KOSPI tops 8,000 for first time as oil slump, Asia rally lift Seoul SEOUL, May 26 (AJP) - South Korean stocks broke through the 8,000 mark for the first time on Tuesday as the market reopened from a long holiday to a weekend slide in oil prices and record highs across Asia. The benchmark KOSPI traded at 8,105 as of around 10 a.m., up about 3.3 percent from Friday's close of 7,847.71, while the junior KOSDAQ stood at 1,184.76. It was the first time the index has opened and held above 8,000, after a brief touch on May 15 that ended in a steep sell-off. The won, however, did not follow equities higher, trading at 1,509.70 against the dollar — weaker than levels seen earlier in the month and a sign that foreign capital may not yet be returning in force. Chipmakers led the advance, as they have throughout the index's run this year. Samsung Electronics traded at 301,000 won and SK hynix at 2,077,000 won, while the holding company SK Square reached 1,208,000 won, supported by continued optimism over AI-driven semiconductor demand. The strength extended across the market. Among automakers, Hyundai Motor rose to 686,000 won and Kia to 167,300 won, while HD Hyundai Heavy Industries climbed to 712,000 won. Battery shares were firmer, with LG Energy Solution at 400,500 won. Sentiment improved after global oil prices retreated overnight on hopes for a diplomatic breakthrough in the Middle East. U.S. President Donald Trump said over the weekend that an agreement with Iran to reopen the Strait of Hormuz would be announced shortly, sending West Texas Intermediate below $91 a barrel in early Asian trade. The war between the United States, Israel and Iran, which erupted in late February, had effectively closed the strait and driven crude sharply higher, pressuring energy-importing economies such as Korea. Trump cautioned, however, that the framework was not yet final and that his negotiators should "not rush" into a deal, leaving the catalyst behind the rally a provisional one. Markets are likely to stay sensitive to any sign the talks could stall over uranium enrichment, the duration of restrictions or the timing of sanctions relief. Investors were also watching foreign flows, which have been the decisive factor in recent sessions. Overseas funds had net-sold heavily through the middle of the month, concentrated in the same chip stocks now leading the market, and the won's failure to strengthen on a record-setting morning suggested that selling pressure had not fully cleared. A labor dispute at Samsung Electronics, which makes up about one-fifth of the KOSPI by market capitalization, remained a further point of caution. Across Asia, markets that traded during Korea's holiday closure had rallied broadly. Japan's Nikkei 225 rose 2.87 percent to a record close of 65,158.19 on Monday, while Taiwan's Taiex hit an all-time high of 43,495.92. Both economies, like Korea, are energy importers whose markets lean heavily on semiconductors, and their gains pointed to Seoul catching up on reopening rather than leading the move. 2026-05-26 10:43:36

Hanwha Power signs MOU with Canadian university to support submarine bid SEOUL, May 26 (AJP) - Hanwha Power Systems said Tuesday it has signed a memorandum of understanding with the University of Alberta to jointly conduct research and development on clean energy technologies, as part of efforts to support Hanwha Ocean’s bid for Canada’s submarine procurement project. The agreement, signed Friday, was arranged as part of an industrial and technological cooperation program linked to the Canadian Patrol Submarine Project, or CPSP, in which Hanwha Ocean is competing with Germany's TKMS. Under the MOU, Hanwha Power and the university will work on energy recycling technologies, including systems that generate electricity from gas turbine waste heat and pressure energy. The company also plans to explore the feasibility of applying such technologies in the North American market, drawing on the University of Alberta’s research capabilities and talent pipeline. Beyond joint R&D, the two sides will assess potential industries where the technologies could be used, review business structures and evaluate economic viability as part of efforts to move toward commercialization. “We are pleased to work with the University of Alberta, a hub of the energy industry,” said Michael Sicker, head of Hanwha Power Systems Americas. “We hope students will grow into future energy experts through this cooperation, while Hanwha Power will also gain a valuable opportunity to verify and advance its technologies in Canada.” David Bressler, vice president of international and enterprise at the University of Alberta, said, “This will also provide our students with a valuable foundation to apply basic research to real industrial settings.” 2026-05-26 10:40:46

Shinsegae chief's apology over Starbucks controversy SEOUL, May 26 (AJP) - Here is a full statement of Shinsegae Group chairman Chung Yong-jin's apology over Starbucks Korea's "Tank Day" controversy. To the people of the nation, I stand before you today with a heavy and apologetic heart. First, as chairman of Shinsegae Group, I sincerely bow my head in apology and ask for forgiveness from the bereaved families of the victims of the May 18 Democratic Uprising, the bereaved family of the late activist Park Jong-chul, the citizens of Gwangju and the people of the nation who have felt deep pain and disappointment because of this incident. The reason the investigation took time was because we wanted to conduct a thorough review. We take very heavily the fact that many people were hurt and angered by Starbucks Korea's inappropriate marketing. I take very seriously the fact that many people felt deep pain and anger because of Starbucks Korea's inappropriate marketing campaign. Regardless of the reason, what hurt the hearts of the people is not something light. I will not make any excuses. This is my fault. All members of Shinsegae Group, including myself, will remember the history and sacrifices of our society and always strive to deeply understand and respect the feelings of the people. What I earnestly ask is that people look more warmly upon Starbucks partners and field employees at stores across the country. They are simply diligent workers doing their best in their respective positions from early morning until late at night for every Starbucks customer. The responsibility lies with the organization and management, including myself. Right now, I believe it is more important that we try to understand one another and move forward together. We all share the same desire to leave behind a better South Korea and a better world for future generations. Shinsegae, including myself, will take this incident as a lesson. We will listen more, and carry responsibility more heavily. We will sincerely approach customers again with genuine hearts. We will fundamentally reexamine our internal systems and risk management framework, while also raising our standards for social responsibility. Today's apology will not be the end, but a beginning. We will start again from the beginning and work to regain the public's trust not through words, but through actions. Once again, I sincerely bow my head in apology to everyone who has been hurt by this incident. 2026-05-26 10:39:48

BTS attend AMAs in Las Vegas, eyeing another award SEOUL, May 26 (AJP) - Members of K-pop juggernaut BTS are attending the American Music Awards (AMAs), one of the major U.S. pop music awards shows in Las Vegas on Monday. Their in-person attendance at the annual music awards ceremony at the MGM Grand Garden Arena comes for the first time since 2021. They are competing for "Artist of the Year" and "Best Male K-pop Artist" awards. Their latest song, "SWIM," the title track from their fifth full-length album "Arirang" is also nominated for "Song of the Summer." If BTS win Artist of the Year, it would mark their second top honor at the awards after 2021, when they became the first South Korean act to receive the award. The AMAs are considered one of the leading U.S. pop music awards shows, along with the Grammy Awards and the Billboard Music Awards. Nominees are selected based on factors including streaming, album and track sales, radio airplay and tour revenue, and winners are decided entirely by public vote. K-pop-related nominees are also prominent this year. A remix version of "Dracula," a collaboration between BLACKPINK's Jennie and Australia's Tame Impala, is nominated for Song of the Summer as well. Girl group KATSEYE are nominated for "Best New Artist" and "Breakthrough Pop Duo/Group Performance," and their song "Gnarly" is up for "Best Music Video." Netflix's animated film "Kpop Demon Hunters" is also nominated for "Best Soundtrack," with its main theme song "Golden" is up for "Song of the Year." Meanwhile, BTS recently took their North American tour to Las Vegas, selling out all four shows — including the opening night at Allegiant Stadium, which drew over 60,000 fans. Attention is now on whether BTS can take home another top AMA trophy. 2026-05-26 10:27:30

Shinsegae's Chung vows to take full responsibility over police finding SEOUL, May 26 (AJP) -Shinsegae Group Chairman Chung Yong-jin issued a second public apology Tuesday over Starbucks Korea's controversial "Tank Day" promotion, bowing deeply in a five-minute televised public apology and saying he would seek forgiveness "through actions, not words" in a rare public act of contrition by a major South Korean business leader. Speaking at the Josun Palace hotel in Seoul, Chung said the company took the controversy "very heavily" and acknowledged that the campaign had deeply hurt the public by touching one of the country's most traumatic democratic memories. "We sincerely apologize," Chung said. "The reason the investigation took time was because we wanted to conduct a thorough review. We take very heavily the fact that many people were hurt and angered by Starbucks Korea's inappropriate marketing." "What hurt the hearts of the people is not something light," he added. "I will not make any excuses. This is my fault," he said, while strongly denying any ill intention. The extraordinary appearance underscored how a marketing campaign initially seen as a corporate blunder escalated into a broader political and social crisis ahead of local elections, triggering public boycotts, police complaints and mounting pressure from government agencies. The controversy erupted after Starbucks Korea launched a "Tank Day" tumbler promotion on May 18, the anniversary of the 1980 Gwangju Democratic Uprising. Critics accused the company of trivializing the massacre by using military-themed marketing language and the phrase "Tak! on the desk," widely associated in South Korea with the torture death cover-up of student activist Park Jong-chul during the military dictatorship era. The backlash intensified after President Lee Jae Myung openly condemned the campaign, prompting ministries and public institutions to suspend partnerships and review ties with Starbucks Korea. Chung said responsibility lay entirely with management, including himself, not with front-line employees working at stores nationwide. "What I earnestly ask is that people look more warmly upon Starbucks partners and field employees at stores across the country," he said. "The responsibility lies with the organization and management, including myself." "Right now, I believe it is more important that we try to understand one another and move forward together," Chung said. "We all share the same desire to leave behind a better South Korea and a better world for future generations." "Shinsegae, including myself, will take this incident as a lesson," he added. "We will listen more, and carry responsibility more heavily. We will sincerely approach customers again with genuine hearts." Chung also pledged that the company would treat Tuesday's apology as a starting point rather than a conclusion. "Today's apology will not be the end, but a beginning," he said. "We will start again from the beginning and work to regain the public's trust not through words, but through actions. The company also unveiled findings from its internal investigation into how the campaign was planned and approved, though officials did not immediately disclose whether additional disciplinary measures would follow beyond the dismissal of former Starbucks Korea chief executive Sohn Jung-hyun. The apology marks one of the most serious reputational crises faced by Shinsegae Group in recent years, exposing the growing political and cultural risks facing corporations in South Korea as historical memory and social sensitivities increasingly intersect with branding and consumer culture. The full statement of his apology is as follows: To the people of the nation, I stand before you today with a heavy and apologetic heart. First, as chairman of Shinsegae Group, I sincerely bow my head in apology and ask for forgiveness from the bereaved families of the victims of the May 18 Democratic Uprising, the bereaved family of the late activist Park Jong-chul, the citizens of Gwangju and the people of the nation who have felt deep pain and disappointment because of this incident. The reason the investigation took time was because we wanted to conduct a thorough review. We take very heavily the fact that many people were hurt and angered by Starbucks Korea's inappropriate marketing. I take very seriously the fact that many people felt deep pain and anger because of Starbucks Korea’s inappropriate marketing campaign. Regardless of the reason, what hurt the hearts of the people is not something light. I will not make any excuses. This is my fault. All members of Shinsegae Group, including myself, will remember the history and sacrifices of our society and always strive to deeply understand and respect the feelings of the people. What I earnestly ask is that people look more warmly upon Starbucks partners and field employees at stores across the country. They are simply diligent workers doing their best in their respective positions from early morning until late at night for every Starbucks customer. The responsibility lies with the organization and management, including myself. Right now, I believe it is more important that we try to understand one another and move forward together. We all share the same desire to leave behind a better South Korea and a better world for future generations. Shinsegae, including myself, will take this incident as a lesson. We will listen more, and carry responsibility more heavily. We will sincerely approach customers again with genuine hearts. We will fundamentally reexamine our internal systems and risk management framework, while also raising our standards for social responsibility. Today's apology will not be the end, but a beginning. We will start again from the beginning and work to regain the public's trust not through words, but through actions. Once again, I sincerely bow my head in apology to everyone who has been hurt by this incident. 2026-05-26 09:20:03

KOSPI breaks 8,000 as oil retreat lifts Asia, though the rally rests on unfinished Iran deal SEOUL, May 26 (AJP) - South Korea's Kospi pushed above the 8,000 mark at Tuesday's open, reaching roughly 8,060 as the market reopened from a holiday to a weekend of falling oil prices and record highs across Asia, even as the diplomatic breakthrough driving the move remained far from settled. The benchmark traded about 2.7 percent above Friday's close of 7,847.71. It marked only the second time the index has crossed 8,000 and the first time it has opened and sustained the level, after an earlier attempt on May 15 collapsed into a 6.1 percent rout by the close. The advance reflected a sharp reversal in the single variable that has governed Korean equities for three months: the price of oil. The war between the United States, Israel and Iran, which erupted in late February, had effectively closed the Strait of Hormuz and driven crude sharply higher, weighing on energy-importing economies across Northeast Asia. That pressure eased over the weekend after U.S. President Donald Trump said an agreement with Iran to reopen the strait would be announced shortly. Crude fell accordingly in early Asian trade. West Texas Intermediate dropped 5.87 percent to $90.93 a barrel and Brent declined 5.58 percent to $97.76. The relief was immediate, but its foundation was not. Trump himself cautioned that the framework was not yet final and that his negotiators should "not rush" into a deal — a reminder that the catalyst behind Tuesday's rally remains a provisional understanding rather than a concluded settlement. Korean markets were closed Monday for the substitute holiday for Buddha's Birthday, as were those in Hong Kong, while U.S. exchanges were shut for Memorial Day. The Asian markets that did trade rose in unison. Japan's Nikkei 225 climbed 2.87 percent to a record close of 65,158.19, its steepest three-day gain in more than six years, while Taiwan's Taiex reached an all-time high, rising 2.91 percent to 43,495.92. China's CSI 300 added 0.91 percent, Australia's ASX 200 gained 0.45 percent and India's Nifty 50 rose 1.09 percent. For Seoul, the implication was direct. Japan and Taiwan are Korea's closest structural counterparts — energy importers whose indices are anchored by semiconductors — and both set records while Korean markets were dark. Tuesday's open, in that light, was less a breakout than a convergence: Korea catching up to a move the region had already priced over the long weekend. That distinction also separates this attempt from the failed one a fortnight ago. The Kospi had advanced from 7,000 to its first touch of 8,000 in just seven sessions. When it arrived on May 15, however, it was running ahead of an overnight gain on Wall Street rather than alongside a regional consensus. Foreign investors that day sold a net 5.6 trillion won, sending Samsung Electronics and SK hynix down more than 7 percent and dragging the index to a 6.1 percent loss. The behavior of foreign investors remains the decisive variable. Overseas funds net-sold roughly 24 trillion won of Kospi shares over a recent six-session stretch, with the selling concentrated in the very chip stocks leading the rally. Domestic brokerages have characterized that flow as profit-taking after a rapid ascent rather than a structural withdrawal from Korean equities, though the distinction will only become clear in the sessions ahead. A labor dispute at Samsung Electronics adds a further domestic overhang, and the won — which weakened beyond 1,500 per dollar during the May 15 sell-off — will signal whether foreign sentiment is genuinely turning. Analysts had anticipated the level before the holiday. NH Investment & Securities projected the Kospi to trade between 7,200 and 8,500 this week, citing earnings momentum, valuation appeal and hopes for an Iran ceasefire. By the opening bell on Tuesday, the market had claimed the upper half of that range. Yet the durability of the move depends on a settlement that Washington itself has declined to finalize. Should the Iran framework stall — over uranium enrichment, the duration of restrictions or the timing of sanctions relief — the oil-price relief underpinning Tuesday's gains could prove as provisional as the diplomacy behind it. For now, the Kospi's record open reads less as a verdict on Korea's fundamentals than as the local expression of a regional bet that the worst of the energy shock has passed. 2026-05-26 09:15:33

S. Korean prosecutors seek arrest of YouTuber over AI-fabricated rumors involving actor Kim Soo-hyun SEOUL, May 25 (AJP) - South Korean prosecutors have sought an arrest warrant for a prominent YouTuber on charges of defaming actor Kim Soo-hyun and the late actress Kim Sae-ron through heavily fabricated evidence, including AI-manipulated audio. The legal representative for Kim Soo-hyun reaffirmed on Sunday their policy of not directly responding to the allegations, emphasizing that the actor is strictly a victim of a cybercrime. "Actor Kim Soo-hyun is simply a victim of a crime, not a party engaging in a legal dispute on equal footing with the suspects," lawyer Go Sang-rok said in a statement posted on social media. "We have not responded to these nonsensical claims and will continue to maintain this principle." The statement follows a recent police conclusion that rumors spread by the YouTuber, identified as Kim Se-eui, were entirely false. Kim had publicly claimed that the actor dated and had sexual relations with the late Kim Sae-ron between 2015 and 2018, when she was a minor. The Seoul Central District Prosecutors' Office requested an arrest warrant for Kim Se-eui on May 19 on charges including defamation, violation of the sexual violence punishment act, and attempted coercion. According to the police warrant request, Kim allegedly manipulated text messages from 2016 by altering the sender's name and profile picture to make it appear as though the deceased actress was conversing with Kim Soo-hyun. Furthermore, he is accused of playing an AI-generated voice file at a press conference in May of last year, falsely mimicking the late actress's voice to claim a relationship dating back to middle school. Police concluded that Kim Se-eui repeatedly distributed these fabricated materials with the malicious intent to defame the actor, fully aware that the allegations were untrue and that the actor had no connection to the actress's passing. A court hearing to determine whether to grant the arrest warrant is scheduled for 10:30 a.m. on Tuesday at the Seoul Central District Court. 2026-05-25 17:58:38

[[AJP Watch]] Samsung's 'fixed stock bonus' deal sends shockwaves across chip sector and supply chain SEOUL, May 25 (AJP) - Samsung Electronics’ tentative wage agreement is nearing ratification with near-record union turnout, crystallizing a new dilemma in the AI era: how far semiconductor giants can go in sharing windfall profits before it begins to strain investment capacity, deepen social divisions and unsettle global competitors. The deal can avert an immediate strike that threatened to disrupt the memory supercycle underpinning South Korea’s exports and stock rally. But the agreement’s centerpiece — a fixed stock-based profit-sharing structure tied directly to operating profit — is now reverberating far beyond Samsung’s Suwon campuses, unsettling shareholders, stirring resentment across Samsung affiliates and increasingly drawing attention from rival chipmakers abroad, particularly TSMC in Taiwan. As of Sunday afternoon, turnout for the union ratification vote had exceeded 84.6 percent, according to industry sources, with approval widely expected when voting concludes Wednesday. The unusually strong participation reflects how profoundly the agreement could reshape compensation expectations across Asia’s semiconductor sector. At the heart of the controversy is Samsung’s newly introduced “special management performance bonus,” which guarantees employees stock compensation equivalent to 10.5 percent of a business division’s operating profit. While performance-linked bonuses are common globally, industry analysts say institutionalizing a fixed percentage inside a labor agreement marks a sharp departure from prevailing international practices, where boards typically retain discretion to balance compensation against strategic investment needs. Foreign brokerages have already begun flagging concerns. Citi analyst Peter Lee warned of “downside risks to earnings due to bonus-related provisions amid escalating labor strikes,” lowering operating profit projections for Samsung Electronics. The timing is especially sensitive. AI-driven demand has triggered one of the most capital-intensive cycles in semiconductor history. TSMC plans as much as $56 billion in capital expenditure this year, while Micron Technology has pledged more than $25 billion for fiscal 2026 in addition to a $100 billion long-term megafab investment in New York. Samsung itself has earmarked more than 110 trillion won ($81 billion) for research, development and facility expansion this year alone. Analysts caution that locking in fixed double-digit profit-sharing formulas could eventually constrain Samsung’s flexibility in funding next-generation high-bandwidth memory (HBM), advanced packaging and foundry expansion at a time when competition against TSMC, Micron and SK hynix is intensifying. Unlike traditional industrial cycles, the AI infrastructure race increasingly rewards companies capable of reinvesting enormous sums with speed and consistency. The ripple effects are no longer confined to South Korea. The turbulence inside Samsung’s semiconductor complex in Suwon is now reverberating through Hsinchu, Taiwan’s chipmaking hub. Employees at TSMC — the world’s most critical contract chip manufacturer supplying firms from Nvidia and Apple to Tesla — have grown increasingly vocal over their own compensation structure after reports emerged that performance bonuses could be reduced to offset the mounting costs of building 12 overseas fabrication plants. Despite TSMC posting a 58 percent year-on-year jump in first-quarter net profit, frustration has reportedly spread across anonymous employee forums. According to Taiwan’s Liberty Times, workers explicitly referenced Samsung’s labor negotiations while criticizing TSMC management. Some posts complained that “the company changes everything on a whim,” while others openly discussed the possibility of collective action, writing: “It’s time we strike too,” and “May 27 will be the real turning point.” For decades, Asian semiconductor champions largely maintained an implicit social contract: workers accepted grueling hours and hierarchical cultures in exchange for stability, prestige and gradual prosperity. Samsung’s new fixed-profit-sharing model threatens to reset those expectations. Workers across the sector are increasingly asking why extraordinary AI profits should remain concentrated at the corporate level while employees shoulder intense workloads and geopolitical uncertainty. At the same time, investors and executives fear the opposite risk — that institutionalized profit-sharing could gradually erode the massive capital discipline required to sustain semiconductor leadership. The agreement is also exposing widening internal fissures inside Samsung Group itself. Under the proposed structure, employees in Samsung Electronics’ memory business could receive roughly 600 million won ($438,000) in annual bonuses if operating profit reaches 300 trillion won, including both the new stock-based incentive and existing excess profit-sharing payments. Even loss-making non-memory semiconductor divisions such as System LSI and foundry operations would reportedly receive more than 200 million won in combined bonuses through shared Device Solutions division funding pools. That has triggered growing frustration across Samsung affiliates including Samsung Display, Samsung SDI and Samsung Electro-Mechanics, where employees complain of widening disparities despite their own operational contributions. Internal discontent has become severe enough that employees increasingly use the self-deprecating nickname “Samsung huja” — implying second-tier Samsung workers — to describe themselves. The contrast is stark even within the conglomerate. Samsung Display recorded a 6.2 percent wage increase this year, Samsung Electro-Mechanics 5.9 percent and Samsung SDI 4 percent, while their bonus formulas remain tied to the older Economic Value Added (EVA) framework instead of operating profit. The spillover is beginning to reshape labor expectations across the broader Samsung empire. Samsung Display’s union plans to negotiate an alternative compensation structure later this year, while Samsung Electro-Mechanics is reviewing whether to shift its OPI formula toward either EVA-based 20 percent calculations or operating profit-linked 10 percent formulas similar to Samsung Electronics. Industry observers warn the agreement could embolden labor activism across major Korean corporations. Samsung Biologics unions are already engaged in strike action, while Samsung C&T reportedly raised planned wage increases to avoid similar disruptions. The social implications extend far beyond Samsung. According to Leaders Index, employees at South Korea’s top 211 companies earned an average annual compensation package of 102.8 million won last year including bonuses. Across all Korean businesses, the average worker earned about 50.61 million won annually, according to the Korea Enterprises Federation. Under Samsung’s new structure, some semiconductor employees could effectively receive compensation equivalent to the annual salaries of more than a dozen ordinary workers in a single year. The widening divide reflects how the AI boom is concentrating extraordinary wealth into a narrow segment of strategic industries. What was once primarily a technological race is increasingly becoming a political and social challenge as governments, unions and corporations struggle to redefine compensation norms during the transition into the AI economy. For Samsung, the immediate crisis may have been contained. Production lines continue operating, investors have avoided the shock of an 18-day strike and the AI memory cycle remains intact for now. But the agreement may ultimately prove to be more than a labor settlement. It could become an early test case for how democracies, corporations and workers negotiate the distribution of AI-era wealth — and whether the race for technological supremacy can coexist with mounting demands for economic equity without weakening the enormous reinvestment needed to sustain the boom itself. 2026-05-25 15:02:25

North Korea to convene party plenum and may harden 'two-state' line SEOUL, May 25 (AJP) - North Korea will convene a key Workers’ Party meeting in late June to review first-half policy implementation and discuss its agenda for the rest of the year, state media reported Monday, in what could offer clues to Pyongyang’s next steps after formally erasing unification from its constitution. The ruling party’s Political Bureau adopted a decision on Sunday to call the second plenary meeting of the ninth Central Committee in late June, the Korean Central News Agency said. The meeting will “review the implementation of party and state policies for 2026” and discuss second-half tasks and “a series of important issues,” according to KCNA. The plenum comes after North Korea’s ninth party congress in February and a March session of the Supreme People’s Assembly, where Pyongyang revised its constitution to reflect leader Kim Jong Un’s “two hostile states” doctrine. The amended constitution defines North Korea’s territory as only the northern part of the Korean Peninsula and removes references to eventual unification with the South. Attention is also focused on whether the meeting will produce follow-up guidelines on South Korea or the United States, particularly as speculation grows that Chinese President Xi Jinping may visit Pyongyang for talks with Kim after his recent meeting with U.S. President Donald Trump. Pyongyang’s hardened stance toward Seoul was on display last week when North Korea’s Naegohyang women’s football club visited South Korea for the AFC Women’s Champions League finals in Suwon, the first visit by a North Korean sports delegation in more than seven years. The team won the title but avoided contact with South Korean officials, civic groups and reporters throughout its stay. The players used passports rather than inter-Korean travel certificates, underscoring Pyongyang’s insistence on treating the relationship as one between separate states. After the final, coach Ri Yu-il abruptly left a press conference after objecting to a South Korean reporter’s reference to “the North,” asking that the country’s official name be used. 2026-05-25 13:37:58

China accelerates semiconductor ecosystem push, courting South Korean SMEs SEOUL, May 25 (AJP) - Chinese local governments are intensifying efforts to build comprehensive semiconductor supply chains, aggressively targeting South Korean materials, parts, and equipment suppliers with extensive incentive packages. During a recent South Korea-China economic cooperation forum in Zhangjiagang, Jiangsu Province, Chinese municipalities showcased a strategic shift from simply attracting individual factories to developing entire high-tech industrial parks. Local governments are offering South Korean small and medium-sized enterprises (SMEs) a suite of benefits, including tax exemptions, factory sites, research and development (R&D) funding, and human resource support. China's supply chain strategy involves distinct regional specializations. The Shanghai area is focusing on artificial intelligence (AI) chips and fabless design, while Jiangsu and Zhejiang provinces are expanding advanced manufacturing and packaging. Guangdong Province is building automotive and AI device ecosystems around local tech giants like Huawei and BYD, and the Sichuan-Chongqing region is investing heavily in backend processing and testing. The aggressive Chinese outreach highlights structural vulnerabilities within South Korea’s domestic industry. While South Korea remains a global memory chip powerhouse led by Samsung Electronics and SK Hynix, its domestic SMEs are increasingly grappling with labor shortages, regulatory burdens, and a heavy concentration of resources in the Seoul metropolitan area. The situation mirrors a broader global race in which the United States and Japan are deploying massive state subsidies—such as the U.S. CHIPS Act and Japan's support for Rapidus and TSMC's Kumamoto plant—to secure their national semiconductor ecosystems. In response, industry observers in South Korea are urging the government to adopt a long-term national strategy. Experts suggest utilizing surplus tax revenues generated by the recent semiconductor boom to fortify the domestic ecosystem. Key recommendations include establishing regional semiconductor clusters beyond the capital region, upgrading the status of materials and parts suppliers, and creating university-industry pipelines to secure future technical talent. 2026-05-25 12:50:39