Can Lee's visit to China 'open new chapter' in bilateral relations? SEOUL, January 2 (AJP) - Economic cooperation would be a key topic at President Lee Jae Myung's summit with Chinese President Xi Jinping in Beijing next week. During a press briefing at Cheong Wa Dae on Friday, just days ahead of Lee's four-day trip to China starting Sunday, national security adviser Wi Sung-lac said the two leaders will have "in-depth discussions to strengthen bilateral relations and come up with practical steps to address 'livelihood and peace' issues facing both countries." The trip will be a South Korean leader's first state visit to China in nine years and comes about two months after Lee met with Xi on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in November, in what Cheong Wa Dae referred to as a reciprocal visit. Wi highlighted that it is "unprecedented" for the two leaders to meet each other within just two months, saying it could open a "new chapter" in bilateral relations. Lee is set to arrive in Beijing on Sunday and start his itinerary with a dinner with South Korean expats there. After attending a business forum the following day, he will hold a summit with Xi, which will include a welcoming ceremony and a banquet. "South Korea and China share the common goal of peace and stability on the Korean Peninsula," Wi said, stressing that the summit would yield fruitful outcomes along with practical solutions. They are also expected to discuss various issues including China's veiled restrictions on South Korean films and dramas, and the installation of dubious structures on the submerged shelf of Ieodo in the West Sea, which overlaps with maritime zones of both South Korea and China. After a series of talks and other events including a meeting with Premier Li Qiang, Lee will then move to Shanghai on Tuesday to attend a forum for startup entrepreneurs from both countries to foster partnership and promote future cooperation. As the final leg of his trip, Lee will attend an event commemorating the 150th birth anniversary of independence fighter Kim Gu, who led the country's provisional government-in-exile in Shanghai, as well as the centennial of the provisional government's founding in 1919. 2026-01-02 15:29:07

China's silver export curb adds cost pressure on Korea' tech activities SEOUL, January 02 (AJP) - China’s move to tighten controls on silver exports is set to add fresh cost pressure on South Korean industries heavily reliant on the precious metal, at a time when prices are already surging on strong demand from high-tech and clean-energy sectors. From Jan. 1, exporters in China must obtain government approval to ship silver overseas, after Beijing added the metal to its “2026 List of Goods Subject to Export Licensing Administration.” The measure places silver alongside tungsten, antimony and rare earth elements — materials China has increasingly treated as strategic assets in its economic and technological rivalry with the United States. China dominates the global silver supply chain, accounting for an estimated 60 to 70 percent of internationally traded refined silver. It also ranks second worldwide in silver reserves and mine output, trailing only Mexico, reinforcing its position as a pivotal player capable of influencing global supply conditions. The policy comes as silver has emerged as “the new gold,” buoyed by soaring demand tied to its wide industrial applications and its appeal as a hedge asset. Silver futures surged more than 150 percent in 2025, rising from around $20 per troy ounce at the start of the year to about $71 by the final trading session — the strongest gain among major commodities. The rally was driven by five consecutive years of global supply deficits and a weakening U.S. dollar, which boosted demand for safe-haven assets. Although prices briefly retreated from a late-December peak of $86 per ounce, China’s export curbs reignited market momentum. Silver prices jumped about 3 percent on Friday, approaching $73 per ounce as of 1:30 p.m. For South Korea, the trend poses a growing headwind. Silver is a critical input across the country’s high-tech manufacturing base, including electronics, semiconductors and advanced materials, as well as a key component of the domestic smelting industry. The metal plays an increasingly central role in the AI and digital era due to its superior electrical conductivity — the highest among major metals. It is used as a protective coating to prevent copper oxidation in printed circuit boards, and as electrodes in multilayer ceramic capacitors (MLCCs), both of which are essential components in smartphones, data centers and AI servers. Beyond electronics, silver is indispensable in solar panels, where silver paste converts sunlight into electricity. It is also used, alongside platinum, as a catalyst in water electrolysis systems for hydrogen fuel production. As a result, rising silver prices directly translate into higher costs and weaker margins across a wide range of advanced industries. The burden is already showing up in trade data. According to the Bank of Korea, import prices for the “other precious metals” category — which includes silver — surged 66 percent year on year in November, exacerbated by both higher global prices and the weak won. Korea Zinc, one of the world’s largest non-ferrous metal producers, is particularly exposed. Silver accounts for more than 30 percent of the company’s total revenue, surpassing even zinc, its flagship product. With ore procurement costs climbing, analysts warn that profit margins could come under mounting pressure. Wall Street expects the rally to continue. Goldman Sachs has forecast silver prices could reach $100 per troy ounce in 2026, while Citigroup projects a potential peak of up to $110, underscoring the long-term supply tightness surrounding the metal. 2026-01-02 14:47:17

Hyundai Group chair urges 'readiness' for inter-Korean exchanges SEOUL, January 02 (AJP) - As the Lee Jae Myung administration signals renewed efforts to ease tensions with North Korea, Hyundai Group Chair Hyun Jeong-eun said the conglomerate must be ready to act swiftly should conditions for inter-Korean economic cooperation improve. In a New Year’s message to employees on Friday, Hyun reaffirmed her support for engagement with North Korea, saying expectations are rising again for a thaw on the Korean Peninsula. She expressed hope for “constructive change” in inter-Korean relations this year and urged employees to prepare thoroughly so the group can respond immediately if opportunities emerge. Hyundai Group, long associated with cross-border projects such as the Mount Kumgang tourism venture through affiliate Hyundai Asan, has been viewed as a potential private-sector partner in any future economic cooperation between the two Koreas. Hyun sent the message by email to about 6,000 employees across affiliates including Hyundai Elevator, Hyundai Movex and Hyundai Asan. Beyond inter-Korean issues, Hyun called for proactive execution across the group, urging employees to “show the will and action to lead this era of transition.” She said uncertainty often accompanies new opportunities and stressed that decisive action matters more than perfect information. 2026-01-02 14:25:24

PHOTOS: Sculptures mark 'Year of Red Horse' SEOUL, January 02 (AJP) - To mark the start of 2026, the Year of the Red Horse, World Cup Park in Mapo-gu, Seoul, has unveiled horse sculptures crafted entirely from silver grass, drawing crowds of local residents and tourists alike. The centerpiece installations, symbolizing the "Red Horse," were constructed using natural silver grass harvested from the park. The eco-friendly displays blend traditional zodiac symbolism with the seasonal beauty of the park’s natural resources. 2026-01-02 14:08:33

Seoul's lantern festival extended for two more weeks SEOUL, January 2 (AJP) - Seoul's annual lantern festival along the Cheonggye Stream will be extended by two more weeks, organizers said on Friday. In its 17th year, the festival featuring around 500 lanterns made from traditional handmade paper, as well as glowing displays and other festive decorations, was supposed to close this weekend but will now continue to illuminate the capital until mid-January. The extension came as the festival has drawn nearly 300 million people including foreign travelers, in about three weeks since its opening on Dec. 12. "Thanks to the strong interest and support from citizens and tourists, we decided to extend the festival," said Kil Ki-yeon, CEO of Seoul Tourism Organization. Except for next Monday, when it will be closed for maintenance and preparations, the festival runs nightly from 6 p.m. to 11 p.m. until Jan. 18, with closing extended by one hour to accommodate after-work crowds. But visitors should hurry to see some of the highlights such as a 73-meter-long installation featuring Magikarp, a piscine Pokémon with reddish-orange scales before it is removed this week to make way for new displays. 2026-01-02 14:05:41

A freezing first day of work in 2026 SEOUL, January 02 (AJP) -The first working day of 2026 dawned in an Arctic freeze, sending Seoulites hurrying through Gwanghwamun not so much to resume work as to get out of the cold. Beneath a pale winter sky, commuters crossed the intersection in central Seoul, bundled in heavy coats as icy air settled over the city. A surge of cold air from the northwest had pushed morning temperatures to around minus 12 degrees Celsius, forcing people into thick coats, scarves and gloves as they hurried to offices and subway entrances. The scene — brisk, muted and tightly choreographed — marked the return to routine after the holiday break, as the city eased back into motion under one of the coldest mornings of the season. 2026-01-02 13:50:56

Hanwha chairman pledges AI defense push, deeper Korea-US shipbuilding ties SEOUL, January 02 (AJP) - South Korea's Hanwha Group is eager to strengthen its long-term competitiveness by securing core technologies in key businesses, including artificial intelligence-driven defense systems, while playing a leading role in South Korea-U.S. shipbuilding cooperation, Chairman Kim Seung-youn said in a New Year's message on Friday. Kim said Hanwha had spearheaded bilateral industrial cooperation symbolized by the MASGA initiative and grown into a national champion in defense and shipbuilding over the past year. He said the group is now “recognized as an essential engine for industry and society,” adding that this status carries greater responsibility. Kim emphasized a shift toward a technology-led growth strategy. “To secure competitiveness over the next 50 or 100 years, we must possess the foundational technologies that will shape the future in key business areas such as AI defense,” he said. He called on Hanwha to focus on future-leading technologies across its portfolio, including defense, aerospace, maritime, energy, materials, finance, machinery and services. By business unit, Kim urged the energy and materials divisions to respond proactively to global policy changes and ongoing restructuring in the petrochemical sector. In finance, he proposed expanding global operations by combining digital assets and artificial intelligence, while the services unit should develop new growth models through closer integration with machinery businesses, including AI-based solutions. Kim also highlighted MASGA as a central pillar of Korea-U.S. shipbuilding cooperation, saying Hanwha must position itself as a trusted strategic partner in global markets. He said the initiative should be planned and executed with a sense of full responsibility, centered on the company’s U.S.-based Philly Shipyard, and that cooperation in warship and nuclear-powered submarine construction should further deepen bilateral ties. Pointing to Hanwha Ocean’s decision to pay performance bonuses to workers at partner companies at the same rate as those for directly employed staff, he stressed that partner-company employees and local communities are integral to the group’s operations. On safety, Kim delivered a firm message, calling it a core value for sustainable management. “Results cannot replace a life,” he said. Kim also said Hanwha has turned a long-envisioned future into reality by entering the era of private space and establishing itself as a key player in the global defense industry. He credited employees for their continued dedication and urged them to work together to further strengthen the group. 2026-01-02 13:46:01

South Korea splits economy ministry in major overhaul of economic governance SEOUL, January 02 (AJP) - South Korea on Friday formally split the Ministry of Economy and Finance into two separate ministries, a move the government says will strengthen fiscal discipline and policy accountability but that raises questions about coordination in economic crisis management. The reorganization creates the Ministry of Planning and Budget and the Ministry of Finance and Economy, separating budget authority from macroeconomic, financial and tax policy. The two ministries officially launched at the Government Complex in Sejong, marking one of the most significant changes to South Korea’s economic governance in nearly two decades. The Ministry of Finance and Economy began operations following a signboard ceremony at the former ministry’s main building, while the Ministry of Planning and Budget moved into Building 5, previously occupied by the Ministry of Oceans and Fisheries. The physical separation underscores the institutional overhaul, which divides budget and economic policy functions that had operated under one roof. Under the new structure, the Ministry of Planning and Budget will be responsible for national fiscal management, including budget formulation, execution and performance evaluation. The Ministry of Finance and Economy will serve as the government’s economic “control tower,” overseeing macroeconomic management, financial and tax policy, and external economic affairs. It is the first time since the Ministry of Economy and Finance was launched in 2008 that budget and economic policy functions have been separated, ending an 18-year combined system. The government said the change was driven by concerns that concentrating budget, tax and economic policy in a single ministry had led to excessive power and reduced policy flexibility. With large-scale fiscal spending becoming more routine, officials said an independent budget authority would help reinforce fiscal discipline, while a dedicated finance and economy ministry could respond more nimbly to economic cycles and focus on industrial and financial policy. However, questions remain over whether the Ministry of Finance and Economy can function effectively as an economic control tower without direct budget authority. Critics warn that policy impact could be limited if growth strategies and crisis responses cannot be backed by swift budgetary action. Policy coordination between the two agencies is also emerging as a key test. Because fiscal policy plays a central role in economic stabilization, misalignment between budget planning and macroeconomic policy could weaken outcomes. Past periods of institutional separation were marked by coordination failures and disputes over responsibility, some observers say. The Ministry of Planning and Budget faces immediate challenges from population aging, rising welfare spending and mounting calls for expansionary budgets to support a slowing economy, while being tasked with preserving fiscal soundness. Its effectiveness will likely depend on strengthening midterm fiscal planning and maintaining tighter control over spending demands from other ministries. The Ministry of Finance and Economy is launching amid heightened global uncertainty, including shifting interest-rate trends, intensifying U.S.-China technology rivalry and ongoing supply-chain restructuring. It must balance inflation control with efforts to revive growth, while managing tax policy, financial-market stability and external economic negotiations without direct budget levers. Analysts say the reorganization risks confusion and accountability gaps. But if clear roles and a permanent coordination mechanism are established, the split could enhance both fiscal discipline and economic responsiveness. The government has said it plans to limit policy friction through regular consultations and joint response systems. 2026-01-02 11:19:52

KOSPI kicks off new year while most Asian markets stay closed SEOUL, January 2 (AJP) - Most Asian bourses remained closed for New Year celebrations on Friday, while South Korea's stock market opened an hour later than usual, amid expectations of reaching a new all-time high for the year. With Taiwan's TAIEX and Hong Kong's Hang Seng Index open, South Korea's benchmark KOSPI opened higher, up 0.57 percent at 4,238. Having already surpassed its previous intraday peak, attention now turns to whether it can close above its record high of 4,221.87. The rally is being led by retail investors, who have net purchased 110.6 billion Korean won (US$76.7 million) worth of shares. In contrast, foreign and institutional investors have offloaded 81 billion won and 35 billion won, respectively. Blue-chip stocks gained ground across the board. Samsung Electronics rose 2.6 percent to 123,000 won, continuing its record-breaking streak, while SK hynix posted a more modest gain of 0.8 percent to trade at 657,000 won. The semiconductor sector maintains its upward momentum as global demand remains robust and domestic and foreign brokerages continue to raise earnings forecasts for both tech giants. Celltrion emerged as the standout performer, surging 9.5 percent to 198,500 won. The surge followed a preliminary disclosure projecting a more than 140 percent increase in operating profit compared to the same period last year. However, some firms faced significant headwinds. Korea Zinc dropped 2.4 percent to 1,285,000 won during the morning trade following the Chinese government's announcement of export controls on silver. The move raised concerns over supply disruptions and potential margin erosion for the non-ferrous metal producer. In the currency market, the won weakened slightly against the greenback, trading at 1,440.50 per dollar. Meanwhile, Taiwan's TAIEX rose 0.4 percent to 29,050.75, with Taiwan Semiconductor Manufacturing Co. (TSMC) gaining 0.3 percent to 1,555 Taiwan dollars ($49.6). MediaTek led the gains on the index, jumping 1.75 percent to 1,455 Taiwan dollars. The Hang Seng Index opened 0.87 percent higher at 25,860, recording the strongest start among Asian markets. Heavyweight Tencent Holdings edged up 0.25 percent to 600 Hong Kong dollars ($77), while Alibaba Group gained 0.28 percent to 143 Hong Kong dollars. Tech giant Xiaomi also traded up 0.3 percent at 39.5 Hong Kong dollars. 2026-01-02 11:16:53

Korea's growth reliant on IT sector as inflation risks linger: BOK chief SEOUL, January 02 (AJP) - South Korea’s economy would grow just 1.4 percent this year if the information technology sector were excluded, the country’s central bank chief said Friday, warning that uneven recovery across industries could leave households feeling worse off than headline growth figures suggest. Bank of Korea Governor Rhee Chang-yong said in a New Year’s message that overall economic growth is projected at 1.8 percent this year, up from 1 percent last year and close to the economy’s potential growth rate. However, he cautioned that uncertainty remains high on both the upside and downside. Rhee said the outlook will hinge on factors including the global trade environment, the semiconductor cycle and the strength of the recovery in domestic demand. Describing the current rebound as “hardly sustainable or complete,” Rhee urged continued structural transformation to prevent economic expansion from becoming repeatedly concentrated in a single sector. He stressed the need to foster new industries to broaden the growth base. The governor also highlighted lingering uncertainty over an investment agreement with the United States, saying it is difficult to conclude the issue has been fully resolved as details on investment targets and implementation methods still require coordination. Addressing concerns that annual investment flows of about $20 billion to the United States could weaken the Korean won, Rhee said the funds would not flow out in a fixed or mechanical manner each year. He added that the BOK, together with the government, would not agree to any arrangement that undermines stability in the foreign-exchange market. On inflation, which has recently risen to the low-to-mid 2 percent range, Rhee warned that persistent weakness in the won could reignite inflationary pressure. He noted that cumulative price increases since the pandemic have significantly raised living costs, disproportionately burdening lower-income households. Rhee said stabilizing inflation cannot be achieved through monetary policy alone. He called for parallel structural reforms aimed at lowering overall price levels, including improving distribution systems and expanding import liberalization for goods that remain expensive by international standards. 2026-01-02 10:39:12