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  • South Korea and India Discuss Military Cooperation
    South Korea and India Discuss Military Cooperation On July 28, Jin Young-seung, the Chairman of the Joint Chiefs of Staff, held a coordination call with General Raja Subramani, the newly appointed Indian Defense Minister. They discussed ways to enhance military exchanges and cooperation between the two countries, as well as regional security issues. Chairman Jin congratulated General Subramani on his appointment and expressed deep gratitude for India's contributions to South Korea during the Korean War, including the dispatch of a medical support team. He emphasized the importance of building on this historical trust and friendship to further develop military cooperation between the two nations. Both sides shared their perspectives on the current security situation in the Indo-Pacific region and agreed on the necessity of close international cooperation in light of increasing uncertainties in the regional security environment, including North Korea's nuclear and missile threats. They also praised the tangible results of their ongoing military education, personnel exchanges, maritime security cooperation, and defense collaboration, including the K-9 howitzer. They noted that the participation of the South Korean Navy in the multinational maritime exercise 'MILAN' hosted by India in February this year has further strengthened interoperability and cooperation between their navies. The call aimed to solidify trust and camaraderie between the two militaries and to expand cooperation across various fields.* This article has been translated by AI. 2026-07-28 17:20:00
  • Magnitude 7.1 Earthquake Strikes Kumamoto, Japan; TSMC Assesses Factory Status
    Magnitude 7.1 Earthquake Strikes Kumamoto, Japan; TSMC Assesses Factory Status A magnitude 7.1 earthquake struck Kumamoto Prefecture, a key semiconductor hub in Japan, with some areas experiencing tremors rated at the highest level of 7.According to NHK, the earthquake occurred at 4:27 p.m. local time on July 28, with an estimated depth of 10 kilometers.In Uki and Hikawa, the strongest tremors of magnitude 7 were recorded. Other areas, including Minami-ku and Yatsushiro, as well as Uto, Misato, and Mashiki, reported tremors of magnitude 6 strong.Weaker tremors of magnitude 6 weak were detected in Kamimamakusa, Koshigaya, Ozaki, Nishihara, Mihune, and Ashikita. Magnitude 5 strong tremors were observed in Chuo, Higashi, Nishi, and Kita wards of Kumamoto City, as well as Kikuyo and Amakusa.The strong tremors were felt across Kyushu, with Nagasaki Prefecture's Minami-Shimabara and Kagoshima's Satsumasendai reporting magnitude 5 strong, while parts of Fukuoka, Saga, and Miyazaki recorded magnitude 5 weak. Tremors of magnitude 3 to 4 were also felt in western Japan, including Yamaguchi, Ehime, and Kochi Prefectures.The Japan Meteorological Agency issued a tsunami advisory, warning that waves up to 1 meter high could reach the Ariake Sea and Yatsushiro Sea. JR Kyushu suspended operations of several public transport services, including the Shinkansen.This is the first time since the Noto Peninsula earthquake in January 2024 that tremors of magnitude 7 have been recorded in Japan. It has been nearly a decade since the Kumamoto earthquakes in April 2016, which also registered two magnitude 7 tremors.In response to the earthquake, Chief Cabinet Secretary Minoru Kihara is scheduled to hold a press conference at 5:30 p.m., according to NHK.Kumamoto is a central location for Japan's semiconductor industry, and the impact of this earthquake on semiconductor production facilities is being closely monitored. Japan aims to develop Kumamoto, home to TSMC's Japanese subsidiary JASM, into an international hub for physical AI.In Kikuyo, where JASM is located, tremors of magnitude 5 strong were recorded, while Koshigaya, where Mitsui Real Estate plans to establish a physical AI semiconductor research center, experienced tremors of magnitude 6 weak. According to Kyodo News, TSMC is currently assessing the condition of its Kumamoto factory. 2026-07-28 17:20:00
  • How South Korea became Asias AI ETF test case
    How South Korea became Asia's AI ETF test case SEOUL, July 28 (AJP) — Not long ago, Nvidia was the trade that defined the artificial intelligence boom. Today, investors are searching for the next AI winner—and using increasingly leveraged financial products to amplify those bets. That search is reshaping not only Asia's semiconductor industry but also its capital markets. As investors crowd into a handful of AI champions, exchanges are racing to launch new products while regulators grapple with where to draw the line between financial innovation and market stability. South Korea has emerged as Asia's real-world test case. Its AI-driven stock rally transformed Samsung Electronics and SK hynix into the foundation of one of the world's busiest single-stock leveraged exchange-traded fund (ETF) markets, offering regulators—and rival financial centers—a preview of both the opportunities and the risks. Hong Kong moved first by listing Asia's first single-stock leveraged and inverse ETFs in 2025. Japan may be next, with proposed leveraged products linked to memory-chip maker Kioxia. China, meanwhile, is steadily expanding the pool of semiconductor companies that could underpin similar products as Beijing builds domestic AI champions. Increasingly, the race is shifting from semiconductor fabs to capital markets, where exchanges, asset managers and regulators are shaping the next generation of AI investment products—and the rules that govern them. Asia's single-stock leveraged ETF story began in Hong Kong. Seeking to strengthen its position as a regional ETF hub, Hong Kong Exchanges and Clearing approved Asia's first single-stock leveraged and inverse ETFs in 2025, initially allowing investors to take amplified long or short positions in companies including Samsung Electronics and SK hynix without directly trading derivatives. Since then, the market has expanded to products linked to global technology companies such as Nvidia and Tesla, reflecting Hong Kong's strategy of competing through increasingly sophisticated exchange-traded products rather than market size alone. If Hong Kong pioneered the products, South Korea demonstrated how quickly the market could grow. The country's AI rally turned Samsung Electronics and SK hynix into magnets for leveraged investment, attracting billions of dollars into products offering two-times exposure to the chipmakers at the center of the global AI infrastructure boom. Just as importantly, South Korea became a case study in the risks. As assets under management expanded, regulators warned that funds designed to track individual stocks could themselves begin influencing trading in those shares. The debate quickly shifted from investor demand to whether leveraged ETFs had become large enough to amplify volatility in the underlying market. South Korea's experience has drawn attention well beyond its borders. Hong Kong-listed leveraged ETFs tied to Samsung Electronics and SK hynix have attracted substantial assets, while U.S. issuers have proposed additional leveraged products linked to Korean semiconductor stocks. Yang Jun-sok, professor of economics at the Catholic University of Korea, said South Korea's experience had likely influenced the development of similar products elsewhere in Asia. "South Korea's single-stock leveraged ETFs have had some influence," Yang said. "As long as a handful of stocks continue to outperform, demand for these products is inevitable. Once that demand exists, more developed financial markets will create products to meet it." Japan may offer a glimpse of the industry's next phase. Several U.S. asset managers have proposed leveraged and inverse ETFs linked to memory-chip maker Kioxia as optimism grows over AI infrastructure spending. Unlike South Korea, where leveraged ETFs followed a surge in retail demand, Kioxia's proposed products are emerging before a comparable trading boom has taken hold. That marks an important shift. Rather than responding to investor enthusiasm, asset managers are increasingly attempting to identify tomorrow's AI winners before the market fully prices them in. Whether that becomes a lasting regional trend remains uncertain. "I think it's still too early to call this a lasting trend," Yang said. "Regulators in other markets have become more aware of the risks these products can pose to market stability, and investors also understand how volatile single-stock leveraged ETFs can be." "If the current concentration of gains in AI and semiconductor stocks begins to fade, demand for single-stock leveraged ETFs is also likely to weaken," he said. China has yet to become a major market for single-stock leveraged semiconductor ETFs. Even so, Beijing's drive to build a self-sufficient semiconductor industry is steadily expanding the universe of companies around which such products could eventually be built. The blockbuster Shanghai debut of ChangXin Memory Technologies (CXMT) highlighted investor appetite for China's domestic semiconductor champions. As Beijing pours investment into memory chips, AI hardware and advanced manufacturing, asset managers are gaining an expanding list of companies that could support future leveraged products. Today's ETFs revolve around Samsung Electronics, SK hynix and Kioxia. Tomorrow's could include a much broader range of Chinese chipmakers. Yang said South Korea's experience has already helped raise international awareness of both the opportunities and risks of single-stock leveraged ETFs. "These products have attracted considerable interest abroad, especially on social media," Yang said. "That has increased awareness not only of their potential returns but also of their risks." As single-stock leveraged ETFs spread across Asia, regulators are increasingly confronting the same question: how much leverage is too much? South Korea has responded by slowing the market. Authorities suspended approvals for new single-stock leveraged ETFs and ETNs, tightened investor suitability requirements and accelerated stricter minimum cash-deposit rules as speculative trading intensified during the AI rally. Hong Kong has taken a different approach. Rather than restricting access, regulators introduced a framework allowing issuers to temporarily reduce target leverage ratios during periods of market stress instead of forcing funds to maintain fixed two-times exposure under all conditions. The broader lesson extends well beyond leveraged ETFs. The AI boom is changing not only which companies investors buy but also how capital markets package those companies into increasingly concentrated investment products. That demand is unlikely to disappear simply because regulation becomes stricter. As investors hunt for Asia's next AI champion, the competition is no longer confined to semiconductor fabs. It is increasingly being fought in capital markets, where exchanges compete to build the next generation of AI investment products and regulators race to keep pace with the risks they create. 2026-07-28 17:12:22
  • China chip fears send KOSPI plunging over 10%
    China chip fears send KOSPI plunging over 10% SEOUL, July 28 (AJP) - China's growing push into semiconductors rattled South Korea's stock market on Tuesday. Shares of Samsung Electronics and SK hynix crashed, sparking panic across the market. The sell-off was severe enough to activate automatic trading halts on both the benchmark KOSPI and the junior KOSDAQ, including sidecars and circuit breakers designed to curb sharp market declines. The KOSPI tumbled 10.84 percent to 6,023.66, briefly falling below the 6,000-point mark during the session. The KOSDAQ dropped 7.72 percent to 705.85, also slipping below 700 intraday before paring some losses by the close. The selloff followed another sharp decline in U.S. semiconductor stocks overnight, with Nvidia falling 4.99 percent and the Philadelphia Semiconductor Index losing 2.23 percent. Micron Technology, Sandisk and AMD also declined, while SK hynix's U.S.-listed shares dropped 7.47 percent, slipping below their recent offering price. Investor sentiment weakened further after Chinese memory chipmaker CXMT surged more than 400 percent on its market debut the previous day, becoming the world's most valuable listed semiconductor company. Investor sentiment weakened further after Chinese memory chipmaker CXMT surged more than 400 percent in its market debut the previous day, becoming one of the most valuable listed companies in the world's most populous country. Separate reports that China has begun mass-producing deep ultraviolet (DUV) lithography equipment also fueled concerns that the country's semiconductor industry is advancing faster than expected, prompting another round of profit-taking across technology shares. Foreign investors dumped 4.97 trillion won worth of KOSPI shares, while retail investors bought 4.33 trillion won and institutions purchased 678 billion won. Samsung Electronics led the decline, plunging 13.39 percent to 220,000 won, its lowest closing price since April 30 and its steepest one-day drop of the year. Foreign investors dumped 1.63 trillion won worth of the shares, marking the second-largest net selloff on the main board. SK hynix fell even further, dropping 14.65 percent to 1,550,000 won, its lowest closing price since early May and its second-largest one-day decline of the year, just short of its record 15.37 percent fall on July 13. Foreign investors offloaded a net 3.21 trillion won worth of the stock, the largest net selling by foreign investors, while institutions bought a net 907.7 billion won, far from enough to offset the heavy foreign selling. Losses spread rapidly across other major blue-chip stocks. Samsung Electro-Mechanics slid 15.92 percent, SK Square lost 15.60 percent, Samsung Electronics preferred shares fell 12.01 percent, and Samsung C&T declined 10.16 percent. Other major stocks similarly suffered steep losses, with Hyundai Motor falling 9.68 percent, HD Hyundai Heavy Industries down 7.30 percent, Kia off 6.60 percent, and LG Energy Solution lower by 5.71 percent. KB Financial, Shinhan Financial and Hanwha Aerospace also declined 4.29 percent, 3.90 percent and 2.67 percent, respectively. Samsung Biologics was the only major stock to finish higher, edging up 0.26 percent. The KOSDAQ also came under heavy pressure. Among heavyweights, Alteogen fell 4.97 percent, EcoPro BM dropped 7.87 percent, EcoPro lost 9.80 percent, Rainbow Robotics declined 10.20 percent, and Jusung Engineering slid 14.08 percent. The South Korean won strengthened against the U.S. dollar, with the greenback trading at 1,460.1 won, compared to 1,468.5 won in the previous session. The semiconductor-driven sell-off spread across broader Asian markets. Japan's Nikkei 225 fell 3.83 percent, while China's Shanghai Composite declined 1.16 percent. In contrast, Hong Kong's Hang Seng Index edged up 0.17 percent. 2026-07-28 17:12:02
  • BLACKPINKs Jennie Breaks K-pops U.S. Radio Barrier
    BLACKPINK's Jennie Breaks K-pop's U.S. Radio Barrier SEOUL, July 28 (AJP) - K-pop has long dominated U.S. streaming and album charts, but mainstream radio has remained one of the industry's toughest markets to crack. BLACKPINK's Jennie has now helped break that barrier, becoming only the second K-pop-related act to top Billboard's Adult Pop Airplay chart, Forbes reported Monday, citing Billboard data. Jennie's collaboration with Australian psychedelic music project Tame Impala, "Dracula," climbed to No. 1 on the chart, which ranks songs based on airplay across adult pop radio stations in the United States. Unlike streaming and album charts, Adult Pop Airplay is determined by radio airplay rather than fan-driven consumption, making it one of the clearest measures of a song's mainstream appeal. Before "Dracula," the only K-pop-related song to reach No. 1 on the chart was "Golden," the theme song from Netflix's animated film KPop Demon Hunters. Performed by Korean American singer EJAE alongside Rei Ami and Audrey Nuna, the track topped the ranking in January following the film's commercial success. Originally released by Tame Impala in October last year, "Dracula" gained renewed momentum after a remix featuring Jennie was released in February. The remix went viral on short-form video platforms, helping propel the song up multiple Billboard rankings. The song currently tops seven Billboard charts, including Pop Airplay, Adult Pop Airplay, Hot Rock & Alternative Songs, Hot Rock Songs, Hot Alternative Songs, Hot Dance/Electronic Songs and Dance Streaming Songs. 2026-07-28 17:10:45
  • 7.1 Magnitude Earthquake Strikes Kumamoto, Japan, as TSMC Assesses Factory Status
    7.1 Magnitude Earthquake Strikes Kumamoto, Japan, as TSMC Assesses Factory Status A 7.1 magnitude earthquake struck Kumamoto Prefecture, a semiconductor hub in Japan, with some areas experiencing tremors rated at the highest level of 7.According to NHK, the earthquake occurred at 4:27 p.m. local time in the Kumamoto region, with an estimated depth of 10 kilometers.In Uki City and Hikawa Town, the strongest tremors of magnitude 7 were recorded. Other areas, including Minami Ward and Yatsushiro City, as well as Uto City, Misato Town, and Mashiki Town, reported tremors of magnitude 6 strong.Weaker tremors of magnitude 6 weak were detected in Kamiamakusa City, Koshiji, Ozu Town, Nishihara Village, Mihune Town, and Ashikita Town. Magnitude 5 strong tremors were observed in Chuo Ward, Higashi Ward, Nishi Ward, and Kita Ward of Kumamoto City, as well as Kikuyo Town and Amakusa City.The strong tremors were felt across Kyushu, with Nagasaki Prefecture's Minami Shimabara City and Kagoshima Prefecture's Satsumasendai City reporting magnitude 5 strong. Parts of Fukuoka, Saga, and Miyazaki Prefectures recorded magnitude 5 weak tremors, while regions in western Japan, including Yamaguchi, Ehime, and Kochi Prefectures, experienced tremors of magnitude 3 to 4.The Japan Meteorological Agency issued a tsunami advisory, warning that waves up to 1 meter high could reach the Ariake Sea and Yatsushiro Sea. Additionally, JR Kyushu suspended operations of several public transport services, including the Shinkansen.This is the first time since the Noto Peninsula earthquake in January 2024 that tremors of magnitude 7 have been recorded in Japan. It has been nearly a decade since the Kumamoto earthquakes in April 2016, which also registered two magnitude 7 tremors.In response to the earthquake, Chief Cabinet Secretary Minoru Kihara is scheduled to hold a press conference at 5:30 p.m., according to NHK.Kumamoto is a key semiconductor production center, and the impact of this earthquake on semiconductor facilities is being closely monitored. Japan aims to establish Kumamoto, home to TSMC's Japanese subsidiary JASM, as an international hub for physical AI.In Kikuyo Town, where JASM is located, tremors of magnitude 5 strong were recorded, while Koshiji, where Mitsui Real Estate plans to develop a physical AI semiconductor research hub, experienced tremors of magnitude 6 weak. According to Taiwan's Economic Daily, TSMC is currently assessing the status of its Kumamoto factory. 2026-07-28 17:08:00
  • Dongbang News Corporation and Korean Youth Association Collaborate to Enhance Global and Digital Skills
    Dongbang News Corporation and Korean Youth Association Collaborate to Enhance Global and Digital Skills 동방뉴스코퍼레이션과 한국청소년단체협의회가 청소년 활동 활성화와 글로벌 역량 강화를 위해 협력에 나선다.동방뉴스코퍼레이션과 한국청소년단체협의회는 28일 오전 11시 서울 이마빌딩 아주미디어그룹 사옥에서 업무협약을 체결했다. 양 기관은 이번 협약을 계기로 청소년 국제교류와 인공지능(AI)·디지털 미디어 교육, 콘텐츠 개발 등 다양한 분야에서 협력하기로 했다.협약의 핵심은 양 기관이 보유한 인적·물적 자원과 전문성을 결합해 청소년의 건강한 성장과 글로벌 역량 증진을 지원하는 것이다. 동방뉴스코퍼레이션 산하 경제일보·아주일보·낀떼아주의 미디어 네트워크와 한국청소년단체협의회의 청소년 활동 기반을 연계해 실질적인 협력사업을 발굴한다는 구상이다.양 기관은 우선 청소년 활동 활성화를 위한 사업을 공동으로 기획·운영하고 필요한 지원을 확대하기로 했다. 청소년의 AI·디지털 미디어 활용 역량을 높이기 위한 교육 콘텐츠와 관련 사업도 함께 개발한다.한·중 청소년 교류를 비롯한 국제교류사업의 대외 홍보와 성과 확산에도 협력한다. 청소년들이 국제적 감각과 경제 마인드를 키울 수 있도록 미디어와 교육, 교류 프로그램을 유기적으로 연결할 계획이다.이번 협약의 유효기간은 체결일로부터 3년이다. 양 기관은 협약 기간이 끝나기 전 협의를 거쳐 기간을 연장할 수 있다. 협약은 상호 협력 의사를 확인하는 것으로, 상대 기관에 별도의 법적 권리나 의무를 부과하지 않는다.이날 협약식에는 곽영길 아주뉴스코퍼레이션 회장과 양규현 동방뉴스코퍼레이션 대표, 송정훈 경제일보 편집국장, 정원교 아주경제 팀장이 참석했다. 한국청소년단체협의회에서는 고명진 회장과 송기출 부회장, 손수익·김상우 자문위원, 고기영 본부장, 이형남 목사가 참석했다.양 기관은 이번 업무협약을 출발점으로 세부 사업을 구체화하고, 청소년 활동과 국제교류, AI·디지털 미디어 콘텐츠 분야에서 지속 가능한 협력 모델을 구축할 방침이다.곽영길 회장은 "중국, 베트남, 일본 등 아주미디어그룹의 해외 네트워크를 적극 활용해 우리나라 청소년들의 국제교류 활동을 적극 지원해 나갈 예정"이라고 말했다.* This article has been translated by AI. 2026-07-28 17:03:00
  • National Safety Commission Launched to Protect Citizens Lives
    National Safety Commission Launched to Protect Citizens' Lives The government launched the 'National Safety Commission' on July 28, chaired by President Lee Jae-myung.The Ministry of the Interior and Safety announced the commission's inaugural meeting held at the Government Seoul Building.The commission was established under the 'Regulations on the Establishment and Operation of the National Safety Commission,' which was enacted in May. It serves as the highest body to review major national policies aimed at enhancing citizens' safety rights and creating a society that values life.The first meeting was co-chaired by Yoon Ho-joong, Minister of the Interior and Safety, and Baek Jong-woo, a professor at Kyung Hee University and president of the Korea Suicide Prevention Association, in place of President Lee.This launch signifies the activation of a national implementation system to translate the safety rights outlined in the 'Basic Law on Life Safety' into actual policies. The institutionalization of safety rights has been a long-standing demand from bereaved families and civil society following the Sewol ferry disaster, with legal grounds established by the enactment of the 'Basic Law on Life Safety' on June 2.The commission will comprehensively review and coordinate life safety policies that have been dispersed across various ministries. It will monitor and facilitate the implementation of measures related to life safety, particularly identifying safety blind spots and incorporating external perspectives from appointed members to enhance departmental strategies.The commission will have four subcommittees focusing on life safety, disaster safety, public safety, and victim support, which will review issues specific to each area.Minister Yoon stated, "With the enactment of the Basic Law on Life Safety, the citizens' right to 'life and safety' has become a rightful claim that the state must protect. The commission will ensure that this right operates effectively in practice."He added, "We will unify the safety policies that have been scattered across various ministries under a single standard of protecting citizens' lives, shifting from post-incident recovery to a prevention-focused approach to fulfill the state's fundamental duty to safeguard life and safety."Vice Chair Baek remarked, "The inception of the Basic Law on Life Safety reflects the desire of disaster victims and their families to create a society where no one has to endure the pain of repeated disasters. Through the National Safety Commission, we will foster communication and cooperation between the government and the private sector to minimize preventable deaths and damages."* This article has been translated by AI. 2026-07-28 17:01:00
  • Police Investigate 117 Cases Involving Officers Families Following Jang Yoon-ki Incident
    Police Investigate 117 Cases Involving Officers' Families Following Jang Yoon-ki Incident In response to the Jang Yoon-ki incident, police have identified 117 cases involving the families of officers across the country. Of these, 44 cases raised concerns about the fairness of investigations and have been transferred to other police stations.The National Police Agency announced on July 28 that a comprehensive investigation was conducted from July 10 to 22, focusing on cases involving police officers' families.The investigation targeted cases where the individuals involved were spouses or direct descendants of officers working at the police station handling the case. Even if the officer is no longer employed at that station, cases involving their family members from the past three years were included. This encompassed not only suspects but also victims, complainants, and witnesses.For the 73 cases that were not transferred, the police plan to reassess the appropriateness of the investigation process monthly. Matters requiring further investigation or oversight will be handled by provincial police agencies rather than local police stations.This comprehensive review was initiated after it was revealed that Jang Yoon-ki's father is a current police officer, raising allegations of negligence, concealment, and internal collusion during the investigation of the case.Park Mo, the former head of the investigation team at the Gwangju Gwangsan Police Station, which handled the Jang Yoon-ki case, has been arrested on charges of evidence destruction, dereliction of duty, leaking official secrets, and abuse of power. The prosecution extended Park's detention by ten days on July 24 to continue the investigation. The final determination of the charges will be made in court.Following this incident, the National Police Agency has begun a nationwide review to prevent potential conflicts of interest in cases involving police officers and their families. Acting Commissioner Yoo Jae-sung publicly apologized on July 10 regarding the Jang Yoon-ki case and announced plans to reform police investigations.During the review, additional cases involving police officers' families were also identified.The Jeonbuk Provincial Police Agency recently charged Officer A, who works at a police station in Jeonju, with evidence destruction. Officer A is accused of disposing of evidence after learning that his teenage son had illegally filmed a teacher. The police are conducting a formal investigation into this case.The National Police Agency plans to establish a management system to continuously oversee cases involving police officers' families based on the findings of this investigation.A police official stated, "We will develop a management plan to continuously oversee cases involving police officers' families based on the results of the comprehensive investigation."* This article has been translated by AI. 2026-07-28 16:58:00
  • Despite Rising Mineral Prices, Global Investment Falls 9%: Can South Koreas Policy Finance Diversify Supply Chains?
    Despite Rising Mineral Prices, Global Investment Falls 9%: Can South Korea's Policy Finance Diversify Supply Chains? Prices for key minerals such as lithium and copper are rising, yet investment in new mines and processing facilities is declining. Increased price volatility and geopolitical uncertainties have made private companies hesitant to engage in long-term capital-intensive projects.South Korea, which heavily relies on imports for key minerals, is urged to use policy finance to effectively lower investment risks for the private sector and support the establishment of alternative supply chains.According to the International Energy Agency's (IEA) 'Global Key Minerals Outlook 2026' released on July 28, key mineral prices have begun to rise since last year due to tightening supply conditions. Export restrictions from major producing countries have further exacerbated price increases.Specifically, prices for non-ferrous metals like aluminum, copper, and tin have surged approximately 33% from January 2022 to April 2023. Prices for battery materials, which had been weak in 2023-2024, have also rebounded. Lithium prices have more than doubled due to increased demand for energy storage systems (ESS) and supply constraints, while cobalt prices have risen by about 130% due to export restrictions from the Democratic Republic of the Congo.In contrast, global investment in key minerals fell by 9% last year, breaking a multi-year trend of growth. The IEA attributes this decline to the burdens of price volatility and geopolitical tensions on investment.Key mineral projects require extensive time and significant capital from exploration to production. If mineral prices plummet during the project timeline, economic viability diminishes, and if resource-rich countries control exports or production, recovering investments becomes challenging. Private companies often find it difficult to bear such risks alone, leading to delays or cancellations of new projects.Meanwhile, the refining supply of key minerals is increasingly concentrated in a few countries. The IEA reports that over 75% of the expected increase in refining supply for major energy minerals from 2023 to 2025 will come from Indonesia and China, with Indonesia leading in nickel and China dominating most other key minerals.The issue is that South Korea's heavy reliance on imports for key minerals makes it more vulnerable to this concentration of supply. According to the Korea Energy Economics Institute, as of 2024, 30 out of 33 key minerals designated by the government will have a 100% import dependency. Additionally, 17 of these minerals are sourced from countries that account for over 50% of imports. If global investment continues to shrink, the development of new mines and alternative supply sources will be delayed, making it difficult to address the concentration of supply from specific countries.In response, the government plans to leverage policy finance to attract private investment. The Ministry of Trade, Industry and Energy and the Financial Services Commission held a meeting on July 23 to discuss support measures using the National Growth Fund. The support will cover the entire supply chain, from securing overseas resources to domestic refining, material processing, and recycling.However, the key challenge is whether companies can secure the necessary funds in a timely manner when they need to invest. Given the significant price volatility and political risks associated with overseas mining development and equity acquisitions, relying solely on conventional loans and guarantees may not be sufficient to encourage private participation. There are calls for a clearer delineation of risk-sharing mechanisms between the government and the private sector, as well as a focus on the types and scale of investments.Professor Kang Cheon-gu from Inha University’s Graduate School of Manufacturing Innovation stated, "While the government has established support measures and a roadmap, it is not easy for companies to utilize these when investing in overseas mines or refining facilities. Priority should be given to policy finance and resource diplomacy necessary for securing resources over research and development, and proactive support should be provided at the time companies need it most."* This article has been translated by AI. 2026-07-28 16:57:00