Cisco to Cut 4,000 Jobs as It Shifts Focus to AI Investments Networking equipment manufacturer Cisco announced plans to reduce its workforce by fewer than 4,000 employees, representing less than 5% of its total staff, as part of a strategy to increase investments in artificial intelligence (AI). Following the announcement, Cisco's stock surged nearly 20% in after-hours trading. On May 13, during its quarterly earnings report, Cisco revealed its intention to cut the workforce in the fourth quarter of fiscal year 2026 (May to July). This decision aligns with the company's efforts to reallocate resources toward AI-related growth areas. Chuck Robbins, Cisco's CEO, stated on the company’s website, "The companies that will win in the AI era will be those that have the discipline to continuously shift their investments toward areas of focus, urgency, demand, and long-term value creation." Cisco explained that it is making strategic investments across various sectors, including silicon, optics, security, and employee AI utilization. The layoffs are seen as a restructuring effort to facilitate this shift in investment. The company reported third-quarter revenue of $15.8 billion, slightly above the market expectation of $15.6 billion, according to LSEG data. The demand for AI infrastructure has also contributed to this positive outlook. Cisco noted that it has secured $5.3 billion in AI infrastructure orders from hyperscalers, which are companies operating large-scale AI data centers. As a result, Cisco has significantly raised its overall AI infrastructure order forecast for the fiscal year from $5 billion to $9 billion. The revenue forecast has also been adjusted upward, with Cisco now expecting fiscal year 2026 revenue to be between $62.8 billion and $63 billion, higher than the previous estimate of $61.2 billion to $61.7 billion. Following the earnings announcement, Cisco's stock showed a notable increase in after-hours trading, reaching $122.00, up $20.13 (19.76%) from the previous trading day, as of 9:59 AM KST on May 13.* This article has been translated by AI. 2026-05-14 11:13:33

ASIA INSIGHT: What Melania Trump's absence from Beijing means SEOUL, May 14 (AJP) - When U.S. President Donald Trump boarded Air Force One for Beijing for a summit with Chinese President Xi Jinping this week, one absence stood out immediately. Melania Trump did not join him. Technically, that is not unusual. First ladies are neither constitutionally required nor politically obligated to accompany presidents abroad. But presidential trips are never only about policy. They are also about symbolism, optics and public perception. Particularly with China, even photo ops are carefully choreographed. When the Trumps visited Beijing in 2017, Melania was central to the visual choreography of the trip. Chinese state media devoted lavish attention to the couple's appearances, carefully staging scenes of ceremony, continuity and prestige. In highly managed diplomatic environments, spouses are not decorative additions. They are instruments of soft power. This time, however, the atmosphere surrounding the visit is entirely different. More than a traditional state visit, the trip appears heavily focused on business. Trump's large entourage includes technology executives, trade advisers, corporate leaders and economic negotiators, with Nvidia CEO Jensen Huang joining the trip at the last minute. The agenda is centered on tariffs, artificial intelligence (AI), semiconductors and economic rivalry between the world's two largest markets. The atmosphere surrounding the summit feels less like a traditional state visit and more like a high-level business negotiation. The two-day summit starting Thursday, in fact, arrives at a moment when Trump is politically preoccupied at home and strategically constrained abroad, with the U.S. still entangled in the prolonged conflict in the Middle East that began with its joint airstrike with Israel against Iran in late February. Tariffs remain unresolved, while AI has emerged as the defining battleground in the rivalry between the world's two largest powers. Restrictions on exports of semiconductors, rare earth minerals and soybeans, along with broader supply-chain issues, now dominate their talks, leaving long-standing concerns over North Korea's nuclear threat quietly sidelined on the agenda. Trump's delegation reflects those priorities. CEOs and technology leaders are taking center stage, and the trip is squarely focused on "opening up" China to American business interests and easing economic friction between the two countries. That alone may explain why Melania chose to stay home. In that sense, her absence may not be particularly mysterious at all. But timing still matters in politics. Her decision not to travel comes just weeks after her rare public statement denying renewed allegations linked to the late American financier and convicted sex offender Jeffrey Epstein. Speaking from the White House last month, she dismissed the claims as false and politically motivated. But the unusual nature of the statement and its timing only revived public attention to a controversy Trump would rather leave behind, even as it had been fading from the front pages. It also raised fresh questions about why Melania had chosen to step into such a legal and political minefield at all. Melania has long kept a certain distance from Washington politics. Unlike previous first ladies who embraced advocacy campaigns or constant public visibility, she speaks publicly less often, appears at fewer political events and carefully controls her visibility. For years, that distance created mystery. Now, it fuels speculation amid rumors that the first couple have become increasingly isolated, though the White House would clearly prefer the Beijing summit to focus on economic issues, with its business-heavy delegation reflecting that goal. In Beijing, Trump will spend the coming days trying to demonstrate his trademark deal-making skills and economic pragmatism at a time when geopolitical tensions and domestic political pressures continue to weigh on him. But sometimes, the people missing from a room attract as much attention as those inside it. 2026-05-14 11:08:27

S. Korea, US defense officials discuss alliance goals without OPCON details SEOUL, May 14 (AJP) - South Korea and the U.S. held senior-level defense talks in Washington this week to discuss the future direction of their alliance, as the two sides appear to remain divided over key issues, including the transfer of wartime operational control. South Korea’s defense ministry said Thursday that the Korea-U.S. Integrated Defense Dialogue, or KIDD, was held in Washington from Tuesday to Wednesday, led by Kim Hong-cheol, Seoul’s deputy minister for defense policy, John Noh, U.S. assistant secretary of war for Indo-Pacific security affairs, and James Finch, acting deputy assistant secretary for East Asia. Senior officials from the defense and foreign affairs ministries of both countries also attended. During the meeting, the two sides agreed to step up cooperation to carry out defense-related commitments from last November’s leaders’ joint fact sheet and the joint statement adopted at the 57th Security Consultative Meeting, or SCM. The joint fact sheet included cooperation on South Korea’s plan to build nuclear-powered submarines, while last year’s SCM statement said the two sides would set a target year for the transfer of wartime operational control, or OPCON, by the end of this year. The latest KIDD talks are believed to have included efforts to narrow differences over pending alliance issues, including OPCON transfer. But the ministry’s announcement did not include any specific mention of discussions on the issue. Ahead of the KIDD session, South Korean Defense Minister Ahn Gyu-back met U.S. Secretary of War Pete Hegseth in Washington on Monday. Ahn said the two sides shared the view that OPCON should be transferred at an early date, but added that “there are some areas where the U.S. side has slightly different views.” Other pending issues, including cooperation on nuclear-powered submarines and a proposal for divided management of the Demilitarized Zone, currently overseen by the U.N. Command, are also believed to have been discussed. But the ministry did not disclose details on whether or how those issues were addressed. Still, the reference to implementing the leaders’ joint fact sheet and last year’s SCM outcome suggests the two countries intend to keep seeking progress on the pending issues. Launched in 2011, the KIDD is a senior-level consultative body designed to support timely and effective security coordination between Seoul and Washington. The talks are held once or twice a year, alternately in South Korea and the U.S. This week’s meeting also served as part of preparations for this year’s SCM between the defense chiefs of the two countries, which is expected to be held later this year. 2026-05-14 11:03:40

First Quarter National Budget Deficit Reaches 39.6 Trillion Won, Lowest Since COVID-19 The national budget deficit for the first quarter of this year has decreased to below 40 trillion won, marking the lowest level since the COVID-19 pandemic. This improvement is attributed to a significant increase in revenue, primarily from national taxes. According to the "Monthly Fiscal Trends for May" report released by the Ministry of Economy and Finance on May 14, the management fiscal balance recorded a deficit of 39.6 trillion won as of the end of March. This figure represents an improvement of 21.7 trillion won compared to the same period last year and is the smallest deficit for March since 2020. The management fiscal balance excludes the revenues from social security funds such as the National Pension, providing a clearer picture of the government's actual fiscal condition. During the same period, the consolidated fiscal balance showed a deficit of 22.8 trillion won, while social security funds reported a surplus of 16.8 trillion won. A spokesperson from the Ministry of Economy and Finance noted, "In terms of cumulative figures for March, this is the ninth lowest level since we began tracking these statistics in 2012. Compared to the deficit of 55.3 trillion won during the COVID-19 period in 2020, we are seeing a normalization of fiscal conditions." The improvement in fiscal balance is driven by increased revenue. Total revenue for the first quarter reached 188.8 trillion won, an increase of 28.9 trillion won from the previous year. National tax revenue rose by 15.5 trillion won, along with increases in non-tax revenue (5.8 trillion won) and fund revenue (7.5 trillion won). The rise in national tax revenue is attributed to several factors, including an increase in income tax and capital gains tax, improved corporate performance leading to higher corporate taxes, a decrease in value-added tax refunds, and increased import volumes. Additionally, the expansion of stock market transactions contributed to higher securities transaction taxes, further boosting revenue. The increase in fund revenue was significantly influenced by expanded investment returns from the National Pension. The recent positive performance in financial markets has been reflected in the growth of fund revenues. Total expenditures amounted to 211.6 trillion won, an increase of 1.7 trillion won compared to the same period last year. The growth in revenue outpaced the increase in expenditures, leading to an overall improvement in the fiscal balance. Central government debt saw a slight decrease. As of the end of March, central government debt stood at 1,303.5 trillion won, down by 9 trillion won from the previous month.* This article has been translated by AI. 2026-05-14 11:01:07

Government Strengthens Regulations Against Price Gouging Amid Middle East Conflict The government is set to amend the Price Stability Act to strengthen sanctions against unfair practices such as price gouging, in response to rising price uncertainties stemming from the conflict in the Middle East. A multi-agency approach will also be implemented to stabilize prices of essential goods. On May 14, Lee Hyung-il, First Deputy Minister of Finance, chaired a meeting of the "Middle East War Price Response Team and Price-Related Deputy Ministers" at the Government Seoul Building, where he reviewed price trends of key items and discussed response measures. Lee stated, "While inflation in our country is lower compared to major countries, there are upward pressures on prices due to uncertainties from the Middle East conflict and base effects. I urge all relevant ministries to work together to stabilize prices of individual items." He emphasized a strong response to unfair practices, particularly price gouging, saying, "Unfair practices such as price gouging must be eradicated to stabilize living costs. We will swiftly push for amendments to the Price Stability Act, which will include measures to ensure the effectiveness of confiscation, reward systems for reporting, and penalties for unjust profits." The government plans to implement price stabilization measures for essential goods, including agricultural, livestock, and fishery products, as well as petroleum. Between May and June, it will provide 22 billion won in discounts for agricultural and fishery products and plans to supply 8,000 tons of government reserves of key fish species such as mackerel, squid, and hairtail to the market this month. To increase the supply of livestock products, the government will apply emergency tariff quotas to import 30,000 tons of chicken by the end of July and 12,000 tons of pork by the end of the year. It is also considering increasing the supply of pork in wholesale markets and additional imports of eggs from the United States or Thailand. For petroleum products, which are currently under a price ceiling, the government plans to encourage price reductions through designating "good gas stations" and will raise the payment criteria for diesel price-linked subsidies to alleviate the burden on bus and freight transport operators.* This article has been translated by AI. 2026-05-14 11:00:39

LG Electronics Supplies Large LED Signage to Frankfurt Airport LG Electronics has supplied large LED signage to Germany's Frankfurt Airport, a key hub for European air traffic. This installation goes beyond simple display delivery, showcasing the company's technology in an airport infrastructure market where 24/7 reliability and safety are critical. On May 14, LG Electronics announced the completion of its supply of large LED signage and other commercial display products to Terminal 3 of Frankfurt Airport, which opened at the end of April. The supplied LED signage covers a total area of 115 square meters and is installed in the 'Marketplace' at the center of Terminal 3, providing travelers with flight information, advertisements, and cultural content. Frankfurt Airport is the busiest airport in Germany and a major transportation hub in Europe. Given the continuous flow of passengers, the signage is evaluated for its sharp image quality, long-term operational stability, and rapid maintenance capabilities. LG Electronics applied components typically used in industrial settings where safety is paramount. The signage is designed to slow the spread of fire, ensuring a high level of safety without the need for additional construction. The signage meets European fire safety standards, specifically 'VdS 6024', and safety and electromagnetic compatibility regulations, 'CE-LVD/EMC'. By adhering to the safety standards required in the European public infrastructure market, LG Electronics has laid the groundwork for expanding contracts in airports, railways, and large complex facilities. The company also emphasized its competitive edge in image quality. LG's LED signage offers a wide viewing angle, allowing travelers to see the screen clearly from various positions. It can deliver high-quality information, including flight guidance, advertisements, and local cultural content, enhancing digital communication within the airport. LG Electronics has previously supplied commercial displays to major airports across Europe, including Germany, the UK, Italy, Hungary, as well as in South Korea, the United States, Argentina, Australia, and the United Arab Emirates. As airports and commercial complexes increase their investments in digital guidance and advertising infrastructure, the demand for commercial displays that combine stability, security, and maintenance capabilities is expected to grow. LG Electronics is expanding its commercial display product lineup, including the ultra-high-definition signage 'LG Magnit'. The company plans to accelerate its efforts in the airport and large commercial facility markets by enhancing its capabilities for tailored solutions that encompass installation, operation, and maintenance. The company is also strengthening its security capabilities. Last year, LG applied its proprietary security system 'LG Shield' to its standard signage products, UH5Q and UH7Q. LG Shield integrates product security capabilities to support data protection and stable operation of commercial displays. Min Dong-seon, head of LG Electronics' MS Business Division ID Business Unit, stated, "We will solidify our leadership in the global commercial display market with customized solutions specialized for spaces where stable operation and maintenance are crucial, including airports."* This article has been translated by AI. 2026-05-14 11:00:17

LG Targets Future Tech Talent at 2026 Tech Conference LG is actively seeking to secure future tech talent, inviting both Alpha Generation science prodigies and domestic and international graduate students. This generation, born between 2010 and 2024, is characterized by its familiarity with advanced technologies such as artificial intelligence (AI). On May 14, LG hosted the "LG Tech Conference" at LG Science Park in Magok, Seoul, inviting STEM talent to participate. Launched in 2012, the conference serves as a platform for LG to share its vision for technological innovation and the future with outstanding talent at the heart of its research and development efforts. Rather than merely promoting its products, the conference aims to communicate a vision to graduate-level talent, emphasizing that "at LG, you can freely explore the future technologies you wish to research." This year, in addition to inviting domestic graduate R&D talent, LG expanded its outreach to include 100 gifted science high school students and international students, enhancing the diversity of its talent pool. The event featured over 70 executives and technology leaders from LG's nine affiliates, including LG's Chief Operating Officer Kwon Bong-seok and LG Science Park CEO Jeong Soo-hun, who is also the chair of the LG Technology Council. Kwon Bong-seok emphasized, "LG considers our members, who are the source of customer value creation, as our most important asset. LG will be the strongest supporter for you to fully realize your dreams and passions on this stage." A special session for gifted science high school students included speeches from experienced engineers currently active in the field. Lee Hong-rak, co-director of LG AI Research and chief AI scientist, shared his journey from being a science high school student to becoming a global AI expert, inspiring students who aspire to be future scientists. For the first time, international students from nine countries, including China, Russia, and Vietnam, were invited to enhance LG's global talent acquisition efforts. These students are graduate students enrolled in domestic universities, selected for their growth potential across LG's various affiliates. A "Tech Session" featured 31 technology leaders sharing their research achievements. Notably, the newly established "One LG" Tech Session showcased the synergy of technological collaboration across different affiliates and the potential for cross-disciplinary research expansion. Examples of collaborative technology ecosystems, such as the "Vertical Farm" initiative involving LG Electronics, LG CNS, and Farm Han Nong, drew significant attention for overcoming environmental constraints in crop cultivation.* This article has been translated by AI. 2026-05-14 11:00:00

SK AX Partners with OpenAI to Expand Enterprise AI Solutions SK AX is collaborating with OpenAI to safely implement and operate generative artificial intelligence (AI) across corporate work environments, aiming to expand its enterprise AI business. On May 14, SK AX announced that it has signed a service partnership agreement with OpenAI for enterprise AI business collaboration. Through this partnership, SK AX plans to provide AI utilization environments tailored to the specific work and security requirements of each company, based on OpenAI's 'ChatGPT Enterprise.' The signing ceremony was attended by Kim Wan-jong, President of SK AX, and Anthony Russell, Head of Partnerships for OpenAI in the Asia-Pacific region, along with executives from both companies who discussed collaboration strategies. ChatGPT Enterprise is a service optimized for corporate environments, offering enhanced security and privacy features. It can analyze vast amounts of advanced data documents and increase the scope of business applications through customization. SK AX intends to integrate and operate this service in line with corporate systems and workflows to enhance the effectiveness of AI utilization. Kim Wan-jong stated, "We will not just introduce AI but will initiate an AI transformation that redesigns internal structures, work processes, and governance through AI integration. Our collaboration with OpenAI will realize 'AI augmentation' that makes the work of people and companies more valuable." Anthony Russell emphasized, "For the value of ChatGPT Enterprise to be realized, it is crucial that it operates in accordance with each company's work systems and flows, based on security and data control. SK AX is a partner capable of applying AI to real work, thanks to its long-standing understanding and experience with industry-specific systems and data structures." As companies increasingly adopt AI across their operations, the enterprise AI market is growing. According to the IT industry, competition in the enterprise AI market among big tech companies like Google, Microsoft, and Amazon is intensifying. Recently, OpenAI established a new organization to support enterprise AI and invested $4 billion (approximately 5.9 trillion won) to create a joint venture for AI deployment, focusing on strengthening its competitiveness in the enterprise AI market. Consequently, there is growing interest in enhancing work efficiency through AI, as well as concerns about security. The use of 'shadow AI,' where internal members utilize AI in their work without separate security and management systems, has emerged as a new risk. SK AX plans to combine the AI utilization environment based on ChatGPT Enterprise with its capabilities in designing, building, and operating industry-specific systems to enhance overall productivity and address data security concerns. A representative from SK AX remarked, "This collaboration will be a significant turning point in applying generative AI to real business and accelerating the AX transformation across the organization. Based on the AI technology capabilities and business experience that SK AX has accumulated, we will elevate the execution capabilities of our corporate clients' AX (AI transformation)."* This article has been translated by AI. 2026-05-14 10:57:12

North Korea's Evolving Cyber Threats Demand Urgent Review of National Security Systems North Korean hacking groups are evolving their threats. While past cyber attacks focused on information theft and cryptocurrency hacking, they are now utilizing AI to precisely target government certification systems and internal networks. This indicates a real threat to national security and administrative systems. On May 14, global security firm Kaspersky disclosed the latest attack tactics of the North Korean hacking group Kimsuky. According to the report, the group is using AI to create malware that targets the GPKI storage directory, which is part of the South Korean government's official electronic certification system. There have been actual detections of attempts to steal government employee accounts and penetrate internal networks. The more serious issue is the change in attack methods. North Korean hackers are now exploiting the remote tunnel feature of Visual Studio Code (VSCode) and remote management tools to disguise their activities as normal Microsoft server communications. This strategy aims to evade detection by existing security solutions. Rather than relying on simple phishing or email attacks, they are evolving to infiltrate legitimate work environments. AI is fundamentally a technology for industrial innovation and productivity enhancement. However, it also significantly lowers the barriers for attackers. The Google Threat Intelligence Group (GTIG) recently warned that North Korean and Chinese-linked hacking groups are using AI to detect zero-day vulnerabilities and automate attacks. Notably, the North Korean group APT45 has been observed inputting thousands of prompts into AI models to automatically validate attack codes and analyze vulnerabilities. Tasks that once required skilled hackers to spend considerable time on can now be performed rapidly by AI. Automation is becoming possible for malware generation, vulnerability analysis, phishing message creation, and internal network exploration. This structure lowers the cost of attacks while increasing the likelihood of success. For state-sponsored North Korean hacking groups, this effectively represents a 'cyber weapons enhancement.' The problem is that our response systems are not keeping pace with this rapid evolution. Many public institutions still rely on certificate-based access systems and closed network security. Critics point out that there are insufficient measures to prevent internal spread once a breach occurs. Particularly, local governments and public organizations often invest significantly less in security compared to central government agencies. Even more concerning is the potential for AI-based attacks to disrupt national functions beyond mere information leaks. In a digital national structure where administrative, defense, energy, transportation, and financial infrastructures are interconnected, cyber attacks are no longer just 'online crimes.' They represent an extension of real warfare and security threats. North Korea is already regarded as having one of the world's most advanced cyber capabilities. Despite international sanctions, it has continued to generate foreign currency through hacking operations and information warfare. The integration of AI into these efforts could significantly amplify the impact of their attacks. Recently, there have been reports of North Korean operatives combining deceptive employment tactics with generative AI to infiltrate the internal networks of foreign companies. Now, government responses must fundamentally change. First, there needs to be an urgent review of the entire public sector certification system. A system that merely stores certificates will struggle to counter AI-based attacks. Second, the adoption of AI-based security systems must be expedited. If attackers are using AI while defenses remain human-centered, the chances of success are slim. Third, real-time sharing of cyber threat intelligence between the private sector and military and intelligence agencies must be strengthened. Cybersecurity is no longer just an IT department issue; it is a matter of survival for the entire national operating system. The use of AI by North Korean hacking groups is not merely a technological change; it signifies a shift in the national security environment itself. Delays in addressing these threats could lead to far greater costs. * This article has been translated by AI. 2026-05-14 10:54:51

KOSPI nears 8,000 as AI frenzy shrugs off U.S. inflation shock SEOUL, May 14 (AJP) - South Korean stocks marched closer to the 8,000-point milestone on Thursday as investors brushed aside renewed U.S. inflation concerns and instead piled into artificial intelligence and semiconductor shares through the U.S.-China summit momentum. As of 10:34 a.m., the benchmark KOSPI was trading at 7,973.67, up 1.65 percent, while the tech-heavy KOSDAQ slipped 0.66 percent to 1,169.16. The rally closely followed another record-setting session on Wall Street, where the S&P 500 rose 0.58 percent to 7,444.25 and the NASDAQ Composite jumped 1.20 percent to 26,402.34, with both benchmarks closing at fresh all-time highs despite unexpectedly strong U.S. inflation data. The U.S. Department of Labor said producer prices in April climbed 1.4 percent from the previous month and 6.0 percent from a year earlier, marking the sharpest annual increase since December 2022 and reinforcing signs that inflationary pressures were broadening across the economy. Rising costs in energy, intermediate goods, wholesale margins and gasoline sales suggested inflation was spreading beyond isolated sectors, following a similarly hotter-than-expected consumer inflation report earlier this week. Yet investors largely shrugged off the inflation shock, betting that the global AI boom would continue powering earnings growth and risk appetite. Technology shares tied to AI and optimism surrounding the U.S.-China summit that opened Thursday in Beijing drove much of the advance. NVIDIA gained 2.3 percent overnight, while Micron Technology surged 4.8 percent and Tesla climbed 2.7 percent. Alphabet jumped 3.9 percent, while Meta Platforms and Amazon rose 2.26 percent and 1.62 percent, respectively. Only Microsoft finished lower among the so-called “Magnificent Seven,” slipping 0.63 percent. Mixed sector rotation emerged in Seoul trading. Among heavyweight shares, Samsung Electronics jumped 4.23 percent to 296,000 won, extending its AI-driven rally, while SK Hynix edged down 0.15 percent to 1,973,000 won. LG Energy Solution and Samsung C&T also gained more than 1 percent. Meanwhile, shipbuilding, defense and power equipment shares retreated as investors locked in profits after weeks of sharp gains linked to the Middle East conflict and global infrastructure demand. HD Hyundai Heavy Industries plunged 8.05 percent, while Doosan Enerbility fell 3.08 percent to 116,300 won and HD Hyundai Electric slipped 1.87 percent to 1,256,000 won. On the KOSDAQ, AI- and biotech-related momentum remained strong. Alteogen surged more than 5 percent to become the market’s largest stock by capitalization, while Seojin System also rose more than 5 percent. Retail investors continued to dominate trading flows, purchasing a net 1.36 trillion won worth of local equities. Foreign and institutional investors, meanwhile, sold a net 1.18 trillion won and 226 billion won, respectively. The Korean won remained broadly weak, trading at 1,491.00 per dollar compared with the previous close of 1,490.60 won. Elsewhere in Asia, Japan’s Nikkei 225 rose 0.77 percent to 63,757.71, supported by continued strength in semiconductor and technology shares, China’s Shanghai Composite Index however, edged down 0.14 percent to 4,236.45 as investors turned cautious ahead of the Trump-Xi summit, with markets awaiting signals on trade relations and U.S. semiconductor export restrictions. Hong Kong’s Hang Seng Index, gained 1.11 percent to 26,681.43. 2026-05-14 10:51:31