China's export curbs on Japan risk collateral damage to Korean chipmakers SEOUL, January 07 (AJP) - South Korean technology producers that rely on both China and Japan for critical raw and intermediate inputs may find themselves caught in the crossfire of rising U.S.–Japan tensions, after Beijing imposed sweeping export restrictions on more than 1,000 so-called “dual-use” items bound for Japan. China announced a blanket ban on the export of dual-use goods to Japan while hosting South Korean President Lee Jae Myung for a state visit and summit with Chinese President Xi Jinping. Although framed as a measure to prevent “military use,” the restrictions include seven types of heavy rare-earth elements (HREEs) and permanent magnets essential to advanced manufacturing, making it one of Beijing’s most aggressive trade actions against Tokyo to date. The impact, however, is unlikely to stop at Japan. Because South Korea depends heavily on Japanese intermediate goods for its core semiconductor and battery industries, disruptions along the China–Japan supply chain could ripple quickly into Korea. Heavy rare earths at the choke point At the center of the issue are heavy rare-earth elements, often described as the “vitamins of the high-tech industry.” Compared with light rare earths, HREEs offer stronger magnetic properties, higher heat resistance and superior performance in optical signal processing — making them indispensable for semiconductors, electric vehicles and defense-related technologies. China holds a near-monopoly over these materials, accounting for more than 60 percent of global HREE mining output and refining about 95 percent of all rare earths produced worldwide. It also controls over 90 percent of global permanent magnet production. This concentration raises particular risks for South Korea’s export-driven tech sector, especially semiconductors and electric vehicles. Korean chipmakers remain more than 90 percent dependent on Japanese-made extreme ultraviolet (EUV) lithography equipment, supplied by firms such as Tokyo Electron. The production of this equipment is virtually impossible without yttrium (Y), a key heavy rare earth now caught up in China’s export controls. The electric vehicle sector faces similar exposure. Korean EV manufacturers rely heavily on Japanese-made power integrated circuits that regulate energy flow from batteries to motors. Producing these components requires stable supplies of gallium (Ga), germanium (Ge) and graphite (C) — materials over which China maintains tight control across the global supply chain. Caution amid uncertainty Despite the mounting concerns, some experts warn that excessive alarm may be premature, as details of the export ban remain unclear. “While the term ‘comprehensive ban’ sounds severe, the absence of a finalized item list suggests this could still be a low-level maneuver,” said Park Han-jin, a special professor at Hankuk University of Foreign Studies and a former China head at KOTRA. An official notice, he noted, would normally specify the legal authority, exact items covered and enforcement rules. So far, the announcement from China’s Ministry of Commerce has remained broad and procedural, in contrast to Beijing’s 2023 restrictions on germanium and gallium, which were authorized directly by Xi through a presidential decree. An official at South Korea’s Ministry of Trade, Industry and Energy, speaking on condition of anonymity, also said it was too early to assess the direct impact on Korean firms. Still, the warning lights are flashing. “At this stage, it appears to be a pressure tactic aimed at discouraging Japan from deeper involvement in the Taiwan issue,” Park said. “But if rare earths are fully included in the ban, the shock could hit Korea’s core exporters hard.” 2026-01-07 17:27:02

Retail traders bet on US markets as KOSPI rally continues SEOUL, Jan. 7 (AJP) - While the KOSPI continues its record-breaking rally on Wednesday, breaching the 4,600-level for the first time in history, the unwavering appetite of South Korean retail investors for U.S. equities remains a dominant market force. According to data from Koscom ETF CHECK, the most net-purchased ETFs by retail investors over the past week were the TIGER US S&P 500 and KODEX US S&P 500. Individual traders poured nearly 350 billion Korean won (US$241.7 million) into these two funds, with net purchases of 225.9 billion won and 121 billion won, respectively. The preference for Wall Street extended to tech-heavy indices, as retail investors also snatched up 96.0 billion won of KODEX US Nasdaq 100 and 77.6 billion won of TIGER US Nasdaq 100, signaling a persistent bias toward U.S. growth stocks. This exodus of capital into overseas markets is a long-standing trend rather than a fleeting phenomenon. Between January and October last year, South Koreans invested a net $117.1 billion in overseas securities — comprising $89.9 billion in equities and $27.2 billion in bonds. October alone recorded a record $17.3 billion outflow. Data from the Bank of Korea further underscores this imbalance; while domestic investment in foreign securities jumped by $17.27 billion, foreign investment in South Korean equities grew by a mere $5.2 billion, highlighting a stark divergence in market confidence. Ironically, the most popular domestic equity ETF among retail investors was the KODEX 200 Futures Inverse 2X, known colloquially as the "Gop-bus" - which tracks twice the inverse of the KOSPI 200's daily performance. Retail traders bet 116.4 billion won on a market downturn, despite the ETF plunging 15.93 percent over the past week as the index continued to climb - suggesting that a significant segment of the retail market expects an imminent correction following the recent streak of record highs. Institutional investors, in contrast, are doubling down on the domestic rally. Over the past week, institutions focused their buying on the KODEX Leverage and KODEX KOSDAQ 150 Leverage, with net purchases of 85.8 billion won and 79.8 billion won, respectively. These leverage products provide twice the daily return of their underlying indices, reflecting institutional confidence that the domestic bull market still has room to run despite the height of the current valuation. Brokerages are fueling this optimism by aggressively raising their year-end targets. Yuanta Securities recently hiked its 2026 KOSPI forecast range to 4,200–5,200 points from 3,800–4,600, while Kiwoom Securities raised its band to 3,900–5,200 points. On Tuesday, Korea Investment & Securities significantly upgraded its KOSPI target to 5,650 from 4,600, citing the high probability of further upward revisions in operating profit forecasts for semiconductor giants. However, the narrow breadth of the rally remains a point of skepticism for individual investors. The surge in the KOSPI is almost entirely dependent on a few mega-cap stocks like Samsung Electronics and SK hynix. The combined market capitalization of these two firms has reached 1,374.8 trillion won, accounting for a staggering 36.6 percent of the total KOSPI value as of Wednesday. Historical data also serves as a cautionary tale; while the KOSPI saw explosive growth during the "Three Lows" boom of 1987–1988 and the short-term recovery after the 1997 Asian financial crisis, these rallies were often followed by stagnant or sharply declining markets, such as the 50.92 percent crash in 2000 following the IT bubble. Analysts suggest that the anxiety over domestic volatility is driving the demand for global asset allocation toward U.S. markets. Even among experts, measuring appropriate valuations for the KOSPI has become a challenge due to its rapid ascent. "It is historically unprecedented for the KOSPI to lead global markets with such a dominant growth rate," said an analyst at a major brokerage, on condition of anonymity, adding that market sentiment is likely to remain volatile for the time being, although the ceiling for the index remains high. 2026-01-07 17:23:29

Overseas fugitives top 1,000 for first time as cross-border scams surge in Korea SEOUL, January 07 (AJP) - The number of criminal suspects who fled overseas after committing crimes in South Korea has surged past 1,000 for the first time on record, raising concerns that the country is increasingly exposed to transnational crime networks operating across Asia and Russia. According to the Korean National Police Agency (KNPA), 1,249 new overseas fugitives were recorded last year, up 31 percent from 951 a year earlier. It marked the first time the annual figure exceeded 1,000 since police began compiling the data. Police attribute the sharp rise to the growing internationalization and organization of crime, particularly scam- and fraud-related offenses structured to operate across borders. In the past, overseas flight was largely associated with suspects attempting to evade punishment after committing violent crimes such as murder or robbery. In recent years, however, many criminal operations have been designed from the outset to run from abroad, with perpetrators establishing overseas bases while targeting victims in South Korea. That shift has drawn renewed attention to Cambodia, which has emerged as a major hub for global online scam operations. Last August, a South Korean college student who traveled to Cambodia after being promised a high-paying job was found dead near a crime compound in the Bokor Mountain area of Kampot province. A joint investigation and autopsy conducted with local authorities found extensive signs of assault and torture. Cambodia has long been identified as a center for online scam activity involving the abduction and trafficking of foreign nationals. KNPA data show that Cambodia ranked first among destinations linked to overseas fugitives last year, with 399 suspects, or 31.8 percent of the total — overtaking China, which recorded 254 cases. The Cambodia-linked figure more than tripled from 123 a year earlier. Police believe hundreds of scam compounds operated by Chinese criminal organizations are scattered across Cambodia, drawing in criminal groups from South Korea, Japan, Vietnam and elsewhere to form an extensive transnational network. Experts trace the roots of this structure to the mid-2000s, when Cambodia and China jointly developed the Sihanoukville Special Economic Zone. After China intensified its anti-corruption campaign under President Xi Jinping in 2018, casino capital and criminal groups relocated to Cambodia. When the COVID-19 pandemic undermined the casino economy, these groups pivoted to online scams, repurposing existing infrastructure and manpower into what police describe as corporate-style fraud operations. Fraud accounted for the largest share of offenses among overseas fugitives last year, with 757 cases, or 60.6 percent of the total, followed by online gambling at 141 cases, or 11.3 percent. Most involved cyber-enabled financial crimes, including voice phishing, investment scams, romance scams and schemes using deepfake technology, the KNPA said. "In the past, suspects could simply flee overseas and wait out the statute of limitations," said Shin Yi-chul, chair of the Department of Police Science at Wonkwang Digital University. "But the law has since been revised so that the statute of limitations is suspended when a suspect flees abroad. Overseas flight no longer offers a real escape — at best, it buys time." Law enforcement authorities have stepped up cooperation with foreign counterparts through permanent joint investigation teams, enabling faster arrests on the ground. A key example is the Korea Task Force jointly operated by South Korean and Cambodian police. Established in November, the unit arrested 92 South Korean suspects within its first month. In early December, authorities detained the ringleader and 15 members of a romance-scam organization responsible for 26 billion won ($1.8 million) in losses in Poipet. Later that month, joint raids near the Cambodia–Vietnam border led to the arrest of 26 additional suspects. Extraditions have also risen. Police repatriated 828 fugitives last year, up nearly 20 percent from the previous year, marking the fourth consecutive annual record since 2022. In total, 263 South Korean suspects were arrested in Cambodia alone. "Crimes committed domestically have become much harder to carry out," an official at the KNPA's International Cooperation Bureau said. "International cooperation — through channels such as Interpol and bilateral partnerships — is now far more active and effective than in the past." 2026-01-07 17:22:04

Lee asks Xi to play mediator role for peace on Korean Peninsula SEOUL, January 7 (AJP) - President Lee Jae Myung on Wednesday said he asked Chinese President Xi Jinping to play a mediator role in maintaining peace and security on the Korean Peninsula including North Korea's nuclear weapons program. Lee made the remarks at a luncheon in Shanghai with South Korean reporters, after his talks with Xi in Beijing the previous day. "We have to find a realistic path that helps everyone," Lee said, questioning whether North Korea could give up its nuclear weapons now, even as denuclearization remains a long-term goal. He said he asked Xi to convey South Korea's sincerity regarding the proposed phased approach to North Korea. Lee also urged caution in interpreting Xi's remarks at the summit, in which Xi said leaders should "stand firmly on the right side of history and make the correct strategic choice." When asked about the comment, Lee said he interpreted it as a Confucian saying, meaning that people should live kindly. Lee returns home later in the day. 2026-01-07 17:11:27

CES 2026: Korea, U.S. and China clash in AI robotics as mass-deployment era begins LAS VEGAS, January 07 (AJP) - Shenzhen-based Engine AI brought its T800 humanoid to the show floor, underscoring China's scale advantage in the physical-AI race, while South Korean and U.S. contenders such as Hyundai Motor and Tesla showed that the devil is in the details. The world's largest technology expo has become a battleground for humanoid robots, with Korea, the United States and China unveiling rival strategies to dominate the emerging era of physical AI — intelligent machines capable of perceiving, reasoning and acting in the real world. At CES 2026, the competition is no longer about who can build the smartest prototype. It is about who can manufacture robots at scale, deploy them across factories and homes, and reshape industries before rivals catch up. China's scale-first push China arrived in Las Vegas with an unmistakable message: mass production is here. According to the Korea Information & Communications Technology Industry Association, Chinese companies account for 149 of the 598 robotics exhibitors at this year's show — roughly one in four. In humanoid robotics alone, 21 of 38 exhibitors hail from China, making up more than half. The numbers reflect a coordinated national push. Morgan Stanley estimates that China has filed 7,705 humanoid-related patents over the past five years, compared with 1,561 in the United States. AgiBot recently rolled out its 5,000th humanoid robot, while UBTech Robotics plans to scale output to 10,000 units annually by 2027. Irving Chen, general manager of Unitree Robotics, told AJP that while exact production figures for all models cannot be disclosed, monthly sales of its flagship Go2 quadruped robot have exceeded 10,000 units. Shenzhen-based Engine AI showcased its T800 humanoid — a heavyweight model that rivals Tesla's Optimus and Boston Dynamics' Atlas. Evan Yao, co-founder of Engine AI, said the company is producing about 200 units per month and plans to raise output to 500 units by the end of the first quarter. "The robot is open source, so it can be used for any purpose," Yao said, adding that the company is seeking a U.S. distribution partner. U.S. bets on function over form The American approach looks markedly different. Rather than chasing humanoid aesthetics, U.S. firms are betting on purpose-built robots designed to solve specific problems. Richtech Robotics demonstrated ADAM, a robotic barista, while Mammotion unveiled wire-free autonomous lawnmowers aimed at residential users. The common thread: efficiency over spectacle. Realbotix offered another take on humanoids. "Our robots focus on customer service, entertainment and companionship — not physical labor," CEO Andrew Kiguel told AJP. The robots are already being used in senior homes, hotels, resorts and corporate events. The company assembles about five units per month and plans to triple capacity by the end of next year. While not exhibiting at CES 2026, Tesla is accelerating development of its Optimus humanoid. CEO Elon Musk has set a long-term target of producing one million robots a year by 2030. Korea's platform strategy South Korea is carving out a third path, emphasizing platforms, ecosystems and vertical integration over raw manufacturing scale. Hyundai Motor Group staged the first public demonstration of Atlas, developed by Boston Dynamics. The humanoid rose from the floor, walked across the stage and waved to spectators — a signal of readiness for industrial deployment. "We are building robots that can be deployed directly on factory floors and evolve alongside business needs," said Zachary Jackowski, head of Atlas development at Boston Dynamics. Hyundai aims to produce 30,000 robots annually by 2028. Atlas will be deployed at the group's Metaplant America facility in Georgia starting in 2028, initially for parts sequencing and classification tasks, before expanding to assembly by 2030. LG Electronics introduced CLOiD, a home-assistant robot with two articulated arms and five-fingered hands. In a live demonstration, CLOiD opened a refrigerator, selected a drink, set an oven timer and handled laundry — illustrating LG's vision of a "Zero Labor Home," where machines take over repetitive chores. Three philosophies, one race The divergent strategies on display reflect deeper differences in industrial philosophy. China prioritizes scale, mass-producing humanoids to capture market share and drive down costs. The U.S. focuses on function, building robots tailored to specific commercial uses. Korea emphasizes integration, leveraging strengths in AI software, semiconductors and precision components to create platforms that tightly connect hardware and intelligence. The stakes extend far beyond the exhibition floor. As robots move from research labs into factories and homes, the winners will shape how work is performed, how goods are manufactured and how daily life is organized. 2026-01-07 16:53:41

KOSPI remains regional winner, Hyundai Motor gains on CES momentum SEOUL, January 7 (AJP) — South Korean stocks remained the regional standout on Wednesday, extending their record-setting rally despite a broadly subdued mood across Asian markets. The benchmark KOSPI rose 0.6 percent to close at a fresh all-time high of 4,551.06. Foreign investors were the primary drivers, snapping up a net 1.25 trillion Korean won (US$930 million), while retail investors and institutions sold roughly 294 billion won ($219 million) and 940 billion won ($700 million), respectively. Among large-cap stocks, Hyundai Motor surged 13.8 percent to 350,500 won ($262), leading the market higher. The rally followed Chairman Chung Eui-sun's high-profile appearances at CES 2026, as well as reports of deeper cooperation with Nvidia and other global technology firms. Investors have increasingly focused on Hyundai’s push into robotics and its broader "physical AI" strategy. Samsung Electronics rose 1.5 percent to 141,000 won ($105), while SK hynix gained 2.2 percent to 742,000 won ($556), supported by sustained optimism over AI-driven memory demand and recent target-price upgrades from global investment banks. Analysts said momentum tied to CES-related headlines could cool in the near term, but added that Hyundai's longer-term robotics push and software-defined manufacturing strategy are likely to remain structural drivers for the stock. The tech-heavy KOSDAQ underperformed, falling 0.9 percent to 947.39. Elsewhere in Asia, Japan's Nikkei 225 slid 1.06 percent to 51,962.0, while China's Shanghai Composite was flat in late trade. Hong Kong's Hang Seng Index fell about 1.2 percent. 2026-01-07 16:48:36

Samsung Elec shares hit record high on red-hot earnings outlook ahead of Q4 guidance SEOUL, January 07 (AJP) - Shares of Samsung Electronics climbed to a fresh record high Wednesday, extending a near-nonstop rally since late December as investors bet on the company’s strongest quarterly and annual earnings in seven years. The stock has surged about 32 percent since Dec. 22, rising from a Dec. 19 close of 106,300 won to 141,000 won Wednesday, amid mounting optimism over a renewed memory supercycle fueled by artificial intelligence demand. Samsung Electronics will release its guidance for fourth-quarter and full-year earnings before the market opens in Seoul on Thursday. The rally has been driven by a sharp tightening in the global memory market, spanning legacy DRAM products to cutting-edge high-bandwidth memory (HBM) used in AI accelerators. Rapid adoption of AI applications has triggered aggressive stockpiling, pushing demand well ahead of supply. “Demand for DRAM and NAND currently exceeds supply by more than 30 percent, and Samsung is positioned to benefit most from the tightening market,” said Kim Dong-won, head of research at KB Securities, in a recent report. KB Securities on Tuesday raised its estimate for Samsung’s operating profit for the October–December period to 20.3 trillion won ($14.0 billion), the highest quarterly level since the third quarter of 2018, when profits peaked during the previous memory supercycle. Quarterly revenue is projected at around 90 trillion won ($62.0 billion), led by a strong rebound in the semiconductor business as memory prices surged. The brokerage estimates that operating profit at Samsung’s device solutions (DS) division reached 16.3 trillion won in the fourth quarter, supported by quarter-on-quarter price gains of 41 percent for DRAM and 20 percent for NAND. Looking ahead, KB Securities raised its target price for Samsung to 180,000 won, citing expectations that operating profit in 2026 could reach 123 trillion won—nearly triple last year’s level—as HBM shipments accelerate and AI server demand continues to expand. The firm forecasts that Samsung’s HBM shipments will triple next year, with market share expected to double as the company secures new supply contracts with major global customers, including Nvidia and Google. Broader sentiment toward memory and semiconductor stocks has also been supported by comments from Jensen Huang, chief executive of Nvidia, at CES 2026 in Las Vegas. Huang said Nvidia’s next-generation chips are now in “full production,” reinforcing expectations of sustained demand for AI infrastructure and underpinning the current memory upcycle. 2026-01-07 16:41:14

Stray Kids, Jennie to headline major US music festival 'The Governors Ball' SEOUL, January 07 (AJP) - K-pop girl group BLACKPINK's Jennie and K-pop boy band Stray Kids will headline The Governors Ball Music Festival, one of the largest music festivals in the U.S. Organizers of The Governors Ball Music Festival announced on Tuesday the lineup for this year's event, scheduled to take place from June 5 to 7 at Flushing Meadows Corona Park in New York. HYBE's Korean-American joint girl group KATSEYE, which has been nominated for Best New Artist at the 2026 Grammy Awards set to be held in February, will open the festival on June 5. Stray Kids will headline the June 6 show, while Jennie will take the stage as a headliner on June 7. Jennie is expected to perform tracks from her first full-length solo album, "Ruby," during her set. The festival is a large-scale outdoor music event held annually in New York during the summer. Past headliners include Eminem, Travis Scott, Kendrick Lamar and Lizzo. Meanwhile, Stray Kids have set a record by topping the U.S. Billboard 200 with eight consecutive releases. According to the latest chart released on Tuesday, the group's fourth full-length album, "KARMA," ranked No. 117, marking its 19th consecutive week on the chart and extending the group's longest charting record. Jennie recorded the highest first-week sales ever for a female solo artist in Korea last year, selling around 660,000 copies, according to the Korea-based music sales tracking system Hanteo Chart. She also logged the highest cumulative views at the Melon Music Awards, organized by Korea's largest music streaming platform, with a total of 1.7 billion streams to date. 2026-01-07 16:37:05

South Korea to import eggs, cut mackerel prices as it targets rising living costs SEOUL, January 07 (AJP) - South Korea will move to stabilize prices of fresh eggs and mackerel as part of broader efforts to curb rising living costs, the finance ministry said on Wednesday. Deputy Prime Minister and Finance Minister Koo Yun-cheol said the government has begun procedures to import 2.24 million fresh eggs and supply them to the domestic market in January, responding to a growing cull of laying hens amid the spread of avian influenza. Authorities will also consider lowering egg delivery prices depending on supply and demand conditions, he said. In addition, the government plans to import more than 7 million fertilized eggs for broiler hatching to expand chicken supply. To stabilize seafood prices, the government will support discounts of up to 60 percent on mackerel starting Wednesday, Koo said, adding that authorities plan to diversify import sources currently concentrated in Norway. The government will also expand the release of stockpiled seafood in processed forms so products can be sold immediately to consumers. Koo was speaking at a meeting held at the Government Complex Seoul, where officials discussed steps to strengthen price management and improve distribution. Koo said the government would work with relevant ministries to structurally stabilize food prices and improve livestock distribution and competition, with a detailed plan to be announced next week. 2026-01-07 16:29:42

Around 500 elementary schools in Seoul welcome new students SEOUL, January 7 (AJP) - Some 566 public elementary schools in Seoul are holding two-day prep sessions this week to welcome new students. According to the Seoul Metropolitan Office of Education, there are 51,265 first-graders this year, down about five percent from last year, as the young population continues to shrink due to the country's ultra-low birthrates. These sessions are an annual event aimed at preparing students for their upcoming school life. This year, they are being held from 4 p.m. to 8 p.m. on Tuesday and Wednesday to accommodate working parents who might not be able to take time off. 2026-01-07 16:25:24