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Japanese bond yields trigger global tantrum, South Korea most sensitive SEOUL, Jan 21 (AJP) - Major sovereign bond yields, including South Korean treasuries, jumped on Tuesday after a sharp surge in Japanese government bond yields — bringing the elephant in the room back into focus: the massive yen carry trade. The benchmark 10-year JGB yield closed up 7 basis points at 2.34 percent, its highest level in nearly three decades. The move quickly spilled over abroad, pushing the U.S. 10-year Treasury yield up 7.5 basis points to 4.295 percent and Australia’s 10-year yield up 6.9 basis points to 4.799 percent. South Korea proved particularly sensitive. The 10-year Korean government bond yield surged 8.8 basis points to 3.653 percent, marking its highest level in almost two years. Japan has long functioned as a global liquidity provider, with near-zero borrowing costs encouraging yen-funded carry trades for decades. The recent rise in JGB yields is now prompting capital repatriation, as Japanese investors pull funds back home to capture higher domestic returns. Because the yen serves as a major funding and reserve currency, this reversal has acted as a destabilizing force for global bond markets. Notably, the latest spike in yields was driven less by monetary policy than by fiscal concerns. The Bank of Japan is set to announce its interest rate decision on Friday, and the advanced trigger came from political developments surrounding Prime Minister Sanae Takaichi’s policy agenda. On Tuesday, Takaichi announced plans to dissolve parliament on Jan. 23 and call snap elections for Feb. 8. Although the ruling coalition of the Liberal Democratic Party and Nippon Ishin no Kai already controls 233 seats, she is seeking at least 240 seats to consolidate legislative dominance. Markets reacted sharply to her populist stimulus pledges, particularly proposals to cut consumption taxes on food and beverages to 8 percent — a move estimated to create a 5 trillion yen ($31.6 billion) revenue shortfall — without clear funding measures. Bond yields retreated after Takaichi later pledged that “there will be no additional debt issuance,” with the 10-year JGB yield falling about 8 basis points by Wednesday morning. However, skepticism remains, as yields continue to hover above 2.3 percent and investors question whether stimulus can be financed without new borrowing. Demand for Japanese debt has already weakened. A recent 20-year JGB auction recorded a record-low bid-to-cover ratio, underscoring investor caution. The rise in government yields has filtered through to consumer lending. As of Wednesday, 10-year fixed mortgage rates at Japan’s megabanks — Mizuho, MUFG and SMBC — were approaching 3.8 percent, nearly double the roughly 2 percent ceiling seen a year earlier. Analysts have compared the episode to the U.K.’s 2022 “Truss Shock,” when unfunded tax cuts proposed by then–Prime Minister Liz Truss sent 10-year gilt yields soaring from about 3.5 percent to 4.5 percent in less than a week. After Japanese Finance Minister Satsuki Katayama urged markets to “maintain calm,” the 10-year JGB yield slipped further, down 8.6 basis points to 2.29 percent. The recovery in Korea has lagged. The 10-year Korean yield stood at 3.619 percent on Wednesday morning, still up 3.4 basis points and failing to fully reverse the previous day’s sharp jump. Part of the drag stemmed from Korea's own fiscal stimulus agenda. On Tuesday, President Lee Jae-myung mentioned the possibility of a supplementary budget, instructing Culture Minister Choi Hwi-young to review potential increases in arts and culture spending. Although Lee later clarified at a Wednesday press conference that there would be “no reckless supplementary budget,” the initial comment had already unsettled the bond market. U.S. Treasury yields also eased slightly, with the 10-year yield ending Wednesday at 4.275 percent, down 2 basis points, but still short of a full recovery. Persistent geopolitical risks — including Washington’s threat to impose a 10 percent tariff on countries opposing its push to acquire Greenland — continued to weigh on sentiment. Caution urged over expansionary fiscal trends While analysts say fears of a systemic shock in South Korea are overstated, they warn that a broader global tilt toward fiscal expansion among major currency issuers poses ongoing risks. “Mentioning a supplementary budget in January is unusual, but South Korea is likely to exceed its tax revenue targets this year, making large-scale bond issuance unlikely,” said Kang Seung-won, a researcher at NH Securities. Kang added that a projected 30 percent increase in earnings among KOSPI and KOSDAQ-listed companies should help buffer the domestic bond market. Still, expansionary fiscal policies elsewhere remain a concern. “We are seeing a recurring pattern where fiscal concerns push up bond yields and market rates, which then weigh on currencies,” said Kwon Ah-min, another researcher at NH Securities. Kwon pointed to Japan’s record 122.3 trillion yen budget for fiscal 2026 — with 29.6 trillion yen expected to be financed through debt — as a key risk factor. “Rising bond issuance among major economies remains a volatile variable for global financial markets,” she said. 2026-01-21 17:20:01
Samsung Biologics becomes first Korean drugmaker to join 2 trillion won income club SEOUL, January 21 (AJP) - Samsung Biologics on Wednesday posted record annual operating profit for 2025, becoming the first pharmaceutical and biotechnology company in South Korea to surpass the 2 trillion won threshold. The contract drug manufacturing giant posted an operating profit of 2.07 trillion won ($1.4 billion) for 2025, soaring 56.6 percent from a year earlier, according to a regulatory filing released Wednesday. Revenue climbed 30.3 percent to 4.55 trillion won, while net profit jumped 55.2 percent to 1.61 trillion won. Fourth-quarter operating profit reached 528.3 billion won, up 67.8 percent year-on-year, driven by full-capacity operations across all four manufacturing plants in Incheon. Quarterly revenue stood at 1.29 trillion won. The company attributed its robust performance to the ramp-up of Plant 4 operations, stable utilization of Plants 1 through 3, and favorable foreign exchange effects. Samsung Biologics has served over 110 clients, including 17 of the world's top 20 pharmaceutical companies. "2025 has been a year of steady progress for Samsung Biologics as we expanded collaboration with both pharma and biotech companies, supported by our focus on operational and quality excellence," said John Rim, CEO of Samsung Biologics. The Incheon-based firm made strategic moves throughout 2025 to bolster its global footprint, including acquiring a manufacturing facility in Rockville, Maryland, securing land for a third bio campus, and completing the construction of Plant 5. Cumulative contract value has exceeded $21.2 billion since its founding in 2011. Samsung Biologics forecast revenue growth of 15 to 20 percent for 2026, excluding contributions from the Rockville facility acquisition, which remains pending regulatory approval. The company maintained a solid financial position with total assets of 11.06 trillion won and a debt-to-equity ratio of 48.4 percent at year-end. It achieved the 2 trillion won operating profit milestone just two years after becoming the first Korean drugmaker to post annual operating profit exceeding 1 trillion won in 2023. Shares of Samsung Biologics closed Wednesday 1.35 percent lower at 1,894,000 won per stock. The regulatory filing came after market closure. 2026-01-21 17:19:50
Seoul weighs weekly half-price movie tickets to lure audiences back to cinemas SEOUL, January 21 (AJP) - South Korea is considering offering half-priced movie tickets and free admission to royal palaces every Wednesday, instead of once a month, as part of a broader effort to revive cultural consumption — though doubts remain over whether the move can rescue a struggling cinema industry. The Ministry of Culture, Sports and Tourism said Tuesday it plans to expand “Culture Day,” currently held on the last Wednesday of each month, to every Wednesday. The timing of the change has not yet been finalized. Since its launch in 2014, Culture Day has allowed the public to visit national heritage sites such as Changgyeong Palace and Deoksu Palace for free and receive discounts at movie theaters and other cultural venues. Under the program, major cinema chains including CGV, Lotte Cinema and Megabox have offered 2D movie tickets priced at 7,000 won — less than half the average ticket price of about 15,000 won — for screenings between 5 p.m. and 9 p.m. While roughly one-third of moviegoers used the discount in 2014, participation surged to 85 percent by 2024, highlighting how deeply audiences have come to rely on price incentives. The proposed expansion comes as alarm grows over the state of South Korea’s film industry, which has been hit hard by the rapid shift toward streaming platforms. “The uncomfortable truth is that the film industry has practically collapsed,” said Kim Han-min, director of The Admiral: Roaring Currents, at a film forum hosted by the Korean Film Council and the National Assembly’s Culture Committee in January 2024. Director Kim Sung-soo echoed that assessment at the 2025 Mise-en-scène Short Film Festival. “If I had to describe it in one word: collapse,” he said. “Korean films simply aren’t being made.” “There used to be 50 to 60 commercial features shooting at any given time,” said one production executive. “Now it feels like barely half that.” Industry observers say the decline in theater attendance reflects deeper structural problems in Korean filmmaking. “When films like Avatar or Zootopia 2 succeed, it’s not a crisis of theaters — it’s a crisis of Korean cinema,” said one film distributor. Domestic audiences have continued to reward strong local titles, including The Roundup series, 12.12: The Day (2023) and Exhuma (2024), during the post-pandemic recovery period. Yet not a single Korean film surpassed 10 million viewers last year, an unprecedented result except for 2021, when theaters were largely shuttered by social distancing rules. Globally, the film market has recovered to roughly 80 percent of pre-pandemic levels, but Korea’s remains “stuck at the bottom,” industry insiders say. The Culture Day expansion has drawn support from lawmakers, though many describe it as only a temporary remedy. Rep. Lee Ki-heon of the ruling Democratic Party said the proposal demonstrates “a strong and proactive will by the government to revive an industry on the verge of collapse by lowering barriers to cultural consumption.” He added that consistent pricing incentives could help “rebuild the habit of moviegoing.” However, Lee cautioned that discounts alone cannot address deeper issues. “The crisis in the film industry stems not only from financial burdens, but also from a shortage of compelling content,” he said. Progressive Party lawmaker Son Sol called the measure “necessary and timely” to expand cultural access, but stressed that participation by private businesses — which operate nearly all theaters — is essential. “Public enthusiasm is high, but the system relies on voluntary participation,” she said. “The government must actively engage theater chains and production companies to sustain it.” Son also warned of a “vicious cycle” in which falling attendance has reduced Film Development Fund revenues, weakening support for emerging directors and film workers. “Korea’s global cinematic standing is at risk,” she said. Rep. Jung Yeon-wook of the opposition People Power Party supported the intent of the policy but criticized its rollout as rushed. “Without financial support, it could place undue burdens on private theaters,” he said. “Without proper consultation, it risks becoming a well-meaning but hollow gesture.” As the government collects public feedback on the proposed decree through Feb. 28, questions remain over whether cheaper tickets can truly reignite a film ecosystem facing structural decline. 2026-01-21 15:58:18
Busan's Gwabeop elementary school holds graduation event SEOUL, January 21 (AJP) - Gwabeop Elementary School in Sasang-gu, Busan, held its 44th and final graduation ceremony on Jan. 20. The event included a graduation for eight last graduates followed by a farewell ceremony, marking the end of the school's long history. According to the Busan Metropolitan Office of Education, Gwabeop Elementary opened on March 5, 1982, with 28 classes and 1,261 students. Student enrollment declined sharply in recent years—6 new students in 2022, 12 in 2023, 6 in 2024, and 9 in 2025—leaving the school with just 52 total students. The consolidation with nearby Gamjeon Elementary was finalized last August. Gwabeop Elementary is one of three elementary schools in Busan closing this year due to declining school-age population. 2026-01-21 15:38:54
Bupyeong fire station conducts winter water rescue training 2026-01-21 15:36:59
Samsung's foldable lead holds as Apple's entry nears SEOUL, January 21 (AJP) - Selfies taken by South Korean President Lee Jae Myung have served diplomatic and branding purposes alongside their social media role. During a state visit to Beijing, selfies were taken on a Xiaomi smartphone gifted by Chinese President Xi Jinping. More recently, photos during Italian Prime Minister Giorgia Meloni’s visit to Seoul were taken on a Samsung Electronics device. President Lee gifted Meloni a pink Galaxy Z Flip 7, matching the prime minister’s well-known preference for the color. While the idea of gifting a smartphone may echo Xi’s earlier gesture, it also underscored Seoul’s confidence in Samsung’s foldable leadership — a category the company pioneered and continues to dominate. Foldable smartphones have moved beyond novelty into the ultra-premium segment as durability, performance and software optimization have improved. The appeal now extends beyond design and status to functionality, particularly larger, tablet-like displays that enable multitasking and productivity. Market research firm Counterpoint Research forecasts global foldable smartphone panel shipments will rise 46 percent in 2026, signaling renewed expansion after several years of uneven demand. Foldable smartphone shipments are expected to grow about 14 percent in 2025 before accelerating to roughly 38 percent in 2026. Grand View Research estimates the global foldable smartphone market at $27.79 billion in 2024 and projects it will more than double to $74 billion by 2030, growing at an average annual rate of 13.5 percent. Much of the renewed traction is expected to come from Apple’s entry into the segment. “Apple’s entry into the foldable market will act as a key growth driver,” said Guillaume Chansin, research director at Counterpoint Research. “The launch of a foldable iPhone is expected to reinvigorate the foldable smartphone segment and significantly boost panel shipments in 2026.” Despite the looming competition, Samsung Display is expected to remain the dominant supplier of foldable OLED panels, with its global market share projected to exceed 50 percent. The growing adoption of book-style foldables is also expected to lift average selling prices, Counterpoint said. The market is also shifting in form factor. While clamshell-style models such as the Galaxy Z Flip series continue to attract attention for their compact design and fashion appeal, book-style foldables are gaining a larger share of value and profitability, driven by demand for bigger screens and productivity-oriented use cases. Multi-fold devices, including tri-fold models, are expected to account for only a low single-digit share of the market in 2026. Samsung strengthened its position in 2025 after regaining momentum in the premium foldable segment. The company held about 64 percent of the global foldable smartphone market in the third quarter of 2025, up from 56 percent a year earlier, according to Counterpoint Research. Analysts say 2026 could mark a turning point as foldables transition from niche products to a more established premium category amid intensifying competition. “Brand loyalty between Apple and Samsung remains strong, but younger consumers are becoming less defined by legacy preferences,” said Park Jung-eun, a professor of business administration at Ewha Womans University. “Among Gen Z users, there is growing interest in differentiation and design-driven devices rather than simply following long-standing brand norms.” Samsung Electronics said it was unable to confirm whether the device had been provided as part of any sponsorship arrangement. Whether heightened visibility and renewed momentum translate into sustained growth will depend on pricing, software optimization and competition — particularly as Apple prepares to enter the foldable arena. 2026-01-21 15:33:32
Polls show strong support in South Korea for new nuclear plants SEOUL, January 21 (AJP) - A majority of South Koreans support building new nuclear power plants as electricity demand surges with the expansion of artificial intelligence, two public opinion polls showed, adding pressure on the government to reconsider its energy policy stance. The Ministry of Climate, Energy and Environment said on Wednesday it had conducted nationwide surveys last week on a new-reactor plan. The ministry commissioned Korea Gallup and Realmeter to survey 1,519 and 1,505 respondents, respectively, using proportional allocation by gender, age and region. In the Gallup poll, 69.6 percent of respondents said the plan to build new nuclear reactors should proceed, compared with 22.5 percent who said it should be halted. In the Realmeter survey, 61.9 percent supported moving ahead, while 30.8 percent opposed the plan. Support for nuclear power more broadly was also strong. In the Gallup poll, 89.5 percent said nuclear power is necessary, while 82 percent said the same in the Realmeter poll. On safety, about 60 percent of respondents in both surveys said nuclear power is safe, outnumbering those who viewed it as dangerous. When asked which power sources should be expanded, respondents most frequently cited renewable energy and nuclear power. In the Gallup poll, renewables ranked first at 48.9 percent, followed by nuclear at 38 percent and liquefied natural gas at 5.6 percent. In the Realmeter poll, renewables accounted for 43.1 percent and nuclear for 41.9 percent. The results are expected to serve as a key reference as the government weighs whether to proceed with plans for two new large-scale reactors and small modular reactors (SMRs). Those plans were previously finalized but later put on hold after the government decided to reopen public deliberations. Climate Minister Kim Sung-hwan has said since taking office that the new-reactor plan would be reviewed “from scratch,” citing insufficient public input during the drafting of the Lee Jae Myung administration's electricity plan. President Lee has previously expressed skepticism about expanding nuclear power, noting at a September news conference that nuclear plant construction typically takes more than 15 years and that suitable sites are limited. He has argued that solar and wind power, which can be built within one to two years, should be expanded on a large scale. More recently, however, growing electricity demand from AI development has prompted renewed calls within and outside government for stable baseload power. At a New Year’s news conference on Wednesday, Lee said that global trends point to “enormous energy demand” and acknowledged that renewable energy faces intermittency challenges. He said the government should keep an open mind and assess whether new reactors are needed, whether they are safe and what the public wants. A day earlier, he told a Cabinet meeting that public opinion “overwhelmingly” supports expanding nuclear power to address electricity supply concerns. The ministry said it will review whether to pursue new nuclear construction by considering the poll results alongside policy discussions. A ministry official said the government is examining “realistic” power supply options that take into account growth in advanced industries such as AI and semiconductors, as well as carbon-neutrality goals. 2026-01-21 15:31:30
Korean transformer exports, stocks hit record highs on global AI power demand SEOUL, January 21 (AJP) - South Korea's gains from the accelerating global shift toward artificial intelligence are extending beyond semiconductors. Exports of ultra-high-voltage transformers surged to a record high last year, driven by aggressive investment in power infrastructure for data center expansion worldwide. Exports of transformers rated at 10,000 kilovolt-ampere (kVA) or higher reached $1.3 billion last year, according to the Korea International Trade Association. It marked the first time shipments topped the $1 billion mark since 2010 and the highest level since records began in 1977. The United States accounted for the largest share, importing about $738 million worth of Korean transformers. Shipments to the U.S. jumped nearly sevenfold over the past three years, fueled by the dual need to replace aging grid infrastructure and connect newly built AI data centers to power networks. "Large-scale AI data centers have extremely high GPU server density, which causes electricity demand to surge," said Lee Sang-heon, an analyst at iM Securities. "High-capacity, high-efficiency transformers are essential, and switchboards that distribute, disconnect and protect the power flowing from these transformers are also key equipment." According to the International Energy Agency, global electricity demand from data centers is projected to more than double to about 945 terawatt-hours by 2030, roughly equivalent to Japan's current total power consumption. AI-optimized data centers are expected to be the main driver, with their electricity demand forecast to quadruple by the end of the decade. In the United States, data centers are on track to account for nearly half of total electricity demand growth through 2030. By then, the country is expected to consume more power processing data than manufacturing aluminum, steel, cement and chemicals combined. This surge in power demand has triggered a global scramble for transformers. Lead times for large power transformers have stretched beyond 200 weeks, and equipment shortages are increasingly cited as a major bottleneck for data center development. Companies such as Amazon have reported project delays due to limited transformer availability. South Korea's major power-equipment makers — HD Hyundai Electric, Hyosung Heavy Industries and LS Electric — have secured order backlogs stretching five to six years ahead, with some contracts already booked through 2031. To meet demand, the firms are ramping up production. HD Hyundai Electric is expanding its transformer plant in Alabama, aiming to boost capacity by 30 percent by early 2026. Hyosung Heavy Industries plans to nearly double annual output at its Memphis facility to more than 250 units by 2027 and recently announced a $225 million investment in a new high-voltage direct current (HVDC) transformer plant in Changwon. LS Electric said in its third-quarter report that it plans to invest in facilities in Texas and Utah to expand production. Korean manufacturers currently hold about 25 percent of the U.S. transformer market, benefiting from differentiated technology, competitive pricing and the ability to deliver customized products faster than many rivals. Exports are also diversifying beyond the U.S. Shipments to the United Kingdom rose to 126 billion won through November last year, up from 50 billion won in 2023, as Britain accelerates grid modernization. HD Hyundai Electric secured a 220 billion won contract from UK National Grid, while Hyosung Heavy Industries signed a 120 billion won deal with Scottish Power Energy Networks. Korean power-equipment firms are also developing next-generation grid-stabilization technologies. Hyosung Heavy Industries said Tuesday it partnered with Germany's Skeleton Technologies and Japan's Marubeni to develop e-STATCOM, a power compensation system designed to maintain grid stability amid fluctuating demand from AI-driven industries and renewable energy sources. Industry analysts expect the boom to continue. The North American transformer market is projected to grow to $41.62 billion by 2030, up from $30.28 billion last year, according to Markets and Markets, driven by infrastructure replacement and AI-related power demand. "The North American market is maintaining solid demand, centered on 765-kV ultra-high-voltage transformers," said Lee Han-gyeol, an analyst at Kiwoom Securities. "As data centers expand, on-site power generation is increasing because grid connections take time. However, grid connections are essential in the long term for system stability, so demand for ultra-high-voltage transformers should remain strong." The surge in demand has been mirrored in the stock market. HD Hyundai Electric traded at 897,000 won on Wednesday, up 132.99 percent from a year earlier, while LS Electric rose 144.44 percent to 504,000 won. Hyosung Heavy Industries posted the biggest gain among the three, soaring 398.5 percent to 2,324,000 won. 2026-01-21 15:29:53
Former PM sentenced to 23 years in prison over martial law involvement SEOUL, January 21 (AJP) - Former Prime Minister Han Duck-soo was sentenced to 23 years in prison on Wednesday for his involvement in disgraced former President Yoon Suk Yeol's botched martial law debacle in December 2024. In a nationwide televised trial, the Seoul Central District Court in southern Seoul handed down the sentence, ruling that the Dec. 3 declaration of martial law constituted an insurrection. The court said, ", as prime minister, had a duty to comply with the Constitution, uphold laws and democratic values, and take every effort to protect them." The court added, "Despite this, he neglected his duties and chose to take part in the debacle, thinking it could succeed." It also warned that Han's actions could have risked returning the country to its "darkest past," when democracy and civil rights were suppressed under authoritarian and military rule. The court further criticized Han for hiding and fabricating documents to make the martial law declaration appear lawful, despite his responsibility to uncover the truth and take accountability for the short-lived, late-night fiasco. The punishment was heavier than the 15 years prosecutors sought at Han's final hearing in November last year, who had accused him of aiding Yoon's martial law bid rather than preventing it, despite his duty to check abuses of presidential power. Han denied all allegations, claiming he had no prior knowledge of the debacle and never agreed with or aided it, even after becoming aware of it. Wednesday's ruling is expected to have implications for Yoon's own trial on charges of insurrection and abuse of power, with a verdict likely to be handed down next month. 2026-01-21 15:20:24
Nomura flags heavy US investment burden for Samsung Electronics, SK hynix SEOUL, January 21 (AJP) - Samsung Electronics and SK hynix may need to invest between 100 trillion won and 120 trillion won ($74–89 billion) in the United States from 2027 to 2030 to secure tariff exemptions, according to a new analysis by Nomura Securities. That would translate into annual investment of about 25 trillion won to 30 trillion won, or roughly a quarter of the two companies’ combined annual memory chip capital expenditure, estimated at 120 trillion won to 140 trillion won, the report said. Nomura said tariff-exemption terms agreed between the United States and Taiwan are likely to be applied similarly to South Korea, making expanded U.S. investment by Korean memory chipmakers difficult to avoid. Under arrangements reached during the Trump administration, Taiwanese companies building new semiconductor production facilities in the United States can receive tariff exemptions covering imports of up to 2.5 times their production capacity while construction is under way. After a facility is completed, imports of up to 1.5 times the new capacity can be exempted from tariffs. Nomura noted that Samsung has already committed about $37 billion (54.4 trillion won) to U.S. foundry investments, while SK hynix has invested roughly $3.9 billion (5.7 trillion won) in U.S. packaging facilities. However, the brokerage said those investments are unlikely to be sufficient to fully secure tariff exemptions. The report said the companies may need to expand memory production capacity in the United States, potentially at the expense of planned investment in South Korea. Nomura estimated that, due to higher labor and operating costs, production costs at U.S.-based memory plants would be at least 40 percent higher than in South Korea. “The ultimate impact on profitability depends on the supply-demand environment,” it said, adding that under similar conditions, higher costs are likely to be passed on to end customers. Assuming operating profit margins for Korea-based production remain as high as 70 percent during a supply shortage, Nomura estimated margins at U.S. facilities could reach up to 58 percent. On a consolidated basis, that would imply overall margins in the mid-to-high 60 percent range. Nomura said uncertainty over tariffs could weigh on share prices in the short term. However, if the memory supercycle continues through at least 2027, the negative impact from additional U.S. investment is likely to be limited in the short to medium term. The long-term impact would also remain contained if chipmakers maintain disciplined capital spending and solid profitability, it added. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-21 15:17:20