Budget Office to Prioritize Funding for Drones, Robots and Other Advanced Defense Capabilities The Budget Office said it will focus next year’s budget planning on securing advanced military capabilities such as drones and robots. On the 28th, the office held a meeting with officials from major defense companies at the Narakium conference hall in Seoul’s Yeouido district to discuss priority investment directions for the defense sector and ways to strengthen the defense industry ecosystem. K-defense exports have recently expanded, particularly to Europe and the Middle East, widening South Korea’s footprint in the global arms market. The office said, however, that as the market rapidly shifts toward advanced technologies and competition intensifies, there is a growing need to ensure export gains translate into sustainable industrial competitiveness. Company representatives at the meeting said the strategic importance of advanced weapons, including AI and drones, is rising and that major countries are increasing related budgets. They said South Korea also needs expanded investment to shift to advanced weapons systems and support for developing core technologies. Lee Je-hoon, the office’s director for administrative and defense budget review, said, “With the recent trend of declining troop numbers and changes in the nature of future warfare, fostering a smart, elite force through a transition to cutting-edge weapons systems is an important task.” He added, “When drafting the 2027 budget, we will make targeted investments in related funding to secure advanced capabilities, including unmanned-manned integrated systems such as drone and robot platforms, along with upgrading the Korean three-axis system.” Lee also said sustained global competitiveness for K-defense requires growth across the entire ecosystem, urging major firms to share results with smaller partner companies during project implementation and to help build a fair, mutually beneficial industrial environment. The Budget Office said it will use views raised at the meeting to refine defense investment priorities to be reflected in the 2027 budget proposal and the National Fiscal Management Plan (2026–2030).* This article has been translated by AI. 2026-04-28 13:57:45

Labor Minister Kim Young-hoon Pledges Stronger Laws to Involve Labor, Management in Preventing Industrial Accidents Kim Young-hoon, South Korea’s minister of employment and labor, said on the 28th that cutting industrial accidents begins with “basic respect for human life,” and pledged to focus on strengthening laws and systems so labor and management can take an active role in preventing workplace injuries and deaths. Kim made the remarks in a commemorative address after paying respects at the Industrial Accident Victims Memorial Tower in Boramae Park in Seoul’s Dongjak District. A ceremony was later held at the Korea Federation of SMEs in Seoul’s Yeongdeungpo District. Industrial Accident Workers’ Day was designated a statutory commemorative day in October 2024 to raise public understanding of industrial accidents and improve the rights of affected workers. Attendees included Kim; Kim Jeong-ho, chair of the National Assembly’s Climate, Energy, Environment and Labor Committee; other lawmakers; representatives of labor and management groups; and officials from government-affiliated agencies. Groups representing industrial accident victims and bereaved families, as well as award recipients, also took part. At the ceremony, the Dongtap Order of Industrial Service Merit was presented to Seok Chang-woo, head of the Korea Disabled Artists Association, who lost both arms in a high-voltage electrocution accident and later became an artist, staging performances at more than 200 events at home and abroad to help reduce social prejudice against injured workers. An Industrial Service Medal was awarded to Min Dong-sik, head of the Incheon Industrial Accident Association, who lost his left leg in a workplace explosion and has operated a rehabilitation support counseling center while running accident-prevention campaigns. Kim said that with nationwide efforts on industrial safety, combined with labor-management cooperation, fatal industrial accidents fell in the first quarter of this year. “If dedicated efforts have produced change in reducing serious accidents, we must now solidify that momentum,” he said. He added that the government will work to build a workplace culture that respects the life and safety of all people and help workers who have suffered industrial accidents return fully to their daily lives.* This article has been translated by AI. 2026-04-28 13:57:02

MachinaRocks CEO: Physical AI Is Moving Into Factories and Battlefields “From raw-material procurement to design, production, quality and supply, the future MachinaRocks envisions is ‘fully autonomous manufacturing’ powered by artificial intelligence,” CEO Yoon Sung-ho said. Speaking at the company’s headquarters in Seoul’s Gangnam district, Yoon described the goal as an expansion of “physical AI” — AI that operates directly in real-world environments — across industry. With physical AI drawing global attention, including from Nvidia and Tesla, Yoon said MachinaRocks is proving what is possible through deployments in the field. “People often think first of humanoids or self-driving cars, but it starts by making the countless machines already in factories and industrial sites intelligent,” he said. “From that perspective, manufacturing and defense are the areas that can become reality first.” Founded in 2017, MachinaRocks has grown by supplying AI solutions tailored to industrial settings that demand high performance, reliability and security, including automotive, semiconductors and defense. In AI-based design and optimization, it ranks second among South Korean companies in the number of patents held, the company said. It has recently begun demand forecasting for institutional investors as it moves forward with an initial public offering, drawing attention as part of this year’s wave of “AI IPOs.” ◆Physical AI expands to defense... “An ‘AI staff officer’ directs operations” Defense is another pillar of MachinaRocks’ push for autonomous manufacturing, Yoon said, because it also requires AI to function in physical environments. “Defense is not a question of whether we can do it well — it is an area we must do,” he said. He cited results in improving maintenance efficiency and said the work is expanding toward an “AI staff officer” role that helps with operational decisions on the battlefield. As low-cost weapons systems such as drones spread, Yoon said, performance increasingly depends less on hardware and more on how precisely systems are controlled and operated. In that structure, the AI onboard and how effectively it is used can determine differences in combat power, he said. To respond, he said the company plans to expand battlefield applications based on a tentative “Defense AI OS.” ◆Runway OS aims to help industrial AI cross the “valley of death” Even so, AI adoption in industrial settings often fails to cross the “valley of death” — the gap between technical validation and commercialization — because systems do not perform as expected in real-world conditions, Yoon said. “AI performance is doubling every seven months, but in complex and unpredictable environments like factories or combat zones, it is still not easy to apply,” he said. MachinaRocks has focused on implementing physical AI in practice, including by applying more than 6,000 AI models in industrial sites to build data, he said. At the center is its in-house AI operating system, Runway, designed to work across different equipment and environments — like iOS or Android — with industry-specific AI applications built on top. Yoon said the platform approach is changing the business model. Projects that once took more than a year can now be built in one to six months, he said. “We are shifting from a services-centered model to a platform structure that can generate recurring revenue,” he said, adding that profitability should improve as reusable applications increase. On security — a sensitive issue in manufacturing and defense — Yoon said there is no room for compromise. “In these fields, 60% to 70% accuracy is meaningless; precision and reliability close to 99% are required,” he said. “Situations where confidential data leaks outside or AI goes beyond its control range can never be allowed.” He said Runway is designed to operate in closed networks to meet such mission-critical requirements. ◆Global push built on “K-manufacturing references”... “Confident of break-even in 2027” MachinaRocks is also accelerating overseas expansion. Within a year of entering Japan, it signed four contracts with major manufacturers, and in Europe it is working with a subsidiary of Germany’s Kuka Robotics, Yoon said. He said references built with South Korean companies that lead in autos, batteries and semiconductors are a strong trust asset in global markets, and that overseas firms are moving quickly because the technology has already been proven. Yoon described Japan as a large manufacturing market with relatively low AI use, where demand could grow quickly. He cited Japanese government efforts to expand AI adoption and develop talent as factors accelerating digital transformation, and said MachinaRocks aims to rapidly build a customer base centered on major local manufacturers. Funds raised through the IPO will be used to advance technology and secure an early position in global markets, he said. A tentative “dark factory OS,” intended to let AI autonomously run an entire plant, is a core technology for realizing fully autonomous manufacturing, he said, with investment planned for research and development and for expanding global bases including North America and Japan. Yoon also set a profitability target. “If expansion based on the AI OS proceeds as planned, reaching break-even in 2027 is possible,” he said. “Given our current growth and market demand, it is a realistic goal.” “Physical AI is not a distant future — it has already begun,” Yoon said. “From factories to the battlefield, we will create a new industry standard through AI that operates in real environments.”* This article has been translated by AI. 2026-04-28 13:55:59

HD Hyundai Electric Q1 2026 Operating Profit Rises 18.4% to 258.3 Billion Won HD Hyundai Electric said in a regulatory filing on the 28th that it posted first-quarter 2026 revenue of 1.0365 trillion won and operating profit of 258.3 billion won. Revenue rose 2.1% from a year earlier and operating profit climbed 18.4%. The operating margin was 24.9%. By product, growth was led by the power equipment segment. Power equipment revenue rose 21.6% from a year earlier, supported by expanded performance in North American power transformers. Revenue from rotating machinery increased 10.8% on strong demand for marine products. Revenue from distribution equipment fell 24.2%, the company said, citing a base effect from large distribution-transformer deliveries a year earlier and delayed shipments of low-voltage circuit breakers due to geopolitical risks in the Middle East. By market, North America revenue increased 26.6% from a year earlier, driving overall growth. In Europe, revenue fell from the previous quarter due to a high base but rose 17.0% from a year earlier. First-quarter orders totaled $1.797 billion, up 34.6% from a year earlier, meeting 42.6% of its annual order target of $4.222 billion. The order backlog stood at $7.888 billion, up 17.2% from the end of last year. An HD Hyundai Electric official said the company is maintaining a selective order strategy focused on profitability, while orders continue to rise on demand tied to the spread of AI data centers and replacement needs for aging power grids. The official said the company will complete expansions at its Ulsan plant and its North American production subsidiary without disruption to sustain solid growth. Separately, the company said it will pay a quarterly cash dividend of 1,300 won per common share. The total dividend is 46.8 billion won. The record date is May 13 and the payment is scheduled for May 27.* This article has been translated by AI. 2026-04-28 13:55:09

Kim Yong Accepts Democratic Party’s Decision to Drop Strategic Nomination Bid Kim Yong, former deputy director of the Democratic Research Institute, said on the 28th that he “accepts the party’s decision with a heavy heart” after the Democratic Party’s strategic nomination for the upcoming by-election was scrapped, but urged supporters to back the party and “declare a firm resolve to end the aftermath of an insurrection” through the vote. Speaking at a news conference at the National Assembly that afternoon, Kim said he would respect the party’s deliberations and “strategic judgment” and would “serve without rank.” “If my sacrifice becomes a foundation for the success of the Lee Jae-myung government and the Democratic Party’s victory, I will step aside gladly,” he said. Kim again claimed prosecutors had brought a fabricated case against him and said he would fight it to the end. “The indictment against me is clearly a fabrication by political prosecutors and a petty political retaliation,” Kim said. “If I collapse here, it will set a precedent that a manipulated investigation can win.” He added, “I will not stop, and I will prove it to the end. I will break the prosecution’s fabricated indictment and devote myself from the lowest place for the success of the Lee Jae-myung government.” Kim also thanked his supporters and asked for backing for the June 3 local elections and the by-elections. “Because there are party members who believe in my innocence, I am not alone,” he said. “As a comrade standing by your side, I will start again.” He again called on voters to “declare a firm resolve to end the aftermath of an insurrection” and to “declare a great leap forward for South Korea.” Kim had signaled his intention to run in the Gyeonggi Province area starting with a media briefing on the 13th. About 60 lawmakers within the party were reported to have urged Kim’s nomination, and the leadership was said to be weighing whether to nominate him. But on the 27th, the party’s strategic nomination committee decided not to nominate him, citing concerns it could affect the by-election, leaving Kim unable to run.* This article has been translated by AI. 2026-04-28 13:50:38

Korea Venture Investment CEO Lee Dae-hee Pledges Bigger Role for Fund of Funds, More Private Capital "Korea Venture Investment will continue to support the growth of ventures and startups as a single investment platform," CEO Lee Dae-hee said on the 28th. Speaking at a briefing to mark one year in the job, Lee reviewed the past year and outlined operating strategy and a longer-term vision for the government-backed fund of funds, known as the Motae Fund. He said the organization will expand its role beyond serving contributing institutions, aiming to connect capital with markets and link regions with global opportunities, building on the fund’s 20-year track record. Lee said he moved quickly to address what he had highlighted upon taking office: the issue of the Motae Fund’s duration. Launched in 2005, the fund of funds has been formed at a cumulative 43.9 trillion won over 20 years, and a law revision passed by the National Assembly last year made it possible to extend the fund in 10-year increments. "It must play a practical role in supporting the growth of ventures and startups, beyond supplying money to the venture investment market," he said. Lee said the centerpiece of the strategy is expanding private investment. To raise the share of private pensions and overseas capital, he proposed upgrading the framework for an "LP (limited partner) growth fund." He said the goal is a virtuous cycle in which private capital becomes a core driver of the venture market. Korea Venture Investment has also set up incentive structures to encourage industrial capital, including large companies, to participate in the venture market, widening channels for private money. It has regularized a policy forum for the Motae Fund and, through a venture investment research center, strengthened the management of market indicators and related data to better explain policy to the National Assembly and the government. Based on those efforts, it committed 2.2195 trillion won last year, helping form venture funds totaling 4.4751 trillion won, and a total of 3.0995 trillion won was invested, the company said. As of February, the number of global funds had expanded to 84. The company said it is also broadening the foundation for Korean ventures and startups to expand overseas through efforts including the Jeju Startup Fund, formed with Korean and Japanese contributors including overseas Koreans, and the opening of a Silicon Valley Startup Venture Campus (SVC). On regional investment, it said it formed four regional parent funds totaling 400 billion won in 2025. For 2026, it plans five regional growth funds totaling 450 billion won, as it accelerates efforts to expand investment outside the Seoul metropolitan area. "If the past year was a time to set the direction, the next year will be a time to prove that direction with real results," Lee said. "Korea Venture Investment will strengthen its role as a venture investment platform that connects capital, connects markets, and connects regions with the world."* This article has been translated by AI. 2026-04-28 13:45:19

FSS chief urges outside directors to step up oversight at regional financial groups Lee Chan-jin, head of South Korea’s Financial Supervisory Service, told newly appointed outside directors in the financial sector that they should “fairly and objectively represent shareholders’ interests” and actively check and monitor management. Lee spoke on April 28 at the Korea Banking Institute in central Seoul, appearing as the first lecturer in a new outside-director training program run by the Korea Banking Institute. He said the role of outside directors is “more important than ever” if financial companies are to carry out their core functions. “Transparent governance helps minimize principal-agent problems between shareholders and management, raising shareholder value and ultimately building trust in the financial industry,” Lee said, calling outside directors central to transparent and fair governance. He also cited repeated cases of consumer harm, including misselling, and the concentration of financial resources in real estate, saying the low-growth trend underscores the need to shift toward more productive finance. Lee said the FSS would provide institutional support, including reflecting board-level feedback on sound governance in its supervision and inspections. After the lecture, the FSS signed a memorandum of understanding with three regional financial holding companies — iM, BNK and JB — to train and strengthen outside directors. The move follows a February agreement last year with five major financial holding companies: KB, Shinhan, Hana, Woori and NH NongHyup. Attendees included BNK Financial Group Chairman Bin Dae-in, who won a second term last month, along with iM Financial Group Chairman Hwang Byung-woo and JB Financial Group Chairman Kim Ki-hong. Under the agreement, the Korea Banking Institute will add topics tailored to regional holding companies to its outside-director curriculum and introduce remote learning to improve access for directors living outside Seoul. The FSS and the Korea Federation of Banks said they plan to encourage active participation across the financial sector. 2026-04-28 13:43:12

Chey Tae-won urges Korea-Japan economic bloc to compete in U.S.-China AI race Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry and chairman of SK Group, on April 28 urged South Korea to pursue cooperation with Japan at a level approaching economic integration as a response to U.S.-China competition for dominance in artificial intelligence. Speaking at the Korea-China Parliamentary Association’s first 2026 policy seminar at the National Assembly Members’ Office Building, Chey said South Korea “must no longer remain a country that simply follows rules between the United States and China.” He argued that keeping influence in the rivalry will require strengthening technological competitiveness while also expanding the country’s economic reach. Chey described U.S.-China tensions as structural and unlikely to end quickly. “The U.S.-China hegemonic competition is highly likely to continue for decades,” he said, adding that South Korea should “coolly” assess whether it has enough strength to defend itself. As a practical alternative, he proposed strategic cooperation with Japan. “Japan has an industrial structure similar to ours and is a country with which we can share interests,” he said. “Beyond simple cooperation, we need solidarity at a level that is recognized from the outside as a single economic bloc.” He said combining the gross domestic product of South Korea and Japan would total about $6 trillion, or roughly one-third of China’s economy. At that scale, he said, the United States and China “would have no choice but to take it seriously.” Chey said stronger Korea-Japan ties could reshape the broader Asian order. He said that if the partnership deepens, Asian countries excluding China could be drawn toward joining an economic bloc centered on the two nations. Over the long term, he said, an “Asian-style community model” similar to the European Union could also be considered. Chey also listed key competitive factors in the AI era as capital, electricity, GPUs (graphics processing units) and memory, and stressed the need for investment to secure large-scale data centers and energy infrastructure. “To do AI well, you need the ability to produce AI, but South Korea currently does not have a great AI data center,” he said. To overcome that, he said, building 1 gigawatt would require about $50 billion in investment. As a strategy for success in the AI technology supremacy era, Chey cited “speed, scale and security.” He said products should be built quickly even if imperfect to attract users, and that a minimum scale must be secured. To do that, he said, it is necessary to follow the strategy of Nvidia, which currently leads the AI industry ecosystem. The Korea-China Parliamentary Association is a bipartisan parliamentary diplomacy platform made up of 145 lawmakers from both the ruling and opposition parties. It has continued policy discussions through seminars and parliamentary diplomacy across areas including foreign affairs, the economy, advanced industries and culture.* This article has been translated by AI. 2026-04-28 13:42:18

Daewoo E&C hits 52-week high as surprise Q1 profit jump lifts shares 17% Daewoo Engineering & Construction shares surged after the company reported a surprise earnings beat. According to the Korea Exchange, Daewoo E&C was trading at 39,000 won as of 1:25 p.m. on the 28th, up 17.47% (5,800 won) from the previous session. The stock earlier climbed to 39,850 won, setting a new 52-week high. Daewoo E&C said its first-quarter operating profit rose 68.9% from a year earlier to 255.6 billion won. Revenue fell 6% to 1.9514 trillion won, while net profit jumped 237.6% to 195.8 billion won. The operating profit topped market expectations, marking the first time in 14 quarters the company posted operating profit in the 200 billion-won range. The company said profitability in its building construction business improved as projects launched during a period of rising construction costs were completed in sequence. Daewoo E&C said it plans to expand orders centered on energy infrastructure such as nuclear power plants and liquefied natural gas (LNG), as well as overseas urban development, data centers and urban renewal projects. Lee Eun-sang, an analyst at NH Investment & Securities, said Daewoo E&C is the most likely to participate as a construction partner in Team Korea. He added that with additional construction cooperation in the United States and Vietnam in mind, cost negotiations in the Czech Republic will be important, and Daewoo E&C has leverage because few domestic builders have lead-underwriter construction experience.* This article has been translated by AI. 2026-04-28 13:36:16

From stillness to spectacle: spring festivals at palaces in Seoul SEOUL, April 27 (AJP) -Once defined by stillness, Seoul’s royal palaces are learning how to absorb noise and hordes of outsiders. At Gyeongbokgung Palace, the gravel crunches not under a lone guard’s step but beneath waves of visitors — cameras raised, hanbok skirts sweeping past sneakers, languages overlapping in the spring air. What was once a space of restraint now pulses with movement. The 2026 Spring Royal Culture Festival has made that shift unmistakable. Across the palaces and Jongmyo Shrine, heritage is no longer observed at a distance. It is entered, performed, photographed — and shared. At Changgyeonggung Palace and Gyeonghuigung Palace, performances unfold where court life once followed rigid protocol. At Jongmyo, the solemn strains of ancestral ritual music now meet the gaze of an audience, not just the spirits they were meant to honor. The question is not whether the palaces have changed — they have — but what they are becoming. They are no longer sanctuaries of quiet history. Nor are they merely tourist sites. They sit somewhere in between: cultural stages, memory factories, shared spaces where history is continuously reinterpreted. In a city moving at relentless speed, the palaces have not resisted change. They have absorbed it — trading solitude for relevance, and silence for life. 2026-04-28 13:31:41