidigm’s corporate name is SK hynix NAND Product Solutions Corp. Solidigm will establish a subsidiary and transfer its business, and its corporate and company names will be changed later, SK hynix said. The new subsidiary will use Solidigm Inc., AI Co.’s current company name, as its corporate name to maintain business continuity. SK hynix said it plans to contribute US$10 billion depending on AI Co.’s capital calls. “Establishing AI Co. is a step to secure various opportunities in the AI data center ecosystem ahead of the next AI era,” SK hynix said. “We will work closely with key AI partners in the United States and create value customers need ahead of time.”* This article has been translated by AI. 2026-01-28 18:12:00

South Korean equities log rare double win as decoupling fears grow SEOUL, January 28 (AJP) - South Korean equities are logging a rare double win, with both the main KOSPI and the tech-heavy KOSDAQ hitting historic highs, but the synchronized rally is increasingly stirring anxiety that markets are pulling away from economic reality. The benchmark KOSPI climbed to 5,170.81 on Wednesday, setting a fresh record, while the KOSDAQ advanced to 1,133.52. Both indices are up about 20 percent so far this year, extending last year’s outsized gains of 76 percent for the KOSPI and 36 percent for the KOSDAQ. The surge has lifted South Korea’s total equity market capitalization above that of Germany, underscoring the scale — and speed — of the rally. Leadership has been concentrated. Alongside heavyweight chipmakers Samsung Electronics and SK hynix, Hyundai Motor has joined the record-setting run, with its share price up more than 63 percent year to date. Optimism around semiconductor exports, autos and emerging technologies such as robotics has reinforced investor appetite. Yet beneath the headline strength, warning signs are accumulating. Markets diverge from the real economy For one, equity markets appear increasingly decoupled from underlying economic conditions. South Korea’s economy contracted 0.3 percent in the fourth quarter and 1 percent for the full year, according to the Bank of Korea — the weakest performance among major Asian economies. Even compared with Japan, which entered a low-growth era earlier, South Korea’s annual growth rate remained similar or lower, falling well short of the earlier consensus forecast of 1.8 percent. Leverage is adding to concerns. Margin debt reached approximately 29.35 trillion won ($20.6 billion) as of Jan. 26, according to the Korea Financial Investment Association, approaching the 30 trillion won mark — an all-time high for funds borrowed to purchase stocks. The pace of the increase has been particularly striking. Compared with about a year earlier, margin borrowing has surged by 12.51 trillion won, or 74.3 percent, amplifying fears that rising asset prices are being fueled by debt rather than earnings fundamentals. Household balance sheets remain stretched as well. Non-bank household debt increased by 37.6 trillion won over the course of 2025. Although it edged down by 1.5 trillion won in December, the ratio still stood at 89 percent of GDP at year-end — among the highest levels in major economies. Labor-market indicators offer little reassurance. Youth employment, a key barometer of long-term growth potential, remains mired in stagnation. The employment rate for those aged 15 to 29 stood at 44.3 percent in December, down 0.4 percentage points from a year earlier and marking the 20th consecutive month of decline, according to data released by the National Data Agency on Jan. 14. As the gap between asset prices and the real economy widens, volatility has risen sharply. The KOSPI Volatility Index (VKOSPI) closed Wednesday at 38.68, up 11.12 percent from the previous day and more than double its level a year earlier. Liquidity, not recovery This is not the first time South Korean equities have diverged from economic fundamentals. Similar patterns emerged in the aftermath of the global financial crisis, during the COVID-19 stimulus cycle and in the early stages of the dot-com boom — periods when abundant liquidity converged with compelling technology narratives. The current rally appears driven less by a broad-based recovery than by excess liquidity and concentrated inflows into specific sectors such as AI and semiconductors. According to a Bank of Korea report released Jan. 14, the M2 money supply grew 4.8 percent year on year as of November 2025. When beneficiary certificates — including ETFs, equity funds and bond funds — are included, effective liquidity growth reached 8 percent. Investor positioning reflects this trend. Investor deposits climbed to a record 97.54 trillion won as of Monday, highlighting the scale of capital circulating around the stock market. “The rally that began last year and continued into early this year reflects domestic liquidity conditions and expectations surrounding monetary accommodation by major economies such as Japan and the United States, rather than improvements in the real economy,” said Lee Kyung-min, a strategist at Daishin Securities. Lee added, however, that with forward earnings per share expected to trend upward, liquidity could eventually translate into corporate investment and growth. Others remain more cautious. J.P. Morgan, in its “2026 Market Outlook,” warned that downside risks remain elevated amid weak business sentiment and a cooling labor market, posing potential headwinds for global equities, including South Korea. Adding to concerns, the U.S. Consumer Confidence Index fell sharply to 84.5 in January, nearly 10 points lower than the previous month and well below market expectations. “We are not unaware that key real-economy indicators — including youth employment and construction activity — remain weak despite rising stock prices,” said a securities industry official, speaking on condition of anonymity. “But given the belief that a buoyant stock market can support corporate investment in R&D and facilities — and potentially lift the real economy — it is difficult to openly raise the prospect of a correction.” 2026-01-28 18:11:27

PPP leader Jang Dong Hyuk says expulsion case against Han Dong Hoon will follow procedure Jang Dong Hyuk, leader of South Korea’s People Power Party, said Tuesday that disciplinary proceedings seeking to expel Han Dong Hoon, the party’s former leader, would move forward “according to procedure,” signaling expulsion remains possible. Speaking to reporters after an on-site meeting on price trends at the Korea Agro-Fisheries & Food Trade Corp. (aT) center in Seoul’s Seocho district, Jang avoided a direct answer on Han’s case, saying, “What matters now is people’s lives and livelihoods.” Asked about Seoul Mayor Oh Se Hoon’s call for the two sides to meet “even today,” Jang said, “Enough time has been given under the procedure, and we will proceed according to procedure.” On the New Reform Party’s decision to put off cooperation on a special counsel probe, Jang said the opposition’s proposed special counsel “must be carried through,” adding that “carrying through the special counsel itself is the justification.” Explaining his early return to party duties, Jang cited South Korea-U.S. tariff talks, high prices and two special counsel issues, saying he could now move again and “couldn’t delay,” and that he believed returning “as soon as possible” was the right course. Regarding Rep. Kwon Seong Dong, who faces allegations of receiving money linked to the Unification Church and was sentenced Tuesday in a first trial to two years in prison, Jang said authorities had pursued all possible investigations into the opposition over Unification Church-related matters, but did not investigate when names of ruling-party figures were mentioned during the process. “That’s why we are demanding a special counsel,” he said. Jang added that he expects the courts to make fair decisions the public can accept and said he would watch the case through the final ruling.* This article has been translated by AI. 2026-01-28 18:09:23

Assets in ETFs Tracking FnGuide Indexes Top 40 Trillion Won Financial data firm FnGuide said Tuesday that total net assets in exchange-traded funds based on indexes it developed have surpassed 40 trillion won. The total topped 30 trillion won about three months ago. Over that period, net assets in the KODEX AI Semiconductor ETF rose about 310%, to 2.1 trillion won from roughly 500 billion won. TIGER Semiconductor TOP10 climbed about 190%, to about 4.1 trillion won from 1.4 trillion won. FnGuide said the gains reflect concentrated demand for related investments as shares of Samsung Electronics and SK hynix repeatedly hit record highs. FnGuide said it runs its index business on its in-house platform, FNAIDX, which automates the full process of index development and validation. The system uses data to cover everything from generating theme ideas to selecting components, running simulations and verifying performance. A FnGuide official said that in a favorable market environment, nine of the top 10 domestic equity theme indexes by net assets are based on FnGuide indexes. The official said the company plans to expand index development beyond equities to overseas markets, bonds and crypto assets, while upgrading its index design and validation framework to respond to longer-term market shifts.* This article has been translated by AI. 2026-01-28 18:09:16

Samsung Welstory 2025 Operating Profit Slips 2.5% to 153 Billion Won on Higher Costs Samsung Welstory posted higher revenue last year, but operating profit edged down as cost pressures increased. According to a filing on the electronic disclosure system on Tuesday, the company’s operating profit totaled 153 billion won, down 2.5% from a year earlier. Its operating margin slipped to 4.7% from 5.0%, a decline of 0.3 percentage points. The company cited higher labor costs and rising food ingredient prices as weighing on profitability. Revenue rose 4.7% to 3.264 trillion won over the same period, driven by more catering contracts that lifted meal volumes and by expansion of its food-ingredient business. In the fourth quarter, revenue and profit moved in opposite directions. Revenue fell 2% from a year earlier to 799 billion won as fewer business days reduced demand for catering and food ingredients. Operating profit, however, rose 9.4% to 35 billion won on cost efficiencies and a focus on profitability.* This article has been translated by AI. 2026-01-28 18:09:00

Cold Wave to Grip Central South Korea; Snow or Rain Expected on Jeju Cold weather will persist Thursday, with the harshest conditions centered on South Korea’s central regions. Morning lows are forecast at minus 15 to 3 degrees Celsius (5 to 37 degrees Fahrenheit), with daytime highs of minus 3 to 7 C (27 to 45 F). That is colder than seasonal averages of minus 12 to 0 C (10 to 32 F) in the morning and 1 to 8 C (34 to 46 F) in the afternoon. Cold wave warnings remain in effect for Gyeonggi Province, inland and mountainous Gangwon Province, inland Chungcheong, and inland and northeastern mountainous areas of North Gyeongsang Province. In those areas, morning temperatures are expected to hover around minus 10 C (14 F), with daytime temperatures staying below freezing. Winds will be somewhat stronger, making it feel even colder. Snow or rain is expected on Jeju Island from the afternoon into the night. Forecast snowfall is 1 to 5 centimeters (0.4 to 2 inches) in Jeju’s mountains and less than 1 centimeter (0.4 inch) in mid-mountain areas. Along the west coast of North and South Jeolla provinces, some areas may see flurries from early morning through the morning. Where snow is on the ground or newly falling, roads may be slippery, with icy patches and black ice widespread. Drivers are urged to use extra caution. Dry weather advisories are in place for Seoul; parts of inland Gyeonggi; central and southern inland Gangwon; Gangwon’s east coast and mountains; the eastern coast of South Jeolla; and the Gyeongsang region. With strong winds, officials urged heightened vigilance against fires. Fine dust levels are expected to be “good” nationwide due to clean northwesterly airflow and favorable atmospheric dispersion. Seas are forecast at 1.0 to 3.5 meters (3.3 to 11.5 feet) in the East Sea, 0.5 to 2.0 meters (1.6 to 6.6 feet) in the Yellow Sea, and 0.5 to 1.5 meters (1.6 to 4.9 feet) in the South Sea. In offshore waters about 200 kilometers (124 miles) from the coast, waves are expected at 1.0 to 3.5 meters (3.3 to 11.5 feet) in the East and Yellow seas and 1.0 to 2.5 meters (3.3 to 8.2 feet) in the South Sea.* This article has been translated by AI. 2026-01-28 18:06:24

South Korea Justice Ministry Holds Public Meeting on 2026 Immigration Policy South Korea’s Justice Ministry said it held a public communication meeting on Jan. 27 to share key directions for its 2026 immigration policy, including managing illegal stays and protecting the rights of foreign nationals. The ministry said the meeting was organized amid calls to better reflect what most citizens want from immigration policy while ensuring the enforcement process does not neglect the human rights of foreign nationals. It shared its 2026 policy direction with civic groups including the Korean Confederation of Trade Unions, academics and immigration policy experts, and heard feedback from the field. The ministry said its efforts to reduce illegal stays cut the number of undocumented residents to 350,000 from 430,000 in 2023. It said it is using multiple approaches beyond on-site crackdowns, including support for voluntary departures and partial legalization. It also said enforcement needs strengthening, citing a recent death of a Vietnamese woman. The ministry said it will deploy additional safety personnel during inspections at workplaces considered high-risk for accidents and will bolster its response to crimes by foreign nationals that threaten public safety, including drug offenses and voice phishing scams. Participants said enforcement methods need to change, and the ministry outlined additional steps aimed at protecting foreign nationals’ rights. To strengthen protections, the ministry said it will more specifically define review agenda items handled by its Foreign Nationals Human Rights Protection and Rights Promotion Council and tighten guidance procedures through its Comprehensive Immigration Information Center. Academic participants also conveyed views from education and industry on expanding employment opportunities and settlement measures for foreign nationals staying on student (D-2, D-4) or job-seeker (D-10) visas. The ministry said it will incorporate the opinions raised at the meeting and prepare detailed implementation procedures in February, including follow-up steps such as revising related operating guidelines. Cha Yong Ho, head of the ministry’s Immigration and Foreign Policy Headquarters, who chaired the meeting, said, “Because the issue of illegal stays is directly tied to public safety, we will respond strictly, but we will make procedural transparency and safety our top priorities so that no human-rights blind spots arise during enforcement.” He added, “We will continue to communicate with civil society and pursue a balanced immigration policy that the public can support.” * This article has been translated by AI. 2026-01-28 18:06:00