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  • South Koreas elderly top 20%; working population slips below 70%
    South Korea's elderly top 20%; working population slips below 70% SEOUL, July 28 (AJP) —South Korea's aging deepened last year, with those aged 65 or older topping 20 percent of the population, more than doubling the share of children aged 14 or younger, while the working-age population fell below the 70-percent threshold for the first time, census data showed Tuesday. According to the 2025 Population and Housing Census released by the Ministry of Data and Statistics, people aged 65 and older accounted for 20.7 percent of the population, or 10.72 million. Children aged 14 and younger made up just 10.1 percent, leaving the elderly population more than twice as large. The shift accelerated over the past year. The number of seniors increased by 601,000, or 5.9 percent, while the youth population fell by 196,000, or 3.6 percent. The working-age population, defined as those aged 15 to 64, fell by 393,000 to 35.87 million, with its share of the total population slipping to 69.2 percent — the first time it has fallen below the 70 percent mark since comparable records began in 2015. The decline has continued since 2018. The old-age dependency ratio — the number of people aged 65 and older per 100 working-age residents — climbed to 29.9 from 27.9 a year earlier, meaning roughly three working-age people now support one senior. The aging index — the number of seniors for every 100 children under 15 — also climbed to 205.2 from 186.7 a year earlier. The country's median age rose to 46.8 years, up 0.6 years from the previous year. People in their 50s accounted for the largest share of the population at 16.7 percent, followed by those in their 60s at 15.3 percent and 40s at 14.8 percent. The data also highlighted continuing changes in marriage patterns. Among 43.23 million Korean adults aged 18 and older, 29.6 percent were single, while 56.3 percent were married and 14.1 percent were divorced or widowed. Marriage was increasingly delayed among younger adults. More than half of Koreans in their 30s were unmarried, with the share reaching 54.7 percent. The figure dropped to 21.9 percent among those in their 40s, while 96.0 percent of people in their 20s or younger were unmarried. The trend was also reflected in household composition. One- and two-person households accounted for 66.1 percent of all ordinary households, while the average household size fell to 2.16 people. Regionally, Seoul recorded the country's highest unmarried rate at 37.1 percent and the lowest marriage rate at 51.1 percent. South Jeolla Province posted the lowest unmarried rate at 22.2 percent, while Sejong recorded the highest marriage rate at 64.4 percent. Despite the sweeping demographic changes, the country's total population was little changed. As of Nov. 1, 2025, the population stood at 51.82 million, up just 12,000 people, or 0.02 percent, from a year earlier. Behind the broadly stable population, Korean nationals continued to decline while the foreign population expanded. The number of Korean nationals fell by 50,000, marking a fifth consecutive annual decline driven largely by persistently low birth rates. Meanwhile, the foreign population rose by 70,000, or 3.2 percent, to 2.11 million, largely reflecting increases in international students, trainees and seasonal workers. Foreign residents also remained substantially younger than the domestic population. Nearly 90 percent of foreigners were of working age, compared with 68.4 percent of Korean nationals, highlighting their growing role in offsetting labor-force shortages as the country's population continues to age. 2026-07-28 14:12:32
  • Big Tech Faces Credit Market Warning Amid AI Investment Competition
    Big Tech Faces Credit Market Warning Amid AI Investment Competition The competition among big tech companies for investment in artificial intelligence (AI) data centers and semiconductors is leading to increased debt burdens, raising alarms in the credit market.On July 27, the Financial Times reported, citing data from financial information firm LSEG, that the credit default swap (CDS) premiums for Oracle, SpaceX, Alphabet, Amazon, Meta, Broadcom, and Nvidia have recently reached all-time highs.CDS are financial products that companies purchase to protect against losses in the event of default. An increase in CDS premiums indicates that the market is assessing a higher likelihood of default or a downgrade in credit ratings for those companies.Big tech firms are investing hundreds of billions of dollars in large data centers and high-performance AI model development. To secure these massive investments, they are expanding bond issuance and financial support, which is increasing investor anxiety about future profitability and cash flow.John Ailward, Chief Investment Officer at Sonai Asset Management, stated, "The credit market is vulnerable to uncertainty," adding that the difficulty in predicting the speed and cost of funding for AI investments is triggering a serious crisis of confidence.Signs of weakening demand for AI-related bonds are also emerging. Meta's borrowing costs for a $12 billion loan to build a data center in Texas have recently risen to levels close to junk bonds.Ailward noted that Meta's bonds are trading at prices similar to those of bonds rated 'B-', calling it "quite surprising, but this is the reality we face." Oracle has seen the most pronounced rise in credit risk. The five-year CDS premium for Oracle increased from 144 basis points (bp) at the beginning of the year to 215 bp on July 27. This means that to hedge against a $10 million risk of Oracle defaulting, an annual payment of $215,000 would be required.Last month, Oracle announced plans to invest $70 billion in data center expansion over the next year. Following this, international credit rating agency S&P Global Ratings downgraded Oracle's credit rating to 'BBB-', the lowest level of investment grade, citing uncertainty in securing profitability compared to its large AI investments.David Brown, co-head of investment-grade at Neuberger Berman, remarked, "The biggest issue is whether the current level of capital expenditures will continue to rise and when surplus cash flow will return to positive. It is difficult to get answers in the short term, and this is also contributing to the recent weakness in the bond market." He added that the need for funding remains a potential problem.Impact on AI Leader NvidiaThe instability in the credit market is spreading beyond Oracle to other big tech companies. Nvidia, often regarded as a leader in AI, has also seen its five-year CDS premium reach an all-time high of 79 bp.Nvidia is reportedly discussing a plan to guarantee up to $250 billion to support funding for OpenAI's 10-gigawatt data center project in Ohio. Specific terms have yet to be finalized, and both Nvidia and OpenAI declined to comment on the matter.Alphabet's CDS premium also hit a record high of 67 bp on the same day. Alphabet reported negative free cash flow for the second quarter for the first time since going public over 20 years ago.Investors still perceive the actual default risk for big tech companies with investment-grade ratings as low. However, there is a growing trend of purchasing CDS to hedge against potential credit rating downgrades, bond price declines, and market volatility.George Catramados, head of U.S. fixed income at DWS Group, noted, "The need for hedging is increasing among investors who have confirmed the level of capital expenditures following earnings reports. There has been significant debt issuance without proven revenue, and the market's scrutiny of this is becoming more stringent." Additionally, some analysts suggest that CDS could serve as an indicator for betting against tech stocks. Manish Kabra, head of U.S. equity strategy at Société Générale, stated, "When evaluating hyperscalers, one should look at CDS rather than earnings per share (EPS), as AI capital expenditures continue to outpace cash generation, causing tech companies' free cash flow to drop to recession-level lows." * This article has been translated by AI. 2026-07-28 14:11:00
  • Analysis: Chinas Semiconductor Independence Fears Impact South Korean Stock Market
    Analysis: China's Semiconductor Independence Fears Impact South Korean Stock Market Concerns over China's semiconductor equipment self-sufficiency have cast a shadow over the South Korean stock market. Reports indicate that China’s largest DRAM manufacturer, Changxin Memory Technologies (CXMT), has begun producing critical semiconductor production equipment, specifically lithography equipment.On July 28, during trading, shares of Samsung Electronics and SK Hynix fell by as much as 13.4% and 14%, respectively. The KOSPI index also dropped more than 9% at one point. Investor sentiment has soured amid fears of intensified competition with Chinese firms, compounded by a downturn in U.S. semiconductor stocks.Reuters cited concerns over funding for artificial intelligence (AI) investments, advancements in Chinese technology, and increased competition from Chinese companies as factors behind the sharp decline in semiconductor stocks.According to the U.S. technology news outlet The Information, a Shanghai-based company backed by the Chinese government has started producing its own immersion deep ultraviolet (DUV) lithography equipment.This company is expected to produce about five units this year, supplying them to China’s largest semiconductor foundry, Semiconductor Manufacturing International Corporation (SMIC), as well as Huahong Semiconductor and CXMT. The production target for 2027 is approximately 20 units. The name of the company has not been disclosed.Lithography equipment is essential for etching fine circuits onto semiconductor wafers. The Dutch company ASML currently monopolizes the supply of advanced extreme ultraviolet (EUV) equipment and leads the immersion DUV market.However, Chinese DUV equipment is not yet at a level to replace ASML products. The Information reported that “Chinese equipment lags behind ASML products in performance and reliability, and further testing is needed before it can be deployed in actual production lines.”Despite this, the market's sensitive reaction stems from the fact that lithography equipment has long been considered the biggest weakness in China’s semiconductor supply chain. China has already expanded the use of domestic equipment in various processes, including etching, deposition, cleaning, and thermal treatment.If China can achieve a certain level of performance with lithography equipment, it could reduce the burden of procuring equipment due to U.S. export restrictions. This would bring China a step closer to establishing a so-called “full-stack” semiconductor ecosystem, connecting design, equipment, materials, production, memory, and finished products domestically.Design is handled by Huawei’s subsidiary HiSilicon, production by SMIC and Huahong Semiconductor, and memory by CXMT and Yangtze Memory Technologies (YMTC). With the addition of Chinese lithography equipment, a structure could emerge where semiconductors designed by Chinese companies are produced using domestic equipment for smartphones, servers, and AI services.Kim Seok-hwan, a researcher at Mirae Asset Securities, told Reuters, “Market concerns are more about the potential for CXMT to expand its production capacity and technology development after its listing, which could lead to competition with Korean companies.”This situation could pose a double burden for domestic equipment manufacturers. If Chinese companies increase their use of domestic equipment, it could narrow the market presence of South Korean firms in China. If CXMT and YMTC expand production, it could lead to a decline in memory prices, prompting Samsung Electronics and SK Hynix to adjust their investment pace.However, it is still too early to conclude that China has completed its semiconductor full stack. The performance, yield, and reliability of Chinese DUV equipment have yet to be validated. There remains a technological gap in EUV equipment, semiconductor design software, advanced materials, and precision inspection equipment.In the future, the level of threat posed by China’s equipment self-sufficiency will depend on whether Chinese DUV can secure the processing speed and yield required for actual production lines.Sandeep Deshpande, a JP Morgan analyst, told Barron's, “The drop in semiconductor equipment stocks following the news of Chinese DUV production seems excessive, but this news indicates that China’s ambitions for AI semiconductor self-sufficiency are becoming more concrete,” adding that it raises long-term risks for ASML’s revenues in China.* This article has been translated by AI. 2026-07-28 14:10:00
  • Seoul sees steady rise in foreign property owners, surpassing 32,000
    Seoul sees steady rise in foreign property owners, surpassing 32,000 SEOUL, July 28 (AJP) - The number of foreigners who own real estate in Seoul increased by more than 1,000 over the past year, surpassing 32,000, according to an analysis of real estate registry data from the Supreme Court conducted by real estate app Zippoom. Seoul had 32,870 foreign property owners as of last month, up 3.3 percent, or 1,058, from 31,812 a year earlier. In the first half of this year alone, the figure grew by 473, from 32,397 in January to 32,870 in June. Over the same period, the number of South Korean property owners in the capital totaled 3.94 million, up a mere 1 percent or 38,509 from 3.90 million a year earlier. However, the figures are monthly counts based on names listed in real estate registration records and may differ from the actual number of properties owned. By district, Gangnam in southern Seoul had the largest number of foreign property owners at 3,440, followed by Guro (2,710), Seocho (2,353), Yeongdeungpo (2,112) and Songpa (1,913). "The number of both foreign and South Korean property owners in Seoul increased from a year earlier," a Zippoom staffer said. "Among foreigners, however, demand is expanding beyond traditionally favored districts such as Gangnam and Seocho to a broader range of areas including Gangseo, Geumcheon and Yongsan." 2026-07-28 14:08:49
  • Hansojin Appoints National Leaders for Usomi Angels to Expand Small Business Talent Network
    Hansojin Appoints National Leaders for Usomi Angels to Expand Small Business Talent Network The Korea Small Business Education Promotion Agency (Hansojin) is expanding its talent-sharing network aimed at revitalizing local economies.On July 27, Hansojin held a ceremony to appoint national leaders and members of the "Our Neighborhood Small Business Media Angels (Usomi Angels)" and conducted a workshop to enhance the operation of local chapters.The event was attended by 40 participants, including 25 newly appointed chapter leaders and 15 Usomi Angels members from across the country. Attendees received certificates and shared insights on the purpose of the Usomi Angels, operational frameworks for local chapters, member recruitment and management, certification of talent-sharing activities, and strategies for identifying local demand.The Usomi Angels is a talent-sharing organization where experts in management, marketing, social media, artificial intelligence, and digital transformation share their knowledge and experience with small business owners. With the appointment of 25 chapter leaders, Hansojin aims to establish 100 local networks across metropolitan cities and provinces by the end of the year.Since 2006, Hansojin has provided education in over 300 traditional markets and conducted 200 consulting sessions for small businesses. Last March, it launched the Small Business Talent Sharing Support Group and piloted tutoring on blog utilization at Jongno Gwangjang Market and Seongnae Traditional Market in Gangdong-gu, Seoul.This year, it has deployed 36 Usomi Angels to eight traditional markets nationwide to support a pilot project for education on SNS and AI utilization.The primary roles of local chapter leaders include recruiting members and managing monthly meetings, providing capacity-building training for members, planning support projects for local small businesses, promoting local economies through social media, and establishing collaborative frameworks with traditional markets, alley shops, and local governments.Starting in 2027, Hansojin plans to link talent-sharing activities with local economic development projects, including joint marketing for alley shops, traditional market merchant universities, promising alley economies, local theme markets, and glocal markets, to foster tangible growth and create new business opportunities for small businesses.Kwak Eui-taek, chairman of the Hansojin Usomi Angels Central Association, stated, "Talent sharing is not just a one-sided act of giving help; it is a process of building trust and growing together between experts and small business owners. We aim to be a strong talent-sharing network that assists small businesses in digital transformation and management improvement right in their communities." 2026-07-28 14:04:00
  • Vroongs AI Dispatch System Reduces Store Travel Time by 30%, Boosts Delivery Efficiency
    Vroong's AI Dispatch System Reduces Store Travel Time by 30%, Boosts Delivery Efficiency Vroong announced on July 28 that the introduction of its next-generation artificial intelligence (AI) dispatch system, 'Vroong Plus,' has significantly reduced the time delivery riders spend traveling to stores.Vroong Plus analyzes various factors, including the order location, the real-time position of riders, estimated travel times, and regional order flows, to automatically assign the optimal rider using AI.Analysis of data from 17 regions where Vroong Plus was implemented in the first half of this year revealed that the average travel time from dispatch to a rider's arrival at the store decreased from 12.7 minutes to 9.2 minutes, a reduction of nearly 30% (3.5 minutes).Data analysis showed a strong negative correlation (r=-0.85) between shorter travel times after dispatch and higher delivery quality (SLA). In specific regions, the SLA in Wonmi, Bucheon, increased by 10.0 percentage points after the introduction of AI dispatch. This was followed by Daegu's Dalseo (9.7 percentage points), Seoul's Jungnang (9.4 percentage points), and Seoul's Seongbuk (8.5 percentage points).The company explained that the speed at which the optimal rider is found is a key factor influencing delivery quality. Vroong plans to enhance its AI dispatch system further to achieve even higher delivery quality.A Vroong representative stated, "Based on operational data, we plan to further enhance the AI dispatch system in the second half of this year in the regions scheduled for expansion. This will improve the operational efficiency of riders and provide our clients with more stable delivery quality."* This article has been translated by AI. 2026-07-28 14:01:00
  • Hanwha Systems Reports 219% Surge in Q2 Operating Profit
    Hanwha Systems Reports 219% Surge in Q2 Operating Profit Hanwha Systems announced that it recorded sales of 1.1176 trillion won and an operating profit of 103.7 billion won in the second quarter, marking increases of 45% and 219%, respectively, compared to the same period last year.The company also reported a net profit of 52.7 billion won for the second quarter, a 14% increase from the previous year, continuing its growth in sales, operating profit, and net income.In the defense sector, major export projects such as the K2 tank sights and fire control systems for Poland, and the Cheongung-II multifunction radar for the United Arab Emirates and Saudi Arabia, along with key domestic projects like the Batch-III combat management system for the Ulsan-class next-generation frigate and the AESA radar and electronic warfare equipment for the Korean fighter jet (KF-21), contributed significantly to the performance.The ICT sector supported stable results through projects like the next-generation system for Hanwha Life, the enterprise resource planning system for Hanwha Heavy Industries, and the smart plant construction for Hanwha Aerospace.As of the second quarter, the company’s order backlog totaled 11.2959 trillion won.Hanwha Systems plans to continue its stable growth by expanding its export portfolio and securing major domestic contracts.A company representative stated, "Stable revenue from large-scale export projects and key domestic production initiatives have driven our performance improvement. We aim to establish a sustainable growth foundation through overseas market development and strengthening core technological capabilities."* This article has been translated by AI. 2026-07-28 14:00:00
  • First Future Mobility Week to be Held at COEX in August, Showcasing Electric Vehicles and Autonomous Technologies
    First Future Mobility Week to be Held at COEX in August, Showcasing Electric Vehicles and Autonomous Technologies The 'Future Mobility Week 2026' will take place from August 25 to 27 at COEX in Gangnam, Seoul, showcasing the latest technologies and market trends in the future mobility industry.This event will feature an integrated exhibition covering the entire future mobility sector, including electric vehicles, charging infrastructure, autonomous driving, drones, and urban air mobility (UAM). It will serve as a comprehensive platform to present not only technological displays but also industry trends, policies, investment opportunities, and business collaboration.During the event, specialized exhibitions such as 'EV Trend Korea 2026,' 'Autonomous Mobility Industry Exhibition (AME 2026),' and 'Unmanned Vehicles X Military-Civil Cooperation Expo (UWC X CIMEX 2026)' will be held simultaneously. Attendees will have the opportunity to explore key technologies in the future mobility sector, from complete vehicles and charging technologies to AI-based autonomous driving, drones, and UAM. Participating companies will seek new business partnerships and collaboration opportunities across industries.This inaugural exhibition week, integrating all areas of future mobility, will allow companies, research institutions, investors, buyers, and the general public to engage in technology displays, conferences, investment consultations, export consultations, and experiential programs.'EV Trend Korea 2026' will feature major automakers such as Kia, KGM, BYD, Volvo, and BMW, along with charging infrastructure companies like Chaevi, EL Electric, and Costel. The exhibition will showcase the latest technologies across the electrification industry, including electric vehicles, electric two-wheelers, charging equipment, electronic components, research and development, and certification services.'Autonomous Mobility Industry Exhibition 2026' will focus on core autonomous driving technologies, AI software, robotics, mobility services, and related infrastructure. Domestic autonomous driving companies such as Autonomous A2G, RideFlux, and SWM will present various technologies, including lidar, radar, and camera-based solutions.Additionally, an autonomous driving industry conference will be held under the theme 'From Code to Intelligence: The AI Revolution,' discussing the changes and future directions that advancements in AI technology will bring to the autonomous driving industry.The 'Unmanned Vehicles X Military-Civil Cooperation Expo 2026' will cover unmanned vehicle technologies in land, sea, and air, as well as military-civil cooperation cases. Major companies and research institutions, including Canavi Mobility, Korea Carbon, and LIG Defense & Aerospace, along with the Korea Aerospace Research Institute, Korea Automotive Technology Institute, and Korea Testing Laboratory, will showcase relevant technologies and research outcomes.Throughout the event, various specialized seminars and forums will be organized, including a seminar on the strategy for building a Korean-style integrated C-UAS in the AI era, an advanced military-civil technology forum, the JDI-KRAUV Defense Innovation Partnership Forum, and the 10th Drone World Congress, aimed at broadly discussing the convergence of future mobility, defense, and AI technologies.The organizers plan to maintain the competitiveness of each specialized exhibition while building an integrated brand to grow into a representative business platform for the future mobility industry. The event aims to foster organic connections between technology, policy, investment, and global networking, contributing to the overseas expansion of domestic companies and enhancing industrial competitiveness.A COEX representative stated, 'Future mobility encompasses a range of industries beyond electric vehicles and autonomous driving, including AI, robotics, energy, communications, and defense. We will prepare Future Mobility Week to expand cooperation among companies and create new business opportunities.'Meanwhile, those who complete pre-registration on the official website by August 14 will be able to attend the 'Future Mobility Week 2026' for free.* This article has been translated by AI. 2026-07-28 13:58:00
  • Korean Leverage ETFs Impact Japanese Stock Market
    Korean Leverage ETFs Impact Japanese Stock Market Korean single-stock leverage exchange-traded funds (ETFs) are increasing volatility in the domestic market and shaking up the Japanese stock market. The Nihon Keizai Shimbun reported that the Nikkei average's intraday volatility has exceeded 2% for three consecutive months, a first since the aftermath of the Lehman Brothers crisis. One of the main factors contributing to this trend is the active trading of leverage ETFs that track the price fluctuations of Samsung Electronics and SK Hynix at double the rate.The volatility in the Japanese stock market is already unusual. The 'intraday volatility,' calculated by dividing the difference between the day's high and low by the previous day's closing price, recorded 2.6% in June and 2.5% in July, marking three consecutive months above 2%. This is the first time since the eight-month period from September 2008 to April 2009, following the Lehman crisis, that such sustained volatility has been observed.During significant market events, such as the record daily drop of the Nikkei average in August 2024 and the global market turmoil in March 2020 due to COVID-19, intraday volatility also exceeded 2%. However, in both instances, volatility returned below 2% within a month or two. This time, despite the absence of a clear shock to the market, high volatility has persisted for three months.The Nihon Keizai Shimbun analyzed the reasons behind this sustained volatility, highlighting the real-time transmission of Korean market movements to Japan, given the lack of time difference and overlapping trading hours. The active trading of leverage ETFs that track the price fluctuations of Samsung Electronics and SK Hynix has increased the volatility of these stocks, which in turn affects Japanese semiconductor companies like Kioxia Holdings. When high-priced tech stocks experience significant movements, the volatility of the Nikkei average also increases.Market movements on July 27 exemplified this trend. The Nikkei average briefly rose over 600 points in the morning before falling more than 400 points in the afternoon, fluctuating by over 1,000 points during the day. Ultimately, it closed at 64,931, up 320 points from the previous weekend, but both the KOSPI and Nikkei averages turned downward at nearly the same time.The Nihon Keizai Shimbun identified individual investors' short-term trading as a factor amplifying stock price fluctuations in the Japanese market. The balance of margin trading, where investors borrow money to purchase more stocks than they can afford, has exceeded 6 trillion yen (approximately $53.7 billion), reaching an all-time high. Shota Sando, an analyst at Tokai Tokyo Intelligence Lab, noted that the active margin trading of Kioxia, which has a high stock price, is contributing to the increased volatility of the Nikkei average.Increase in Foreign Capital Inflows Changes in the trading patterns of foreign investors are also contributing to stock price fluctuations. As foreign capital inflows into Japanese stocks increase, it has become common for daily trading volumes on the Tokyo Stock Exchange's Prime Market to exceed 10 trillion yen. Analysts suggest that foreign investors, who previously focused on trading stock index futures, are now shifting to individual stocks, leading to greater fluctuations in specific stocks.The correlation between the Korean and Japanese stock markets was evident on the morning of July 28. While the Korean market experienced a significant decline, sell orders for semiconductor stocks like Advantest, as well as SoftBank Group and Kioxia, surged in Japan. The previous day's drop of over 2% in the U.S. Philadelphia Semiconductor Index (SOX) further contributed to the Nikkei average's decline, which fell by more than 2,000 points during the day, dipping below 62,800.Among Japanese AI and semiconductor stocks, Kioxia's decline was particularly pronounced. Kioxia's stock price fell to around 44,550 yen during trading, breaking below the 50,000 yen mark, marking its lowest level in about two and a half months. This sell-off was exacerbated by a more than 11% drop in U.S. peer SanDisk and nearly a 5% decline in NVIDIA, alongside concerns over excessive investment in AI and deteriorating memory supply conditions.This week, Samsung Electronics and SK Hynix are set to announce their earnings, followed by Kioxia's results for the April to June period on July 31. Market analysts suggest that the upcoming earnings reports may lead to increased volatility in Kioxia's stock price, prompting investors to reduce their holdings.* This article has been translated by AI. 2026-07-28 13:57:00
  • Korea, Brazil link critical minerals with defense, aerospace
    Korea, Brazil link critical minerals with defense, aerospace SEOUL, July 28 (AJP) -South Korea and Brazil agreed Monday to deepen cooperation in critical minerals, defense and aerospace, seeking to pair Brazil's vast natural resources with Korea's advanced manufacturing as President Lee Jae Myung turned a state visit into an AI-era industrial partnership. Lee and Brazilian President Luiz Inacio Lula da Silva adopted a joint statement declaring 2026 the first year of a new phase in bilateral ties, while signing seven agreements covering industrial technology, space, energy, education, sports, film and cybersecurity. The leaders also agreed to seek a resumption of negotiations on a trade agreement between South Korea and Mercosur, the South American customs bloc comprising Brazil, Argentina, Paraguay and Uruguay. The two countries will establish a bilateral working group to examine trade opportunities and sensitive industries, with the aim of announcing the resumption of negotiations around the 69th Mercosur summit in December. “We deeply agreed that the Korea-Mercosur trade agreement is an important task that can no longer be delayed, particularly at a time of increasing uncertainty in the global trading environment,” Lee said. The centerpiece of the summit was an agreement to cooperate across the entire supply chain for critical minerals, including rare earths, combining Brazil's resource base with Korea's semiconductor, battery and advanced manufacturing industries. "We recognized the need to expand cooperation across the entire critical-minerals supply chain," Lee said after the summit, adding that the two governments would establish an official cooperation channel while encouraging partnerships between companies. Defense cooperation also gained new institutional backing. The two countries agreed to launch a bilateral defense cooperation committee later this year and begin negotiations on an agreement governing the protection and exchange of classified military information, laying the foundation for broader defense-industrial collaboration. The leaders highlighted South Korea's acquisition of Embraer's C-390 military transport aircraft as a model for future industrial cooperation. Korean-made components will be incorporated into the aircraft, with both sides agreeing to expand collaboration into future air mobility. The two sides agreed to build on the project by exploring cooperation in future air mobility, drawing on Brazil’s aircraft-manufacturing capabilities and Korea’s strengths in electronics, batteries, materials and advanced manufacturing. “By further developing this cooperation, we agreed to pursue projects that make use of our respective strengths in future air mobility,” Lee said. A separate space cooperation agreement will simplify procedures for commercial launch vehicles while expanding satellite-data sharing and joint space exploration. Brazil operates the Alcantara Space Center near the equator, a location that can reduce the fuel needed for certain satellite launches. Korea, meanwhile, is expanding its domestic rocket, satellite and space-data industries. Following the summit in Brasilia, Lee traveled to Sao Paulo to meet business leaders from both countries, seeking to turn the political agreements into commercial projects involving critical minerals, semiconductors, energy, aerospace and defense. Executives from Hyundai Motor Group, Samsung Electronics, POSCO Holdings, LG Electronics, Hanwha Ocean, Naver and other major Korean companies are expected to attend the Korea-Brazil Business Roundtable. Lee described Brazil as Korea's largest investment destination in Latin America and asked Lula to continue supporting Korean companies expanding operations in the country. 2026-07-28 13:54:11