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North Korean state media highlights Xi's visit with extensive front-page coverage SEOUL, June 10 (AJP) - North Korean state media gave extensive coverage to Chinese President Xi Jinping's visit to Pyongyang earlier this week, highlighting close ties between the two traditional allies. In its Wednesday edition, the official Rodong Sinmun newspaper devoted four of its six pages to Xi's two-day visit and his summit with leader Kim Jong-un. Along with more than 50 photos, it carried detailed accounts of Xi's itinerary in Pyongyang, from his arrival on Monday to his departure the following day. The paper also revealed a letter from Xi expressing gratitude for the summit and the hospitality shown during his stay to Kim, who rolled out a red carpet and made a rare appearance to greet him at Pyongyang Sunan International Airport. It came after the newspaper went even further the previous day, adding extra pages for full coverage of Xi's visit, along with more than 80 photos. The state-run Korean Central News Agency (KCNA) also reported the same day that Kim and Xi held in-depth discussions on issues of "common concern" and "reached a series of important agreements," in what appears to be part of efforts to repair ties that have grown somewhat strained in recent years, as North Korea has moved closer to Russia. Many North Korea watchers expected the North's denuclearization to be discussed, especially after U.S. statements that Beijing and Washington had agreed to pursue it during Xi's summit with U.S. President Donald Trump in Beijing last month. But it was apparently left off the agenda of talks between Kim and Xi. 2026-06-10 10:46:50 -
Overhaul of Basic Pension System Proposed Amid Population Decline As concerns grow over tax revenue losses and increased national financial burdens due to rapid population aging, experts from a national research institute have strongly recommended a complete restructuring of the current basic pension system, which has been in place for ten years. They propose gradually excluding high-income earners while providing robust support for low-income individuals, a strategy known as 'thicker support for the lower class and thinner support for the upper class.' This recommendation stems from the critical view that it is unreasonable to provide uniform payments to high-income individuals. It signals a paradigm shift by health authorities aimed at achieving both long-term fiscal sustainability and effective poverty alleviation among the elderly. On June 10, the Ministry of Health and Welfare reported that a forum on pension reform was held the previous afternoon at Seoul Station, chaired by First Vice Minister Hyun Soo-yup. Experts from academia and government research institutes engaged in in-depth discussions on specific reform proposals. The forum was organized in response to ongoing discussions in the National Assembly's pension special committee regarding the restructuring of the multi-layered income security system for the elderly. It aims to address the structural contradictions of the current basic pension system, which provides fixed payments to the bottom 70% of income earners aged 65 and older. Choi Ok-geum, head of the Pension System Division at the National Pension Research Institute, served as the main presenter at the forum. She stated that the current expenditure structure of the basic pension imposes excessive tax burdens on future generations and proposed a '20-year long-term transition roadmap' based on the maturation of a multi-layered income security system. Choi noted, "The ongoing issue of wealthy seniors receiving substantial basic pensions while living in high-value apartments worth 1.7 billion won is due to the ambiguous purpose and nature of the system. A macro-level reform that minimizes administrative fatigue and considers changes in public pension eligibility is urgently needed." The core of Choi's reform proposal is to align the criteria for selecting recipients and the level of benefits for the basic pension with a certain percentage of the median income, ultimately integrating it with the National Basic Livelihood Security System to operate as a categorical public assistance program for the elderly. This approach suggests that high-income seniors should be excluded from receiving pensions to enhance financial efficiency, while the resources saved should be redirected to provide significantly higher pension amounts to low-income seniors, thereby achieving the intended 'thicker support for the lower class.' Choi emphasized, "This transition must be implemented gradually over 20 years, targeting the 2040-2050 period, to ensure long-term fiscal sustainability as the National Pension becomes the central pillar of income security for the elderly." In addition to these strong reform proposals, the forum also addressed alternative issues that need to be rectified, such as the persistent gaps and inequities within the current basic pension system. Researcher Lee Won-jin from the Korea Institute for Health and Social Affairs analyzed that the elderly poverty rate in South Korea remains among the highest in the OECD, and since the basic pension amount was frozen in 2021, the effectiveness of poverty alleviation has stagnated. Lee warned, "If the reform simply reduces the number of beneficiaries to save national finances, it could paradoxically lead to a balloon effect, where seniors on the brink of poverty fall into extreme poverty. To rescue the extremely poor elderly, particularly those aged 75 and older, efforts must be made to protect the basic pension's inherent guarantee through benefit increases." Senior Researcher Kim Tae-wan from the Korea Institute for Health and Social Affairs called for adjustments to address administrative irrationalities and distortions occurring in the field. He highlighted the unfairness of the 'couple reduction' system, which uniformly cuts 20% of benefits when both spouses receive pensions, and the exclusion of spouses of direct pension beneficiaries from receiving payments. He stressed the need to quickly eliminate the contradiction of 'giving and taking back' the basic pension, which results in vulnerable seniors having their living benefits reduced by the amount they receive in basic pensions, thereby narrowing the gaps in the system.* This article has been translated by AI. 2026-06-10 10:39:00 -
South Korea's workforce over 70 tops 2 million as aging and poverty reshape labor market SEOUL, June 10 (AJP) - More than 2 million South Koreans aged 70 and older were employed last year to make up a record 7.5 percent of the country's workforce, underscoring how rapid aging and persistent old-age poverty are reshaping the labor market. According to Ministry of Data and Statistics, the number of employed people aged 70 or older reached 2.16 million in 2025, nearly doubling from 1.22 million in 2018. Their share of total employment climbed from 4.5 percent to 7.5 percent over the same period. The milestone came just four years after the number of workers in the age group first surpassed 1.5 million in 2021. Employment among those aged 70 and above has since expanded by between 7.1 percent and 9.7 percent annually. South Korea became a super-aged society in 2024, with people aged 65 and older accounting for more than 20 percent of the population. The number of people aged 70 and above rose from 5.03 million in 2018 to 6.82 million in 2025, providing a larger pool of potential workers. Yet experts say many older Koreans continue working because they cannot afford to retire. The relative poverty rate among people aged 65 and older stood at 39.8 percent in 2024, the highest among member countries of the Organization for Economic Cooperation and Development. The figure was nearly three times the OECD average and means roughly four out of every 10 elderly Koreans lived on less than half of the national median income. The employment surge has been particularly notable among men. The number of employed men aged 70 and older rose 9.6 percent on year to 1.11 million in 2025 after first crossing the 1 million mark a year earlier. Female employment in the age group increased 8.7 percent to 1.05 million, also surpassing 1 million for the first time. The broader shift has altered the age composition of the workforce. The number of employed people aged 60 and older reached 6.83 million last year, exceeding workers in their 50s, who totaled 6.68 million. It marked the first time since age-based employment statistics were introduced in 1963 that workers aged 60 and above outnumbered those in their 50s. Government surveys suggest financial pressures remain a key reason many seniors stay economically active. Among Koreans aged 65 to 79 who expressed a desire to continue working, 51.3 percent cited living expenses as the primary reason, while 38.1 percent said they worked for personal fulfillment and satisfaction. A separate survey by the National Pension Research Institute highlighted concerns over retirement income adequacy. In its 2025 report on recipients of the Basic Pension, based on a survey of 2,000 beneficiaries, only 19.9 percent said the current monthly payment level of about 340,000 won was appropriate. Nearly half, or 47.7 percent, said 400,000 won would be a more suitable amount, while another 20 percent favored 500,000 won. The survey found pension recipients earned an average monthly income of 1.27 million won, with the basic pension accounting for 26 percent of recurring income. Some 42.8 percent of recipients were still working, mainly in cleaning services, sales, public-order support and government-backed senior employment programs. As the country's senior population is projected to continue growing rapidly over the next two decades, economists expect the number of workers aged 70 and older to remain above 2 million for the foreseeable future, intensifying debates over pension reform, retirement security and the creation of higher-quality jobs for older workers. 2026-06-10 10:38:29 -
U.S. Requests China to Resume Rare Earth Exports to Japan Amid Supply Concerns As China's restrictions on rare earth exports to Japan extend beyond the Japanese manufacturing sector to threaten U.S. medical and high-tech supply chains, the Trump administration has reportedly urged China to resume rare earth shipments to Japan. Japan is a key producer of advanced medical equipment, including MRI machines, and prolonged pressure from China could disrupt medical device procurement in the United States. The Nihon Keizai Shimbun (Nikkei) reported on June 10, citing multiple U.S. and Japanese diplomatic sources, that the Trump administration is pressing Chinese leaders to restore rare earth supplies to Japan. During a meeting last month between U.S. Treasury Secretary Scott Vessen and Chinese Vice Premier He Lifeng, the U.S. expressed concerns over China's export restrictions to Japan and called for measures to prevent negative impacts on global supply chains, particularly for high-tech equipment. The U.S. has intervened in Japan's rare earth procurement issues because it recognizes that the problem extends beyond Japan's manufacturing sector. Japan is a crucial hub for the global supply chain, producing advanced medical devices, semiconductor manufacturing equipment, and electric vehicle (EV) components. Since rare earth components are used in high-performance diagnostic equipment like MRI machines, prolonged production disruptions in Japan could lead to instability in medical device procurement in the U.S. China added seven rare earth elements, including dysprosium and terbium, to its export regulation list in April of last year and has intensified scrutiny on shipments to Japan this year. Nikkei previously reported on June 8 that exports of these seven elements to Japan fell by 88% in March and 82% in April compared to the same months last year. Notably, there have been no exports of dysprosium and terbium to Japan since January, which are essential raw materials for high-performance magnets used in EV motors. The U.S. and Japan addressed China's rare earth export restrictions during the G7 finance ministers and central bank governors meeting held from May 18 to 19. A senior U.S. official indicated to Nikkei that the issue will also be discussed at the G7 summit in Évian, France, from June 15 to 17, where responses will be considered. The U.S. and China have sought to ease tensions, agreeing during last month's summit to aim for a "constructive strategic stability relationship." However, concerns persist that U.S.-China engagement could lead to Japan being sidelined, while Japan finds itself relying on the Trump administration's diplomacy regarding China. The Japanese government is wary that prolonged rare earth procurement issues could increase Japanese companies' dependence on China. In 2010, when China restricted rare earth exports to Japan over the Senkaku Islands dispute, Japanese magnet manufacturers increased local production in China, ultimately enhancing the technological capabilities and market influence of Chinese firms. A diplomatic source from Japan told Nikkei, "The situation of China's pressure on Japan has not yet eased. We need to continue cooperating with the U.S. and demand the resumption of supplies from China." The U.S. has not disclosed China's response to its request for the resumption of rare earth supplies to Japan.* This article has been translated by AI. 2026-06-10 10:27:00 -
Taiwan Considers Stricter AI Chip Export Controls to China Amid U.S. Semiconductor Restrictions Taiwan is considering significantly tightening its export regulations on artificial intelligence (AI) chips to China in response to U.S. semiconductor controls. This move aims to prevent advanced hardware, such as servers equipped with NVIDIA AI chips, from being rerouted to China through Taiwan. Bloomberg reported on June 9, citing sources familiar with the matter, that Taiwanese authorities are exploring options to restrict AI chip sales to all Chinese customers during trade negotiations with the United States. Currently, Taiwan's export controls focus on specific companies listed as restricted, such as Huawei and SMIC. If the new measures are implemented, sales of AI chips with certain performance thresholds could be limited for all customers in China. A key aspect of this review is to establish legal grounds for criminalizing the circumvention of AI chip exports. Since 2022, the U.S. has imposed restrictions on the export of high-performance NVIDIA chips to China to curb its access to advanced AI technology. However, in Taiwan, sending AI chips to China without permission is not currently classified as a crime, forcing authorities to investigate suspected cases under existing laws, such as forgery. Last month, Taiwanese authorities arrested individuals suspected of smuggling AI chips, but the charges were limited to forgery. Bloomberg noted that these individuals are believed to have sent servers to Hong Kong via Japan, raising suspicions. If new regulations are enacted, Taiwan would be able to treat the circumvention of AI chip exports to China as a separate criminal offense. The Taiwanese Ministry of Economic Affairs stated to Bloomberg, "We will continue to strengthen oversight of strategic advanced technology products and enhance alignment with international export controls," adding that Taiwan and the U.S. are in ongoing discussions about including advanced chips in regulatory measures. While Taiwan has agreed to restrict sales of AI chips with certain performance capabilities to China, specific details regarding the scope and criteria of these restrictions have yet to be finalized. If these regulations come to fruition, the government of President Lai Ching-te will further tighten semiconductor controls on China. Given Taiwan's critical role in the production of NVIDIA AI chips and server assembly, expanded export restrictions could pose challenges for related companies. China is also likely to respond strongly to Taiwan's semiconductor limitations.* This article has been translated by AI. 2026-06-10 10:27:00 -
Government Unites to Combat Youth Suicide, Aiming to Halve Rates by 2035 The South Korean government has decided to consolidate its administrative and financial resources to address the leading cause of death among teenagers—suicide—amid a declining school-age population. The initiative aims to rescue students in emotional crisis by significantly reducing the youth suicide rate to below half of current levels by 2035. On June 9, the Ministry of Education, along with 15 other relevant ministries including the Office for Government Policy Coordination and the Ministry of Health and Welfare, announced a comprehensive plan titled ‘Government-wide Measures for Preventing Youth Suicide.’ This initiative is the first outcome of the government’s broader ‘Nine Areas of Suicide Prevention Measures’ set to be released in phases by the end of this year. It reflects a strong commitment to proactively protect youth who have faced a continuous rise in emotional isolation over the past decade. The government has set a medium- to long-term quantitative goal to reduce the youth suicide rate from 7.2 per 100,000 in 2025 (provisional figure) to 6.5 by 2030, and ultimately to 4.0 by 2035. To achieve this, five key initiatives will be implemented, focusing on prevention, detection, intervention, recovery, and infrastructure, while establishing a continuous cooperation system that breaks down barriers between ministries. To block exposure to harmful environments for the digital-native generation, an AI-based monitoring system will be introduced to screen online information and harmful sites that may trigger self-harm and suicide. This system will be developed in collaboration with the Ministry of Science and ICT and the Korea Communications Commission. Additionally, tools to assess students’ emotional and behavioral characteristics will be enhanced to detect crisis signs early, and a system will be established to monitor virtual spaces on social media and areas at risk of suicide. The intervention and counseling infrastructure both inside and outside schools will also be significantly upgraded. The functions of the We Class Centers, which are managed by local education offices, will be specialized, and mental health professionals will visit schools directly to expand treatment networks. To encourage timely treatment, the scope of financial support for treatment will be broadened. Vulnerable groups, such as those at high risk of suicide or families of suicide victims, will receive close support through psychological autopsies and tailored mental health care services from multiple ministries. Following the announcement of these robust government measures, the education sector expressed mixed reactions. While there is strong agreement on the importance of the initiative, concerns were raised about its effectiveness and potential administrative burdens on schools. The Korean Federation of Teachers’ Associations welcomed the government’s efforts to unite resources to protect students’ lives. However, they pointed out that the responsibilities and obligations of schools and teachers in all stages of suicide prevention would be disproportionately expanded without adequate protective measures or solutions to alleviate their workload. They specifically noted that with the current surge in crisis students, the We Class facilities are already overwhelmed. If the new measures focus solely on expanding external professional institutions, schools will bear the excessive administrative burden of paperwork and reporting serious issues during the coordination process. They emphasized the need for legal protections for teachers and simplified procedures to shield them from unwarranted complaints and child abuse reports while guiding emotionally troubled students. Conversely, the Korean Teachers and Education Workers Union criticized the government’s plan as superficial, claiming it ignores the root causes of the issue and merely seeks to control outcomes. They argued that the underlying factors driving youth to extreme choices include the pressures of early learning, excessive private education costs, and a competitive education system that labels individuals based solely on exam results. The union stressed that without reflecting on the unique educational conflicts and the politics of fear surrounding failure in South Korean society, merely increasing the number of counseling teachers and expanding school records will not resolve youth emotional crises. They called for an immediate halt to the relentless ranking competition disrupting the public education ecosystem and for the restoration of warm school communities where students and teachers can rebuild mutual bonds, alongside fundamental reforms to the college entrance system.* This article has been translated by AI. 2026-06-10 10:24:00 -
Deputy Prime Minister Koo Yoon-cheol Announces $6 Billion Financial Support for Middle East Projects Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, stated on June 10 that Middle Eastern countries are expected to pursue infrastructure upgrades following recent conflicts. He announced that the government will prioritize $6 billion in financial support for key contractors in the region. During the Ministerial Meeting on External Economic Cooperation held at the Government Seoul Complex, Koo emphasized the importance of the Middle East as a significant economic partner, noting that it has been a crucial area in South Korea's overseas construction history. He highlighted the region's role in stabilizing energy supply chains. Of the total $10.5 billion in overseas construction contracts, approximately 49%—or $5.132 billion—comes from the Middle East. According to the Overseas Construction Association, the number of overseas contracts secured by South Korean construction firms from January to May this year rose by 9% compared to the same period last year, totaling 249 contracts. The government anticipates that major Middle Eastern nations will take this opportunity to improve their economic structures and pursue infrastructure enhancements. Koo expressed confidence that South Korean companies could foster win-win cooperation through their advanced technologies. Plans include strengthening public-private partnerships, enhancing financial support, and promoting government-to-government (G2G) cooperation. Specifically, the government will provide $6 billion in financial support tailored to key contractors in the Middle East and establish a new "Middle East Infrastructure Strategic Fund." Koo stated, "We will identify local demands and key projects through our overseas diplomatic missions and enhance public-private cooperation, including integrated marketing targeting Middle Eastern contractors. We will also strengthen G2G cooperation through proactive dispatches of senior government officials for diplomatic support." The meeting also reviewed the implementation of economic outcomes from recent summit meetings. Koo noted that since the establishment of the people's sovereignty government, 84 memorandums of understanding (MOUs) have been signed in areas such as science and technology, economy, and finance with major countries over the past year. He remarked, "In the first quarter, nominal GDP increased by 17.1% compared to the same period last year, indicating improvements in both growth and income. We will actively utilize summit diplomacy and economic cooperation to expand the overseas presence of domestic companies." In the agriculture and fisheries sector, the signing of MOUs related to imports, exports, and quarantine has led to an expansion of export items. Following an MOU on inspections and sanitary conditions for wild seafood with China, new export items such as chilled mackerel have been included. Additionally, an MOU on scientific and technological cooperation was signed with Vietnam last August, and a master plan for scientific and technological innovation cooperation was established in April. Koo concluded, "We will actively share and promote successful cases through quarterly reviews of the economic outcomes of summit diplomacy and seek solutions to challenges through communication among relevant ministries."* This article has been translated by AI. 2026-06-10 10:24:00 -
Kakao workers stage first walkout in company history over bonus dispute SEOUL, June 10 (AJP) - Kakao's labor union launched the first partial strike in the company's history, escalating a standoff with management over performance bonuses. The walkout ran from 10 a.m. to 3 p.m. with an hour-long midday break on Wednesday, amounting to about four hours of stoppage. Union members marched through the company's Pangyo branch in Seongnam, south of Seoul. Workers at five entities — the main Kakao corporation, Kakao Pay, Kakao Enterprise, DKTechin and XLGames — joined the action after wage talks collapsed and mediation broke down. At the heart of the conflict lies the bonus structure, with the union demanding payouts worth about 10 million won, or 13 to 14 percent of last year's operating profit, while opposing the inclusion of restricted stock units. Management has argued the demands would place a heavy burden on the company's finances. Shares of Kakao traded at 38,450 won per stock at 10:20 a.m., 2.66 percent lower than the previous day. 2026-06-10 10:23:12 -
Shift Up to Release 'Stella Blade' for Nintendo Switch 2 Shift Up announced on June 10 that it will release the Nintendo Switch 2 version of its action-adventure game 'Stella Blade' later this year. The announcement came during Nintendo's online showcase 'Nintendo Direct 2026,' which aired globally on June 9. With the release on Nintendo Switch 2, 'Stella Blade' aims to broaden its platform reach following its availability on PlayStation 5 and PC, thereby expanding its global user base. 'Version of Stella Blade was initially launched as a PlayStation 5 exclusive and PC version in April 2024, achieving sales of over 3.7 million units on consoles and 2.4 million on PC, totaling more than 6 million units sold. Kim Hyung-tae, the director of 'Stella Blade,' expressed, "It is meaningful for 'Stella Blade' to connect with more users through Nintendo Switch 2. We will ensure that players can fully experience the unique action and immersion on this new platform."* This article has been translated by AI. 2026-06-10 10:18:00 -
What does SpaceX's upcoming IPO signal for Asia? SEOUL, June 10 (AJP) - For years, investing in space felt more like science fiction than finance, more akin to dreaming about Mars. Fascinating and ambitious, it nevertheless seemed far distant from everyday economic activity. But that is beginning to change. Should SpaceX move ahead with its initial public offering (IPO) later this week, the larger story is not the stock itself. It is the arrival of the space industry as a mainstream industrial sector, one that could reshape technology, manufacturing and investment across Asia. For decades, space was largely the domain of governments and public agencies, where rockets and satellites served as symbols of national prestige and strategic assets. Success was measured in scientific achievement and geopolitical influence, rather than in profits. Space is now becoming a commercial industry. This shift is being driven by reusable rockets and lower launch costs. It looks a lot like what happened with computers in the past. Computers were once rare and expensive, which meant they were mainly affordable only to governments and large companies. But as mass production arrived, costs fell and new businesses emerged. Something similar is now beginning to happen in orbit. The key change is that the space sector is moving beyond one-off engineering projects. Rockets and satellites are increasingly being built as part of a repeatable production process. What was once a bespoke effort is starting to look more like modern manufacturing. This is where SpaceX has become important, not simply as a company, but as a symbol of the industrialization of space. In many ways, the industry is following a path similar to that of semiconductors and electric vehicles. The company's Starlink satellite network, for example, depends on thousands of low-Earth-orbit (LEO) satellites. Unlike traditional satellites that can last for over a decade, many LEO satellites need to be replaced every few years. This means companies must keep building and launching new ones, creating steady, repeat demand for manufacturing and components. Recurring revenue is something investors understand well. It is one reason software subscriptions became so valuable. The space-related industry is beginning to offer something similar, and this matters enormously for Asia. While the U.S. dominates much of the sector, Asian countries are becoming indispensable suppliers. The region’s role may come to resemble what happened in semiconductors, where key technologies are developed in one country but manufactured through a complex global supply chain. South Korea is particularly well placed for that. The country has spent decades building expertise in precision manufacturing, advanced materials, and high-quality components. These capabilities were first developed for industries like semiconductors, automobiles, and electronics. Many of the same skills are now applicable to satellites, communications equipment, and aerospace systems. Geopolitical factors may also work in South Korea's favor. As the U.S. and its allies look for alternatives to Chinese suppliers amid growing rivalry in strategic industries involving sensitive data, South Korean companies could find new opportunities in global aerospace supply chains. Once they prove reliable in space, customers are often reluctant to switch, creating the potential for long-term growth. But investors should still be cautious about treating the space industry as a guaranteed path to riches. Every technological revolution attracts speculation, and not every space company will succeed. Valuations may also rise faster than profits. Some technologies will prove less profitable than expected. History suggests that new industries often go through periods of excessive enthusiasm before settling into sustainable growth. Still, the broader trend is hard to ignore. The real significance of a SpaceX listing is not the market value of one company, but what it would signal that space is no longer just a frontier of exploration but an emerging part of the global economy. If this transformation continues, the beneficiaries may not be rocket builders in the U.S. alone. They could also include manufacturers, suppliers, and technology firms across Asia, with South Korea among the best positioned to seize the opportunity. 2026-06-10 10:14:09