Washington eases stance on upfront cash demand, trade minister says SEOUL, October 21 (AJP) - Washington is no longer pressing for a lump-sum cash payment for Seoul's pledge of a major investment in the U.S., which was agreed to in return for lowering reciprocal tariffs from 25 percent to 15 percent, a South Korean trade chief said on Monday. Upon returning from his visit to the U.S., Trade Minister Kim Jung-kwan said the two sides had narrowed differences in the ongoing tariff-related talks including details on how to fulfill and finance the investment pledge, with Washington stepping back from its demand for an all-cash, upfront payment. "We are making last-minute efforts to find a range that would be acceptable South Korea, where I'll be meeting..... Xi, we worked out a very fair deal, and I expect we'll probably work out a very fair deal" with China, Trump said, adding, "It's going to be a great trade deal. It's going to be fantastic for both countries, and it's going to be fantastic for the entire world." But it remains to be seen whether such a deal will be reached during the summit, as Beijing has yet to officially announce Xi's trip to South Korea, while Trump will make a brief stop here following a longer stay in Tokyo. 2025-10-21 09:47:48

OPINION: Coupang can't build Korea's AI future alone SEOUL, October 21 (AJP) - Artificial intelligence is fast becoming the engine of global economic growth. According to Precedence Research, the global AI market is projected to expand from 1,033 trillion won this year to more than 5,020 trillion won — about $3.68 trillion — by 2034. That figure is seven times South Korea’s annual budget and roughly half the size of the United States’ federal spending. Against this backdrop, South Korea has set its sights on becoming a “sovereign AI” nation — one capable of developing and operating its own artificial intelligence technologies and infrastructure without depending heavily on foreign systems. The government has positioned itself as the “control tower,” coordinating policy and resources, while the private sector — the “playmakers” — are expected to drive innovation, exports and global competitiveness. But despite this ambitious vision, South Korea remains behind in the race to cultivate AI "unicorns" — startups valued at over 1 trillion won. Since the launch of ChatGPT in November 2022, more than 100 AI unicorns have emerged worldwide. Two-thirds are based in the United States, followed by China and the United Kingdom. Tech giants like Nvidia and Google have invested in nearly half of them. Today, there are 498 AI unicorns globally — but few in South Korea. Amid this shortfall, Coupang, one of the country’s largest e-commerce companies, has announced a significant investment aimed at nurturing domestic AI startups. In partnership with the government’s “Next Unicorn Project,” Coupang plans to create a 150 billion won AI fund, contributing 75 billion won of its own capital. The fund will provide over 10 billion won each to 14 domestic AI firms, with the goal of accelerating Korea’s AI innovation ecosystem. Coupang’s move is a rare bright spot in an otherwise underfunded sector. In 2024, South Korea’s private AI investment totaled just $1.3 billion — barely 1 percent of the $109 billion poured into AI by U.S. companies. Despite the inherent risks, Coupang sees AI as indispensable to national competitiveness, echoing calls from policymakers for deeper private-sector involvement. Other tech and financial firms have also increased their AI spending, but a broader base of investors is needed to sustain momentum. A single company’s effort, no matter how bold, cannot transform an entire industry. Building a vibrant AI ecosystem will require collaboration among corporations, universities, and startups — as well as a policy environment that rewards long-term innovation over short-term profit. For a nation grappling with a shrinking population and slowing productivity, AI is not merely a technological pursuit but an economic necessity. Becoming an “AI powerhouse” will depend on more than government ambition; it will require a private sector willing to take risks, invest deeply, and think globally. South Korea’s future competitiveness may hinge on whether its entrepreneurs — not just its policymakers — are ready to lead the next wave of intelligence. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-21 09:47:10

OPINION: Pragmatic path to Korean reunification SEOUL, October 21 (AJP) - During a recent parliamentary audit of the Ministry of Unification, Minister Chung Dong-young introduced what he called the “peaceful two-state theory” — a framework for institutionalizing coexistence between South and North Korea as a step toward eventual unification. The proposal, though easily misunderstood, seeks not to legitimize division but to manage it prudently. At its core, the theory rests on three principles. First, it does not constitute legal recognition of North Korea as a sovereign state. Second, it does not renounce the goal of unification. And third, it seeks to promote practical exchanges and cooperation to build trust and reduce tensions. Chung described this as consistent with the “special provisional relationship” defined by South Korea’s Constitution — a transitional arrangement in which the two Koreas, though divided, are bound by the shared objective of reunification. The reality is that both are members of the United Nations and participate separately in international affairs, yet their engagement remains limited to joint declarations and inter-Korean agreements rather than formal diplomatic ties. History offers a compelling precedent. West Germany, while refusing to recognize East Germany as a separate nation, nonetheless engaged in exchanges and cooperation that gradually narrowed the divide. Under the German Basic Law, East Germany was considered part of the national territory — a legal principle that allowed Bonn to pursue unification without relinquishing its constitutional stance. That pragmatic engagement exposed East Germans to the prosperity and freedoms of the West, ultimately helping to bring down the Berlin Wall. Similarly, South Korea’s peaceful two-state approach should be viewed not as a departure from constitutional principles, but as a realistic strategy to expand channels of communication and cooperation. The German example challenges Seoul to balance legal orthodoxy with practical engagement — to decide whether strict adherence to legal definitions serves peace, or whether flexible pragmatism might bring the peninsula closer to unity. This is not a concession to Pyongyang’s hostility but a deliberate, strategic effort to shape conditions for dialogue. More than three decades after the fall of the Berlin Wall, the Korean Peninsula remains one of the last vestiges of the Cold War. The time may have come to create a reality that better reflects the future South Koreans wish to build — one where coexistence paves the way to unification. The upcoming APEC summit could provide an early opportunity to test this approach. For both Koreas, it would be a chance to begin turning symbolic gestures into substantive steps toward peace. About the author -Researcher at the World Economy Institute, University of Bremen, Germany -Director of the North Korean Economy Research Center, Korea Institute for National Unification. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-21 08:56:24

Asian markets rise on hopes of pro-stimulus government in Japan SEOUL, October 20 (AJP) - Asian equities advanced on Monday, lifted by optimism that Japan may soon usher in a pro-stimulus government — a prospect that helped counterbalance mixed economic signals from China and cautious sentiment across the region. In Seoul, the benchmark KOSPI index gained 1.3 percent, supported by renewed optimism over a tariff deal with Washington and resilient semiconductor exports. The tech-heavy KOSDAQ also edged higher, though gains were more muted, as investors selectively bought shares of exporters and technology firms. In China, the Shanghai Composite Index rose 0.7 percent after the government reported third-quarter growth of 4.8 percent year-over-year, slightly above expectations. Industrial production also exceeded forecasts, rising 6.5 percent. Yet, persistent weakness in the property sector and sluggish consumer confidence tempered the market’s advance. Hong Kong’s Hang Seng Index climbed 2.5 percent, buoyed by improved risk appetite amid easing U.S.–China trade tensions and optimism over Japan’s political outlook. Japan’s Nikkei 225 surged 3 percent to a new high after reports that the ruling coalition had secured enough support to pave the way for Sanae Takaichi to become prime minister. Investors interpreted the development as a sign that Tokyo would maintain — or even expand — its fiscal and monetary stimulus measures, reinforcing confidence across regional markets. 2025-10-20 17:46:00

Cambodia scam networks and Korean deaths expose youth struggles at home SEOUL, October 20 (AJP) - The murder of a South Korean student kidnapped for forced crime in Cambodia has shocked the nation — and exposed the hidden world of young Koreans trapped in Southeast Asia's online-scam networks. The body of a 22-year-old university student, surnamed Park, was found near Bokor Mountain in southern Cambodia in early August after his family received a ransom call. Cambodian police later arrested several Chinese nationals suspected of running the online fraud compound where Park had been held. Seoul dispatched investigators and conducted a joint autopsy to determine the cause of death. Data suggest Park's case is far from isolated. According to the Ministry of Justice, the number of South Koreans who traveled to Cambodia but never returned has surged from just 113 in 2021 to 3,209 in 2022, 2,662 in 2023, and 3,248 in 2024. As of August this year, 864 travelers remained unaccounted for. The spike mirrors a wider regional phenomenon. Similar trafficking, scam, and illegal-gambling operations have surfaced across Myanmar, Laos, Vietnam, and the Philippines. South Korean dramas such as Taxi Driver 2 have even depicted the brutal scam compounds exploiting foreign workers. "This isn't just about Cambodia," said a South Korean businessman who has worked in the Philippines for 15 years. "After Manila tightened its crackdown, many groups simply moved to Cambodia. Some still operate under the radar in the Philippines." Public outrage deepened after a recording surfaced of Park pleading with his family during ransom negotiations. The government reacted belatedly — sending senior diplomats to Phnom Penh, summoning the Cambodian ambassador on Oct. 10, imposing a travel ban on high-risk areas on Oct. 16, and performing a joint autopsy. "The government's response began only after the media coverage," said Lee Man-jong, honorary professor of police and law at Howon University. "By the time investigators arrived, the suspects were gone. It’s a classic case of policy catching up to outrage." Washington's latest Trafficking in Persons (TIP) Report kept Cambodia at Tier 3, the lowest ranking, citing official complicity in online-scam trafficking. It found senior Cambodian officials had “financially benefited from the forced criminality and forced labor of victims." Experts warn the tragedy reflects deeper domestic woes. The youth unemployment rate hovers around 5 percent this year, according to KOSIS. Economic insecurity and temporary jobs continue to drive many young people to seek quick overseas opportunities. Many victims are unemployed young Koreans, lured by social-media ads for "high-paying overseas part-time jobs." "In Europe and the U.S., AI systems automatically flag job posts linked to trafficking, and platforms that fail to do so face legal consequences,” Lee noted. “That’s prevention-based governance — and it’s time we adopt it.” 2025-10-20 17:41:33

Korean central bank likely to save ammunition in this week's rate meeting SEOUL, October 20 (AJP) - South Korea’s central bank, like most of its Asian peers, is expected to hold fire on interest rates this week, preserving policy ammunition amid mounting uncertainties from U.S. tariff and trade policies. At Thursday’s Monetary Policy Board meeting, the Bank of Korea (BOK) is widely forecast to keep its benchmark rate unchanged at 2.50 percent, maintaining its cautious stance since the last cut in August. The decision comes as inflation shows signs of easing, but risks in the foreign exchange and housing markets remain elevated. Last week, the government unveiled sweeping measures to cool soaring home prices in Seoul, designating the entire capital area as a restricted zone to tighten property transactions and mortgage lending. Under the new rules, buyers will be required to obtain government approval for certain deals and will face tougher loan-to-value limits. In Korea, curbing housing inflation and household debt growth has become as critical as maintaining overall price stability. Lowering borrowing costs too soon, analysts warn, could send mixed signals while fiscal authorities pursue hawkish action to rein in speculative real-estate demand. Governor Rhee Chang-yong has also signaled caution, indicating that the BOK will not rush into another easing cycle to revive growth at the expense of financial stability. The continued weakness of the Korean won further complicates the outlook. The currency has fallen around 2 percent in recent weeks, briefly breaching the 1,430 mark against the U.S. dollar amid renewed U.S.-China trade tensions. A rate cut at a time when the U.S. Federal Reserve remains on hold could spur additional capital outflows and intensify pressure on the won. Market observers expect the BOK to wait until its final meeting in November before considering another rate adjustment, pending confirmation of a slowdown in third-quarter GDP. Elsewhere in Asia, the People's Bank of China kept its key lending rates unchanged for a fifth consecutive month, while the Bank of Japan, facing both currency volatility and political uncertainty, is also likely to stay on hold at its Oct. 29-30 policy meeting despite domestic inflation signals. 2025-10-20 17:29:59

Two more rescued in Cambodia as about a dozen nabbed in online scams after crackdown SEOUL, October 20 (AJP) - Two more South Koreans were rescued and about a dozen others reportedly involved in online job scams and phishing schemes were arrested in Cambodia, following a crackdown, Foreign Minister Cho Hyun told reporters during a press briefing in Seoul on Monday. According to Cho, they are expected to be repatriated this week, following last Saturday's deportation of more than 60 South Korean detainees allegedly involved in similar crimes in the Southeast Asian country. The development comes after recent revelations of a series of kidnappings, detentions and brutal tortures involving South Koreans including the case of a South Korean college student who traveled to the Southeast Asian country after being lured by an online employment scam in August and was later found to have been tortured to death. In response to these crimes, Cho said the government is stepping up efforts to tackle sprawling crime rings targeting South Koreans in Phnom Penh, with the Ministry of Foreign Affairs planning to increase consular staff up to 40 and implement proactive measures to identify cases early and prevent incidents before victims report them. Additionally, personnel from nearby Southeast Asian embassies will rotate or be temporarily assigned to Cambodia for one to two months to provide assistance. "Embassy staff will also be prepared to respond around the clock," a ministry official said, adding that the Cambodian government is well aware of the situation and is cooperating with South Korea to prevent damage to its tourism industry. When asked about the possible involvement of Chinese-led criminal organizations, the official said discussions would take place once more evidence and specific details are gathered. The ministry is also currently working with Cambodian authorities to locate the whereabouts of some 80 missing South Korean citizens. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 17:26:15

Once Asia's creative powerhouse, Korean cinema faces its reckoning SEOUL, October 20 (AJP) - Korea's once-vibrant movie scene is struggling to bring audiences back to theaters, and without serious soul-searching, it may follow the same decline once seen in Japanese and Hong Kong cinema. Multiplex chains are shuttering nationwide, often blaming global streaming platforms for their decline, but insiders argue the problem runs deeper — a shortage of compelling, diverse stories worth watching on the big screen. "The audience isn't gone — they just haven't been given enough movies worth going out for," said Kim Chi-ho, professor of Culture Contents at Hanyang University ERICA. "When the year's biggest hit barely surpasses five million viewers, it's not just about competition with OTT platforms. It's about what stories we're offering." The numbers tell the story. This year's top-grossing films — "My Daughter Is a Zombie" (5.62 million admissions) and "Demon Slayer: Infinity Castle" (5.42 million) — fell well short of the 10-million-viewer milestone that once defined a Korean blockbuster. At the same time, ticket prices of 14,000–15,000 won now rival a month of streaming-service access, giving moviegoers little reason to leave home. According to the Korean Film Council, Korea's annual movie attendance has halved since the pandemic, plunging from 200 million to around 100 million. In the first half of 2025 alone, box-office revenue dropped 33.2 percent year-on-year, while admissions slid 32.5 percent to 42.5 million. The decline is hitting multiplexes hard. CGV has already closed 12 branches this year, including its beloved Myeong-dong Cine Library — a hub for art-house screenings and film talks — while Megabox Seongsu, opened only six years ago, shut down earlier this month. "It's not just a temporary slump," said Lee Eun, CEO of Myung Films. "We're seeing the fallout of an industry that expanded too quickly, focused too narrowly on blockbusters, and left independent and mid-sized studios behind." Lee contrasted Korea's downturn with other post-pandemic markets. "Multiplexes that once earned 100 are now making 50 — but their costs remain the same," he said. "The closures we're seeing today may continue until a healthier balance returns." To keep the K-content wave alive, Lee urged a long-term vision that values artistry as much as profit. He called for policies that nurture independent and small-studio productions and treat cinema "as more than a commercial product." Independent and art-house filmmakers, he added, still struggle to find screens. "Over the past 20 years, multiplex chains have made efforts to show independent works. But now it's time for local governments, the Korean Film Council, and the Ministry of Culture, Sports and Tourism to expand funding for dedicated art-house theaters." Film critics warn that the halo surrounding Korean cinema — once seen as Asia's creative powerhouse — could fade just as it did for Japanese, Hong Kong, and Chinese films in earlier decades. The answer, they say, lies not in chasing blockbusters but in supporting diversity and creativity at every level of the industry. 2025-10-20 17:06:20

Korea's winter street snacks evolve from local comforts to global favorites SEOUL, October 20 (AJP) - Korean street food gyeran-ppang — literally “egg bread” — has joined the ranks of the French baguette and Montreal bagel on CNN’s list of “50 of the World’s Best Breads,” underscoring how globalized and inventive Korean street food has become. “There’s buried treasure within every loaf of gyeran-ppang,” CNN wrote. “Individually sized wheat breads with a whole egg baked inside are among Seoul’s favorite choices for a hot breakfast or a belly-warming snack on a cold winter day.” The network quoted bread historian William Rubel, who noted that bread is “basically what your culture says it is.” Eggs are a relative newcomer among Korea’s long-cherished “buried treasures” in flour-based winter snacks. The fish-shaped bungeo-ppang, traditionally filled with red bean paste, has expanded far beyond food carts to convenience-store shelves, now offered with custard or cream fillings and earning global fame through social media. At Seoul’s Gwangjang and Namdaemun markets, vendors still pour batter into iron molds and hand over steaming cakes wrapped in thin paper. Yet the menus continue to evolve — now featuring truffle gyeran-ppang, mozzarella-filled hotteok, and matcha-cream kkwabaegi (twisted doughnuts). “Kkwabaegi is fantastic — it’s like a Korean churro mixed with a bit of funnel cake,” said Alec Miller, 25, from Detroit, while savoring the treat after waiting in line. Hotteok, literally sell like “hot cakes” to tourists exploring Korea’s winter streets. The evolution of Korean street snacks goes beyond ingredients. Major convenience-store chains like CU and GS25 now sell boxed bungeo-ppang, microwaveable mini hotteok, and piping-hot hoppang (steamed buns) at checkout counters each winter. These buns — stuffed with red bean, pizza, kimchi, or vegetable fillings — have become a beloved seasonal indulgence. “When the weather gets cold, my friends and I head straight to convenience stores for winter treats, especially steamed buns,” said Seoul resident Hyezi Lee, 30. “The red bean ones are the classic, but these days, the pizza flavor is another favorite.” Some nostalgic treats, however, are harder to find. Ppeongtwigi, a puffed rice snack once announced by its signature “ppeong!” explosion in traditional markets, now lives on mainly through retro-themed cafés and television dramas. “We have a saying in Korea — it’s inhuman to ignore the smell of Delimajoo, a custard-filled, corn-shaped dessert,” said Lee Ji-hyun, 32. “I can never pass it by when I smell it in the subway.” “Before coming to Korea, foreigners often check a ‘list of things to do,’ and most of it involves eating,” said Pharaba Hacker from Los Angeles. “From savory dishes to desserts, everything is mind-blowing — Korea’s food culture is so unique and full of surprises.” 2025-10-20 17:05:39

Kolmar Korea to develop AI-driven cosmetics factory under government project SEOUL, October 20 (AJP) - Cosmetics manufacturer Kolmar Korea said Monday that it has been chosen by the Ministry of Trade, Industry and Energy to lead the development of an artificial intelligence–integrated autonomous manufacturing system for cosmetics — an ambitious effort to transform how beauty products are made. The initiative, known as the AI Factory Project, aims to surpass current “smart factory” systems by using real-time data and AI models to autonomously optimize production. The company said it plans to modularize each stage of production — from planning and manufacturing to quality control and packaging — and apply AI. Kolmar Korea expects the system to cut rework caused by defects, boost efficiency and allow its facilities to quickly adjust to shifting consumer preferences in the fast-paced beauty market. The project will run from September 2025 through December 2029. The company’s key responsibilities include building an integrated production data platform and developing AI systems capable of autonomously controlling manufacturing processes. Kolmar Korea began automating its operations in 2019, when it introduced a smart factory system that has since reduced manufacturing defects by 42 percent. “Being selected as the sole lead company in the cosmetics industry for this project recognizes our technological and innovative leadership,” the company said in a press release. “We aim to strengthen K-beauty’s global competitiveness and raise productivity across the industry.” Headquartered in Seoul, Kolmar Korea operates production facilities in South Korea, the United States, Canada and China. The company said it plans to expand the AI manufacturing system to its global bases and gradually apply it across its subsidiaries. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 16:21:14