KOSPI Approaches 8000 Mark Amid Strong U.S. Market Performance The KOSPI, which has fluctuated around the 8000 mark throughout the week, is poised to potentially break through this milestone, buoyed by strong performance in the U.S. stock market. According to the Korea Exchange, the KOSPI closed at 7981.41 on May 14, rising 137.40 points (1.75%) from the previous trading day, leaving it just 19 points away from the 8000 mark. In the securities market, individual and foreign investors engaged in a tug-of-war over supply and demand. Individuals made net purchases worth 1.8499 trillion won, driving the index higher, while institutions recorded a net buying of 192.7 billion won. In contrast, foreign investors sold a net 2.168 trillion won, continuing a six-day selling streak. On Wall Street, U.S. stocks closed higher, continuing a rally led by technology shares. The positive sentiment was attributed to a reaffirmation of cooperation between U.S. President Donald Trump and Chinese President Xi Jinping during a summit in Beijing. Han Ji-young, a researcher at Kiwoom Securities, noted, "Expectations surrounding related developments, including NVIDIA, have driven the strong performance in the U.S. market. For this momentum to continue, the actual import approval of China's H200 will be crucial." She added that the market will also focus on existing external factors such as U.S.-Iran negotiations and the direction of U.S. interest rates. On the same day, the Dow Jones Industrial Average closed at 50,063.46, up 0.75%. This marks the first time the Dow has surpassed the 50,000 mark since February 11. The S&P 500 and the tech-heavy Nasdaq Composite also rose by 0.77% and 0.88%, respectively, reaching new all-time highs. NVIDIA shares rose 4.39% amid growing expectations for sales of its H200 chips in China, following news that CEO Jensen Huang was part of the delegation visiting China. Cerebras Systems, a company specializing in AI inference chips, surged 68.15% on its first day of trading on Nasdaq. Other major AI semiconductor stocks, including Broadcom (up 5.52%) and AMD (up 0.94%), also performed well. However, Micron (-3.4%) and SanDisk (-4.5%) saw declines due to profit-taking. The Philadelphia Semiconductor Index closed up 0.46%. Analysts suggest that the likelihood of the KOSPI breaking through the 8000 mark has increased, supported by the strong performance of U.S. tech stocks and improved investor sentiment toward AI. However, the ongoing foreign selling over six consecutive trading days remains a concern. Meanwhile, as of 8:15 a.m. on the same day, Samsung Electronics was trading at 294,500 won, down 1,500 won (-0.51%) from the previous trading day, while SK Hynix was up 4,000 won (0.2%) at 1,974,000 won. 2026-05-15 08:48:00

Construction of Taereung Project Advanced by One Year as Government Pushes for Rapid Housing Supply The South Korean government has decided to accelerate the construction schedule for the Taereung district by advancing the start date by one year to enhance the speed of housing supply. This move comes amid ongoing signs of instability in the real estate market, with the government aiming to stabilize the market through increased housing supply. During a meeting of real estate ministers on May 14, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol emphasized, "Rapid supply is of utmost importance," adding that the government is compressing all execution stages to ensure that announced plans translate into actual housing for citizens. The government plans to begin construction on the Taereung Golf Course site in 2029, one year earlier than originally scheduled. This decision aims to alleviate market concerns over delays in supply and to realize tangible housing availability sooner. In addition, the government is pushing forward with projects in the Gangseo military site and the redevelopment of aging government buildings, targeting the construction of approximately 2,900 housing units by 2027, following the exemption from preliminary feasibility studies. The government will designate supply responsibility officers for each site to closely monitor project progress. Short-term supply expansion measures are also being pursued. The government is considering rapid supply options for available housing, including non-apartment units such as officetels, to minimize supply gaps and mitigate market instability. Furthermore, the government plans to strengthen market order management. Koo stated, "We are thoroughly implementing the separation of the real estate market and finance," and pledged to work with relevant agencies to rigorously inspect and respond to market disruption activities. To support this effort, management of housing mortgage loans will be tightened. The government plans to expand inspection targets to include not only individuals but also corporate rental businesses, and will check all housing mortgage loans for potential misuse. This initiative aims to minimize oversight gaps, including small loans.* This article has been translated by AI. 2026-05-15 08:45:19

Korea's import prices ease in line with softer oil prices SEOUL, May 15 (AJP) - South Korea’s import prices fell against a double-digit jump in March last month on eased international oil prices despite prolonged Middle East crisis, helping to feed robust trade terms despite slower growth in export prices from strong chip demand. The import price index fell 2.3 percent in April after a 18 percent surge seen in March on lower international oil prices and U.S dollar. As the average price of Dubai crude fell 17.8 percent month on month in April, import prices of raw materials, including mining products, dropped 9.7 percent. Intermediate goods, which are closer to the prices felt by businesses, rose 2.1 percent from the previous month due to a lagging effect. Despite the decline in oil prices, products such as coal and petroleum (up 6.2 percent) and chemical products (up 1.7 percent) continued their upward trend as previous energy price hikes were reflected with a time lag. Against a year-ago, import prices were 20.2 percent higher. Among import items, mining products including crude oil jumped 36.5 percent on year, while import prices for coal and petroleum products rose 67.0 percent, further fueling overall upward inflationary pressure. Export prices rose 7.1 percent from the previous month, slowing from 17-percent jump in March. On year, they were 40.8 percent higher, strongest since 57.8 percent surge in March 1998. Key IT items, such as DRAM (up 232.8 percent) and computer storage devices (up 149.2 percent), led the index rise. Export price strengthening is primarily owed to semiconductor boom, unlike the past - when the surge was driven by a weak won plummeted around 1,800-level as of late 1997 and early 1998, and the transfer of raw material prices. Trade indicators improved as export prices (up 33.6 percent) rose at a faster pace than import prices (up 16.9 percent), leading to an increase in the net terms-of-trade index (up 14.3 percent) and the export volume index (up 12.4 percent). Yet, the situation requires close monitoring as upward pressure on prices across the industry remains firm. "While the rise in import prices has slowed due to the fall in international oil prices, intermediate goods prices remain high due to the time-lag effect," said Lee Moon-hee, head of the Price Statistics Team at the BOK’s Economic Statistics Department. "Given the continued rise in export prices driven by semiconductors and the fact that geopolitical risks in the Middle East have not been fully resolved, we must closely monitor the impact on domestic consumer prices in the future.” 2026-05-15 08:43:44

Trump Says Xi Jinping Offered to Mediate Iran Deal, Wants Hormuz Reopening Donald Trump, the President of the United States, revealed that Chinese President Xi Jinping expressed a willingness to help resolve issues related to Iran. The U.S.-China summit focused on the reopening of the Strait of Hormuz and China's imports of Iranian oil. On May 15, Fox News reported that Trump, following his meeting with Xi in Beijing, stated in an interview with Sean Hannity that "President Xi wants to see an agreement reached." He added, "Xi said he would like to help if I can in any way." Trump also noted that Xi expressed a desire for the Strait of Hormuz to be reopened. He said, "Xi wants the Strait of Hormuz to be open." The strait is a critical passage for oil transport from the Middle East and has become a significant factor in the international energy market due to shipping safety concerns following the Iran conflict. China's interests were also discussed during the meeting. Trump mentioned that Xi referred to China's imports of Iranian oil, stating, "Xi said China buys a lot of oil from there and wants to continue doing so." This implies that for China to maintain its oil trade with Iran, normalizing passage through the Strait of Hormuz is essential. Additionally, Trump indicated that the issue of China's military support for Iran was addressed. He stated, "Xi assured that China would not provide military equipment to Iran." Trump described this as a significant statement, noting, "He said it very strongly." Concerns regarding Iran's potential toll on ships passing through the Strait of Hormuz were also raised. Trump reported that "Xi was not pleased with the idea of Iran charging fees to ships." However, he added, "I don’t know if that’s actually happening. Who would pay that money? Where would that money go?" Trump attributed the disruptions in shipping through the Strait of Hormuz to Iran, asserting, "We didn’t block it; they did, and we blocked them." These comments followed a two-and-a-half-hour U.S.-China summit. The leaders also discussed expanding U.S. access to the Chinese market and addressing the issue of fentanyl precursors entering the United States.* This article has been translated by AI. 2026-05-15 08:43:42

Deputy Prime Minister Koo Yoon-cheol Reports Slight Drop in Gas Prices Amid Rising Oil Costs Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, stated that despite recent increases in oil prices, retail gas prices at stations are showing a stable trend. He announced plans to unveil a mid-year economic growth strategy focused on structural reforms by the end of June. During an emergency economic meeting held at the Government Seoul Building on May 15, Koo reviewed the government's response to the ongoing conflict in the Middle East and assessed the direction of economic policy for the second half of the year. He noted, "Currently, the supply prices set by refiners are below the announced maximum prices, and retail gas prices are slightly decreasing," expressing gratitude to the refiners and gas station operators for their cooperation with government policies. The government is committed to a comprehensive response to stabilize prices amid high oil costs. Koo emphasized, "The prolonged conflict in the Middle East is beginning to visibly impact prices and employment in the real economy," and pledged to closely monitor domestic and international conditions to minimize the burden on citizens. To achieve this, the government will continue implementing measures to stabilize food prices, including applying tariff quotas on imported chicken and pork and expanding the supply of pork in wholesale markets. Starting May 18, the government plans to proceed without delay with the second round of support payments for those affected by high oil prices. The meeting also included a review of supply chains for essential energy and industrial goods. The status of key items such as syringes, agricultural fertilizers, asphalt, and concrete additives was assessed, and stabilization measures were discussed. The government plans to closely monitor market disruptions, including stockpiling, for items experiencing price increases. Koo remarked, "The global economy is at a turning point where a new paradigm is beginning," and stressed the need to seize opportunities amid structural changes driven by shifts in trade environments, geopolitical risks, and transitions to AI and green economies. Based on this understanding, the government is preparing the '2026 Mid-Year Economic Growth Strategy.' Koo stated, "We are developing comprehensive measures that include strengthening economic security, energy transition strategies, boosting potential growth rates, and addressing polarization," with plans to announce these strategies after discussions with relevant ministries at the end of June. The growth strategy will address supply chain restructuring and energy security in the aftermath of the Middle East conflict, as well as revised growth forecasts and macroeconomic policy directions in response to changing economic conditions.* This article has been translated by AI. 2026-05-15 08:40:18

Former Deputy Prime Minister Hyun Oh-seok: 'It's About Direction, Not Speed' for South Korea's Economy South Korea's economic planners have always been at the center of decision-making during pivotal transitions. Among them, Hyun Oh-seok, the former Deputy Prime Minister, is a prominent macroeconomic strategist who has experienced the entire process of transitioning from a developing to a developed economy. His career trajectory, which began at the Economic Planning Board and included roles at the World Bank and the Korea Development Institute (KDI), culminated in his position as Deputy Prime Minister and Minister of Strategy and Finance. His path is synonymous with the history of South Korean economic policy.Today, the world has entered an era of 'complex crises' characterized by simultaneous geopolitical, technological, and financial conflicts. The growth formulas of the past are no longer valid. In this transitional period, what path should the South Korean economy take? Hyun emphasizes that 'competition is now about direction, not speed,' advocating for a shift towards becoming an 'inclusive innovation nation.' His analysis and solutions extend beyond mere policy proposals, outlining the future trajectory of the South Korean economy.What motivated you to choose a career as an economic bureaucrat, and what was your role during that era?= I began my public service in the 1960s and 1970s when South Korea was just entering the early stages of industrialization. At that time, economic bureaucrats were not merely executing administrative tasks; they were akin to 'economic engineers' designing national development strategies. Centered around the Economic Planning Board, we directly shaped the direction of the national economy through resource allocation, industrial policy, and export strategies. In that environment, I developed a belief that economic policy could change the fate of the nation, which motivated me to pursue a career in public service. Looking back, I can say that the bureaucratic organization at that time was a strategic group that complemented the market and provided direction.What do you consider the key principle that enabled the 'Miracle on the Han River'?= The most fundamental principle was 'state-led rapid growth.' At that time, South Korea lacked both capital and technology, making it difficult to expect growth if left to the market. Therefore, the government directly designed the market, focusing on speed rather than efficiency in managing the economy. I believe three elements were foundational to this approach: first, the government's proactive market intervention and design capability; second, a concentrated investment in education and human capital; and third, a shared spirit of communal sacrifice across society. The combination of these three factors enabled rapid growth in a short period.Do you believe this growth model is still applicable today?= Some elements remain valid, but it is difficult to apply them directly. In the past, 'catch-up growth' was possible, but now that we are on the threshold of advanced economies, we can no longer grow in the same way. We must now lead in technology and build a creative corporate ecosystem. At the same time, addressing the gaps and inequalities that have arisen during the growth process is crucial for 'inclusive growth.' This means that we must consider sustainability and social balance alongside simply increasing growth rates.How do you assess the strengths and structural limitations of the current South Korean economy?= South Korea's economy ranks among the best in terms of education levels and digital infrastructure, which is a clear competitive advantage. However, there are also significant structural limitations. The rigidity of the labor market, productivity gaps between large and small enterprises, and issues related to low birth rates and an aging population threaten sustained growth. Particularly concerning is the rapid decline in potential growth rates. These issues are not merely cyclical but structural, making them difficult to resolve without institutional reform.You have described the current global economy as a 'complex crisis.' What does this mean specifically?= Past crises were typically temporary shocks arising from specific events, such as financial crises or oil price fluctuations. However, the situation is different now. Geopolitical conflicts, technological hegemony competition, climate change, and financial instability are all occurring simultaneously and influencing one another. I refer to this as the 'entrenchment of uncertainty.' This means that crises are not just temporary but structurally persistent. In such an environment, simple economic responses are insufficient; we need strategies that enhance the resilience of the entire system.How do geopolitical shocks, such as those from the Middle East, impact the South Korean economy?= The first effect is through rising oil prices, which stimulate inflation. This inflation then leads to pressure for interest rate hikes, which dampens corporate investment and household consumption. At the same time, increased exchange rate volatility exacerbates financial market instability. South Korea's high dependence on energy imports and its export-oriented economy make it particularly sensitive to such shocks. Ultimately, the economy is affected on both the real and financial sides. In this situation, we need a system that manages macro risks comprehensively rather than relying on individual policies.What is the concept of 'economic security' that you have recently emphasized, and why is it important?= Economic security refers to a situation where economic power becomes a core element of national security. In the past, military power was central, but now strategic industries like semiconductors, batteries, and energy have become key to national competitiveness. Disruptions in supply chains can directly impact both the economy and security. Therefore, we need a control tower that integrates industrial policy, foreign policy, and security policy. This is not just a short-term response but a long-term strategic issue.What direction should the South Korean economy take beyond the catch-up model?= The key is transitioning to a 'platform-based economic structure.' In the past, concentrating investments in specific industries was effective, but now, inter-industry convergence and ecosystem-based growth are crucial. Particularly, small and medium-sized enterprises and startups need to become the center of innovation. The government should support data and AI infrastructure and improve the regulatory environment to activate the corporate ecosystem. Ultimately, innovation is created not by specific companies but by the entire ecosystem.How do you assess the recent shifts in real estate and capital market flows?= The movement of funds from real estate to the stock market is a positive structural change. This signals that the asset allocation structure is changing, not merely a speculative shift. It also indicates that the capital market has entered a mature phase. However, excessive leverage, particularly phenomena like 'debt investment,' could lead to financial instability, so we must remain vigilant. From a policy perspective, it is important to guide funds toward productive investments.If you had to summarize the direction the South Korean economy should take over the next 20 years in one phrase, what would it be?= I would say 'the economy of trust.' It is now about competition in direction, not speed. The old way of rapidly catching up is no longer effective. What matters is building social consensus and trust that enable sustainable innovation. Long-term growth is only possible when there is consistency in policy, stability in institutions, and trust between the market and the government. South Korea has already achieved significant accomplishments, but we are entering an era where 'how to sustain growth' is more important than 'how to grow.'Hyun Oh-seok, former Deputy Prime Minister: Hyun is a leading macroeconomic expert and policy designer in South Korea. He began his public service career at the Economic Planning Board after attending Korea University and Seoul National University, later serving as the head of the World Bank and KDI. In 2013, he was appointed Deputy Prime Minister and Minister of Strategy and Finance, overseeing South Korea's overall economic policy. He is regarded as one of the few individuals who have experienced the transition of the South Korean economy from the development phase to the advanced economy stage. With experience in international organizations and practical policy, he has continually influenced structural reforms and long-term strategic planning for the South Korean economy.* This article has been translated by AI. 2026-05-15 08:38:55

Moon Chae-won Expresses Desire for Monthly Adventures Ahead of June Wedding Moon Chae-won revealed her wish to experience a monthly adventure. On May 14, a video titled "Moon Chae-won Visits Euljiro Night Market (+Her First Experience at Haidilao)" was uploaded to her YouTube channel. During the visit to Euljiro 3-ga in Seoul, many citizens recognized her, prompting a shy response as she remarked, "I wasn't supposed to come to Euljiro." Moon was taken aback when she learned that the waitlist at a restaurant had 2,765 people. As crowds quickly gathered around her for photos, she decided to move to a different location for safety reasons. Later, she asked ChatGPT for suggestions on where to go, and it recommended a hot pot restaurant. "We met at 6 PM, and suddenly it was 10:50 PM," she said. "It felt like time passed slowly today. I think I was savoring these moments." She added, "I want to try to have an adventure once a month from now on. Experiencing new things makes time feel longer compared to a repetitive daily routine." Meanwhile, her agency announced on April 15 that Moon Chae-won will hold a wedding ceremony in June, stating, "The wedding will be held privately with family and close friends," and requested warm blessings for her new beginning. Moon Chae-won debuted in 2007 with SBS's "Run, Mackerel" and has starred in various dramas and films, including "Painter of the Wind," "Brilliant Legacy," "Good Doctor," "Flower of Evil," "Law School," "The Last Princess," and "Myeong-dong."* This article has been translated by AI. 2026-05-15 08:36:44

Fire Breaks Out in Gimpo Shopping Center, 150 Evacuated A fire broke out in the mechanical room of a large shopping center in Gimpo during rush hour, prompting the emergency evacuation of about 150 patrons. Some individuals inhaled smoke and were transported to hospitals, but their conditions are not life-threatening. According to Yonhap News, the fire was reported at 7:23 PM on May 14 at a shopping center located in Unyang-dong, which has four underground floors and nine above-ground floors. At the time of the incident, shoppers and staff were inside the building, and upon the outbreak of the fire, approximately 150 people evacuated the premises. During the evacuation, three individuals were treated for smoke inhalation at the scene or taken to hospitals. Fortunately, there were no major injuries. The fire caused some damage to the mechanical room, leaving parts of it charred, and one commercial dryer was destroyed. Fire authorities dispatched 24 vehicles and 46 personnel to the scene to combat the blaze. Firefighters managed to extinguish the flames approximately 23 minutes after the fire started, at 7:46 PM. It was reported that smoke spread rapidly throughout the building. Authorities believe the fire originated from a commercial dryer located in the mechanical room. Police and fire officials are investigating the exact cause of the fire and the extent of the property damage.* This article has been translated by AI. 2026-05-15 08:31:50

Samsung's Executive Calls for Steady Management Ahead of Union Strike Jeon Young-hyun, Vice Chairman of Samsung Electronics and head of the Device Solutions (DS) division, recently urged executives to maintain steady management in light of the union's announcement of a general strike. He emphasized the need to remain vigilant and enhance core technological competitiveness despite achieving record results in the first quarter.According to industry sources, during a management briefing for executives on May 8, Jeon stated, "We should not rest on our laurels and must view the current boom as the last golden opportunity to restore our fundamental competitiveness."The recovery in the company's performance is attributed to external factors such as the semiconductor supercycle. The DS division reported an operating profit of 53.7 trillion won in the first quarter, accounting for 94% of the company's total operating profit of 57.2 trillion won. This figure represents an increase of more than eight times compared to the same period last year, driven by rising prices and sales of high-bandwidth memory (HBM) and general DRAM and NAND products.While analysts predict that Samsung Electronics will surpass 300 trillion won in operating profit this year, Jeon has interpreted this outlook as a call for rigorous reforms to maintain a "semiconductor super gap."He also remarked, "The company is facing various challenges and is under scrutiny, but management activities must continue, and each business unit must perform well in their operations."As concerns grow over the union's planned general strike, Jeon's comments suggest a commitment to ensuring that semiconductor production lines operate without disruption while minimizing uncertainties both domestically and internationally.If the general strike proceeds, the economic impact could reach tens of trillions of won. Global investment bank JP Morgan recently reported that the strike could reduce Samsung's annual operating profit by over 40 trillion won. Union estimates also indicate that production disruptions could result in damages ranging from 20 trillion to 30 trillion won. 2026-05-15 08:30:38

Asia Deep Insight: Trump and Xi in the Shadow of the Thucydides Trap BEIJING, May 14 (AJP) -long the stone paths of the Temple of Heaven, beneath crimson walls and fading imperial roofs, President Donald Trump of the United States and President Xi Jinping of China walked side by side on May 14, 2026. The atmosphere was neither openly confrontational nor genuinely warm. It carried something more consequential: the careful restraint of two powers that understand they are now shaping the architecture of the twenty-first century. Later that evening, during the state banquet at the Great Hall of the People, Xi Jinping delivered a sentence that immediately reverberated far beyond Beijing. “The great rejuvenation of the Chinese nation and Make America Great Again are fully compatible.” It was a brief diplomatic phrase, but the world understood its deeper meaning. Behind those words stood the defining geopolitical question of our age: Can the United States and China escape the Thucydides Trap? The phrase itself originates from the ancient Greek historian Thucydides, whose account of the Peloponnesian War remains one of history’s most enduring studies of power transition. Reflecting on the conflict between Sparta and Athens, he wrote: “It was the rise of Athens and the fear that this instilled in Sparta that made war inevitable.” More than two millennia later, the concept was revived and expanded by the Harvard political scientist Graham Allison, who argued that when a rising power threatens to displace an established one, structural tensions often push nations toward confrontation, even when neither side truly desires war. Today, that historical framework has become inseparable from the evolving relationship between Washington and Beijing. For nearly eight decades, the United States has presided over the global order through the dominance of the dollar, unmatched naval power, technological leadership, financial institutions, and a vast alliance network. China, meanwhile, has risen with extraordinary speed, transforming itself from a manufacturing platform into a strategic superpower with ambitions that extend across artificial intelligence, semiconductors, electric vehicles, quantum technology, rare earth supply chains, and global infrastructure. What unsettles Washington is not merely the scale of China’s economy. The deeper anxiety lies in the possibility that Beijing may eventually construct a parallel system of power — one capable of functioning independently of the American-led order. From Beijing’s perspective, however, the United States is no longer seen simply as a competitor. Chinese leaders increasingly interpret American export controls, semiconductor restrictions, investment barriers, alliance restructuring, and Indo-Pacific strategy as elements of a broader containment effort aimed at slowing China’s ascent. The result is a widening spiral of strategic distrust. Yet unlike the rival powers of ancient Greece, the United States and China are bound together in ways that make outright conflict extraordinarily dangerous. American consumers remain deeply connected to Chinese manufacturing. Chinese growth, in turn, still relies heavily on global dollar liquidity and access to international markets. The world’s semiconductor ecosystem stretches across America, Taiwan, South Korea, Japan, and China in a web of mutual dependence. Even the fiercest technological rivalry unfolds within a shared economic bloodstream. This is why the modern version of the Thucydides Trap is unlikely to resemble a conventional great-power war. The struggle is instead unfolding through overlapping forms of competition: semiconductor restrictions, artificial intelligence supremacy, supply-chain fragmentation, financial sanctions, maritime rivalry, currency pressures, energy corridors, cyber influence, and technological sovereignty. In that sense, Xi Jinping’s vision of “national rejuvenation” and Donald Trump’s MAGA movement are not simply political slogans. They are competing civilizational narratives. MAGA seeks to restore American industrial strength, revive the middle class, secure energy independence, reinforce borders, and bring manufacturing back home. China’s national rejuvenation, meanwhile, reflects a much deeper historical ambition: the determination to overcome what Beijing calls the “Century of Humiliation” and restore China to what it sees as its rightful position at the center of global civilization. The difficulty is that both visions are rooted in forms of national primacy. Washington seeks to rebuild supply chains around American strategic interests. Beijing pursues technological self-sufficiency and broader international use of the renminbi. The United States reinforces alliances; China expands influence through BRICS, the Global South, and alternative trade and infrastructure systems. Can these two trajectories coexist? Perhaps not harmoniously. But coexistence through disciplined management may still be possible. That would require several forms of strategic restraint. First, both powers must separate economic competition from military confrontation wherever possible. Mechanisms preventing accidental escalation around Taiwan and the South China Sea are no longer optional; they are essential safeguards for global stability. Second, both sides must recognize that complete economic decoupling is neither realistic nor sustainable. Excessive restrictions and retaliatory measures risk weakening not only their rival, but the global economy itself. Third, political rhetoric intended for domestic audiences must not be allowed to harden into irreversible geopolitical miscalculation. Strong leadership may generate applause at home, but in an age of nuclear weapons and artificial intelligence, recklessness carries civilizational consequences. Perhaps the most important image from the Beijing summit was not the banquet itself, but the quiet walk through the Temple of Heaven. For centuries, Chinese emperors came there to pray for harmony between heaven and earth. That the president of the United States and the leader of China walked those grounds together was more than ceremonial symbolism. It reflected a deeper reality: neither nation can erase the other from the future of the international order. Global markets understand this well. If Washington and Beijing stabilize their relationship, financial markets may regain confidence, while semiconductor, logistics, energy, and technology sectors could recover momentum. But if tensions intensify again, supply-chain fragmentation and inflationary pressures may once more destabilize the world economy. Any serious crisis in the Taiwan Strait would immediately reverberate through the global semiconductor industry and beyond. For South Korea, the challenge is especially delicate. Seoul depends on the United States for security while remaining deeply connected to China economically. Its semiconductor, battery, automotive, shipbuilding, and artificial-intelligence industries all stand directly within the fault line of U.S.-China rivalry. South Korea therefore cannot afford simplistic alignment. It must instead cultivate the strategic flexibility and industrial resilience expected of a sophisticated middle power. History never repeats itself precisely. But human fear often does. What Thucydides ultimately understood was not merely the movement of armies, but the psychology of rising and declining powers. When the insecurity of an established power collides with the confidence of an ascending one, the international order becomes dangerously unstable. And yet humanity today possesses something ancient Greece did not: the awareness that total war between great powers would likely mean mutual ruin. The future of U.S.-China relations, therefore, may depend less on which nation becomes stronger than on which proves more capable of restraint. Trump’s MAGA vision and Xi Jinping’s national rejuvenation project are moving along different historical paths. But they must still find a way to coexist without destruction. That may be the only path by which the twenty-first century avoids falling fully into the Thucydides Trap . * contribution from Aju correspondent Bae In-sun in Beijing 2026-05-15 07:34:00