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KAI teams up with US defense firm to develop manned-unmanned aircraft systems SEOUL, October 20 (AJP) - Korea Aerospace Industries (KAI) said Monday it had signed a memorandum of understanding with Kratos Defense & Security Solutions, a U.S. defense company known for its unmanned aerial systems, to collaborate on manned-unmanned teaming technology. The agreement seeks to establish a partnership in developing systems that integrate piloted aircraft with drones — known as manned-unmanned teaming, or MUM-T — for the domestic market, with an eye toward future expansion overseas. KAI has identified MUM-T platforms as one of its six next-generation growth areas. Earlier this year, the company unveiled KAILOT, an artificial intelligence pilot brand, as part of a broader push to advance autonomous flight technology. Kratos, based in San Diego, has built a reputation as a key player in the U.S. defense sector, producing systems such as the XQ-58 Valkyrie and BQM-167 aerial target drones. Over the past decades, the company has supplied high-performance drones for the U.S. military and recently achieved milestones in collaborative combat aircraft and MUM-T operations. The partnership comes as South Korea seeks to merge artificial intelligence and autonomous flight into its next generation of combat systems. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 14:16:07 -
South Korean Air Force to work with science ministry to develop quantum-based weapons SEOUL, October 20 (AJP) - The Ministry of Science and ICT and the South Korean Air Force signed an agreement Monday to collaborate on developing next-generation weapon systems powered by quantum technology. The signing took place at the KINTEX convention center in Ilsan, northwest of Seoul. Quantum technologies — long touted for their potential to revolutionize both civilian and military systems — could enable GPS-independent navigation, stealth detection, and even the disruption of encrypted communications. Under the agreement, the ministry will provide the Air Force with technical consulting and infrastructure support, while the Air Force plans to incorporate quantum applications into future weapons development requirements. “This agreement will promote the development of advanced weapon systems using quantum technology, strengthening national defense and achieving technological independence,” said Ryu Je-myung, the second vice minister of science. “It is also expected to enhance the competitiveness of K-defense.” Air Force Chief of Staff Gen. Son Seok-rak added that the military would “actively cooperate with the science ministry to secure innovative technologies such as quantum radar and hybrid combat systems.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 14:03:39 -
Asian shares broadly higher early Mon, led by Nikkei's rally to new highs SEOUL, October 20 (AJP) - Asian markets opened higher across the board Monday, led by Japan, as political uncertainties eased following Sanae Takaichi’s likely premiership and sentiment in China improved after the central bank left its loan prime rates unchanged for October. Japan’s Nikkei 225 surged 2.6 percent in early trading to hit fresh record highs after reports of a political breakthrough in Tokyo — a coalition deal between the ruling Liberal Democratic Party and the Japan Innovation Party — paving the way for Takaichi’s appointment as prime minister. The KOSPI opened 0.71 percent higher at 3,775.4 but soon hovered near flat as investors took a breather from last week’s record-setting rally driven by optimism over a possible tariff deal with the United States. Market participants also stayed cautious ahead of Thursday’s Bank of Korea monetary policy meeting and Friday’s release of the U.S. consumer price index. Among major movers, SK hynix extended its record-breaking climb, rising 2.3 percent to 477,500 won (US$ 335.69), while Samsung Electronics slipped 0.6 percent to around 97,000 won. LG Electronics jumped 5.6 percent to about 89,000 won after its third-quarter earnings beat market expectations. In China, the Shanghai Composite Index edged up 0.6 percent to around 3,862, while Hong Kong’s Hang Seng Index advanced 2 percent to 25,753, recovering losses from last week. Taiwan’s TAIEX rose 1.7 percent to 27,761, and Singapore’s Straits Times Index traded higher in off-market hours. 2025-10-20 11:28:18 -
More South Koreans likely involved in scam frauds in Cambodia SEOUL, October 20 (AJP) - Statistics suggest that more South Koreans are involved in scam frauds and phishing schemes in Cambodia than previously estimated. According to data from the Ministry of Justice submitted to lawmaker Park Chan-dae of the ruling Democratic Party and revealed on Monday, the number of South Koreans who traveled to Cambodia but did not return has risen sharply in recent years. The figure was 113 in 2021, but surged to a whopping 3,209 in 2022, 2,662 in 2023, and 3,248 in 2024. As of August this year, 864 had not returned. The number of travelers to the Southeast Asian country surged from 5,476 in 2021 to 108,820 in 2024. In the first eight months of this year, 67,609 have traveled there. It is also believed that many people may have entered Phnom Penh via neighboring countries such as Thailand and Viet Nam, which are not reflected in local official statistics. Supporting this, Cambodia's immigration data shows higher numbers, with 60,740 South Koreans entering in 2022 and 192,305 in 2024. For this reason, experts suggest the actual number involved in scam-related crimes may far exceed the estimated 1,000, as some enter Cambodia illegally via China. Emerging evidence and testimony from witnesses indicate that far more South Koreans may have faced detention, violence, and organ trafficking than officially reported. Park emphasized the need for a thorough review of travel records and consular data to tackle the issue. Meanwhile, police are seeking arrest warrants for 59 of the 64 suspects who were detained in Cambodia over alleged online job scams and other crimes and brought home last Saturday. Four were released, and one was denied an arrest warrant by prosecutors. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 11:23:45 -
South Korea's DAPA signs pact with Brazil's Embraer to expand transport aircraft partnership SEOUL, October 20 (AJP) - South Korea’s defense procurement agency has signed an agreement with Embraer, Brazil’s leading aerospace manufacturer, to deepen industrial ties and expand Korean participation in the company’s global supply chain. According to the Defense Acquisition Program Administration (DAPA) on Monday, the agency signed a memorandum of understanding with Embraer S.A. during the Seoul International Aerospace and Defense Exhibition (ADEX) 2025 in Goyang, just outside Seoul. The agreement aims to increase the use of Korean-made components in Embraer aircraft exported around the world and to promote broader defense collaboration between the two countries. Founded in 1969, Embraer is one of the world’s top three civilian aircraft manufacturers, with more than 9,000 aircraft delivered globally. In recent years, the company has been expanding its footprint in the military sector with its C-390 Millennium transport aircraft, which has been adopted by several air forces, including those of Brazil and Portugal. South Korean small and medium-sized suppliers are already contributing key components to the C-390 program, with exports valued at about 450 billion won ($330 million). Those same parts are expected to be used in the aircraft to be acquired by the South Korean Air Force. Under the new memorandum, DAPA and Embraer plan to broaden cooperation, allowing Korean firms to become part of Embraer’s global supply network and explore new defense opportunities in Korea and beyond. “Korean companies play a crucial role in the C-390 project, and this MOU will broaden our cooperation,” Bosco da Costa Jr., CEO of Embraer Defense & Security, said in a statement. “We hope to create new success stories in the global defense market with our Korean partners.” Kang Joong-hee, who heads DAPA’s aviation business division, said the agreement marked “a significant step toward a collaborative growth model that goes beyond a simple buyer-seller relationship between Korea and Brazil.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 11:19:20 -
Animated film 'Your Letter' sold to over 160 countries ahead of global release SEOUL, October 20 (AJP) - Animated film "Your Letter" has been sold to over 166 countries ahead of its global release. Countries where the film has been pre-sold include Japan, Indonesia, Italy, Malaysia, Singapore, Spain, Thailand, and the U.K. Praised after its premiere at the Ottawa International Animation Festival in September last year, the 96-minute film was released here the following month. Starting with its overseas release in Viet Nam earlier this month, the film is set to hit local theaters in Indonesia and Malaysia this week, and in Singapore and Thailand next week. It is also scheduled for release in North America early next year. Directed by Kim Yong-hwan, the film tells the story of a student who transfers to a rural school and finds a mysterious letter that leads her on a treasure hunt. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 10:14:44 -
Taiwan to surpass South Korea in per capita GDP in 2025: IMF SEOUL, October 20 (AJP) - South Korea is set to lose its long-held economic edge over Taiwan this year, according to new projections from the International Monetary Fund. The IMF expects South Korea’s per capita gross domestic product to fall to 37th place globally, while Taiwan’s rises to 35th, marking the first time in 22 years that Taiwan will surpass its East Asian rival. In its World Economic Outlook released on Oct. 15, the IMF estimated South Korea’s GDP per capita at $35,962 for 2025, down 0.8 percent from last year’s $36,239. The decline pushes South Korea down three spots among the world’s 197 economies. Taiwan's GDP per capita, by contrast, is expected to climb 11.1 percent from $34,060 last year to $37,827 this year, driven by a resilient technology sector and strong export performance. The increase would move Taiwan up to 35th place globally. The shift underscores a broader divergence between the two economies that have long been seen as industrial peers — both export-driven, high-tech nations that transformed rapidly in the latter half of the 20th century. But in recent years, Taiwan’s booming semiconductor industry and diversified export base have helped it outpace South Korea’s more uneven growth, which has been slowed by weak consumption and a sluggish property market. The IMF projects South Korea will reach a GDP per capita of $40,802 by 2028, hitting the $40,000 milestone a year earlier than previously forecast. Still, the nation’s global ranking is expected to slide further — to 38th next year, 40th in 2028, and 41st in 2029 — as other advanced economies grow faster. Taiwan’s trajectory, meanwhile, remains sharply upward. The IMF expects the island to surpass the $40,000 mark next year, reaching $41,586, and to rise to 31st place globally. By 2030, Taiwan’s per capita income is projected to exceed $50,000. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 10:13:41 -
Overdue credit card loans rising fast in South Korea SEOUL, October 20 (AJP) - South Koreans are falling behind on their credit card bills at a record pace, as higher interest rates and tighter bank lending drive more households to rely on card loans to make ends meet. According to data released by the office of Rep. Kang Min-kook of the main opposition People Power Party, citing the Financial Supervisory Service, credit card debt overdue for more than a month reached nearly 1.5 trillion won ($1.1 billion) as of the end of August — the highest level since records began. The total amount of overdue card loans — including cash advances and card-based personal loans — has more than doubled over the past four years. At the end of 2021, outstanding overdue card loans stood at 718 billion won. That figure rose to 860 billion won in 2022, 983 billion won in 2023, and 1.1 trillion won last year. By August this year, the total had surged to 1.5 trillion won. The delinquency rate — the share of overdue debt compared with total card loans — has climbed even more steeply. It rose from 1.9 percent at the end of 2021 to 2.2 percent in 2022, 2.4 percent in 2023 and 2024, and 3.3 percent as of this August, according to the data. Analysts say the trend reflects growing pressure on low- and middle-income borrowers, who have struggled with rising living costs and a cooling job market. Many have turned to card-based borrowing as commercial banks tighten access to traditional loans amid concerns about household debt levels. “With bank loans becoming harder to access, vulnerable borrowers are turning to card loans for funding,” Rep. Kang said in a press release. “This could pose a risk to the financial soundness of card companies, and financial authorities should provide guidance to manage bad debts and sales.” South Korea’s household debt, among the highest in the world relative to GDP, has long been viewed as a vulnerability for Asia’s fourth-largest economy. Economists warn that the recent surge in credit card delinquencies could signal rising financial distress among consumers — and add pressure on regulators. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 09:54:57 -
'Progress' made in tariff Talks with US, deal expected before APEC summit SEOUL, October 20 (AJP) - Expectations are growing for a possible breakthrough in tariff negotiations with the U.S. as "significant progress" appears to be made. Presidential policy chief Kim Yong-beom, who returned from Washington, D.C., on Sunday, said, "Significant progress was made in negotiations with the U.S., as most issues have been settled." Though some areas still require adjustments, he expressed optimism about reaching a deal to finalize trade talks before the upcoming Asia-Pacific Economic Cooperation (APEC) summit, which is scheduled to be held in the historic city of Gyeongju from Oct. 31 to Nov. 1. When asked how Seoul would fulfill its pledge to invest US$350 billion in the U.S., agreed in late July to lower reciprocal tariffs from 25 percent to 15 percent, Kim declined to comment on specific details. But he explained that the U.S. recognized the difficulties of making the investment in full and "upfront," as claimed by U.S. President Donald Trump, with both sides working to come up with mutually beneficial arrangements. Regarding currency swap deals as part of protective measures should a lump-sum cash payment be made, he said the U.S. fully understands the potential impact on the foreign exchange market. Finance Minister Koo Yun-cheol, who met with U.S. Treasury Secretary Scott Besant on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting in the U.S., also returned the same day but declined to comment on the ongoing tariff negotiations. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 09:40:48 -
OPINION: China's rise squeezing Korea's industrial heartlands Park Won-jae SEOUL, October 20 (AJP) - Yeosu, once the beating heart of South Korea’s petrochemical industry, is now a city under strain. The port, long fueled by the hum of factories and refineries, has fallen quiet as China’s self-sufficiency in ethylene production upends the regional industrial order. Roughly three years ago, Beijing achieved full domestic production of ethylene, the cornerstone of plastics and other chemical materials. The effects on Yeosu were swift and severe. Major producers such as LG Chem and Lotte Chemical have idled parts of their facilities. In August, Yeochun NCC — a joint venture between these giants — faced liquidity problems, a troubling sign for an industry that once symbolized Korea’s manufacturing prowess. The fallout has rippled across the city. The Yeosu Industrial Complex employs about 42 percent of the local workforce, but its slowdown has left small businesses gasping for air. Restaurant closures have now outpaced those seen during the pandemic. Storefront vacancies in downtown Yeosu have soared from 12 percent to 35 percent in just one year. A recent report by Boston Consulting Group even recommended closing two or three of the city’s seven ethylene plants — a prospect that has left local entrepreneurs and workers bracing for deeper economic pain. Yeosu’s struggle is emblematic of a larger story: China’s industrial ascent is reshaping Asia’s economic hierarchy. Across industries — steel, displays, shipbuilding, automotive parts — South Korea’s once-secure dominance is eroding. Even in high-tech sectors where Seoul has prided itself on innovation, such as semiconductors and smartphones, China’s rapid advances are unsettling. Fueled by the state-led Made in China 2025 initiative, Beijing’s ambitions have translated into dominance across key emerging technologies. Chinese electric vehicle maker BYD sold more than twice as many cars as Tesla last year, capturing nearly 60 percent of the global EV market. In solar panels, industrial robots, and drones, China holds commanding positions. DJI alone produces 94 percent of the world’s drones. Despite American sanctions, Huawei has secured nearly 10,000 5G patents — more than Qualcomm. South Korea, meanwhile, finds itself squeezed. Its export-dependent economy remains deeply tied to China, even as Chinese competitors eat away at its market share. BOE, a Chinese display manufacturer, now leads a sector once considered a Korean stronghold. In batteries, China’s CATL has surged ahead of South Korea’s top three producers, undermining one of Seoul’s most promising growth engines. The challenge extends to heavy industry. China now produces more than 55 percent of the world’s steel — and increasingly, with technology that rivals or exceeds South Korea’s. This has eroded profits at companies like POSCO and Hyundai Steel. In semiconductors and shipbuilding, too, China’s aggressive expansion is narrowing Korea’s once-comfortable lead. The traditional trade order in East Asia — in which South Korea and Japan exported high-end components for China to assemble and re-export — is rapidly fading. As China’s technological capacity surpasses its neighbors’, Seoul and Tokyo are exploring new avenues of cooperation to adapt to a transformed industrial landscape. China’s experience offers both a warning and a lesson. The Made in China 2025 strategy demonstrates how sustained, state-driven industrial policy can elevate an economy to global leadership. But for South Korea, simply emulating Beijing’s model is not the answer. Korea’s strengths lie in its dynamic private sector, global openness, and capacity for innovation — qualities that thrive best under government policies that foster competition, not control. To stay competitive, Seoul must rethink its economic strategy. The government should focus on building a more resilient industrial ecosystem — investing in infrastructure, digital transformation, and the ease of doing business. Companies, for their part, must leverage autonomy and creativity to innovate beyond the state’s blueprint. As U.S.-China trade tensions continue to reshape global supply chains, South Korea faces a pivotal moment. Its path forward depends not on shielding itself from China’s rise, but on rediscovering what has long been its greatest strength: the ability of its companies to adapt, reinvent, and compete on the global stage. About the author -Professor at Kyungsung University -Master's in Business Administration from Aalto University, Finland -Former Tokyo Correspondent, Editorial Writer, and Economics Editor at Dong-A Ilbo -Former CEO of Dong-A.com -Former President of the Korea Online Newspaper Association * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-20 09:11:18