SK Telecom turns to AI infrastructure as core mobile business weakens SEOUL, May 7 (AJP) - South Korea's largest mobile carrier SK Telecom is increasingly turning to artificial intelligence (AI)-driven infrastructure as its new growth engine. According to its first-quarter earnings report released on Thursday, SK Telecom posted an operating profit of 537.6 billion Korean won (US$393 million) in the first three months of this year, down 5.3 percent from a year earlier, reflecting a slump in its core telecom business. Revenue also fell 1.4 percent to 4.39 trillion won, while net profit declined 12.5 percent to 316.4 billion won, sending its shares down 2.2 percent to 93,400 won later in the day. Its AI data center business, however, emerged as the fastest-growing sector, with revenue up 89.3 percent from a year earlier to 131.4 billion won, driven by higher utilization at new facilities and increased demand for GPU-as-a-Service (GPUaaS), a cloud computing subscription service that allows individuals and organizations to rent high-performance graphics processing units (GPUs). SK Telecom is now repositioning itself as an all-in-one AI company offering everything from underlying technology, infrastructure and AI models to consumer apps and services, in a bid to capitalize on growing demand in the emerging AI market. Meanwhile, smaller rival LG Uplus posted stronger earnings as AI-related infrastructure and mobile service revenue supported profitability. Operating profit reached 272.3 billion won, up 6.6 percent from a year earlier. Revenue rose 1.5 percent to 3.80 trillion won and net profit increased 8.4 percent to 176.0 billion won. Like SK Telecom, LG Uplus is rapidly expanding its AI offerings for both consumers and businesses. The company is rolling out AI-powered customer service centers, virtual call assistants and autonomous network systems to reduce costs and improve efficiency. But shares of LG Uplus slipped 0.3 percent to 15,360 won, despite its rosy performance. 2026-05-07 12:28:30

Kang Dong-won, Uhm Tae-goo and Park Ji-hyun’s ‘Wild Thing’ Targets Summer Box Office "What on earth made you decide to do this?" The music video for “LOVE is,” an original song from the film “Wild Thing,” has stirred buzz online and off since its release. Actor Kang Dong-won, long known for his looks, appears performing flashy dance moves; Uhm Tae-goo, often described as introverted, delivers an unexpected rap; and Park Ji-hyun leads choreography at center. With Kang, Uhm, Park and Oh Jung-se embracing against-type roles, expectations are rising over whether “Wild Thing” can shake up the summer box office. A production presentation for “Wild Thing,” directed by Son Jae-gon, was held Tuesday morning at Lotte Cinema Konkuk University in Seoul’s Gwangjin district. Son and cast members Kang, Uhm, Park and Oh attended and discussed the project. “Wild Thing” follows “Triangle,” a three-member co-ed dance group that once dominated the music scene but disbanded overnight after becoming entangled in an unexpected incident. Twenty years later, the group seizes a chance at a comeback and takes on a reckless challenge. The film pairs Son, whose credits include “The Villain on the Second Floor” and “Secret Zoo,” with About Film, the production company behind “Extreme Job.” Kang plays Triangle’s leader, Hyun-woo, described as a dance machine. “Comedy is my favorite genre,” Kang said. “When I read the script, it was really fun, and I thought it was a full-on comedy.” He added that he liked the “fully closed” ending and said the run-up to the finale and the four characters’ stories were “really fun.” Uhm, who plays the youngest member and rapper Sang-gu, also pointed to the script. He said meeting Son left a strong impression, and that Kang had already been cast as Hyun-woo, which became “the biggest reason” for his decision. Park, who plays center and main vocalist Do-mi, said she had long been a fan of Son. She said she enjoyed Son’s earlier film “The Villain on the Second Floor,” and wanted to portray Do-mi’s dual nature. Park said she had been eager to do comedy, and that imagining Kang as Hyun-woo and Uhm rapping sounded “so fun.” Oh joins as Triangle’s rival, Seong-gon, a ballad singer with a hard-luck story. Oh said the question of “Kang Dong-won dancing, Uhm Tae-goo rapping, and Park Ji-hyun doing idol-style performance” sparked curiosity and interest, adding that playing a ballad singer also appealed to him. He said he was eager to see how Son’s style would come through. Music for the film was led by composer Shim Eun-ji, who has worked with Twice, SHINee and IU. Son said the debut song “LOVE is” needed to evoke the mood of its era while still sounding good to today’s audiences. He said he asked for a track that would feel instantly appealing in a theater, and praised Shim’s work. The actors said they trained for five months in what they described as an “idol experience.” Uhm said he commuted to JYP’s headquarters for rap practice and tried to rehearse as often as possible, practicing whenever he had time for about five months. Kang said preparing for the film made him realize how demanding idol work is, adding that he came to respect it more while filming. Oh spoke about his song “I Like You.” He said he let out a dry laugh when he first received it, but found it highly addictive the more he listened, and came to see it as a sad song. He said he worked with the director to create hand motions that were more like ad-libs than choreography. Performance scenes designed to resemble a real concert are another highlight, Son said. He said the film’s crew worked with an actual concert production team to build the stage and raise its quality. Kang said the scenes felt like a real stage, joking that he worried the younger extras in front might not recognize him and wonder, “What’s that older guy doing up there?” Park praised her co-stars’ unexpected sides. She said she had known Uhm as an introvert, but that he became a different person on stage, practiced constantly and performed so well she felt the center position was being overshadowed. Park said she referenced 2000s-era girl groups Fin.K.L and S.E.S, adding that she was glad to take on both singing and dancing through the film. With “challenge” dance trends sweeping pop music, the Triangle track “LOVE is,” which has drawn attention on YouTube and elsewhere, is also drawing interest over whether it could catch on as a challenge. The actors said they would be grateful to anyone who participates. Kang added that while he would appreciate anyone taking part in the “LOVE is” challenge, the first group that came to mind was BTS. He said he would be “very grateful” if BTS joined, drawing laughter. In closing, Kang said he hoped audiences would enjoy the film, noting that everyone has a time when they shined and moments when they want to shine. Oh said the team worked hard to make it an exciting, warm and feel-good movie, and said he hoped it would be remembered that way. “Wild Thing” is scheduled to open in theaters June 3.* This article has been translated by AI. 2026-05-07 12:27:16

Kakao CEO: Shift to Agent AI Platform Aims to Onboard 50 Million Users Kakao is accelerating a strategy to “onboard 50 million users” to AI services as it pivots toward an agent AI era. Rather than relying on a single, massive model, the company plans to combine a lightweight top-level orchestrator with domain-specific agents to improve cost efficiency and scalability. CEO Jeong Shin-a said on a conference call for Kakao’s 2026 first-quarter earnings that many agent AI services drawing attention today face limits, including excessive token consumption and privacy risks. “Those limits will be a clear opportunity for Kakao in the coming agent AI era,” she said. Jeong described many web-based agent designs as “one huge agent” handling all domains and tools. She said screenshot-based vision-language models and computer-use agents can consume large numbers of tokens and may take longer to produce desired results. By contrast, Kakao’s agent AI platform is designed so a lightweight orchestrator analyzes user intent while specialized agents collaborate. “We built it so tasks are carried out organically through protocols between agents,” Jeong said, calling it a structure that sharply reduces token use and processing time. Kakao also previewed plans to disclose “Kanana 2.5,” a 150B-parameter model, following last year’s “Kanana 2.” Jeong said Kanana 2.5 was developed from scratch and optimized for the agent AI platform, showing stronger performance in execution-focused areas such as planning and function calling compared with leading global models. She said Kakao’s in-house “Kanana tokenizer” also improved training costs and inference speed. Jeong said Korean can require up to three times more tokens than English when using general-purpose tokenizers. With the Kanana tokenizer, she said, Kakao confirmed up to a 40% reduction in training costs and up to a 60% improvement in inference speed. This year, Kakao plans to expand user touchpoints, a key element of an agent AI ecosystem, with the goal of onboarding all 50 million KakaoTalk users through multiple service formats. For users with higher AI familiarity and an intent to use paid services, Kakao pointed to “ChatGPT for Kakao.” For a more natural, everyday AI experience without charges, it highlighted “Kanana in KakaoTalk.” Kanana in KakaoTalk uses conversation context to identify user needs and connect services from information to reservations and payments. Kakao said user activity has improved steadily after an iOS closed beta test and an Android launch, and retention has held at about 70%, similar to the closed beta. Jeong said the service remains in an early stage, with work still needed to improve answer accuracy and quality and to refine when the AI should step in. She said Kakao will raise user satisfaction through model upgrades. Kakao last month also introduced “Kanana Search,” a context-based discovery service. It provides place and product search results and trend-topic exploration inside KakaoTalk chat rooms. Jeong said that even in the third week after the beta launch, activity rose meaningfully compared with traditional keyword-driven search. Jeong also cited momentum for ChatGPT for Kakao, which has surpassed 11 million cumulative sign-ups. She said monthly active users nearly doubled from the previous quarter, and monthly messages sent per user more than doubled, indicating the service is moving beyond one-time visits into repeated use. “Kakao’s mid- to long-term AI vision is for all 50 million KakaoTalk users to have personalized agents,” Jeong said. On advertising, Jeong said growing short-form and content consumption inside KakaoTalk is translating into stronger ad performance, making ads another key growth engine alongside AI. She said average daily valid short-form plays as of April more than doubled from shortly after the service launched, and demand for video-focused ads is flowing in quickly. She said the revenue share from display ad products other than Bizboard expanded from the 10% range in the first quarter of last year to about 30% in the first quarter of this year, as the ad revenue mix diversifies beyond a single product and a small number of large advertisers. Kakao said consolidated first-quarter revenue rose 11% from a year earlier, marking its first double-digit growth in eight quarters. Jeong said the company achieved “qualitative growth” by strengthening its core competitiveness. Jeong said the second half will be an important turning point as users can broadly experience agents that start with domestic conversations and complete payments. She said Kakao will show a future in which all 50 million users communicate routinely with personalized AI agents on KakaoTalk. 2026-05-07 12:09:14

South Korea fines 18 plastic pallet firms 11.7 billion won for bid-rigging Eighteen manufacturers and sellers of plastic pallets that allegedly coordinated bid winners and prices have been fined by South Korea’s antitrust watchdog.  The Fair Trade Commission said May 7 it will impose a combined 11.737 billion won ($11.7 billion won) in penalties and issue corrective orders against the 18 companies for avoiding competition and fixing prices.  Pallets are platforms used in logistics to bundle and move multiple items as a single load.  The companies took part in 165 bids run by 23 businesses and, through phone calls, in-person meetings and mobile messaging, agreed in advance on the expected winner, “cover” bidders and bid prices for each tender, the commission said. The cover bidders submitted bids at the agreed price level, and the designated winner shared part of the collusive profits with other firms.  In particular, five of the firms also agreed on which company would supply pallets in transactions with NongHyup Economic Holdings and then split the profits, the commission said. When local NongHyup cooperatives asked to buy pallets, four other firms quoted prices higher than the NongHyup supply price to steer purchases through Economic Holdings.  The collusion lasted 6 years and 8 months and involved 369.2 billion won in related sales, the commission said. It said 23 companies, including Lotte Chemical, DL Chemical and Seoul Milk Cooperative, were harmed.  An FTC official said the agency will respond strictly to cartels that impose unnecessary costs on businesses and weaken industrial competitiveness. * This article has been translated by AI. 2026-05-07 12:04:39

Bank of Korea: Stock Wealth Effect Lags Advanced Economies, Could Grow as KOSPI Hits 7,000 South Korea’s stock market generates a much smaller “wealth effect” on household spending than major advanced economies, the Bank of Korea said, though the impact could grow as the KOSPI enters the 7,000 era and stock ownership broadens. In a report released Wednesday titled “BOK Issue Note: An Assessment of Korea’s Stock Wealth Effect,” the central bank estimated that when rising share prices increase household wealth, consumption rises by about 1.3% of capital gains. That implies that a 10,000-won increase in stock prices translates into roughly 130 won available for consumption. In the United States and Europe, about 3% to 4% of capital gains typically feeds into consumption, the report said. The BOK attributed the gap largely to structural factors, including a relatively narrow investor base. As of 2024, stock assets equaled 77% of disposable income, far below the U.S. level of 256% and 184% in major European countries. Stock holdings are also concentrated among high-income, high-asset households, which tend to have a lower propensity to consume, limiting spillover to spending. Market performance has also weighed on the effect. From 2011 to 2024, the S&P 500’s average expected monthly return was 0.53%, compared with 0.09% for the KOSPI, while volatility was 3.43% for the S&P 500 versus 3.77% for the KOSPI, about 10% higher. The probability that gains persist was 67% in the U.S. and 56% in South Korea, and the average duration of gains was 3.1 months in the U.S. versus 2.3 months in South Korea. Investment behavior also constrains consumption, the report said, as stock profits tend to flow first into real estate rather than spending. For households without a home, about 70% of stock capital gains are estimated to move into property. Kim Min-su, deputy head of the BOK’s macro analysis team, said capital gains have tended to shift into real estate because in the past the property market had lower volatility and higher returns, raising the opportunity cost of consumption. Still, the BOK said the wealth effect could strengthen as share prices rise rapidly on factors including expanding global demand for artificial intelligence, increasing household stock holdings and drawing more young and middle- and lower-income investors into the market. Household stock capital gains totaled 429 trillion won last year, about 22 times the average for 2011-2024, the report said. Because new investors tend to show a relatively larger wealth effect, the BOK said the gains could translate into stronger consumption. The central bank also warned that a sharp market correction could produce a larger negative wealth effect. With leveraged investing such as margin loans increasing, a drop in asset prices alongside heavier debt burdens could add to downside pressure on the economy, it said. Kim said it is important over the medium to long term to create a stable investment environment so the stock market can serve as a foundation for household wealth formation. He said policy efforts should curb the concentration of stock gains into real estate and strengthen incentives for long-term stock holding so that companies’ economic performance can translate into household asset accumulation and greater capacity to spend.* This article has been translated by AI. 2026-05-07 12:03:17

Appeals Court Cuts Han Duck-soo Sentence to 15 Years for Role in Martial Law Case Han Duck-soo, who was indicted on charges tied to former President Yoon Suk Yeol’s Dec. 3 emergency martial law, received a reduced sentence on appeal. On the 7th, the Seoul High Court’s Criminal Division 12-1 sentenced Han to 15 years in prison for charges including performing key duties in an insurrection. The term was eight years less than the 23-year sentence handed down at the first trial. The panel said, as the lower court did, that Han played a central role in the process of declaring martial law and shook the constitutional order. It found him guilty of carrying out key tasks in the insurrection, including proposing that a Cabinet meeting be convened to make the declaration appear to have undergone normal deliberation, and trying to obtain after-the-fact signatures from Cabinet members after the declaration. The court also treated as participation in the insurrection Han’s actions on the day martial law was declared, when he discussed with former Interior and Safety Minister Lee Sang-min at the presidential office specific plans to carry out repression, including blocking major state institutions and cutting electricity and water to media outlets. As in the first trial, the court also convicted Han over allegations that, after martial law was lifted, he conspired with Yoon and former Defense Minister Kim Yong-hyun to sign and then discard a backdated proclamation drafted by former aide Kang Eui-gu to conceal legal flaws in the original declaration. The court found him guilty of making a false official document and violating the Presidential Records Act. However, unlike the first trial, the appeals court acquitted Han of perjury. The court said Han’s testimony at the Constitutional Court in February last year, when he appeared as a witness in the president’s impeachment trial and said he had not seen the martial law proclamation, was false. But it ruled that his answer to the effect that he did not see Kim hand the document to Lee was difficult to treat as perjury. The court, as the lower court did, did not view as key insurrection duties Han’s act of asking then-ruling People Power Party floor leader Choo Kyung-ho about the situation at the National Assembly after the declaration, or his attendance at an outside event as a stand-in at Yoon’s direction. It also maintained not-guilty rulings on allegations that Han delayed Cabinet deliberation after martial law was lifted and on a charge of using a false official document. Han’s lawyers said after the ruling that they could not accept the findings of fact or legal reasoning and indicated they would immediately appeal to the Supreme Court. The special counsel team told reporters that while the sentence fell short of the first-trial term, it viewed the decision as meaningful. The team said it would decide whether to appeal after reviewing the written judgment. 2026-05-07 11:32:11

KB Kookmin Card Creates Board-Level Consumer Protection Committee KB Kookmin Card said Thursday it has created a Consumer Protection Committee within its board of directors to strengthen its financial consumer protection function. The company said the move is intended to proactively implement the Financial Supervisory Service’s “best practices for financial consumer protection governance” announced in September last year and to make consumer protection a core management value. The new committee will set basic policies for building and operating an internal control system for financial consumer protection, deliberate and vote on the company’s consumer protection strategy and detailed action plans, and oversee the results of related in-house committees. The committee will meet regularly at least once every half-year and may convene additional meetings as needed to discuss key agenda items. KB Kookmin Card said it aims to embed consumer protection in the board, the company’s top decision-making body, and strengthen management and oversight. The company also established a VOC (Voice of Customer) executive council last year to more actively reflect customer feedback in its decision-making process. A KB Kookmin Card official said the new committee “clearly institutionalizes our commitment to make consumer protection the top value and a principle we must comply with proactively,” adding that the company will work to enhance consumer rights and trust through a companywide, prevention-focused consumer protection system. 2026-05-07 11:31:24

Ruling Party, Government Say 80% of High Oil Price Aid Paid Out; Price Cap Helped Curb Inflation The ruling party and the government said May 7 that relief payments aimed at easing household strain from high oil prices triggered by the Middle East war have been carried out at about the 80% level. They also said a price cap helped offset a significant share of inflation pressures. The Democratic Party’s special committee on economic responses to the Middle East war held its fifth meeting with the government at the National Assembly on May 7 to review measures including the high oil price relief program and the price cap. Rep. Ahn Do-geol, the committee’s secretary, told reporters after the meeting that about 3.8 trillion won of the 4.8 trillion won budget had been executed through the Ministry of the Interior and Safety, or roughly 80%. He said the key issue is whether the money is reaching eligible recipients, and by that measure 1.4 trillion won has been paid out, adding that the rollout appears to be proceeding smoothly. Ahn said that as tensions in the Middle East continue to push prices higher, the price cap on petroleum products and fuel tax cuts helped keep April’s inflation rate lower. “Without the price cap and fuel tax cuts, April’s inflation rate would have been 3.8 percentage points, 1.2 points higher than the 2.6 points actually recorded,” Ahn said. He added that the measures are helping reduce about one-third of the rise in prices. He said the government’s swift response to stabilize oil prices, which affect production costs and consumer prices, is helping keep living costs steady. The party and the government also said they received a briefing from the Financial Services Commission on lowering card transaction fees for gas stations. Ahn said card companies, gas stations and the Korea Petroleum Distribution Association presented sharply different positions and no conclusion was reached. He said further talks are needed and that the Democratic Party decided to work to mediate.* This article has been translated by AI. 2026-05-07 11:27:31

Trump Signals Iran Deal Could Be Reached Within a Week Ahead of China Trip U.S. President Donald Trump suggested the United States could wrap up negotiations with Iran to end the war before his planned trip to China, as reports said the two sides are discussing a memorandum of understanding. Trump also warned he would intensify military pressure if no deal is reached. According to The Wall Street Journal and other outlets, Trump told reporters at a White House event on Tuesday local time that Iran “cannot have a nuclear weapon and will not,” adding that Iran had agreed on that point “along with many other things.” He said the two sides had “very good talks over the last 24 hours” and that “there’s a very good chance” of an agreement. CNN and Axios reported the U.S. and Iran are discussing a one-page MOU aimed at ending the war. The reports said it would include a temporary halt to Iran’s nuclear enrichment, U.S. sanctions relief, and a gradual lifting of Iran’s closure of the Strait of Hormuz and the U.S. maritime blockade of Iran. In an interview with PBS, Trump said a deal would include removing Iran’s stockpile of highly enriched uranium to the United States and shutting down Iran’s underground nuclear facilities. Trump also raised the possibility of a deal before his planned China visit on May 14-15. Asked by PBS whether it could be concluded before he leaves, he replied, “Possible.” Axios, citing officials, reported the White House hopes the talks will be finished before Trump’s China trip ends on May 15. Fox News anchor Bret Baier said Trump told him in a previous call that he expected about a week to finalize the process. Baier said Trump expressed “cautious optimism.” Even as he highlighted progress, Trump warned of renewed bombing if Iran does not agree. In a post on Truth Social, he wrote that if Iran does not consent, “the bombing will start,” and that it would be “at a much higher level and intensity than before.” U.S. keeps maritime blockade on Iran The United States has kept up pressure by maintaining its maritime blockade of Iran despite the reported diplomatic progress. U.S. Central Command said it “enforced the blockade” against the tanker Hasna as it traveled through international waters toward an Iranian port in the Gulf of Oman at about 9 a.m. Eastern time Tuesday. Central Command said the Hasna ignored repeated warnings, prompting U.S. forces to fire a 20mm machine gun and disable its rudder. It said the ship is no longer sailing to Iran and that the U.S. blockade on vessels seeking to enter or leave Iranian ports “remains fully in effect.” The United States began the maritime blockade at 10 a.m. on April 13, aiming to block ship movements through Iranian ports in what it described as a countermeasure to Iran’s closure of the Strait of Hormuz. The U.S. has said the blockade, intended to increase economic pressure, will remain until an agreement is finalized. Trump has repeatedly said the blockade will not be lifted until a signed deal to end the war is in place. Iran, meanwhile, has officially introduced new maritime rules requiring all ships passing through the Strait of Hormuz to obtain prior transit permission starting May 5, leaving unresolved friction over reopening the waterway.* This article has been translated by AI. 2026-05-07 11:24:15

Israel Strikes Lebanon Again During Ceasefire, Raising Stakes for U.S.-Iran Talks Israel carried out another large-scale airstrike on Lebanon during a ceasefire, resuming clashes that could complicate emerging U.S.-Iran talks on ending the war. On May 6 (local time), Reuters and Al Jazeera reported that Israeli Prime Minister Benjamin Netanyahu and Defense Minister Israel Katz said in a statement that Israel had struck Lebanon. The reports said Israel used fighter jets and armed drones to hit Hezbollah’s elite Radwan force in southern and eastern Lebanon, with at least 13 people reported killed. Hezbollah said it retaliated against Israeli forces using armed drones. The strike came during a ceasefire between Israel and Lebanon. Under U.S. and other mediation, the sides observed a 10-day truce from April 17 to 26 and then agreed to an additional three-week ceasefire from April 26 to May 17. Still, Israel carried out airstrikes on Lebanon on May 2 and May 5, and the violence has continued. The latest attack is also expected to affect U.S.-Iran negotiations that are now seen as within reach. Hezbollah is part of the Iran-aligned “Axis of Resistance,” and Iran’s conditions presented to the United States include an end to Israeli hostile actions against Lebanon. As clashes between Israel and Lebanon intensify, the prospects for a U.S.-Iran deal appear to diminish, and Netanyahu has voiced opposition to the talks. Reuters said, “As Iran and the United States were saying they were getting closer to end-of-war talks, the strike is threatening the ceasefire agreement that had halted Israel’s airstrikes on Lebanon.” Analysts also said the ceasefire-era speculation about a possible summit between Lebanese President Joseph Aoun and Netanyahu has become less likely. Atlantic Council researcher Nicholas Blanford told Al Jazeera, “The image of President Aoun shaking hands with Netanyahu would have a very negative impact in Lebanon.” Clashes between Israel and Lebanon began after Hezbollah resumed attacks on Israel on March 2, shortly after the outbreak of the Iran war. Lebanon’s Health Ministry says Israeli attacks have killed about 2,700 people in Lebanon and displaced 1.2 million. Israel has said 17 soldiers and two civilians have been killed.* This article has been translated by AI. 2026-05-07 11:21:07