OECD Raises South Korea's Growth Forecast to 2.6% Amid Semiconductor Boom The OECD has projected that South Korea's economy will grow by 2.6% this year, driven by a surge in semiconductor exports. According to the Ministry of Finance and Economy on June 3, the OECD raised its growth forecast for South Korea by 0.9 percentage points in its World Economic Outlook report. This marks the largest increase among the G20 nations. However, the forecast for next year has been lowered by 0.2 percentage points to 1.9%. Previously, the South Korean government, the Bank of Korea, and the Korea Development Institute (KDI) had also revised their growth forecasts for this year to the mid-2% range. Reflecting the economic boom, the KOSPI index has surpassed 8,000, and the current account surplus for the first quarter reached a record $73.3 billion. The OECD noted that the expansion in exports, particularly in semiconductors, has propelled overall economic growth and private investment in South Korea. It also projected that consumer spending will gradually recover, with both prices and volumes of exports increasing since the beginning of the year. Private investment has significantly benefited from the semiconductor sector. The OECD stated, "Private investment in South Korea is increasing, particularly in semiconductors," and added that by the end of this year, investment growth is expected to spread to other sectors, maintaining a strong performance. It also forecasted a gradual recovery in consumer spending from this year into next year, influenced by supplementary budget measures. The nominal economic growth rate for this year, adjusted for the GDP deflator, is expected to be 10.4%, while the general government debt-to-GDP ratio has been revised down by 4.8 percentage points to 50.2% compared to projections made last December. Consumer prices are anticipated to average 2.6% this year, influenced by the ongoing conflict in the Middle East. However, inflation rates are expected to return to target levels starting next year. The OECD believes that measures such as the maximum price cap on oil products and reductions in fuel taxes will help alleviate inflationary pressures caused by energy supply shocks. Nonetheless, an OECD official cautioned that these measures could increase the persistence of inflationary pressures and recommended a gradual phase-out. In contrast, the global economic outlook remains bleak. The OECD has lowered its global growth forecast for this year to 2.8%, down 0.1 percentage points from its March estimate. It attributed this downgrade to soaring energy prices and trade disruptions caused by the blockade of the Strait of Hormuz. Major economies, including the United States (2.0%), the Eurozone (0.8%), and Japan (0.6%), are expected to experience slower growth due to the impact of the conflict in the Middle East. Inflation rates for G20 countries are projected at 4.0% this year and 3.1% next year. The prolonged conflict in the Middle East is identified as the biggest downside risk to global economic growth. Should the war continue, global growth could decline by as much as 0.7 percentage points, while inflation could rise by 0.4 percentage points. Conversely, an early resolution to the conflict and increased global demand for artificial intelligence (AI) are expected to positively influence global economic recovery. An OECD official emphasized the need for monetary policy to address inflationary pressures and called for measures to expand the tax base to alleviate long-term fiscal burdens. He also highlighted the necessity for structural reforms across society, including diversifying energy supply chains.* This article has been translated by AI. 2026-06-03 16:03:00

President Lee Encourages Voter Participation on Election Day President Lee Jae-myung reiterated his call for voter participation on June 3, emphasizing real estate issues. This marked his fourth post on social media on election day.In a post on X (formerly Twitter), President Lee stated, "Housing prices and real estate in South Korea are already excessively high. Although the proportion of real estate in the assets held by citizens has decreased, it remains too high."He shared statistics from Global Property Guide, which compared nominal housing price changes in major Asian countries over the past year based on data from national statistical offices and central banks. According to the report, Vietnam saw the highest increase in housing prices at 24.3%, followed by Hong Kong at 9.8%, Tokyo at 8.2%, India at 3.6%, and Singapore at 3.4%.South Korea's housing price increase was recorded at 1.8%, similar to Malaysia at 1.7%, the Philippines at 1.6%, Thailand at 1.2%, and Indonesia at 0.6%.President Lee noted, "One of the reasons the South Korean stock market remains undervalued is that we must escape from being a speculative real estate republic and transition into a startup nation, developing into an irreplaceable core country."He concluded by encouraging participation in the elections, stating, "Choosing capable and loyal representatives will create a democratic republic of Korea that we can truly be proud of to the world."* This article has been translated by AI. 2026-06-03 16:03:00

Next President of the Credit Finance Association to Be Decided The next president of the Credit Finance Association will be revealed on June 4. Following the expiration of current President Jeong Wan-kyu's term in October of last year, the selection process has been delayed for about eight months, but it is now nearing completion. Recently, Kim Ki-hwan, former CEO of KB Insurance, was nominated as a candidate for the next chair of the Fire Insurance Association, raising interest in whether candidates with industry experience from private financial firms will gain traction in the Credit Finance Association election as well. According to the credit finance industry on June 3, the association will hold its second presidential candidate recommendation committee meeting on June 4 to decide on a single candidate for the next president. The committee will interview three final candidates: Park Kyung-hoon, former CEO of Woori Financial Capital; Yoon Chang-hwan, former policy chief for the National Assembly Speaker; and Lee Dong-cheol, former CEO of KB Kookmin Card. Each candidate will undergo a 40-minute interview. Following the interviews, the 15-member committee will conduct a secret ballot, and the candidate who receives more than eight votes will be recommended as the sole candidate. This candidate will then be confirmed as the next president if they receive a majority vote at the general meeting later this month. A notable aspect of this selection process is the absence of candidates from traditional financial regulatory backgrounds among the final contenders. Historically, the presidency of the Credit Finance Association has often been held by individuals with experience in financial authorities. However, this time, the competition is between two candidates from private financial firms who have led the capital and card sectors and one candidate with a background in policy and legislative affairs. Industry sentiment appears to favor the competition between candidates with industry experience, such as Park and Lee. Park has served as CEO of Woori Financial Capital after working at Woori Bank and Woori Financial Group. He is currently an outside director at Hanwha Savings Bank. Lee has held various roles, including vice president of strategy at KB Financial Group and CEO of KB Kookmin Card, and is noted for his strong understanding of issues in the credit finance sector due to his experience in both capital and card industries. Yoon, on the other hand, has served as policy chief for the National Assembly Speaker and as head of the AI policy task force for presidential candidate Lee Jae-myung. While his direct experience in the credit finance sector is relatively limited, he is evaluated as having strong capabilities in public relations at a time when responsiveness to the National Assembly and policy matters is crucial. The credit finance industry is currently facing several challenges, including card fees, funding costs, competition with big tech payment providers, and the soundness management of capital companies. Given the differing interests among various sectors, the next president will need not only the ability to communicate with financial authorities and the National Assembly but also a practical understanding to address member companies' issues. There is a growing interpretation in the financial sector that recent selections for association leadership have highlighted the importance of industry experience and practical leadership. In the Fire Insurance Association's chair selection, a candidate from the Financial Supervisory Service was included in the final interview, but ultimately, Kim, a former representative of a non-life insurance company, was recommended as the final candidate. With industry experience being favored in this first selection of an association president under the Lee Jae-myung administration, it is anticipated that candidates from private financial firms will also gain support in the Credit Finance Association election.* This article has been translated by AI. 2026-06-03 16:03:00

Jensen Huang and Choi Tae-won Strengthen Global AI Factory Alliance Choi Tae-won, Chairman of SK Group, and Jensen Huang, CEO of NVIDIA, reaffirmed their global artificial intelligence (AI) memory collaboration, solidifying their strategic alliance toward building an 'AI factory.' Their goal is to combine NVIDIA's AI chip design technology with SK Group's memory infrastructure to capture the next-generation AI data center market. According to industry sources on June 3, Choi and Huang met the previous day at Computex 2026 in Taiwan, where they toured the SK Hynix exhibition booth and examined key AI memory technologies and products. After the tour, Huang left a witty yet urgent message on a seventh-generation high-bandwidth memory (HBM4E) wafer, stating, "Please make more." This underscores the necessity of SK Hynix's memory infrastructure for the successful implementation of NVIDIA's next-generation AI accelerator designs. Huang also drew attention by writing "I love LPCAMM" on SK Hynix's 192GB low-power memory product. Speaking with South Korean reporters, he remarked, "Korea is the most important part of our AI semiconductor ecosystem. We have much to do together beyond just supplying chips and DRAM, including in science, robotics, and the AI factory sector." This indicates NVIDIA's intention to collaborate with Korean companies to create a next-generation AI hub that integrates AI infrastructure and software. However, Huang expressed concerns about the memory supply situation, stating, "We have secured supply chains in all areas, including HBM4, post-packaging, and silicon photonics, but we are still facing shortages." In response, Choi immediately pledged significant infrastructure investments and outlined his vision. He diagnosed that the expansion of AI infrastructure would lead to memory bottlenecks and shortages continuing until 2030. Choi declared, "We will double SK Hynix's total wafer production capacity within the next five years." Considering that building a new semiconductor fab takes at least three to five years, this proactive investment aims to fully absorb NVIDIA's explosive demand. Choi also actively embraced Huang's 'AI factory' agenda, indicating a transformation within SK Group. He emphasized, "Currently, we are merely a parts supplier producing memory chips for AI, but in the future, we want to directly challenge the production of AI factories that refine and generate intelligence." An AI factory refers to a next-generation data center that processes raw data to deliver advanced intelligence services. This reflects SK Hynix's ambition to evolve from a simple hardware supplier to a comprehensive AI infrastructure partner supporting NVIDIA's AI designs. However, Choi clearly stated that overcoming structural obstacles related to funding, power, and equipment supply over the next decade will be a challenge. To address this, SK Hynix plans to strengthen its collaboration within the AI memory ecosystem, including local supply chains such as TSMC and Foxconn.* This article has been translated by AI. 2026-06-03 16:03:00

Nikkei storms past 68,000 to record as chip-equipment makers lead AI rotation; Shanghai flat SEOUL, June 03 (AJP) - Japan's Nikkei 225 stormed past 68,000 for the first time in its history on Wednesday, closing up about 2.5 percent at around 68,400, as a fresh leg of the global AI trade reignited by record highs on Wall Street rotated decisively into the semiconductor equipment makers. With South Korea's markets closed for the national election, Tokyo carried the regional session while China's Shanghai Composite finished essentially flat at around 4,077. The detail that mattered most in Tokyo was not the size of the advance but its composition. The engine was the so-called picks and shovels of the AI buildout, the companies that make the machines that make the chips. Tokyo Electron soared about 13 percent to around 60,700 yen, the single biggest force behind the record, while Advantest, the chip-testing specialist, added about 5 percent to around 27,700 yen. The twist was that the rally's recent leaders sat it out. SoftBank Group, the AI-investment proxy that had surged to become Japan's most valuable listed company earlier in the week, fell about 3.5 percent to around 8,300 yen as investors took profits and rotated elsewhere. Even Toyota Motor, which had borne the brunt of the week's selling, bounced nearly 2 percent to around 2,900 yen. Wednesday's record was not the familiar SoftBank-led charge but a rotation within the AI trade, out of the high-flying proxy and into the equipment names that supply the industry. The move carried a currency tailwind, with the dollar pushing briefly above 160 yen, a weak-yen boost for Japan's exporters. With the yen near 160, the pressure on the Bank of Japan to raise rates at its June meeting only builds, a tension that has shadowed the Tokyo rally for weeks. Crude, meanwhile, rose more than a dollar a barrel after the week's de-escalation narrative sharply reversed. Secretary of State Marco Rubio told a Senate committee that Iran has mined large segments of the Strait of Hormuz, a concrete escalation that undercut the draft framework to reopen the waterway that markets had been pricing since late May. The reversal restores precisely the imported-inflation risk that has driven central-bank caution across the region, and it will greet Korean markets when they reopen Thursday. China's Shanghai Composite finished essentially unchanged at around 4,077, once again failing to join the records being set in Tokyo, but the flat headline concealed a movement that echoed Japan's theme: the chip names led. Cambricon, the domestic AI-chip champion often likened to Nvidia, jumped about 5.5 percent to around 1,370 yuan, the standout of the session. NAURA Technology, China's own semiconductor-equipment maker, rose about 1 percent to around 609 yuan, a more modest move than Tokyo Electron's but the same picks-and-shovels logic taking hold, while SMIC, the country's largest foundry, was little changed near 133 yuan. CNOOC, the state oil producer, climbed about 2.5 percent to around 36 yuan as crude firmed on the Hormuz escalation. Gains in chips and oil were enough to keep Shanghai green, but only just, as old-economy names continued to weigh. Across both of the day's open markets, the same signal stood out: the AI rally is maturing and rotating toward the equipment makers, even as crowd favorites like SoftBank pause for breath. That is what a broadening rather than a breaking rally looks like. The questions from here are whether the Bank of Japan moves in June, whether Shanghai can finally join a regional advance it has watched from the sidelines, and how Korean markets, reopening Thursday into a fresh oil shock, absorb a Hormuz reversal that lands just as the Bank of Korea was beginning to see currency relief. 2026-06-03 15:49:35

Lee Joong-geun's Philosophy of Honor: Remembering and Respecting for a Strong Nation One act of kindness can be an event, but over 30 years of practice becomes a philosophy. Recently, the Booyoung Group announced it would offer discounts on resorts, hotels, and golf courses to families with a history of military service, drawing attention. Some view this as a meaningful social contribution, while others question whether it serves as corporate promotion. Regardless, the discount itself is not the main focus; what truly deserves attention is the long-standing philosophy of honor demonstrated by Booyoung Group Chairman Lee Joong-geun. Corporate social contributions often end up as one-time events. Donations made on anniversaries, sponsorship of specific events, and distribution of promotional materials mark the conclusion. While these actions hold significance, a philosophy is characterized by repetition and sustainability. A single act of kindness may be an event, but decades of practice form a philosophy. Chairman Lee's veteran support cannot be explained by the discount for military service families alone; it must be understood as part of a long history of various activities, including support for national merit holders, honoring veterans, sponsoring military personnel, aiding veteran organizations, and promoting historical education. Honoring veterans is not just about remembering the past; it is about safeguarding the future. In our society, veteran support is often viewed through the lens of welfare, understood primarily as helping those who sacrificed for the nation. While this role is important, the essence of veteran support extends beyond that. Veteran support reflects a community's choice about what to remember and respect. A society that fails to honor those who sacrificed for the nation inevitably weakens the values of responsibility and dedication that sustain the community. Conversely, a society that respects sacrifice and dedication fosters stronger solidarity and a sense of responsibility, even in times of crisis. This is why major developed countries honor veterans and military personnel. A strong military derives from weapons and budgets, but robust security is rooted in culture and values. Veteran support is not merely a commemoration of the past; it is an investment in preparing for the future. In this context, support for military service families carries significance beyond simple discounts. It symbolizes society's respect and recognition for families where three generations have faithfully fulfilled their military duties. While this alone may not strengthen national security or enhance K-defense competitiveness, it undeniably contributes to fostering a societal atmosphere that respects those who have dedicated themselves to the nation. Today, businesses share the responsibility of the community. Modern corporations are not just profit-generating entities; they are members of a community with social influence. They create jobs, pay taxes, and transform local communities. Therefore, they are expected to fulfill both legal and social responsibilities. In the realm of veteran support, companies may find it challenging to anticipate promotional benefits. This area differs from sectors like environmental initiatives, cultural arts, or sports sponsorships, which enjoy greater public exposure. Nevertheless, Chairman Lee's long-standing interest in veteran support is commendable. When corporate social contributions evolve from one-time events into a management philosophy, social trust grows. The same applies to Chairman Lee. Support for military service families should not be seen as a sudden idea but rather as a facet of a long-standing philosophy of honor. While veteran support and defense industries may seem like different paths, they ultimately lead to the same destination. Aju Economy deeply resonates with this awareness. The organization has been hosting a literary contest to commemorate the lives, sacrifices, and spirit of those who dedicated themselves to the nation. Additionally, through defense forums, it has continuously highlighted the future of K-defense and the importance of national security. If the literary contest serves to reflect on the spiritual values of security, the defense forum can be seen as a platform to discuss the industrial foundation of security. Although veteran support and defense may appear as distinct areas, they converge on the same question: how to inherit and develop the strength that protects the nation. Remembering those who have dedicated themselves to the nation and fostering industrial capabilities to safeguard it are both efforts to sustain the community. In this regard, Aju Economy views Chairman Lee's actions not merely as corporate marketing but as a practice of community values that society must collectively contemplate. South Korea is currently emerging as a top 10 global economy and a leading defense powerhouse. However, national strength cannot be completed solely through economic and military power. A culture that remembers and respects those who have dedicated themselves to the nation is essential for sustaining community strength. Businesses grow through profit, but respect arises from values, not numbers. The discount for military service families may be a small initiative, but the philosophy and practice behind it over the past 30 years are anything but insignificant. Chairman Lee's message to our society is clear: veteran support is not a cost but an investment in the community. This message is a question that today’s South Korea must reflect upon once again: Are we truly remembering those who have dedicated themselves to the nation?* This article has been translated by AI. 2026-06-03 15:45:00

Microsoft Unveils Seven New AI Models, Including First Inference Model Microsoft (MS) has announced the launch of seven new AI models, including its first inference AI model, as part of its efforts to strengthen its independent AI ecosystem. On June 3, during its annual developer event, Microsoft Build 2026, the company unveiled updates to its platform for developing and operating AI agents and applications. Mustafa Suleyman, CEO of MS AI, introduced the new MAI model lineup, which includes the 'My Thinking-1' inference model. The newly announced MAI models cover various areas, including inference, coding, image editing, and voice, featuring: △Inference (My Thinking-1) △Coding (My Code-1 Flash) △Image Editing (My Image 2.5 & My Image 2.5 Flash) △Voice Transcription (My Transcribe 1.5) △Voice Generation (My Voice-2 & My Voice-2 Flash). The My Thinking-1 model, Microsoft's first inference model, is a mid-sized model with 35 billion active parameters. It was trained from scratch using enterprise-grade commercial license data, without a distillation process from other models. It features a 256K context window and excels in executing complex multi-step instructions, long-context inference, and code generation. The model is designed for high efficiency and performance at a low token cost. The image generation and editing model, My Image 2.5, along with its Flash version, was also revealed. My Image 2.5 is an improved version of the image generation model released by Microsoft in April, supporting both text-based image generation and image editing tasks. The voice transcription model, My Transcribe 1.5, supports 43 languages, while the voice model, My Voice-2, offers over 15 additional languages and new voice options. The coding model, My Code-1, is optimized for GitHub and can be used with Copilot and Visual Studio Code. Alongside the model announcements, Microsoft has also enhanced its agent development environment. The new context layer, 'Microsoft IQ,' integrates internal corporate knowledge with external information across GitHub Copilot, Microsoft Foundry, and Copilot Studio. The company also introduced a personal work agent called 'Microsoft Scout,' which understands user workflows and assists with meeting preparations, scheduling conflicts, and repetitive tasks using tools like Teams and Outlook. Industry analysts suggest that Microsoft is shifting its strategy to reduce reliance on external AI models while simultaneously developing its own models and platforms. Unlike its previous focus on expanding generative AI services through collaboration with OpenAI, Microsoft is now clearly moving to enhance its own model and platform capabilities. Since 2019, Microsoft has invested approximately $13 billion in OpenAI, maintaining a collaborative relationship. Microsoft has provided substantial cloud computing resources and integrated OpenAI's research outcomes into its services and cloud ecosystem. However, following the growth of ChatGPT, OpenAI has begun establishing its own infrastructure, leading to changes in the interests of both parties. In October of last year, during OpenAI's restructuring into a profit-oriented public benefit corporation (PBC), Microsoft's stake was adjusted from 32.5% to 27%. This shift indicates that Microsoft is accelerating its own AI model development while maintaining collaboration with OpenAI, but placing greater emphasis on building an independent ecosystem. Analysts expect Microsoft to focus on enhancing cost efficiency and control in enterprise environments. Satya Nadella, Microsoft CEO and Chairman, emphasized that the core of this announcement is not about a single technology but about supporting value creation and expansion on a platform that spans from edge to cloud in the AI stack.* This article has been translated by AI. 2026-06-03 15:45:00

Opposition leader slams South Korean president on election day SEOUL, June 03 (AJP) - South Korea's main opposition leader Jang Dong-hyeok launched a sharp election-day attack against President Lee Jae Myung on Wednesday, accusing him of illegal campaigning and severe economic mismanagement. Speaking during a final election committee meeting at the National Assembly, the conservative leader urged voters to cast their ballots as an act of constitutional self-defense against the government. The address underscored the bitter polarization surrounding the nationwide local elections and parliamentary by-elections, which serve as a critical midterm referendum on the one-year-old presidency. A strong showing for the opposition could block the administrative momentum of the ruling Democratic Party of Korea, while a loss threatens to trigger immediate internal disputes over political accountability. Jang asserted that the president committed serious legal violations that warrant impeachment. The former prosecutor specifically claimed that Lee allegedly displayed a marked ballot to television cameras. The opposition leadership also linked the political standoff to broader economic anxieties, arguing that the administration prioritized political survival over public livelihoods. The former prosecutor warned that unchecked government policies would worsen financial conditions, creating what he described as a difficult environment of high interest rates, high inflation, and volatile exchange rates. Pointing to the high voter turnout reported throughout the day, the People Power Party interpreted the long lines at polling stations as a sign of public dissatisfaction. Jang told supporters that staying away from the polls was equivalent to surrendering personal property, wages, and fundamental freedoms. People Power Party chief spokesperson Park Sung-hoon stated that voters intent on protecting their daily routines would continue to drive participation until the polls closed. 2026-06-03 15:30:39

Photos of Ballots Shared in Open Chat Room for Election Fraud Monitoring On June 3, during the main voting day of the 9th nationwide local elections, numerous photos of ballots and polling places were shared in a KakaoTalk open chat room established for the purpose of monitoring election fraud. According to Yonhap News, the chat room, which has over 300 participants, saw real-time uploads of photos of ballots and ballot count sheets recording the number of voters from the start of voting that morning. The shared count sheets included the names of polling stations and observers, along with the number of voters. At the bottom of the documents, the phrase 'Joint U.S.-Korea Fraud Investigation Team' was noted. Some photos reportedly included images of ballots that had been marked but were subsequently deemed invalid. Those posting the photos are believed to have done so to verify their status as election observers or to demonstrate their monitoring of the polling sites. Current election laws prohibit photographing ballots inside polling places, with violations potentially resulting in up to two years in prison or fines of up to 4 million won. Additionally, the Election Commission restricts photography inside polling stations to maintain order. Yonhap News reported that the Election Commission is investigating whether the photos posted in the chat room constitute legal violations. A commission official stated, "Those who posted the photos appear to be observers. While it is true that photography inside polling places is prohibited, it seems difficult to legally restrict photography by observers who are performing monitoring roles." The commission is also reviewing whether photographing unmarked ballots or those declared invalid constitutes a violation of election law.* This article has been translated by AI. 2026-06-03 15:30:00

Iran Launches Missile and Drone Attack on Kuwait International Airport, Operations Halted Kuwait International Airport's Terminal 1 has been severely damaged due to a missile and drone attack from Iran, leading to a complete suspension of airport operations. According to reports from the Kuwait Times and Reuters on June 3, the Kuwait Directorate General of Civil Aviation (DGCA) confirmed that the attack resulted in significant damage to multiple airport facilities and casualties. In response to the attack, the DGCA activated its emergency response plan. Abdullah Al-Azzi, a spokesperson for the DGCA, stated that authorities are ensuring the safety of passengers, airport staff, and infrastructure in accordance with approved emergency procedures and response plans. Al-Azzi announced that all flight operations would be suspended until necessary security and technical measures are completed and the airport is ready to resume operations. Consequently, flights to and from Kuwait International Airport will be redirected to alternative airports until further notice. He added that a specialized technical team has begun a comprehensive inspection and assessment to determine the extent of damage and stability of airport facilities and operational systems before repair and recovery efforts commence.* This article has been translated by AI. 2026-06-03 15:30:00