Reelected Seoul Education Chief Jeong Geun-sik to Advance Education Policies Jeong Geun-sik has successfully secured reelection as the Seoul Education Chief during the nationwide local elections held on June 3, 2026. His victory is expected to provide momentum for the administration of education in Seoul. There is anticipation regarding the swift implementation of his key campaign promises, known as the 'Jeong Geun-sik Education Policy.' With this election result, the progressive educational framework in Seoul, which has been in place since 2014, is expected to be further solidified. Jeong's reelection ensures the stability and continuity of Seoul's educational administration, which manages an annual budget of 11 trillion won. Immediately after his election was confirmed on June 4, Jeong expressed his gratitude in a written statement, saying, "The choice of the citizens of Seoul reflects a desire for schools where each student is respected and can grow together beyond competition and anxiety." He emphasized that he would not forget the voices of citizens and students he encountered during the campaign, stating, "We will continue to change without stopping and will ensure a more stable continuation of our initiatives." This indicates a commitment to accelerate the qualitative deepening of innovative future education and the fulfillment of his campaign promises. As a result, Jeong's five key policy areas centered around 'responsible education for all and creative future education' are expected to gain concrete execution through the upcoming budget planning for the second half of the year. One of the most notable areas is the education welfare sector, which aims to complete free education as guaranteed by the constitution. Jeong has pledged to fully implement 'complete free early childhood education' during his term, which includes covering the costs of education, meals, after-school programs, and childcare for children aged 3 to 5. Significant welfare spending policies, such as full transportation cost support for students and the elimination of field trip costs for elementary and middle school students, are also expected to gain traction. The 'customized growth responsible education' system, which strengthens the responsibilities of public education, is also anticipated to be quickly established. Jeong plans to expand the current 11 'Seoul Learning Diagnosis Growth Centers' to all 25 districts, enhance the S-PLAN literacy and numeracy diagnostic assessments, and gradually assign specialized teachers for basic academic skills to all schools. Additionally, there are signs of investment in future-oriented holistic education infrastructure, which will include the use of AI educational technology alongside traditional reading of printed texts to foster critical thinking skills. Education officials believe that Jeong's reelection will increase predictability in Seoul's educational administration, alleviating concerns about the uncertainty of policies that have historically stimulated the private education market during election seasons. However, challenges such as the need for efficiency in educational finances due to a declining school-age population and the establishment of a robust system for protecting teachers' rights remain pressing issues. An education sector official emphasized, "Since Jeong has declared his intention to embrace the wishes of citizens who made different choices, he must demonstrate leadership that integrates conflicts in the education field and builds a comprehensive educational safety net."* This article has been translated by AI. 2026-06-05 16:33:00

'Black Friday' chip sell-off sends KOSPI plunging more than 5% SEOUL, June 5 (AJP) - South Korea’s benchmark KOSPI plunged more than 5 percent on Friday to close at 8,161.59 points, as semiconductor stocks led a sharp sell-off across global markets. The decline followed an artificial intelligence (AI)-led chip outlook from U.S. chipmaker Broadcom, which reignited fears that the AI boom has run ahead of itself. The drop of about 479 points from the previous session was sharp enough to trigger a "sidecar," an automatic curb on program trading activated when index futures fall 5 percent. The damage tracked a single variable across Asia: how heavily each market leans on chips. In Seoul, where Samsung Electronics and SK Hynix together account for an outsized share of the index, the blow was the hardest. SK Hynix tumbled nearly 10 percent to around 2,070,000 won and Samsung Electronics fell about 6 percent to around 330,000 won ($214.4), the two giants that drove this year's record rally now leading its sharpest reversal. The small-cap KOSDAQ fell about 4.5 percent. Foreign investors sold roughly 3.5 trillion won of South Korean stock, extending the longest selling streak in the market's modern history, and the won weakened past 1,540 to the dollar, a fresh low for the year and another step in the slide the Bank of Korea warned of two weeks ago. The day was not uniformly red, however. As investors fled the crowded chip trade, they ran straight into defensive shelter. Banks were the best-performing sector, with Shinhan Financial Group rising more than 7 percent to around 107,500 won, while the tobacco maker KT&G and the casino operator Paradise also gained. In a telling sign of the flight to safety, Hyundai Motor ended essentially flat at around 698,000 won, barely moving while the market around it collapsed. The money did not leave Korea so much as hide, the same rotation impulse that has run all week now hardening into an outright defensive crouch. The shock originated across the Pacific. Broadcom's outlook sent the Philadelphia Semiconductor Index down more than 5 percent overnight, and the question it raised, whether the year's relentless AI rally had finally met a catalyst large enough to break it, is the one that each market in the region then answered differently. China's Shanghai Composite slipped just 0.75 percent to around 4,028, but not because its chipmakers were spared. They were not. The foundry SMIC fell more than 5 percent to around 128 yuan, the AI-chip designer Cambricon dropped about 4.5 percent, and Hua Hong Semiconductor tumbled more than 7 percent, declines every bit as steep as South Korea's. The difference was what surrounds them: where two chipmakers dominate Korea's index, the Shanghai market is anchored by giant state-owned banks, energy producers, and industrial names that held firm and cushioned the benchmark even as its technology shares sold off. Beijing's market did not dodge the AI scare; its sheer breadth simply absorbed it. Japan landed in the middle. The Nikkei 225 fell more than 1 percent to around 66,588, a second straight decline after setting a record earlier in the week, with the damage concentrated in the chip-equipment makers most exposed to Broadcom's warning. Tokyo Electron tumbled nearly 7 percent to around 59,400 yen and Advantest fell about 5 percent to around 26,900 yen. SoftBank Group, which had fallen sharply the previous day, steadied to edge up about 1 percent to around 7,400 yen as the selling rotated away from it. Japan's loss was milder than South Korea's, cushioned by a more diversified index and a weak yen that supports exporters such as Toyota. Friday was a stress test, and it measured one thing above all: how much of each market is tied to the AI chip trade. South Korea, where semiconductors are effectively the index, took the full force and watched money flee into banks and defensives; Japan absorbed a glancing blow; and China's benchmark barely moved, not because its chipmakers escaped but because they are a far smaller part of a far broader market. The question now is whether Broadcom's warning marks a genuine turn in the AI cycle or merely a pause, and whether the foreign selling and the sinking won that have shadowed this rally all along have finally found the catalyst to bring a record run back to earth. 2026-06-05 16:32:31

NVIDIA CEO Jensen Huang's Visit Fails to Boost South Korean Market Amid Broadcom Shock The South Korean stock market, which had been buzzing with anticipation for NVIDIA CEO Jensen Huang's visit, struggled to gain traction on the day of his arrival. The so-called "Broadcom Shock," triggered by a sharp decline in U.S. semiconductor stocks, overshadowed the positive sentiment surrounding Huang's visit. On June 5, the Korea Exchange reported that the KOSPI closed down 478.82 points (-5.54%) at 8160.59. The index opened at 8323.20, down 316.21 points (-3.66%), and continued to decline. A sell-off sidecar was activated at 9:08 a.m. due to a sharp drop in the KOSPI 200 futures index, halting program sell orders for five minutes. The KOSDAQ also experienced significant turbulence, dropping 56.93 points (-5.42%) to 992.80, falling below the 1000 mark for the first time since March 4. Although buying interest later helped the KOSDAQ recover above 1000, it still closed in the low 1000s. The steep decline was attributed to a correction in U.S. semiconductor stocks. On the previous night, shares of Broadcom (-12.59%), Micron Technology (-7.74%), SanDisk (-3.92%), and Western Digital (-3.13%) all fell sharply. Broadcom's forecast of $16 billion in AI semiconductor revenue for the third quarter fell short of market expectations of $17.2 billion, leading to a rapid decline in investor sentiment. Initially, there were high hopes that Huang's visit would lead to the emergence of new "NVIDIA beneficiaries." During his first visit last year, expectations of collaboration with NVIDIA drove SK Hynix's stock up nearly 22% from the announcement of his visit to their first meeting. Other AI semiconductor-related stocks, such as SK Square (up 9.1%), Samsung Electro-Mechanics (up 8.7%), and Samsung Electronics (up 6.3%), also saw gains during that period. However, this time the atmosphere has shifted. The anticipation surrounding Huang's visit had already been priced in, and the correction in U.S. tech stocks led to profit-taking across related sectors. LG Electronics, which had previously hit its upper limit, saw a 16.43% drop the day before, giving back some of its gains. Other companies, including LG (-7.21%), LG CNS (-6.85%), Doosan Robotics (-5.28%), and Doosan (-6.15%), also experienced declines. SK Telecom fell 13.02%, while Naver dropped 4.63%. The weakness in related stocks continued on this day, with LG Electronics (-7.62%), LG (-5.39%), LG CNS (-7.04%), Doosan Robotics (-11.15%), Doosan (-3.33%), Naver (-4.49%), and SK Telecom (-2.30%) all closing lower. Huang, who arrived in Seoul in the afternoon, is scheduled to have a dinner meeting with Chey Tae-won, chairman of SK Group, Koo Kwang-mo, chairman of LG Group, and Lee Hae-jin, chairman of Naver's board. Over the weekend, he plans to attend a Doosan Bears home game at Jamsil Baseball Stadium, where he will throw the ceremonial first pitch. Market analysts believe that actual collaboration outcomes will have a greater impact on stock prices than the visit itself. During his stay, Huang is expected to discuss cooperation in physical AI, robotics, AI data centers, and semiconductors with domestic companies. Lee Kyung-min, a researcher at Daishin Securities, noted, "The influx of expectations surrounding Huang's visit and the profit-taking that followed have increased market volatility. Huang has indicated that he has many meetings planned with companies including Hyundai, LG, SK, Samsung, and Naver, and mentioned that several gifts are prepared for Korea."* This article has been translated by AI. 2026-06-05 16:27:00

Understanding the Impact of Broadcom's Earnings Guidance on the Market Broadcom, a semiconductor company based in California, was once a dominant player in the wireless communication chip market. However, during the smartphone era of the 2000s, it struggled against Qualcomm, the reigning champion. With the advent of the AI era, Broadcom has regained prominence, creating network chips that connect the "brain" developed by Nvidia to data centers. This has led to Broadcom being dubbed the "hidden infrastructure king of the AI era," enjoying growth comparable to Nvidia. The company's stock has soared, rising from $119 two years ago to $495 this year. However, following its second-quarter earnings report on June 3, the stock plummeted by about 13%. This decline was not due to poor performance; Broadcom reported $22.19 billion in revenue and earnings per share (EPS) of $2.44 for the second quarter, marking increases of 48% and 88%, respectively, compared to the previous year. Notably, AI semiconductor sales reached $10.8 billion in the second quarter, a staggering 148% increase year-over-year, with third-quarter projections at $16 billion, a 200% rise. So why did the stock drop? The reason lies in the company's guidance, or its future earnings outlook, which fell short of market expectations. Broadcom projected third-quarter AI chip sales at $16 billion, below the anticipated $17.2 billion, prompting market reassessment. The "Broadcom shock" also sent shockwaves through the Korean stock market, which saw a drop of over 6% during trading on June 5, reflecting broader global market impacts. The "Broadcom shock" highlights the immense expectations surrounding AI and the underlying concerns about a potential bubble. The assessment that "even doubling year-over-year growth is insufficient" underscores the high bar set for AI-related performance. Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, shared insights during a Bloomberg TV interview on June 3, stating, "All great technological innovations create bubbles, and no one can predict them accurately." He suggested that, similar to the internet boom, the AI revolution may also be accompanied by a bubble. Dalio noted, "Bubbles burst when people try to convert their wealth into cash." Currently, investments are being made based on the future potential of AI innovations, but at some point, investors will demand actual returns, leading to the exit of companies that cannot meet these expectations. Dalio's comments reflect a recurring argument regarding the "AI bubble." In summary, he pointed out: "In the past two to three years, there has been a global AI investment boom, primarily led by major U.S. tech companies. These so-called 'hyperscalers,' which operate large-scale AI data centers, have poured astronomical amounts of money into maintaining their leadership in the AI era. Key players include Meta Platforms, Microsoft, Amazon, and Alphabet (Google). The combined capital expenditure (CAPEX) forecast for these four companies from fiscal years 2025 to 2030 is estimated at $5.3 trillion, equivalent to approximately 8,000 trillion won. To sustain such massive investments, they need to generate revenue from AI operations. While some funding may come from loans or equity offerings, fundamentally, profits must be realized to cover expenses. If AI-generated revenues fall short of expectations, planned CAPEX could be disrupted, leading investors who bought stocks based on vague optimism to reconsider their positions." Concerns about the AI bubble extend to the semiconductor sector. The significant capital expenditures (CAPEX) by hyperscalers like Meta, Amazon, and Microsoft are ultimately investments in semiconductor purchases. The soaring demand for Nvidia's GPUs and Broadcom's network chips, along with the rising performance and stock prices of companies like Samsung Electronics and SK Hynix, which produce components like HBM needed for AI chip manufacturing, is driven by the purchasing power of these hyperscalers. Ultimately, investors are keenly interested in whether the semiconductor supercycle driven by AI is sustainable. If the proponents of the AI bubble are correct, hyperscaler companies may face a period of negative growth, leading to a disruption in their extensive capital expenditure plans and a decline in semiconductor purchase demand. A reduction in semiconductor demand by hundreds of trillions could have significant repercussions for the market. This is why semiconductor stocks in the U.S. and Korea experience sharp declines whenever concerns about the AI bubble arise. So, how long will the semiconductor supercycle last? Will it begin to decline the moment the AI bubble bursts? There are alternative perspectives on this issue, supported by robust arguments. Some assert that the AI bubble does not imply limitations on the innovations AI can achieve, and that demand for AI-driven semiconductors will continue to grow at an extraordinary pace. Recently, TSMC Chairman Wei Zhejia expressed this view, stating, "It will take a long time to meet customer demand for AI chips." The expectation is that the supply of semiconductors will lag behind AI demand for several years. Analyses suggesting that the semiconductor cycle differs from past cycles further bolster this outlook. Historically, the semiconductor cycle during the PC era lasted about four to five years, driven by demand from PCs, which dictated the market's ups and downs. This cycle followed a pattern of corporate IT investment leading to rising memory prices, increased supply, decreased demand, oversupply, and subsequent recession. During downturns, semiconductor companies' profits declined, and investments were curtailed. Samsung's rise as a DRAM powerhouse was due to its aggressive investment strategy during downturns, preparing for future booms. The cycle during the smartphone era was shorter than that of the PC era, but still followed a roughly three-year pattern, with semiconductor (memory) demand fluctuating in line with the expansion of smartphone adoption and the introduction of new form factors. However, entering the AI era has distinctly altered the semiconductor cycle. The amplitude of fluctuations is decreasing, and the cycles are becoming narrower. According to analysis by Mirae Asset Securities, the semiconductor cycle, which was around 27 months in 2010, has recently shortened to 12 months. This change has been driven by the explosive demand for AI-related semiconductors. In addition to consumer demand from PCs and smartphones, the emergence of hyperscalers has transformed the cycle itself. Moreover, AI is evolving. The realm of AI, once centered on web pages, is now expanding into the physical domain (Physical AI). Kim Jin-guk, CEO of VIP Asset Management, noted, "If we enter the era of robots, semiconductor demand could explode even further," highlighting the uncertainty surrounding how many GPUs, CPUs, and communication chips will be used in each robot and how many robots will be produced. Concerns about the AI bubble will likely persist. Each time earnings forecasts fall short of market expectations, as seen with the Broadcom shock, semiconductor stocks may experience significant volatility. Some hyperscaler companies may falter, and certain investment plans may be revised. The market will react accordingly. However, it is also evident that historically, great technological innovations have always grown alongside bubbles. This was true for railroads and the internet. While bubbles may burst, innovations endure. The same will hold true for the AI era. While caution is warranted regarding the existence of bubbles, it is crucial to observe who will reap the benefits of these innovations. This may well be the path to successful investing in the age of AI revolution and innovation.* This article has been translated by AI. 2026-06-05 16:24:00

Samsung Electronics Launches 'Thank You Festival' with 20% Purchase Rebate Samsung Electronics is launching a 'Thank You Festival' that offers customers a 20% rebate in digital Onnuri gift certificates for their purchases. This initiative is part of the company's plan to expand social contributions by 5 trillion won over five years, aimed at benefiting customers and supporting local businesses. According to industry sources on June 5, starting June 8, Samsung will provide digital Onnuri gift certificates equivalent to 20% of the purchase amount for customers buying Samsung products. The total value of the rebates during the event is expected to reach approximately 400 billion won. Samsung chose to offer gift certificates instead of direct price discounts to encourage spending in traditional markets and local businesses. The Onnuri gift certificates can be used at traditional markets, shopping districts, and small businesses. Analysis by the Small Enterprise and Market Service indicates that sales at stores accepting Onnuri gift certificates increased by about 4% shortly after joining the program, with the growth effect expanding to 12.2% by the third year. Uniformed public service workers, including military personnel, police, firefighters, and correctional officers, will receive an even greater benefit. Samsung recognizes these individuals as 'K-Heroes' and will provide them with a 30% rebate on their purchases. The estimated number of eligible beneficiaries exceeds 700,000, including active-duty military and civil service members. This event is connected to Samsung's 'K-Hero Family Festa,' which has been running since 2024. The company has previously offered special purchase benefits to honor the sacrifices and dedication of uniformed public service workers who ensure national and public safety. Notably, this festival follows Samsung's commitment to social reinvestment after reaching a wage agreement in 2026. The company announced plans to allocate 5 trillion won over the next five years to ensure that its growth and achievements benefit not only employees but also society at large. The Thank You Festival is an early example of tangible consumer benefits from this initiative. Following this festival, Samsung is also considering additional social contribution measures, including support for partner companies, inclusive finance, and nurturing AI talent. The aim is to expand a foundation for mutual growth among partners, local communities, and future generations. A Samsung representative stated, "We are continuously reflecting on our social responsibilities while considering the expectations and perspectives of the public. We will implement various measures step by step to ensure that our achievements are shared with society."* This article has been translated by AI. 2026-06-05 16:21:00

FIU Adjusts Reporting Requirements for Virtual Asset Transfers Domestic virtual asset businesses will now manage their own anti-money laundering risks instead of being required to report all transactions involving over 10 million won ($7,500) to financial authorities. On June 5, the Financial Intelligence Unit (FIU), under the Financial Services Commission, met with representatives from virtual asset exchanges to gather industry feedback on proposed amendments to the Enforcement Decree and supervisory regulations of the Special Financial Act. The initial proposal, announced in March, mandated that domestic businesses report any transfers of virtual assets exceeding 10 million won to the FIU, regardless of the transaction's risk level. However, the virtual asset industry expressed concerns that mandatory reporting for all transactions over this threshold would lead to operational chaos. In response, the FIU revised its approach, recognizing that enforcing blanket reporting based solely on transaction amounts could result in businesses submitting reports without proper risk assessments.* This article has been translated by AI. 2026-06-05 16:21:00

BOK taps new deputy governors SEOUL, June 5 (AJP) - Bank of Korea governor Shin Hyun-song appointed two new deputy governors on Friday, filling vacancies in the central bank's research and statistics division and its management division. The appointments mark one of Shin's first major personnel moves since taking up the post of monetary chief in mid-April, placing emphasis on economic forecasting, policy communication and internal management as the central bank navigates heightened market volatility. The BOK said Lee Ji-ho, director general of the research department, was named deputy governor in charge of research and statistics, while Kim Je-hyun, director general of the human resources and administration department, was appointed deputy governor in charge of management. Lee succeeds former Deputy Governor Kim Woong, whose term ended in March, while Kim fills the post previously held by Chae Byung-deuk, who left the BOK earlier this year and was later named president of the Korea Financial Telecommunications & Clearings Institute. Lee joined the BOK in 1997 and has worked in the financial markets, monetary policy and research departments. He also served at the finance ministry before returning to the central bank, where he has led the research department since 2024. The central bank said Lee helped improve its economic outlook process by providing more detailed quarterly projections for growth and inflation, contributing to greater transparency and effectiveness in monetary policy. Kim joined the BOK in 1996 and has held posts across policy, communications and personnel management, including policy adviser, secretary general, communications chief and human resources director. The BOK said Kim helped manage personnel reforms and workforce operations during recent organizational changes and new business projects, citing his understanding of the institution, communication skills and experience assisting the governor. The appointments suggest Shin is seeking to strengthen the BOK's economic analysis and policy messaging at a time when inflation, growth, exchange-rate volatility and financial stability risks are all shaping the policy outlook. Lee's promotion puts a senior research official with both central bank and finance ministry experience in charge of the analytical backbone of monetary policy. Kim's appointment, meanwhile, points to an emphasis on organizational stability and internal execution as the BOK adjusts to new communication tools and changing market conditions. Their three-year terms began immediately and run until June 2029. 2026-06-05 16:15:49

Japan's Low-Cost Airlines Struggle Amid Inflation Japan's low-cost carriers (LCCs) are facing challenges as their growth model falters amid rising inflation. The low-cost model, which thrived on deflation, low labor costs, and cheap operational expenses, is struggling as fuel, labor, and maintenance costs increase. Major airlines like All Nippon Airways (ANA) and Japan Airlines (JAL) are also lowering fares to fill empty seats, diminishing the price competitiveness that LCCs once enjoyed. According to a report by Nikkei Business, a publication under the Nihon Keizai Shimbun, the fare gap between major airlines and LCCs has decreased from 2.68 times in 2012 to less than 2 times by 2024. In 2012, when LCCs began to establish themselves in Japan, they were perceived as significantly cheaper than ANA and JAL. Analyzing passenger revenue data from the Ministry of Land, Infrastructure, Transport and Tourism, Nikkei Business found that the revenue per passenger kilometer for ANA and JAL dropped from 17.8 yen in 2012 to 17.0 yen in 2024. In contrast, Peach Aviation and Jetstar Japan saw their revenue rise from 6.6 yen to 8.7 yen during the same period. This indicates that LCC fares, which were about 40% of ANA and JAL's in 2012, have now surpassed half of their fares by 2024. The narrowing fare gap suggests that LCCs are losing their primary competitive advantage of offering value for money. A representative from Japan's Ministry of Land, Infrastructure, Transport and Tourism noted that even major airlines in the U.S. are adopting LCC-style services, such as Delta Air Lines introducing non-seat-assigned low-cost tickets, indicating that LCCs are at a turning point. Changes at Peach Aviation, Japan's First LCC Peach Aviation, a leading LCC in Japan, is also adapting to this trend. Launched in March 2012 as Japan's first full-scale LCC, Peach was seen as a pioneer in the industry. It attracted younger travelers with low fares and a distinctive branding strategy, achieving its first operating profit in March 2014. As of March 1 this year, Peach operates 25 domestic and 15 international routes, serving over 9 million passengers annually. However, as reliance on its low-cost image becomes less viable, Peach is shifting its strategy to broaden its customer base. In late March, the airline announced a rebranding, changing its bright pink logo to a more subdued beige to appeal to middle-aged customers. This move aims to expand its reach beyond the young female demographic that initially fueled its growth. Additionally, Peach became a wholly-owned subsidiary of ANA Holdings in December 2024. This change in status is reflected in its operational strategies and role within the group. Initially, Peach operated with a degree of separation from ANA to establish the LCC model in Japan. However, there is now a clear trend of collaboration between the major airline and LCC in sharing routes and customer segments. For instance, ANA recently suspended operations on four routes from Kansai Airport to Naha, Miyako, Ishigaki, and New Chitose, while Peach increased flights on the Naha and New Chitose routes. This indicates a shift where less profitable routes are being assigned to LCCs within the group. The changing dynamics are partly due to declining profitability for major airlines on domestic routes. ANA and JAL explained in a May meeting with Ministry of Land, Infrastructure, Transport and Tourism experts that without government support, their domestic operations would be unprofitable. Rising fuel, labor, and maintenance costs, coupled with a shrinking population making it difficult to expand domestic demand, have exacerbated the situation. ANA acknowledged that the internal compensation structure, which relied on profits from major routes to sustain regional services, has reached its limits. The evolution of the LCC model reflects Japan's economic shift from deflation to inflation. Companies that have thrived on low labor and operational costs are increasingly struggling to absorb rising expenses. The domestic airline market faces additional pressures from rising fuel prices due to geopolitical instability in the Middle East, further increasing the cost burden on airlines. Ultimately, LCCs are entering a phase where relying solely on low fares for growth is becoming unsustainable. The future competitiveness of these airlines will depend on whether they can raise fares in line with major airlines while enhancing service value or maintain low fares while developing a profitable structure. As inflation persists, a strategic reassessment of the low-cost business model in Japan will become inevitable.* This article has been translated by AI. 2026-06-05 16:15:00

Survival Strategies of 'David' Korea: Lessons from Ukraine and Iran International politics has long been driven by the logic of power. It has been seen as a natural order for stronger nations to dominate weaker ones. However, recent conflicts around the world are challenging this notion. Unexpected resistance from 'Davids' against overwhelmingly powerful adversaries is shaking the status quo. A prime example is Ukraine. Until last year, Ukraine's future appeared bleak. In the United States, then-President Donald Trump pushed for an early end to the conflict, while Russia demanded territorial concessions from Ukraine. Many believed that given Russia's population, resources, and military strength, Ukraine would ultimately be unable to withstand the pressure. Contrary to expectations, Ukraine took a different path. It began actively utilizing its drone capabilities, akin to a 'surgical strike,' targeting Russian military facilities and supply lines. The sight of advanced weapon systems worth millions of dollars being threatened by relatively inexpensive drone attacks illustrates a new reality in modern warfare. Consequently, Russia has started to feel the burden of a prolonged conflict, and President Vladimir Putin has not completely ruled out the possibility of peace negotiations. Iran presents a similar case. Despite facing severe economic sanctions and military pressure from the United States, Iran has not easily succumbed. The disparity in power between the U.S. and Iran is significant, yet Iran has leveraged its geopolitical position, regional influence, and various asymmetric capabilities to resist the pressure from stronger nations. By making it difficult for the powerful to achieve their desired outcomes, Iran has achieved considerable strategic effectiveness. The cases of Ukraine and Iran impart a common lesson: in modern international politics, superiority in size does not guarantee victory. Even smaller nations can create difficulties for powerful adversaries if they possess asymmetric capabilities and strong resilience to exploit weaknesses. This shift carries important implications for South Korea. Coldly speaking, South Korea is situated between major powers: the United States, China, Russia, and Japan. While its economy ranks among the world's top, in terms of geopolitical environment, it remains closer to the status of David. Therefore, our survival strategy should not solely rely on competing in size. South Korea has already adopted a 'surgical strike' strategy in security, aiming to deliver decisive blows even against major powers in times of crisis. To achieve this, technological superiority is essential. Just as Ukraine changed the course of war with drones, South Korea must further enhance its future asymmetric capabilities, including AI-based unmanned systems, advanced missile technology, cybersecurity capabilities, and nuclear-powered submarines. Competitiveness in key industries such as semiconductors, artificial intelligence, batteries, and defense can also serve as a national 'surgical strike.' Instilling the perception that any disruption to South Korea could shake the entire global supply chain is a powerful deterrent. Ukraine and Iran offer us significant lessons. David does not survive because he is stronger than Goliath; he survives by accurately identifying the weaknesses of his opponent and honing his unique weapons. The future and prosperity of South Korea will depend on whether it can develop a sharp 'surgical strike' that cannot be easily challenged.* This article has been translated by AI. 2026-06-05 16:12:00

Local Governments Must Shift Focus from Generic Tourism Promises to Unique Regional Strategies The 9th nationwide local elections have concluded. Local governments across the country now face the task of turning the numerous promises made during the election campaign into actionable policies. Among the commitments that will shape the future of regions over the next four years, those related to culture and tourism require particularly careful reevaluation. The new local governments must first eliminate the repetitive, development-focused tourism pledges and establish clear roles and cooperative frameworks between regional and local governments. Tourism is no longer a secondary policy area. It has become a key industry for revitalizing local economies and creating jobs amid declining populations and the threat of regional extinction. Yet, during election seasons, similar tourism promises are repeated across the nation. Regional governments compete by promoting their own landmarks and tourist facilities, leading to a cycle where local characteristics are lost and only the scale of projects increases. The role of regional governments is clear: it should focus on connection and coordination rather than development. For international tourists, administrative boundaries hold little significance. Tourists experience a region as a whole, not as individual cities or counties. However, some areas remain fixated on building unique brands, often sidelining strategies for collaboration with neighboring regions. Regional governments should shift their focus from competing to develop individual tourist sites to creating inter-regional tourism belts and connecting transportation infrastructure. Expanding tourist mobility and increasing the length of stays are essential starting points for enhancing local tourism competitiveness. The establishment of AI-based tourism services and digital platforms is also a responsibility at the regional level. With local governments facing varying financial conditions, each creating their own apps and platforms can lead to redundant investments and budget waste. A structure where regional governments build common infrastructure and data, while local governments add regional content, aligns with common sense. Conversely, local governments should focus on uncovering unique local attractions rather than pursuing massive development projects. However, the reality is different. Promises to install cable cars in mountainous areas or suspension bridges near rivers and seas are prevalent nationwide. While these large facilities may attract initial interest, they often leave behind maintenance burdens over time. Consider this logically: in a situation where similar suspension bridges and observation decks are abundant across the country, why would tourists travel far to spend money? What tourists seek are experiences, not just facilities. They want stories, culture, food, and people unique to that area. Amid the crisis of regional extinction, what areas need to secure is not just transient visitors but a resident population that stays and consumes. The power to achieve this does not come from massive concrete structures but from local content that embodies the region's history, traditions, culture, and the lives of its residents. Local governments should concentrate their administrative efforts on discovering hidden local assets and creating differentiated tourism content, moving away from competitive development promises. With the government's push for regulatory reforms, including amendments to tourism promotion laws, local governments face significant challenges. Bold decisions are required, such as the consolidation of extravagant local festivals and restructuring showcase projects that consume tens or hundreds of millions in budgets. The elections are over. Now is the time for harsh administrative realities. Blindly pushing through promises made to gain votes is not responsible governance. Regional governments must clarify their roles in connection and coordination, while local governments focus on content and on-the-ground realities. They need to stop competing in showy facilities and redundant investments and concentrate on enhancing local competitiveness. The future of local tourism does not lie in building bigger structures but in connecting the strengths of different regions and preserving their unique stories. It is hoped that the new local governments will lay the groundwork for sustainable regional growth through tourism policies based on fundamentals, principles, and common sense.* This article has been translated by AI. 2026-06-05 16:09:00