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BOK stays pat for eighth month as weak won and high debt constrain policy SEOUL, January 15 (AJP) - The Bank of Korea (BOK) kept its benchmark interest rate unchanged at 2.5 percent on Thursday, extending its policy pause to an eighth consecutive month as policymakers remain constrained by a weak currency, elevated household debt and divergent inflation pressures. At its first rate-setting meeting of 2026, the central bank decided to hold the base rate steady, unchanged since a 25-basis-point cut in May last year. The decision reflects what officials have described as a growing policy bind in a prolonged liquidity-rich environment. While the Korean won has remained near crisis-level weakness — raising concerns about imported inflation and eroding the relative appeal of Korean assets — the scale of domestic household debt continues to limit the central bank’s room to maneuver. Household debt stands at around 2,000 trillion won ($1.36 trillion), a level seen as prohibitive for any rate hike. At the same time, the BOK has little scope to resume a rate-cutting cycle, particularly as expectations build that the Bank of Japan may deliver a second consecutive rate hike later this month — a move that could exacerbate regional currency volatility and put additional pressure on the won. The won, which had drawn temporary support overnight from rare interventionist rhetoric by the U.S. Treasury Department echoing Seoul’s concerns, remained under pressure in early Seoul trading. The dollar was quoted at 1,467.5 won, up 1 won on the day as of the morning session. U.S. Treasury Secretary Scott Bessent said in a post on X following a meeting with Deputy Prime Minister and Finance Minister Koo Yun-cheol that the won’s weakness was not aligned with South Korea’s economic fundamentals, an unusually direct comment from Washington that briefly steadied market sentiment. 2026-01-15 09:52:23 -
LG CNS invests in Cha Biotech to scale AI-driven healthcare SEOUL, January 15 (AJP) - LG CNS said on Thursday it is moving to scale up its digital healthcare business through a strategic partnership with Cha Bio Group. The IT services firm, led by Chief Executive Hyun Shin-gyun, said it signed a partnership agreement with Cha Biotech. The deal includes a 10 billion won ($7.4 million) equity investment and cooperation on artificial intelligence transformation and digital transformation projects. Hyun and Cha Won-tae, vice chairman of Cha Bio Group, attended the signing ceremony along with other executives from both sides. Cha Bio Group is a healthcare conglomerate spanning hospitals, pharmaceuticals, biotechnology research and medical services. The group also operates hospitals and medical businesses overseas, including in the United States, Singapore, Australia and Japan. LG CNS said it will establish a regular consultative body with Cha Bio to drive key AI and digital transformation initiatives. In the near term, the partners plan to migrate the group’s cloud infrastructure and build a smart big data platform that integrates data across operations. They also plan to upgrade drug manufacturing facilities with AI-based systems to improve efficiency throughout the production process. Over the mid to long term, the companies plan to jointly commercialize a “connected healthcare service,” a strategic growth area for Cha Bio. The service would use healthcare-specific AI models to analyze health and lifestyle data generated by hospitals, homes and wearable devices. LG CNS said it plans to deploy “EXAONE,” a large language model developed by the LG AI Research Institute, to build a healthcare-focused smaller language model and implement a big data platform to collect and manage medical, genetic and lifestyle data. 2026-01-15 09:42:08 -
Korean founders told to prioritize profit over growth at Silicon Valley summit SEOUL, January 15 (AJP) - South Korean startup founders hoping to break into the United States market were advised to abandon aggressive growth strategies in favor of proving their "unit economics," as investors at a major industry gathering here warned of a tightened global capital environment. The advice was delivered at the UKF 82 Startup Summit 2026, held from January 9 to 12 at the Fox Theatre in Redwood City. The event drew approximately 4,000 participants, making it the largest gathering of South Korean entrepreneurs and venture capitalists ever held in North America. Speakers at the four-day summit described a distinct shift in investor sentiment compared to the boom years of 2021. Eric Kim, managing partner at Goodwater Capital, noted that the venture capital market in 2026 has moved away from rewarding sheer scale. "Unlike in 2021, the market is now strictly dominated by performance and numbers," Kim said. "The IPO market shrinking to 70 to 80 percent of its peak is evidence of this." Kim urged founders to focus on "unit economics"—the direct revenues and costs associated with a business model—rather than user acquisition at all costs. Despite the stricter financial climate, Silicon Valley investors pointed to South Korea as a critical market for identifying future tech trends. Kim described the country as a "leading indicator" for the global industry, citing high population density and advanced digital infrastructure. He mentioned rapid-growth companies such as Coupang and Viva Republica, the operator of Toss, as examples of South Korean firms that successfully scaled in a competitive environment. "Goodwater Capital currently allocates about 10 to 15 percent of its investments to South Korea," Kim said. "We see it not just as a content creator, but as an investment opportunity where trends often emerge before they hit the global stage." The summit was organized by the United Korean Founders (UKF), a non-profit group that has expanded significantly since its inception. Jeong Sae-ju, co-chair of UKF and executive chairman of Noom, described the organization's origins as a casual social gathering in 2018, where founders met in a living room to share "oden" (fish cake) soup and discuss their struggles in the U.S. market. To acknowledge these roots, organizers set up a networking area at the venue styled after a "pocha," or Korean street food tent, serving fish cakes and spicy rice cakes to attendees. "It started with founders eating oden soup and sharing their struggles," Jeong said. "It has now evolved into an ecosystem where global tech leaders, the government, and VCs collaborate." The South Korean government also used the summit to announce expanded support for startups in the Bay Area. Noh Yong-seok, the 1st Vice Minister of SMEs and Startups, attended the event to inaugurate the new Startup Venture Campus (SVC). The facility is designed to provide office space, housing assistance, and administrative support for early-stage South Korean companies entering the U.S. Noh stated that the government is shifting its focus from indirect support to direct, on-the-ground assistance to help founders connect with local networks. 2026-01-15 09:30:53 -
BLACKPINK to release new album next month SEOUL, January 15 (AJP) - K-pop girl group BLACKPINK will release a new album next month. "Deadline," the quartet's third mini album, was teased by their management agency YG Entertainment on Thursday, ahead of its release slated for Feb. 27. "We'd like to thank fans who have waited for quite a long time," the agency said in a press release. The much-anticipated album is expected to reflect the memories and moments of their ongoing world tour, also called "Deadline." The tour kicked off in Goyang, Gyeonggi Province last July and has included more than 30 performances in about 16 cities around the world. BLACKPINK will hold a three-day concert in Tokyo from Friday, followed by the tour's final stop in Hong Kong a week later. 2026-01-15 09:13:23 -
Samsung working with US labs to develop next-generation clothes dryer SEOUL, January 15 (AJP) - Samsung Electronics said on Thursday that its research into next-generation clothes-drying technology has been selected for official support by the U.S. Department of Energy. The South Korean electronics giant said the project aims to develop a high-performance dryer that sharply reduces energy use while maintaining drying efficiency. Samsung is working with Oak Ridge National Laboratory of the U.S. and the University of South Carolina’s department of chemical engineering on the research. The project focuses on applying a high-efficiency dehumidifying material, known as a desiccant, to clothes dryers. The technology is designed to cut electricity consumption during drying to about 35 percent of that used by conventional vented dryers, while delivering comparable drying performance. Vented dryers are valued for their shorter drying times because they expel humid air outdoors. However, Samsung said their low energy efficiency makes them difficult to operate in typical U.S. homes using 120-volt power, often requiring separate 240-volt electrical work. They also require external ducting to vent air outside. Samsung said commercializing the new technology would allow high-performance dryers to run on standard 120-volt power without the need for external venting, reducing installation constraints. Such improvements could expand the use of dryers in a wider range of housing, including multiunit residential buildings and small apartments, the company said. Samsung said it plans to apply the research findings across multiple product lines, including standalone dryers and all-in-one washer-dryer units. Moon Jong Seung, a vice president in Samsung Electronics’ Digital Appliances Business Division, said the project represents “a practical opportunity to connect innovative energy-saving technology to value consumers can feel.” "We aim to expand appliances that support sustainable daily life through collaboration with global research institutions," Moon said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-15 08:52:44 -
Building on Partnership: UK-Korea Priorities for 2026 As we begin 2026, the partnership between the United Kingdom and the Republic of Korea has never been stronger. Elevated to a Global Strategic Partnership in 2023, our relationship reflects shared democratic values, a commitment to the rules-based international order and a vision for a more prosperous, secure and sustainable future. The inaugural UK-Korea High Level Forum held in Seoul in December brought together leaders from government, business and academia to chart the course ahead and spark new ideas for collaboration. 2026 will be an opportunity to build on that momentum. Standing firm for Ukraine is our most urgent shared imperative. As Russia’s illegal war continues, the deepening military cooperation between Moscow and Pyongyang, with North Korean troops fighting on European soil, shows that Euro-Atlantic and Indo-Pacific security are indivisible. What happens in Ukraine matters profoundly to the Korean Peninsula, and vice versa. The UK and Korea must continue unwavering support for Ukraine while maintaining robust sanctions against Russia. Together, we send a clear message: aggression will not be rewarded, and perpetrators will face consequences. Driving mutual economic growth remains central to our mission. Following the successful conclusion of negotiations in December to upgrade our Free Trade Agreement, we have unprecedented opportunities to deepen trade and investment. British and Korean businesses lead in artificial intelligence, clean energy and defence technology. In 2026, we will connect innovators across these sectors, leveraging complementary strengths to create jobs and prosperity in both countries. This year holds special significance for our security ties. 2026 marks the 75th anniversary of the Battle of Imjin River, where British troops fought bravely for Korea’s freedom, and the establishment of the United Nations Memorial Cemetery Korea in Busan, the resting place of over 880 British casualties of the Korean War. This shared history inspires our modern defence partnership. Climate leadership is another area where our partnership can make a global difference. Both nations have submitted ambitious Nationally Determined Contributions, and Korea’s commitment to phasing out coal demonstrates genuine resolve. We look forward to sharing expertise in offshore wind and nuclear energy as we pursue green transitions. Finally, our cultural ties continue to flourish. 2025 saw British creativity on display in Korea through exhibitions from Antony Gormley and the National Portrait Gallery, and Thomas Heatherwick’s curation of the Seoul Biennale. This year, we eagerly anticipate Damien Hirst’s exhibition at the MMCA and other exciting events. These exchanges remind us that our partnership lives in the connections between our peoples. 2026 promises to be a year of deepening friendship between our two countries. I look forward to all we will achieve together. *The author is the British Ambassador to South Korea. 2026-01-15 07:56:56 -
KRX eyes AI-driven overhaul to support 24-hour trading, reviews startup acquisition SEOUL, January 15 (AJP) -The Korea Exchange (KRX) said Tuesday it is pursuing an artificial intelligence–based innovation strategy as groundwork for a future 24-hour trading system, including a possible acquisition of an AI startup. The exchange said it plans to integrate AI into market oversight and operations, calling the technology a core strategy that will determine the competitiveness of South Korea’s capital markets. AI is expected to be applied across market surveillance, corporate disclosures and other regulatory functions to improve efficiency and productivity as trading hours expand. KRX also said it intends to use AI in its information business to diversify revenue streams, including the development of commercial indexes and financial products based on unstructured data. While the acquisition of an AI startup is among the options under review, the exchange emphasized that no decision has been made. The announcement follows KRX’s plan to extend trading hours in stages, with premarket and after-hours trading set to begin in June. Under the plan, the exchange would operate a premarket session from 7 a.m. to 8 a.m. and an after-market session from 4 p.m. to 8 p.m., extending total daily trading hours to 12 hours. KRX said the premarket would open one hour earlier than the 8 a.m. opening of alternative trading system Nextrade (NXT), allowing investors to respond more quickly to overnight developments in U.S. and European markets. The exchange said the move aims to attract greater participation from both domestic and foreign investors and to stem the outflow of liquidity to overseas markets. The exchange reiterated its goal of building a full 24-hour trading system by December 2027. It also plans to expand derivatives trading to a 24-hour schedule by the end of next year. Currently, derivatives trade for up to 19 hours a day, including the regular session from 8:45 a.m. to 3:45 p.m. and the night session from 6 p.m. to 6 a.m. the following day. In parallel, KRX said it will push to shorten the stock market settlement cycle from T+2 to T+1, bringing settlement forward to one business day after a trade. The exchange said longer trading hours are becoming a global standard, citing moves by major exchanges such as NYSE Arca, which currently operates 16-hour trading sessions and plans to introduce 24-hour trading with Nasdaq in the second half of the year. The London Stock Exchange and Hong Kong Exchanges and Clearing are also reviewing similar measures. KRX said the global shift reflects intensifying competition for cross-border liquidity, particularly as retail investors in Asia increase overseas investment. As of the end of 2025, Korean investors held roughly 250 trillion won ($170 billion) in overseas equities, with domestic market liquidity continuing to flow abroad. Addressing concerns over increased workload, the exchange said off-hours trading will be limited to orders placed through headquarters, home trading services (HTS) and mobile trading services (MTS), excluding nationwide branch operations. Participation by exchange-traded fund (ETF) liquidity providers outside regular hours will be optional, and measures will be taken to minimize additional information technology development costs. 2026-01-15 07:42:21 -
Seoul city bus service back to normal after wage deal ends record strike SEOUL, January 15 (AJP) -Seoul city buses are back on the roads on Thursday after labor and management reached a wage agreement late Wednesday, ending the longest city bus strike on record. The deal was struck at 11:55 p.m. during a second follow-up mediation session convened by the Seoul Regional Labor Relations Commission at its special arbitration panel. The talks brought together the Seoul City Bus Labor Union, affiliated with the Korean Automobile Workers Federation, and the Seoul City Transport Business Association. Negotiations were nearly derailed when union representatives attempted to leave the session around 9 p.m., citing a lack of progress. Mediators and Seoul city officials physically blocked the exit and urged both sides to remain at the table, eventually steering talks back on track. Under the agreement, base pay for bus drivers will rise 2.9 percent — higher than the 0.5 percent offered in the initial proposal but slightly below the union’s 3.0 percent demand. The retirement age will be raised from 63 to 64 starting in July, and to 65 beginning in July 2027. The two sides also agreed to form a labor-management-government task force to further discuss the city’s bus operations monitoring system, which the union had sought to abolish. A broader restructuring of the wage system to reflect “ordinary wages,” a key union demand, was excluded from this round of negotiations at the union’s request and will instead be pursued through the courts. The strike began Tuesday after wage talks collapsed, marking the first walkout by Seoul bus drivers in two years. At its peak Wednesday morning, only 562 — about 8 percent — of the city’s 7,018 intracity buses were operating, causing widespread commuter disruption in subzero climate. In response, Seoul expanded emergency transportation measures, increasing rush-hour subway services from 172 to 203 trains, extending peak service hours by two hours, dispatching empty trains to congested stations, and deploying more than twice the usual number of safety personnel at 86 major stations. The city also mobilized chartered buses, deploying 677 vehicles on Tuesday and 763 by Wednesday. With the agreement reached, Seoul will lift all emergency measures. Extended subway operations will return to regular schedules, and district-run shuttle and chartered bus services will end. Mayor Oh Se Hoon welcomed the agreement, praising both sides for continuing dialogue despite difficult conditions. He also thanked residents for their patience and cooperation during the disruption. “The city will do everything it can to strengthen trust between labor and management and ensure that public transportation does not waver in serving the people of Seoul,” Oh said. 2026-01-15 07:22:03 -
Washington makes a rare Korean won-supporting remark SEOUL, January 15 (AJP) - In a rare departure from Washington’s long-held opposition to currency intervention, the U.S. Treasury secretary echoed Seoul’s concerns over the weak Korean won, lending verbal support to efforts to stabilize the currency. U.S. Treasury Secretary Scott Bessent met with South Korea’s Deputy Prime Minister and Finance Minister Koo Yun-cheol on Monday (local time) to discuss market developments and preparations for the upcoming critical minerals ministerial meeting, according to a Treasury Department readout released Wednesday. During the meeting, the two officials exchanged views on economic conditions in both countries and ways to deepen bilateral economic ties. Bessent specifically addressed the recent depreciation of the Korean won, noting that the currency’s weakness does not align with South Korea’s underlying economic fundamentals. He emphasized that excessive volatility in foreign-exchange markets is undesirable, while underscoring South Korea’s role as a critical U.S. partner in Asia — particularly given the strength of its key industries that support the American economy, the readout said. The remarks mark an unusual shift in tone for Washington, which has traditionally cautioned Seoul against interventionist moves seen as supporting exports at the expense of the U.S. dollar and trade balance. Bessent and Koo also discussed the full and faithful implementation of President Donald Trump’s Korea Strategic Trade and Investment Deal. Bessent said he expects the rollout to proceed smoothly and stressed that the agreement would further deepen bilateral economic cooperation and contribute to the revitalization of U.S. industrial competitiveness. The comments appeared to have an immediate market impact. The dollar weakened sharply against the won overnight, sending the U.S. dollar down 13.50 won to 1,465.00 won. 2026-01-15 06:15:19 -
PHOTOS:Crowds flock to ice festival in Hwacheon Hwacheon, January 14 (AJP) - On a white canvas of snow-covered ice, hundreds of people hunched over holes drilled into the frozen river, their fishing lines disappearing into the dark waters below. Despite temperatures plunging to -14 degrees Celsius and heavy snowfall, crowds gathered from early morning last Monday, just days after the annual mountain trout-themed Sancheoneo Ice Festival kicked off last weekend. Around 10 a.m., parking lots near the entrance to the festival site were already packed. Visitors from all over the country, armed with thermos flasks and hand warmers stuffed into bags and bundled in heavy winter gear, took their spots on the ice. The sprawling fishing area, covering about 30,000 square meters, features more than 20,000 fishing holes drilled through ice more than 30 centimeters thick. People clutched fishing rods in one hand while holding plastic bags for their catch in the other. Around noon, large snowflakes began to fall, and visibility dropped suddenly, but many of the visitors endured it, with their eyes fixed on their fishing lines. Another fishing area for bare-hand fishing also greeted visitors. Inside a circular pool filled with water, sancheoneo swam in circles. Participants changed into short-sleeved shirts and shorts provided by festival organizers, then waited for their turn. The sight of people lined up in summer clothing in -15-degree weather was enough to make onlookers shiver. Without hesitation, they plunged into the icy water, thrusting their arms deep as they chased the quick-moving fish. Minutes later, shivering but triumphant, they hurried to nearby foot baths, sinking their frozen feet into the hot water and feeling relief wash over them. Various other amusements like sledding also await visitors. They can look at massive ice sculptures while participating in hands-on activities like making traditional snacks. There are also food stalls offering various preparations of sancheoneo - grilled, raw, or fried, providing savory delights for weary visitors after a long day of fishing. As the sun set, most visitors packed up and left, but hundreds of others arrived late, eager to compete for gold prizes awarded to those with the largest catch. Unlike the family-friendly atmosphere of the morning and afternoon fishing hours, the competition, which kicked off at 7 p.m., attracted what seemed to be seasoned anglers equipped with specialized rods, lighting, and various professional gear. The festival, now in its 21st year, runs until the first day of February and continues to attract hundreds of visitors each year. 2026-01-14 18:05:59