Foreign workers' visa applications for this year to begin late this month SEOUL, January 15 (AJP) - The Ministry of Employment and Labor said Thursday it will accept applications for new employment permits under its E-9 visa program in five rounds this year, allowing companies facing labor shortages to hire foreign workers. The first round of applications will run from Jan. 26 to Feb. 10, followed by additional rounds in April, July, September, and November. According to the ministry, companies can apply depending on their business conditions and staffing needs. Starting this year, North Jeolla Province will be newly added to the areas where hotels and other accommodation facilities can hire E-9 workers. The hiring cap per manufacturing factories outside the Seoul metropolitan area will also rise to 30 percent, up from 20 percent. In crop cultivation, greenhouse horticulture and specialty-crop operations with facilities smaller than 1,000 to 2,000 square meters will be allowed to hire up to eight workers. Grain and other food-crop cultivation will also be eligible. A separate quota temporarily operated for shipbuilding will be merged into the manufacturing quota. The first-round quota is allocated for 15,784 workers, with 11,275 for manufacturing, 2,382 for agriculture and livestock, 1,495 for fisheries, 492 for construction and 140 for service industries. 2026-01-15 16:37:00

BOK stays pat and signals end to rate cuts amid prolonged won weakness SEOUL, January 15 (AJP) — The Bank of Korea’s decision to hold its policy rate at 2.5 percent on Thursday came with an unusual backdrop: a rare public intervention by the U.S. Treasury secretary and a detailed defense by a deputy governor, highlighting how Korean won's fragility has become central in both fiscal and monetary policy calculus. The central bank unanimously voted to keep the benchmark rate unchanged at its first rate-setting meeting of the year, extending a pause that has been in place since May last year and signaling an effective halt to the latest easing cycle. “I can easily say yes,” Bank of Korea Governor Rhee Chang-yong said at a press briefing after the monetary policy board meeting when asked whether the exchange rate had been the primary factor behind the decision. Rhee said the won’s excessive depreciation reflects a “disparity with fundamentals,” adding that authorities are reassessing the effectiveness of various measures taken since late last year to support the currency. He attributed roughly three-quarters of the won’s weakness to external factors — including a strong U.S. dollar, a weak Japanese yen and heightened geopolitical risks in regions such as Venezuela and Iran — with domestic factors accounting for the remaining quarter. A growing bias among investors toward overseas securities has also deepened short positioning on the won, amplifying downward pressure, he said. The currency’s slide to its weakest levels since past crisis episodes — including the global financial crisis, the Asian financial crisis and the post-martial law period in late 2024 — even prompted unusually direct commentary from Washington. U.S. Treasury Secretary Scott Bessent said in a post on X following a meeting with Deputy Prime Minister and Finance Minister Koo Yun-cheol that the won’s weakness was not aligned with South Korea’s economic fundamentals, a rare interventionist remark that briefly steadied market sentiment. The markets went on their ways – the KOSPI hitting new historic high of 4,797.55 after 1.58-percent gain. The dollar added 5.40 won to 1.471.9 won. Bond prices however crashed on hawkish tone. The three-year treasury yield surged 7.4 basis points to 3.070 percent, while the 10-year yield rose 5.4 basis points to 3.472 percent by midday. Policy bind between household debt and skewed economic recovery Too steep depreciation in the won that can fan imported inflation and capital flight builds rationale for higher rates. But the scale of household debt continues to constrain the central bank’s policy options. Household debt stands at around 2,000 trillion won ($1.36 trillion), a level widely viewed as prohibitive for any rate hike. A rate cut no longer can be an option since the Bank of Japan is expected to deliver its second consecutive rate hike later this month — a move that could intensify regional currency volatility and place additional pressure on the won. Reflecting the shift in stance, the BOK removed references to “the possibility of a rate cut” from its post-meeting statement. Unlike the divided vote seen in November, Thursday’s decision was unanimous, with all six board members agreeing to hold rates steady. Rhee said housing market imbalances and rising household debt remain key constraints on future policy decisions. He also pointed to a “K-shaped recovery” concentrated in semiconductors, alongside a declining potential growth rate, as structural pressures weighing on the broader economy. “We will determine future policy by comprehensively weighing the exchange rate, the monetary paths of the United States and Japan, and the state of the domestic economy,” Rhee said. The governor pushed back strongly against claims that loose liquidity conditions and modest rate cuts since the pandemic have structurally weakened the won. “During my tenure, at the very least, M2 growth has never shown an upward trend,” Rhee said. His four-year term ends in April. Deputy Governor Park Jong-woo reinforced that view, delivering a point-by-point rebuttal during the briefing — an unusually detailed defense at a rate-setting event. “The M2 growth rate has remained at a consistently low level since 2022 and even declined in November,” Park said. Addressing arguments that the won’s weakness stems from Korea’s higher M2-to-GDP ratio compared with the U.S. Park said the ratio has remained stable for several years. He cautioned against making simple numerical comparisons between Asian economies — which rely heavily on bank-intermediated finance — and the U.S. or eurozone, where capital markets play a more dominant role. 2026-01-15 16:19:26

Four-term lawmaker Seo Young-kyo announces bid for Seoul mayor SEOUL, January 15 (AJP) - Lawmaker Seo Young-kyo of the ruling Democratic Party (DP) announced her bid for Seoul mayor on Thursday, vowing to "transform the capital into a leading global economic and cultural hub." At a press conference at the National Assembly on Thursday, months ahead of local elections slated for June 3, the four-term lawmaker said Seoul must turn into a "city where Seoul citizens are truly the owners," pledging to deliver "proven results" that directly improve residents' lives. She outlined her key campaign pledges which include supplying 300,000 new homes and setting a target of 7,000 points for the benchmark KOSPI. Other priorities include expanding support for small business owners, strengthening welfare for children and senior citizens and increasing subway services for commuters. Seo criticized incumbent Oh Se-hoon, saying he has failed to improve the daily lives of Seoul residents by focusing only on showy projects. She added she will instead encourage more citizens to participate in various city projects. Within the DP, Park Hong-geun, Park Ju-min, and Kim Young-bae have already declared their candidacy. Additional candidates including Seongdong district's mayor Jung Won-oh, who gained attention after President Lee Jae Myung's recent praise for his achievements, are also expected to join the race soon. 2026-01-15 15:58:02

South Korea on alert over safety of about 70 nationals as Iran protests turn deadly SEOUL, January 15 (AJP) - As Iran's ongoing internal protests have reportedly killed thousands, with fears of possible U.S. intervention heightening global concerns, the South Korean government has remained on alert, convening an emergency meeting earlier this week to assess the safety of its citizens there. Chaired by Vice Foreign Minister Kim Jin-a, the meeting was held on Tuesday via Zoom with embassy officials in Tehran to set up contingency plans for South Korean nationals residing there. Stressing the importance of ensuring the safety of South Koreans, Kim urged, "We should thoroughly prepare for possible evacuation and other contingencies if the situation worsens." According to South Korean Ambassador to Tehran Kim Jun-pyo, around 70 South Koreans are in Iran, excluding embassy staff and other officials. He said the embassy has been "closely monitoring developments and taking necessary steps to protect them," adding that it has been checking on their safety daily by phone, while advising them to stay indoors, particularly at night, as protests turn violent." As of Tuesday, there have been no reports of casualties or damage affecting South Koreans. The government maintains its current alert level, the second-highest on its four-tier scale, urging all travelers to avoid Iran. However, the highest alert, which would ban travel entirely, has not yet been issued. But other countries have taken more drastic measures amid escalating unrest in Iran and fears of a possible U.S. strike. The U.K. has temporarily closed its embassy in Tehran, while France has withdrawn non-essential diplomatic staff. Italy and Spain have urged all their citizens to leave Iran immediately. These developments come as Iranian authorities continue a harsh crackdown on anti-government protests, with death toll estimates varying widely. Norway-based non-profit organization Iran Human Rights said at least 3,428 protesters have been killed as of Wednesday, while U.S. media estimated the death toll could be as high as 12,000 to 20,000. Meanwhile, U.S. President Donald Trump took to social media to call on Tehran to halt the killings, saying he had canceled all meetings with Iranian officials "until the killing stops," and added, "Help is on its way," though he did not specify what form that help would take. Iranian Foreign Minister Abbas Araghchi told Fox News that there were "no plans for executions" and that the situation was now "under control." Airspace over Iran has been closed to most flights and several European carriers including Germany's Lufthansa and its affiliated flights said they would avoid Iranian and Iraqi airspace "until further notice." Foreign ministers of G7 countries said they are prepared to impose additional sanctions on Tehran over its violent response to protests and arbitrary detentions. Officials in Seoul have been closely monitoring further developments including not only Iran's domestic unrest but also whether Washington intervenes, a move that could alter the security landscape across the already volatile Middle East. 2026-01-15 15:32:08

LG, SK, Upstage shortlisted for Korea's sovereign AI model SEOUL, January 15 (AJP) - LG AI Research, SK Telecom and Upstage have passed the first evaluation round of South Korea’s competition-style national project to select two homogeneous artificial intelligence foundation models by the end of the year. According to results announced Thursday by the Ministry of Science and ICT, three of the five contenders — Naver Cloud, NC AI, Upstage, SK Telecom and LG AI Research — advanced directly based on aggregate scores, while one additional bidder will be reinstated through a secondary evaluation. The rematch will be held between Naver Cloud and NC AI. The ministry disclosed the results at a briefing at the Government Complex Seoul, chaired by Second Vice Minister Ryu Je-myung. The government-led project was launched under the banner of “leaping into the world’s top three AI powers,” positioning it as a flagship pillar of South Korea’s sovereign AI strategy. The program provides state support for GPU resources, data access and engineering costs, with the goal of developing domestically controlled foundation models capable of achieving at least 95 percent of leading global AI benchmark performance. Under the project guidelines, eligible models are defined as those designed and pre-trained domestically, excluding derivative systems fine-tuned from foreign base models. The ministry explained that the first-round evaluation combined AI benchmark tests — quantitative measures of technical performance — with expert and user assessments to comprehensively evaluate model performance, real-world applicability, cost efficiency relative to model size, and potential spillover effects on the domestic and global AI ecosystem. In the benchmark evaluation, LG AI Research recorded the highest score with 33.6 out of 40 points. The company also topped the expert review with 31.6 out of 35 points and achieved a perfect score of 25 out of 25 in the user evaluation. Based on the combined results, LG AI Research, Naver Cloud, SK Telecom and Upstage initially ranked within the top four teams. Naver Cloud ranked within the top four in combined scoring, it was judged not to meet the requirements for designation as an independent AI foundation model. The ministry said the first-round evaluation combined AI benchmark testing, expert assessment and user evaluation, examining model performance, real-world applicability, cost efficiency relative to model size, and spillover effects on the domestic and global AI ecosystem. 2026-01-15 15:25:54

Seoul holds emergency meeting after Trump's tariff move on chips and critical minerals SEOUL, January 15 (AJP)-The South Korean government moved into emergency response mode Thursday after the White House issued sweeping proclamations under Section 232 of the Trade Expansion Act, targeting semiconductors and critical minerals on U.S. national security grounds. Minister of Trade, Industry, and Energy Kim Jung-kwan convened an emergency meeting Thursday to review the details of President Donald Trump’s proclamations and map out Seoul’s next steps as Washington signaled a harder line on advanced chips and strategic materials. Trump on Wednesday (local time) signed a proclamation imposing a 25 percent tariff on certain advanced semiconductors imported into the United States and then re-exported, including Nvidia’s flagship artificial-intelligence processor, the H200. The measure takes effect at 12:01 a.m. EST on Jan. 15. The action followed a Commerce Department report submitted in late December under Section 232, which concluded that semiconductor imports — including manufacturing equipment and derivative products — pose a threat to U.S. national security by deepening reliance on foreign supply chains. Under the proclamation, the tariff applies narrowly to advanced computing chips that do not contribute to the build-out of U.S. technology supply chains, while exempting chips used in U.S. data centers, research and development, public-sector applications and other domestic uses. The White House warned, however, that broader tariffs could follow after negotiations with trading partners conclude. “The President could soon impose more expansive tariffs on semiconductors and their derivative products to encourage manufacturing in the United States,” the White House said in a fact sheet, adding that a tariff-offset program may be introduced for companies investing in U.S. production. Chairing Thursday’s meeting, Kim reviewed South Korea’s actions since Washington launched its Section 232 investigations, including the submission of written comments to U.S. authorities. He instructed officials to maintain close contact with industry, monitor developments in real time and analyze potential impacts to minimize damage to Korean companies. Separately, the ministry holds separate industry meetings later Thursday — one on semiconductors and another on critical minerals — to assess exposure and coordinate response strategies with manufacturers. Kim said the government would maintain “constant readiness” not only for the newly announced Section 232 measures, but also for a pending U.S. Supreme Court ruling on reciprocal tariffs under the International Emergency Economic Powers Act, signaling broader trade uncertainty ahead. The proclamation has drawn particular attention in Seoul because it explicitly includes Nvidia’s H200 and AMD’s MI325X among the covered products. Although Nvidia is a U.S. company, its advanced AI chips are manufactured almost entirely by Taiwan Semiconductor Manufacturing Co. (TSMC), meaning they are imported into the United States before being re-exported, placing them squarely within the scope of the tariff. Trump had previously indicated in December that H200 exports to China would be allowed, while suggesting that 25 percent of the sales value would be paid to the U.S. government — a remark that did not appear in the formal proclamation. The Commerce Department on Tuesday finalized revisions to export rules allowing limited H200 shipments to China, subject to strict conditions, including a cap tying China-bound volumes to no more than 50 percent of Nvidia’s U.S. domestic sales. The dual track — easing export controls while imposing Section 232 tariffs — underscores Washington’s attempt to balance national security concerns with preserving the global competitiveness of U.S. chipmakers. Trump also signed a separate proclamation directing the start of negotiations with trading partners to ensure critical-mineral imports align with U.S. security interests. Depending on the outcome, the Commerce Department and the U.S. Trade Representative could consider measures such as minimum import prices for certain minerals. Trade minister Yeo Han-koo has put off his return to Seoul to assess potential impact on Korean companies in Washington, the ministry added. 2026-01-15 14:14:31

South Koreans rush to hoard dollars amid weakening won SEOUL, January 15 (AJP) - South Koreans have been hoarding U.S. dollars as the greenback continues its strong run. According to financial data released on Thursday, individual customers of South Korea's five major banks -Hana, KB Kookmin, NH Nonghyup, Shinhan, and Woori - exchanged South Korean currency for U.S. dollars worth about US$480.81 million over the past three weeks. The amount breaks down to $22.90 million per day on average, more than double the daily average of $10.43 million from January through November last year. The main trigger was a strong verbal intervention by financial authorities on Christmas Eve, which briefly strengthened the won against the dollar and prompted individual investors to aggressively buy U.S. dollars. The exchange rate fell 33.8 won that day and continued declining for three consecutive sessions, trading from the 1,480-won range to the 1,420-won range. Many seemed to consider it a buying opportunity, anticipating the won would soon weaken again. The buying frenzy drove currency exchanges to about $63.04 million that day alone, nearly equivalent to an entire week's transactions. Demand was so high that several bank branches ran out of Benjamins. Demand for dollars remained strong even as the won weakened again, with individuals exchanging US$17.44 million on Tuesday, reflecting a persistent hoarding spree. In contrast, only $90.31 million was exchanged from dollars into won between Dec. 24 and last Tuesday, averaging $4.30 million per day. Market analysts see that heavy dollar buying may reflect expectations of further gains in the exchange rate. The won has weakened for 10 consecutive trading sessions since the start of the new year, trading at 1,477.5 won per dollar on Wednesday. Park Sang-hyun, an analyst at iM Securities, said, "The government's currency measures announced late last year have yet to show clear effects, failing to dispel concerns over the weakening won," adding that demand for foreign exchange has been driven mainly by individual investors buying foreign stocks. 2026-01-15 14:07:30

One South Korean killed in a deadly train crash in Thailand - foreign ministry SEOUL, January 15 (AJP) -One South Korean national was among those killed in a deadly train derailment in Thailand on Wednesday, according to the foreign ministry in Seoul. The ministry said Thursday it had confirmed the death of one South Korean and was providing necessary consular assistance to the bereaved family. The accident occurred at around 9 a.m. Wednesday when a construction crane for a high-speed rail bridge collapsed onto a moving passenger train traveling between the Nong Nam Khun and Sikhiu stations in Nakhon Ratchasima province, northeastern Thailand. At least 32 people were killed and more than 64 others were injured after the crane crashed onto two cars of the three-carriage train, which was carrying 195 passengers at the time of the accident. * This article, published by Aju Business Daily, was edited by AJP. 2026-01-15 13:11:23

Asian markets mixed; Nikkei retreats after record rally, KOSPI holds ground SEOUL, January 15 (AJP) — Asian equity markets were mixed on Wednesday, with Japanese stocks pulling back after a powerful start to the year, while Seoul shares held firm despite a more hawkish tilt from the Bank of Korea. Japan’s Nikkei 225 fell 0.77 percent to 53,923.94 as of 10:23 a.m. local time, as investors locked in profits following an uninterrupted January rally. The recent surge had been fueled by expectations of a snap election that could reinforce Prime Minister Sanae Takaichi’s stimulus-driven policy agenda. In Seoul, the benchmark KOSPI rose 0.67 percent to 4,754.66, while the tech-heavy KOSDAQ edged down 0.03 percent to 941.90 in early trade. Markets were largely unfazed by the Bank of Korea’s first rate-setting meeting of the year, which kept the base rate unchanged at 2.5 percent for an eighth consecutive month. However, policymakers struck a firmer tone by removing references to “the possibility of a rate cut” in their post-meeting statement, signaling a pause in the easing cycle. Among large-cap stocks, Samsung Electronics rose 0.07 percent to 140,400 won ($96), while SK hynix slipped 0.81 percent to 736,000 won. Samsung Biologics climbed 2.39 percent to 1,973,000 won, while LG Energy Solution fell 0.39 percent to 388,000 won. Automakers outperformed, with Hyundai Motor gaining 2.55 percent to 422,000 won and Kia advancing 3.04 percent to 147,350 won. Shipbuilders and heavy industry shares extended recent gains, led by Hanwha Ocean, which surged 3.80 percent to 147,400 won. HD Hyundai Heavy Industries rose 2.44 percent to 630,000 won. The U.S. dollar strengthened 3.1 won to 1,469.60, despite rare interventionist rhetoric from the U.S. Treasury Department echoing Seoul’s concerns over excessive volatility while losing slightly against the Japanese yen. Elsewhere in Asia, China’s Shanghai Composite slipped 0.11 percent to around 4,121.5 in early trading. 2026-01-15 11:31:25

Buses back running in Seoul after strike ends SEOUL, January 15 (AJP) -After two days of disruption, Seoul commuters were relieved to find buses back in service Thursday morning following an overnight wage deal. The Seoul City Bus Labor Union and the Seoul City Bus Transport Operators Association accepted a mediation proposal at around 11:50 p.m. during a second post-adjustment meeting hosted by the Seoul Labor Relations Commission. Under the agreement, wages for 2025 will rise by 2.9 percent, while the retirement age will be extended from 63 to 64 starting in July, and further raised to 65 in July 2027. Reform of the wage system to reflect ordinary wages was excluded from the deal. Following the agreement, the union called off the strike, and the Seoul Metropolitan Government lifted emergency transportation measures, restoring bus operations across the capital. 2026-01-15 11:04:21