Telecom Companies Shift Focus to Power Business The rise of generative artificial intelligence (AI) has led to a significant increase in power demand for AI data centers (AIDC), prompting the three major telecom companies in South Korea to expand their power-related businesses. On May 18, the telecom giants announced their entry into the renewable energy resale market following their AIDC initiatives. They are utilizing AI technology to operate smart grids and virtual power plants, while also developing and testing intelligent power grid solutions. SK Telecom (SKT) has proactively pursued renewable energy procurement at the group level. In 2023, SKT signed a direct power purchase agreement (PPA) with SK E&S and eight subsidiaries of the SK Group for an annual supply of 537 gigawatt-hours (GWh). This agreement will provide solar-based renewable energy to major business sites and data centers for the next 20 years, starting this year. While SKT does not sell electricity directly, it is exporting a value chain that combines global data centers with generated power, leveraging its infrastructure and operational expertise in the domestic market. LG Uplus is also focusing on long-term renewable energy procurement. In January, LG Uplus signed a PPA with GS Construction to receive power generated from a solar power plant in Taean, South Chungcheong Province, for approximately 20 years, with an annual supply of about 17 GWh. The company aims to enhance its energy response capabilities, including for AIDC. Additionally, LG Uplus is working on a project to create a virtual power plant by connecting small-scale renewable energy facilities across the country through the cloud. It is also supplying IoT lines for a net-zero project to transition the energy needs of LG Group subsidiaries to eco-friendly renewable energy and for smart grid systems. KT, which has received government approval as a 'renewable energy electricity supplier,' is engaged in a direct power trading contract (PPA) business to sell its procured renewable energy directly to companies. Recently, KT signed a memorandum of understanding with Tokyo Electron Korea to promote a direct PPA, planning to supply renewable energy to its Hwaseong office starting in September. Initially, it will supply 15 megawatts (MW) of renewable energy, with plans to expand to 50 MW in the future. As the AIDC market continues to grow rapidly, the actions of the three telecom companies are expected to accelerate. According to the Korea Energy Economics Institute (KEEI), domestic data center power consumption is projected to rise from 5 terawatt-hours (TWh) in 2023 to 31.6 TWh by 2040, and 65.4 TWh by 2060. The explosive demand for power is increasing the role of the telecom companies. Solar and wind energy generation varies with time and weather conditions, which limits stable power supply. This highlights the need for hybrid power structures that combine energy storage systems (ESS) and LNG generation, along with smart grids and AI power management systems. Kim Cheol-hyun, a researcher at KEEI, stated, "Due to the intermittency and uncertainty of renewable energy, it is difficult to rely solely on it for data center power. A mixed power structure that combines the existing power grid with renewable energy and battery energy storage systems (BESS), along with intelligent supply technologies for efficient distribution, is necessary."* This article has been translated by AI. 2026-05-18 19:10:06

Minister Han Seung-sook Visits Gongju's Saseong Market to Discuss Local Bookstore Development Minister Han Seung-sook of the Ministry of SMEs and Startups visited Gongju's Saseong Market and the surrounding Jeamincheon commercial area to gather feedback and discuss the future of local bookstores. On May 18, the ministry reported that Minister Han visited Saseong Market, where she purchased rice cakes and side dishes, encouraging merchants who are struggling due to rising prices and decreased consumer spending while listening to their concerns. She then toured the Jeamincheon area, visiting the 'Gongju Youth Shared Housing,' which has transformed an old inn into shared housing for young entrepreneurs, as well as the independent bookstore 'Bookstore, Itta' and the Hanok cafe 'Lucia's Garden,' where she heard from small business owners. A 'Local Bookstore Meeting' was held at the independent bookstore 'Old Questions' near Jeamincheon. Attendees included Ji Myung-hoon, the representative of 'Old Questions,' Yeon Young-sook, who operates 'Danbi Bookstore' in Sejong, and Kim Jun-tae, who runs 'Dadada' in Daejeon, among other representatives from regional bookstores in the Chungcheong area. Also present were Lee Dae-geon, president of the National Local Bookstore Network, along with commercial district planners and experts who shared their insights. The meeting began with a presentation by Lee on the 'Current Status of Local Bookstores, Best Practices, and Future Development Directions,' followed by a free discussion format. Participants shared the role and importance of local bookstores as key hubs that connect people within local commercial districts and traditional markets, discussing future development directions. According to a 2024 survey on local bookstores conducted by the Korea Publishing Culture Industry Promotion Agency, there are approximately 3,295 local bookstores nationwide, with 21 areas identified as at risk of extinction. Minister Han stated, "Local bookstores are not just spaces for selling books; they are cultural hubs where community stories come to life. We will continue to support the development of local bookstores as cultural anchors in commercial districts, from startup assistance to collaboration and revitalization efforts."* This article has been translated by AI. 2026-05-18 19:05:16

Controversy Surrounds Historical Accuracy in '21st Century Great Lady' Choi Tae-sung, a Korean history instructor, has sparked attention by proposing the establishment of a "Historical Verification Research Institute" in response to the controversy surrounding the MBC drama '21st Century Great Lady.' Despite achieving over 13% viewership ratings, '21st Century Great Lady' has faced criticism for historical inaccuracies. Scenes such as the character Lee An-dae-gun (played by Byun Woo-seok) shouting "cheonsae" instead of "manse" during a royal coronation, and the use of a Chinese-style crown instead of the appropriate Korean imperial crown, have drawn scrutiny. After the show's conclusion, debates arose regarding whether the portrayal of South Korea as a constitutional monarchy implied it was a vassal state of China rather than a sovereign nation. Viewers have called for apologies from the production team and cast, prompting Choi Tae-sung to express his views on social media. On May 18, Choi stated, "Korean dramas and films have become content consumed by audiences worldwide. A production system that matches this status is necessary." He criticized the frequent historical inaccuracies, questioning why millions are spent on actor salaries while historical verification costs are often minimal. He added, "Actors should be able to focus solely on their performances. It’s disheartening to receive criticism after working hard to create a good historical drama. I hope a Historical Verification Research Institute can be established." As the controversy intensified, the production team issued an apology on May 16, stating, "We apologize for causing concern regarding the world-building and historical verification issues. We will correct the audio and subtitles for the relevant scenes in replays, VOD, and OTT services." On May 18, lead actors IU and Byun Woo-seok also posted apologies on their social media accounts. IU expressed her regret, saying, "As the lead actress, I feel heavy-hearted for not demonstrating a responsible attitude and for disappointing viewers. I sincerely reflect on and apologize for not considering the various verification issues in the drama more deeply." Byun Woo-seok, in a handwritten apology, acknowledged, "I lacked sufficient consideration of the historical context and significance embedded in the work and how it would be perceived by viewers. I will strive to approach my roles with greater caution and depth in the future." Once anticipated as a major success due to the pairing of two highly popular actors, '21st Century Great Lady' has seen its success overshadowed by the ongoing historical distortion controversy. Attention now turns to how related content, including the web novel by writer Yoo Ji-won and the OTT video released on Disney+, will address these historical issues.* This article has been translated by AI. 2026-05-18 19:02:06

South Korea Hosts Workshop with OpenAI on Cybersecurity Collaboration The South Korean government held a practical workshop with global artificial intelligence (AI) company OpenAI to discuss cybersecurity collaboration and the Trusted AI Cybersecurity Program (TAC). On May 18, the Ministry of Science and ICT (MSIT) announced that it explored AI-based cybersecurity cooperation with various agencies, including the Ministry of Foreign Affairs, the National Intelligence Service, the Financial Services Commission, the National AI Strategy Committee, the AI Safety Research Institute (AISI), the Korea Internet & Security Agency (KISA), and the Financial Security Institute. The workshop was organized for Shasha Baker, OpenAI's Head of National Security Policy, to explain the TAC program to South Korean government officials. MSIT requested OpenAI to share information and collaborate on addressing AI security threats. Both parties agreed to continue active discussions on the application of AI models in the cybersecurity field following this meeting. Baker stated, "To effectively respond to cyber threats in the AI era, close public-private cooperation is essential. When the government, businesses, infrastructure operators, research institutions, and AI companies collaborate based on a shared sense of responsibility, we can safely utilize AI and enhance cyber resilience." Choi Woo-hyuk, Director of the Information Security Network Policy Office at MSIT, noted, "Through this workshop and meeting, there was a consensus that AI should be a weapon for defense rather than an attacker, and that close cooperation between the public and private sectors is necessary to address AI security threats. We will continue to enhance domestic AI security capabilities through active collaboration and practical discussions with global AI companies." Meanwhile, MSIT held a meeting with Anthropic on May 11 to discuss Anthropic's 'Mythos' access rights, AI stability policies, and the AI Basic Act.* This article has been translated by AI. 2026-05-18 19:00:00

Government Launches Major Spending Restructuring to Enhance Budget Efficiency The South Korean government has initiated its largest-ever spending restructuring effort to reduce unnecessary financial expenditures. This move includes mandates for each ministry to implement spending restructuring at the project level, reinforcing the commitment to enhance fiscal efficiency. On May 18, the Ministry of Strategy and Finance notified various ministries of the results from the "Integrated Financial Project Evaluation" conducted over the past four months since January. As a result of this restructuring, 901 project budgets are set to be reduced or consolidated. This evaluation differs from previous self-assessments conducted by individual ministries. To enhance objectivity and reliability while alleviating the evaluation burden on ministries, 153 external experts were engaged to form a "Private Expert Evaluation Group." Out of 2,487 projects evaluated, 901 (36.2%) were identified for budget reductions or consolidations. Only 89 projects (3.6%) were deemed to be proceeding normally, while 1,497 projects (60.2%) were classified as needing improvement. The sector with the largest budget reductions is transportation and land, with 54 projects (17.3262 trillion won) facing cuts or consolidation. This is followed by disaster safety with 84 projects (8.6024 trillion won) and defense, diplomacy, and unification with 46 projects (3.7149 trillion won). Unlike previous self-assessments, ministries are now required to implement spending restructuring at the project level. If they fail to meet the restructuring targets by September, they must submit a justification for the unimplemented changes to the Open Budget portal for public disclosure. The Ministry anticipates that these restructuring efforts could lead to a total of 77 trillion won in budget adjustments. The Ministry plans to link the results of this integrated evaluation to the formulation of next year's government budget. Projects that receive poor performance ratings will see budget requests from ministries reduced accordingly. Projects identified for improvement must have their necessary adjustments reflected in a performance management improvement plan, which is to be submitted next month. Projects that demonstrate excellent performance will be rewarded. The evaluation group will select up to 50 outstanding projects, which will be exempt from evaluation in the following year. In July, a public vote will determine which projects are perceived to have high satisfaction and impact, with rewards for the project managers. By the end of this month, ministries must submit their budget requests for 2027, reflecting the evaluation results to the Ministry of Strategy and Finance. The report on the integrated evaluation results will be made public on the Open Budget portal next month. A Ministry official stated, "To strengthen the integrity of the integrated evaluation system, we will comprehensively address the improvement tasks raised during the evaluation process and the challenges faced by ministries, aiming to implement system improvements in the second half of the year." Woosuk Jin, head of the evaluation group and a professor at Myongji University, noted, "Compared to previous self-assessments, only 3.6% of projects were rated as normal, indicating a stricter evaluation. The differences in spending restructuring rankings among ministries suggest that further management will be necessary going forward."* This article has been translated by AI. 2026-05-18 18:57:32

AXZ Appoints Lee Geon-soo from Upstage as New CEO Amid Management Restructuring AXZ, the operator of the portal Daum, has initiated a management change just over a week after acquiring Upstage. On May 18, sources in the information technology (IT) industry reported that Upstage has appointed Lee Geon-soo, head of its AI search division, as the new CEO of AXZ. Lee was recruited from Connectwave in April. Lee, a graduate of Seoul National University, is recognized as an expert with a strong understanding of platform operations. He became an executive at Naver in 2014 and oversaw the Naver Place business and the Naver Glace (CIC, Global Place independent corporate entity) organization until 2023. During his tenure at Connectwave, Lee was involved in a large-scale private language model (LLM) development project with Upstage. He is expected to play a key role in linking Upstage's LLM, 'Solar,' with Daum's AI search portal. Yang Joo-il has served as AXZ's CEO since May 2023, when Kakao launched Daum's business division as an independent corporate entity (CIC). Following the confirmation of Upstage's acquisition of Daum, he reportedly expressed his intention to resign. After acquiring AXZ, Upstage plans to transform Daum into an AI search portal. The goal is to enhance existing portal search services into generative AI-based search services by leveraging Daum's extensive data and traffic accumulated over the years, utilizing its LLM, Solar. The IT industry anticipates that the management change at AXZ may lead to further organizational restructuring. An Upstage representative stated that Lee's appointment is not yet finalized and that there are no established plans regarding the reallocation of personnel within Daum's organization, which is primarily composed of Upstage employees. Meanwhile, the Kakao branch of the National Chemical Fiber Food Industry Labor Union has expressed opposition to Yang Joo-il's resignation in connection with the sale of AXZ. In an official statement on May 14, the union criticized Yang, stating, "Yang Joo-il, who encouraged employees by saying, 'We are setting sail into a vast ocean' at the time of the spin-off, has decided to resign immediately after the sale through a share exchange with Upstage was confirmed, which is a deceptive exit." The union also criticized Kakao CEO Jeong Shin-ah, saying, "Despite assuring employees that 'we will not consider a sale' during the spin-off, the company has moved forward with a sale just months later, which is a unilateral restructuring aimed at workforce reduction and financial metrics adjustment." They highlighted that the repeated spin-offs and sales pose significant risks that undermine the core value of Kakao as a company.* This article has been translated by AI. 2026-05-18 18:55:05

Annual Business Closures Exceed 1 Million as Banks Increase Support for Small Enterprises As annual business closures surpass 1 million, the banking sector is stepping up to provide consulting and financial support for struggling small enterprises.Cho Yong-byeong, chairman of the Korea Federation of Banks, stated at the 'Joint Small Business Consulting Results Sharing Event' held on May 18 in Seoul, "Small business owners, our valued customers, are directly facing economic changes and cost burdens in the most immediate sectors of the economy." He emphasized the commitment to actively support the processes of business closure and recovery.Since 2025, 20 domestic banks have collaborated on consulting for startups and businesses facing closure. Due to recent economic downturns, the number of consulting applicants has reached 646, exceeding the initial target by more than double. In total, 2,100 consulting sessions have been provided to 800 small business owners. The consulting results indicate a concerning trend, with 50% of requests focusing on closure strategies rather than management improvement or tax inquiries, highlighting the deepening financial struggles of small businesses. The service industry accounted for the largest share of requests at 27.1%, followed by retail and food services at 26.3%.The prolonged domestic economic slump has led to a wave of closures among self-employed individuals, who are crucial to local economies. The annual business closure rate has reached over 1 million, with a closure rate of approximately 9%. Increasing numbers of self-employed individuals are unable to meet their loan obligations, contributing to a rise in delinquency rates. The delinquency rate for loans to individual business owners at the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—was 0.78% in the first quarter of this year, up 0.07 percentage points from late January. Meanwhile, Kakao Bank, which has been increasing its loans to individual business owners, reported a delinquency rate of 1.40%.In response, the Korea Federation of Banks has implemented tailored consulting services based on data and artificial intelligence (AI) from professional consultants. Additionally, they are linking consulting services for small business owners to various financial support programs, such as Personal Business Loan 119, to alleviate interest burdens. It is estimated that 99.3% of borrowers have total loans of less than 1 billion won. If 30% of those who close their businesses apply for financial support, the reduction in interest burdens could amount to 315 billion won annually. A consultant noted, "27% of applicants have completed their business closure process, and we will continue to support the remaining applicants."However, the burden on the banking sector is significant. The annual financial support burden for small businesses is estimated to be between 600 billion and 700 billion won. Nevertheless, as support for startups and businesses in distress aligns with productive finance strategies, the banking sector plans to expand the scope of Personal Business Loan 119 and long-term installment repayment options.Chairman Cho stated, "We will continue to disseminate the experiences and best practices from this joint initiative across the banking sector to enhance the self-sustainability of small businesses and support the recovery of the economy and inclusive finance."* This article has been translated by AI. 2026-05-18 18:52:33

Samsung Life Insurance Eyes Overseas M&A as Thai Profits Surge 63% As the domestic insurance market faces growth limitations due to low birthrates and an aging population, the life insurance industry is increasingly focusing on expanding into overseas markets. Samsung Life Insurance is bolstering its international strategy based on strong performance from its Thai subsidiary. According to data from the Financial Supervisory Service on May 18, Samsung Life's Thai subsidiary reported a net profit of 10.4 billion won in the first quarter of this year, a 63% increase from 6.4 billion won in the same period last year. During this time, assets grew by 11.7% to reach 1.34 trillion won. The K-ICS (Korea Insurance Capital Standard) ratio stood at 323% at the end of the first quarter, significantly exceeding the Thai insurance authority's minimum requirement of 140%. Established in 1997, Samsung Life's Thai subsidiary was the first overseas venture by a domestic life insurer. The company is positioning Thailand as a key hub in Southeast Asia, expanding its business through bancassurance partnerships and local investments. Currently, it operates four branches and 133 sales offices in major regions of Thailand, primarily focusing on a consultant-based sales organization. The Thai insurance market is witnessing a growing demand for health and protection products, driven by an expanding middle class and rising incomes. According to the Organization for Economic Cooperation and Development (OECD), the size of life insurance premiums in Thailand has increased from $3.2 billion in 2000 to an estimated $19 billion by 2024. Buoyed by local business growth, Samsung Life has also indicated the possibility of further overseas investments. During a conference call on May 14 regarding its first-quarter results for 2026, the company stated, "Our businesses in Thailand and China are growing rapidly, and profitability is improving. Based on this experience, we are exploring new merger and acquisition opportunities." Industry experts believe that the structural slowdown in the domestic market, exacerbated by low birthrates and an aging population, is driving the push for overseas expansion. The popularity of whole life insurance, a core product in the life insurance sector, is also waning. Hanwha Life is noted as one of the most aggressive domestic life insurers in expanding its overseas operations. The company is strengthening its local sales in Vietnam and Indonesia and has recently acquired a bank in Indonesia, pursuing a strategy that integrates insurance and finance. An industry insider remarked, "As it becomes increasingly difficult to generate stable profits in the domestic insurance market due to demographic changes, the need for overseas market expansion is growing. However, international operations require a long-term approach due to differences in language, culture, and regulatory environments, which is why this trend is predominantly led by larger firms."* This article has been translated by AI. 2026-05-18 18:49:28

Hanmi Pharmaceutical Expands Obesity Drug to Diabetes Treatment Hanmi Pharmaceutical is expanding the indications for its GLP-1 drug, epeglanatide, to include diabetes treatment. The company views obesity not as a standalone disease but as part of a complex metabolic disorder that includes type 2 diabetes and cardiovascular diseases. To this end, Hanmi is implementing a Life Cycle Management (LCM) strategy to broaden the use of epeglanatide, aiming to develop a 'metabolic disease integrated platform' that connects obesity, diabetes, and cardiovascular conditions.On May 18, Hanmi announced that it has begun dosing participants in a Phase 3 clinical trial in South Korea to expand the drug's indications for diabetes treatment. The trial evaluates the blood sugar control effects of a combination therapy involving epeglanatide, metformin, and SGLT2 inhibitor dapagliflozin in patients with type 2 diabetes, with the first doses administered last month.The Phase 3 trial is being conducted as a multicenter, randomized, double-blind, placebo-controlled study involving domestic patients. The trial is expected to conclude in 2028.Hanmi plans to secure diabetes indications based on its global development experience involving 6,000 type 2 diabetes patients in collaboration with its partners.According to the company, epeglanatide not only shows weight loss and blood sugar control effects but also has potential cardiovascular and kidney protective benefits.Kim Na-young, head of Hanmi's Innovation Growth Division, stated, "Epeglanatide has the potential to expand its treatment area beyond obesity to various metabolic diseases, including diabetes and cardiovascular and kidney diseases."Meanwhile, Hanmi submitted a product approval application for its obesity drug epeglanatide to the Ministry of Food and Drug Safety in December last year. It has been designated for the Global Innovative Fast Track (GIFT) program, which is expected to shorten the review period compared to standard approval processes.The company emphasizes that epeglanatide has been directly tested for efficacy and safety in Koreans, unlike major global products such as 'Wegovy,' and aims to enter not only the domestic market but also the global market, including Asia.The global obesity treatment market is experiencing rapid growth. 'Mounjaro' generated $8.7 billion in sales in the first quarter of this year, surpassing cancer drug 'Keytruda' to become the world's best-selling drug. During the same period, 'Wegovy' recorded sales of 18.235 billion kroner (approximately $4 billion), solidifying the position of obesity and diabetes new drugs as key growth drivers in the global pharmaceutical market.* This article has been translated by AI. 2026-05-18 18:46:14

Shinhan Bank Provides 7.5 Billion Won in Guaranteed Loans to Incheon SMEs Shinhan Bank announced on May 18 that it will provide a total of 7.5 billion won in guaranteed loans to small and medium-sized enterprises (SMEs) and small businesses in the Incheon area.To support mid- to low-credit companies and e-commerce businesses, Shinhan Bank has signed a 'Specialized Inclusive Finance Guarantee Agreement' with the Incheon Credit Guarantee Foundation.The initiative aims to reduce the financial burdens faced by small businesses with mid- to low-credit ratings and to provide stable operating funds for online sellers experiencing cash flow issues due to delayed settlements.The loan limit for each business is set at a maximum of 50 million won, targeting new operating fund loans offered by Shinhan Bank. The guarantee will cover 100% of the loan amount, with a guarantee fee rate of 0.8% per year. The loans will be structured with a one-year grace period followed by four years of installment repayment or a lump-sum repayment at maturity.Currently, Shinhan Bank serves as the primary bank for Incheon City, with a new primary bank to be designated in August. This financial support for SMEs in Incheon is expected to have a positive impact on the upcoming selection of the primary bank.A Shinhan Bank official stated, "We will continue to collaborate with local credit guarantee institutions to provide financial support that small businesses and SMEs can truly feel in their operations."* This article has been translated by AI. 2026-05-18 18:41:48