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  • Ministry of Oceans and Fisheries Responds to Family Concerns of Crew Members in Hormuz
    Ministry of Oceans and Fisheries Responds to Family Concerns of Crew Members in Hormuz The Ministry of Oceans and Fisheries has responded to concerns raised by the families of crew members following reports about the situation in the Hormuz Strait. The ministry stated that since the blockade began on February 28, it has been operating a 24-hour emergency response team to manage the ongoing situation. Additionally, since March 3, the ministry has established an 'emergency consultation and communication channel' for crew members and their families, providing round-the-clock phone and email support to address their concerns.The ministry emphasized that it has been working as a unified team with other government departments, shipping companies, and labor unions to ensure the safety of the crew and vessels since the outbreak of the conflict.This response follows a report published on June 30, which highlighted the frustrations of the families regarding the government's communication and support efforts. 2026-07-26 18:04:00
  • Lessons from the Meiji Restoration: Governance Requires Unity
    Lessons from the Meiji Restoration: Governance Requires Unity Meiji Restoration was a revolution that transformed Japan into a modern state. However, those who succeeded in the revolution did not all work together to build the new nation. While they united to dismantle the old power structure, they diverged in the process of governing the country after seizing power. The greatest lesson from the Meiji Restoration is not the success of the revolution itself, but the importance of unity in governance. In September 1877, in Shiroyama, Kagoshima, two heroes of the Meiji Restoration, Saigo Takamori and Okubo Toshimichi, ultimately could not reconcile. Once comrades in the revolution that toppled the Tokugawa shogunate, they became adversaries, pointing their guns at each other. The Seinan War, Japan's last civil war, ended with a victory for the Meiji government forces. This outcome was a result of the different paths chosen by those who had achieved the revolution together. History often describes this conflict as a clash between idealism and realism. However, the essence is somewhat different. Both men shared the same goal of making Japan a prosperous modern nation. What diverged was not the goal itself, but the order in which to achieve it. Saigo sought to establish a moral foundation first, while Okubo aimed to strengthen national power. Saigo was a leader who gathered people, whereas Okubo was a leader focused on managing the state. While Saigo was a revolutionary who dismantled the old order, Okubo was a builder who established the institutions and foundations of the new nation. He reorganized finances, promoted industry, and concentrated national resources on building modern administration and military. His role was crucial in laying the groundwork for Japan to compete with Western powers in a short period. Ultimately, history accepted Okubo's choice. Japan pursued industrialization and established the foundations of a modern state. However, this victory came at a cost. The Seinan War left behind enormous war expenses, equivalent to a significant portion of the national revenue at the time, leading to inflation, fiscal austerity, rural devastation, and social conflict. Most importantly, the dissatisfaction and loss felt by the defeated samurai class were not politically absorbed, leaving deep societal fractures. The state grew stronger, but the political unity needed to bind society together could not keep pace. While victorious, the limitations of unity became evident. The Meiji Restoration succeeded in creating a modern state, but the process of integrating various factions into a new order left considerable sacrifices and aftereffects. This remains a political lesson from the Meiji Restoration that resonates even today, over 150 years later. This lesson is applicable to South Korean politics today. The upcoming Democratic Party convention next month should not be viewed merely as a competition for party leadership. It is the first leadership election for the ruling party since the inauguration of the Lee Jae-myung administration. The new leadership will need to support the president's governance philosophy through legislation, manage next year's budget, and lead the ruling party until the 2028 general elections. This convention is not just a procedure to elect a party leader; it is a process of laying the political foundation for future governance. The Lee Jae-myung administration faces complex and heavy challenges. Tasks that will shape the nation's future, such as AI national strategy, enhancing semiconductor competitiveness, fostering advanced manufacturing and defense industries, energy transition, balanced regional development, and addressing low birth rates and aging, are all being pursued simultaneously. Externally, the administration must actively respond to U.S.-China strategic competition, global supply chain restructuring, and changes in trade order. All these tasks require long-term momentum and political stability. Recently, there have been concerns in the political arena that no matter how much success is achieved in diplomacy and the economy, if the ruling party cannot be operated stably, the momentum for governance will not last long. This is a principle of politics that history has repeatedly shown, transcending the opinions of specific politicians. Diplomacy elevates the nation's status, and the economy improves the lives of citizens. However, the power to solidify and sustain those achievements lies in politics. If the president sets the direction for governance, the ruling party must play the role of turning that direction into reality. Even if the government formulates policies and the president makes decisions, laws must pass through the National Assembly, and budgets require the Assembly's approval. If the government and ruling party do not move in the same direction, reform legislation will be delayed, budgets will drift, and it will be difficult to achieve policy outcomes that citizens can feel. Conversely, if the ruling party operates stably, policies can gain momentum, and governance can maintain consistency. The leadership of the ruling party is not merely an internal power issue; it is directly linked to the success or failure of national governance. Viewing this convention solely as a contest between reform and growth, or between hardline and moderate approaches, risks missing the essence. The ruling party cannot exist solely through struggle like the opposition, nor can it be evaluated only on administrative performance like the government. It must possess the strength to promote reform, the responsibility to manage governance stably, and the leadership to unify diverse opinions. Internal competition is necessary, but the purpose of that competition should not be to exclude others. It should aim to create better policies and stronger governing capabilities. The Democratic Party has already received the public's mandate to govern. What is now needed is to translate electoral victories into governance achievements. It will be difficult to operate governance stably if the party only looks to the support base that helped them win elections. Politics must consider not only the voices within the party but also the concerns of citizens who did not support them. The unity of the ruling party is not merely a matter of distributing positions among factions; it must be a process of incorporating the diverse interests and demands of society into government policy. The Meiji government was able to push for strong centralization and industrialization because it had clear national goals and momentum. However, in the process, it failed to adequately address the losses and anger of those left behind, ultimately paying a steep price in civil war. The faster the pace of reform, the more important it is for politics to embrace those who feel left behind or excluded. Momentum and unity are not mutually exclusive; they are both essential conditions for governance. After the Democratic Party convention, competition must come to an end. The new leader should not be merely a representative of the winners but a representative of the entire party. They must be able to embrace not only those who supported them but also party members and lawmakers who made different choices. A leadership that blindly follows the government or one that seeks to compete with the government is not desirable. The ruling party must correct the government's misdirection when necessary and unite to support needed reforms, sharing responsibility for governance outcomes. History remembers the aftermath of elections longer than the results themselves. The Meiji Restoration demonstrated that building a nation and unifying it are distinct challenges. The ability to acquire power and the ability to operate it stably are not the same. Elections create winners. However, governance is not completed solely through victory. Only when the government leads with the voices of those who competed and felt excluded can the nation move forward. This is the political lesson from the Meiji Restoration that resonates today: governance is completed not through victory, but through unity.* This article has been translated by AI. 2026-07-26 18:00:00
  • APR to Internalize Key Component Technology for Beauty Devices
    APR to Internalize Key Component Technology for Beauty Devices APR is set to internalize system semiconductor and key component technology for beauty devices through a government project.On July 23, APR held a kickoff meeting at Lotte World Tower in Songpa-gu, Seoul, following its selection by the Ministry of Trade, Industry and Energy for the semiconductor advanced industry technology development project, the company announced on July 26.The event was attended by Shin Jae-woo, head of APR's R&D Center, Park Dong-hee, head of the technology research office, and representatives from domestic university research institutes and government-funded research organizations.APR was selected as the lead organization for the project last month and will collaborate with participating organizations to carry out the project over four years, concluding in 2029. The consortium is expected to receive a total funding of 7.6 billion won.The project aims to secure core components and system technologies that influence the output stability, miniaturization, energy efficiency, and safety control of beauty devices. Research related to system semiconductors, which determine the performance of beauty devices, will also be conducted.Additionally, APR plans to expand its product development capabilities in the beauty device sector into the semiconductor and core technology areas, establishing a K-Beauty Tech platform that integrates semiconductors, artificial intelligence (AI), and hardware.An APR official stated, "We will collaborate with domestic research institutions and universities to internalize key K-Beauty Tech technologies and secure differentiated technological competitiveness in the global market."Meanwhile, APR plans to introduce new medical beauty devices in South Korea as early as the end of this year and aims for global business expansion in the medium to long term.* This article has been translated by AI. 2026-07-26 18:00:00
  • Crown Haitai Hosts 17th Hanum Traditional Music Competition with 700 Students
    Crown Haitai Hosts 17th Hanum Traditional Music Competition with 700 Students Crown Haitai Confectionery announced on July 26 that it held the 17th Hanum Traditional Music Dream Competition and the 14th Gather! Hanum Talents Competition at the Crown Haitai Hall in Namsan, Seoul, on July 24-25.The Hanum Talents Competition, which aims to discover traditional music talent and promote the preservation and development of Korean traditional music, has been held annually since 2010. This year, over 700 students from approximately 150 elementary and middle schools across the country participated to showcase their skills.The individual competition, the Hanum Traditional Music Dream Competition, was divided into categories for lower and upper elementary students and middle school students, featuring 10 different sections including wind, string, and vocal music. In the results, the grand prize for the lower elementary category went to Oh Chae-yeon (Gyeonggi Baegot Lala Elementary) in the vocal section, while Kim Da-yoon (Daegu Dongcheon Elementary) won the grand prize for the upper elementary category in the string section, and Hong Seo-jin (Gyeonggi Garim Middle) took the grand prize in the dance section for middle school. A total of 76 participants received awards and shared over 40 million won in prize money.In the group competition, Gather! Hanum Talents, teams from 12 sections including orchestral, dance, vocal, percussion, and performance competed for the overall grand prize. The overall grand prize, awarded by the Deputy Prime Minister and Minister of Education, went to the Yeum Traditional Performance Group for their performance in the percussion section. Each winning team in the various sections received over 70 million won in prize money and certificates.The Hanum talents selected through this competition will have the opportunity to perform at the Changsin Festival, the largest traditional music event hosted by a domestic corporation, and at the Young Talent Hanum Concert held at the Crown Haitai Hall in Namsan.A representative from Crown Haitai stated, "We will continue to support the talents who will lead the future of our traditional music so they can pursue even greater dreams."* This article has been translated by AI. 2026-07-26 17:52:00
  • Yoon Sang-hyun Calls for Joint Public Recount and Special Investigation
    Yoon Sang-hyun Calls for Joint Public Recount and Special Investigation Yoon Sang-hyun, chairman of the National Assembly's special investigation committee on the recent shortage of ballots during the local elections, stated on July 26 that "a public recount and a special investigation must proceed together. The best approach is to conduct the public recount under the supervision of the special investigation team."During a press conference at the National Assembly, Yoon argued, "With the emergence of ballot manipulation incidents, it seems unlikely that the special investigation committee can conclude its work, so the duration should be extended."He asserted that the special investigation should comprehensively address not only the ballot shortage but also the recently revealed ballot manipulation incidents, allegations of inadequate and fraudulent elections, and other related cases identified during the investigation. While both ruling and opposition parties previously agreed on the method for recommending the special investigation, they have yet to reach a consensus on the duration or scope of the investigation.Regarding the recount, Yoon noted, "There are differing opinions among members of the People Power Party. Many believe that a public recount should be conducted promptly," adding, "I hope this can be discussed in a general meeting of lawmakers when the opportunity arises."Earlier, the ruling and opposition parties clashed over the timing of the recount for 2.47 million ballots stored at the handball stadium in Olympic Park, Songpa District, Seoul. The Democratic Party has called for an "immediate recount," while the People Power Party has insisted on waiting until the special investigation is launched.Meanwhile, the special investigation committee's activities are set to conclude by August 1. If an agreement on extending the duration fails, it is expected that the committee will adopt its report and disband. Yoon mentioned that "discussions are ongoing among the committee members" and expressed optimism that a conclusion might be reached within the week.* This article has been translated by AI. 2026-07-26 17:44:00
  • Dry Eye Treatment Market Expands, But New Drug Development Remains Challenging
    Dry Eye Treatment Market Expands, But New Drug Development Remains Challenging The dry eye treatment market is rapidly growing, yet new drug development remains a formidable challenge. The diverse causes of the condition make it difficult to demonstrate efficacy in clinical trials, leading global pharmaceutical companies to face setbacks. Nevertheless, the strong demand for effective treatments has prompted domestic companies to accelerate their drug development efforts.According to market research firm Fortune Business Insights, the global dry eye treatment market is projected to grow from $8.55 billion this year to $15.09 billion by 2034.In South Korea, the dry eye market was valued at approximately 480 billion won in 2024, according to Ubiest. The steady increase in patients, driven by the rise in digital device usage and the chronic nature of the condition requiring long-term management, has contributed to a stable market.However, despite the market potential, new drug development is considered a significant challenge. Jeong Yoon-taek, head of the Pharmaceutical Industry Strategy Research Institute, cited the clinical characteristics of dry eye as a key reason for the difficulties in developing new treatments. Regulatory agencies, such as the U.S. Food and Drug Administration (FDA), require both objective measures, like tear production and corneal damage improvement, and subjective symptoms reported by patients, making the process of proving efficacy particularly complex.AbbVie’s Restasis, a leading product in the dry eye market, is effective only for patients with inflammatory dry eye and typically takes about six months to show results. Artificial tears remain a symptomatic treatment, leaving a significant unmet medical need for a fundamental cure.In this market context, domestic pharmaceutical companies are continuing their new drug development efforts. Huons has completed the first patient registration for the Phase 2 clinical trial of its dry eye drug candidate, HUC1-394. This peptide-based eye drop, introduced from Novacell Technology, aims to complete the trial with the last patient visit targeted for the second half of next year, followed by the release of the clinical study report. If efficacy and safety are confirmed, the company will prepare for Phase 3 trials.While existing treatments focus on suppressing inflammation, HUC1-394 aims to promote the recovery of damaged tissue. The company expects it to fundamentally improve dry eye symptoms by healing the damaged ocular surface. This aligns with its goal of evolving from a generic manufacturer to a leading global ophthalmic company.Hanol BioPharma is currently conducting Phase 3 trials for its dry eye drug, HL036 (active ingredient: Tanfanercept). The company has confirmed statistically significant improvement in one of the Phase 2 trial endpoints, the Schirmer test, and has set this as the primary endpoint for the ongoing Phase 3 trial. The Schirmer test is a standard measure for objectively assessing tear production and is utilized in both approved dry eye treatments and many new drugs under development.Due to the high development difficulty, some companies are revising their strategies. Yuyu Pharmaceutical is considering changing the indication for its drug YP-P10 after it failed to demonstrate improvement in eye discomfort in Phase 2 trials. HLB Therapeutics is shifting its focus from developing RGN-259 for dry eye to treating neurotrophic keratitis (NK).Jeong Yoon-taek noted, “Recently, various approaches, including forming an artificial lipid layer on the tear film to prevent moisture evaporation and nerve stimulation, are being explored. Efforts to overcome development challenges through drug repurposing and combination therapies are also ongoing.”* This article has been translated by AI. 2026-07-26 17:36:00
  • EcoProBM, Solbrain, and Aekyung Chemical Launch Sodium-Ion Battery Alliance
    EcoProBM, Solbrain, and Aekyung Chemical Launch Sodium-Ion Battery Alliance EcoProBM is collaborating with Solbrain and Aekyung Chemical to jointly develop materials for sodium-ion batteries (SIB).On July 22, EcoProBM announced the establishment of the 'K-Sodium Alliance' after signing a memorandum of understanding with Solbrain and Aekyung Chemical at its headquarters in Ochang, North Chungcheong Province.Under this agreement, the three companies will co-develop key materials for sodium-ion batteries, including cathodes, electrolytes, and hard carbon anodes. EcoProBM will focus on cathode materials and mass production technology, Solbrain will handle electrolyte and additive technologies, and Aekyung Chemical will be responsible for hard carbon development and mass production technology.The companies will share their developed products and evaluation results, allowing them to adjust the performance of the materials and pursue joint marketing efforts targeting global cell manufacturers and automakers.Sodium-ion batteries use sodium as a raw material instead of lithium, offering lower raw material costs and advantages in low-temperature performance and lifespan, making them suitable for energy storage systems (ESS) and affordable electric vehicle batteries.However, there have been concerns about the lack of a sufficient supply chain for cathodes, electrolytes, and anodes in South Korea, which has weakened the foundation for commercialization.EcoProBM has been developing cathodes for sodium-ion batteries for the past four years and has established a pilot production line with an annual capacity of 1,000 tons.Instead of supplying individual materials separately, the three companies plan to offer a packaged material solution that combines cathodes, electrolytes, and hard carbon. This approach aims to reduce the burden on cell manufacturers and automakers to validate the performance of each material combination.EcoProBM will oversee the entire project based on its existing pilot line and cathode technology.Choi Kyung-se, head of Solbrain's central research institute, stated, "Domestic battery material companies have established a cooperative system to secure sodium-ion battery technology. We will participate in the creation of a domestic SIB ecosystem and technology development."Kim Jun-hyung, head of Aekyung Chemical's central research institute, said, "We will connect the material technologies among the three companies based on our experience in developing hard carbon anodes."Jung Hyun-soo, head of future technology at EcoProBM, noted, "The domestic supply chain for sodium-ion battery materials has not been sufficiently established, which has limited commercialization. We will promote technology development and commercialization through private cooperation."* This article has been translated by AI. 2026-07-26 17:36:00
  • Samsung Biologics and Celltrion Report Strong Q2 Earnings of 1.3 Trillion Won
    Samsung Biologics and Celltrion Report Strong Q2 Earnings of 1.3 Trillion Won South Korea's leading biopharmaceutical companies, Samsung Biologics and Celltrion, both reported strong earnings for the second quarter of this year, each surpassing 1.3 trillion won in revenue. Despite similar financial results, their growth strategies diverged significantly.According to industry reports on July 26, Samsung Biologics recorded consolidated revenue of 1.32 trillion won and an operating profit of 586.4 billion won for the second quarter, marking increases of 30% and 23%, respectively, compared to the same period last year. Celltrion also achieved a record second-quarter revenue of 1.3 trillion won and an operating profit of 430 billion won, reflecting increases of 35.2% and 77.3%.While both companies posted impressive results, their growth strategies differ. Samsung Biologics recently decided to acquire the peptide contract development and manufacturing organization (CDMO) Polypeptide Group, expanding its business model beyond antibody drugs to include peptides.This acquisition aims to diversify its business portfolio by securing both peptide development and production technology along with a global customer base. The financial performance of Polypeptide Group is expected to be reflected in Samsung Biologics' consolidated results starting next year.Celltrion's growth is driven by an expansion in its high-profit product lines. Products such as Jimpendra (known as Remsima SC in the U.S.), Uplizna, and Stelara now account for over 60% of its total revenue.Additionally, Celltrion has advanced its new drug candidates into clinical trial stages. As major domestic pharmaceutical companies compete in developing antibody-drug conjugates (ADCs), Celltrion is transitioning its focus toward ADC drug development with candidates CT-P70, P71, and P73.Notably, CT-P70 and CT-P71 have received Fast Track designation from the U.S. Food and Drug Administration (FDA). The Fast Track program facilitates expedited discussions between developers and the FDA throughout the clinical development process, potentially accelerating development timelines. Key clinical results are expected to be released sequentially starting in the second half of this year.Huh Hyemin, a researcher at Kiwoom Securities, stated, "Celltrion now needs to adopt a more aggressive research and development (R&D) approach. If the clinical trials for the three ADC drugs gain momentum and yield positive R&D outcomes, it could lead to a reassessment of the company's value."* This article has been translated by AI. 2026-07-26 17:36:00
  • Food Companies Expand Restaurant Ventures Despite Economic Slowdown
    Food Companies Expand Restaurant Ventures Despite Economic Slowdown Despite a sluggish restaurant market, food companies are launching new dining brands and expanding their presence. As consumer sentiment tightens and commercial districts shrink, the food industry is focusing on overcoming declining profitability in manufacturing and securing new growth drivers, leading to renewed interest in the restaurant business.According to industry sources, CJ Foodville has been aggressively opening locations since launching its Italian bistro brand, Olifepe, in December. Starting with its first store in Gwanghwamun, it has opened additional locations in Yeouido and Pangyo, with the latest store in Gangnam, marking its fourth outlet.Ourhome's buffet brand, TAKE, is also ramping up its expansion. The Jonggak location, which opened in May, has averaged 750 visitors per day, surpassing 60,000 total visitors within 80 days of opening. Buoyed by this success, Ourhome plans to open a second location in October at the underground space of Lotte World Adventure in Jamsil, featuring over 240 seats.Efforts to introduce global brands and establish premium platforms are ongoing. Sangmidang Holdings is set to open the first Asian location of the American Mexican brand Chipotle near Gangnam Station, with a second location planned at Shinsegae Department Store in Gangnam, currently undergoing interior renovations. Hanwha FoodTech has introduced a premium dining complex, The Plaza Dining, in Gwanghwamun and recently launched a consolidated membership program, The Platinum Dining, which bundles benefits from its 14 restaurant brands to enhance customer engagement.The resurgence of the restaurant business among food companies is rooted in the limitations of their manufacturing-centric business structures. Rising costs for raw materials, packaging, and logistics have pushed the cost of sales to 70-80%, but due to price stability and competitive discounting in the retail sector, it has become challenging to reflect these cost increases in product prices.In contrast, the restaurant sector offers a larger market size than food manufacturing and allows for more flexible adjustments to prices and menus based on market conditions. According to the Korea Rural Economic Institute, the restaurant market was valued at approximately 192 trillion won last year, surpassing the food manufacturing market, which was around 159 trillion won. The ability to create synergies with existing businesses, such as meal services and food distribution, is also seen as an advantage.In fact, the contribution of the restaurant business to overall performance is increasing. In the first quarter of this year, CJ Foodville's restaurant sales reached 63.5 billion won, a 5.1% increase from the same period last year, accounting for 24.8% of total sales. MZ Seed, a subsidiary of Maeil Holdings that operates coffee brand Paul Bassett and restaurant brands The Kitchen Il Porrno and Crystal Jade, recorded sales of 213.6 billion won last year, marking its first time surpassing 200 billion won. This represents more than double its size since exceeding 100 billion won in 2021, now accounting for about 10% of Maeil Holdings' total sales.However, there are cautious views on whether the restaurant sector can serve as a long-term profitability shield and breakthrough. The burden of fixed operating costs, such as rent and labor, is significant, and the sector is sensitive to economic fluctuations. Without meticulous cost management and sustained brand competitiveness, the expansion could become detrimental.Moreover, the recovery of the restaurant market remains unclear. According to the National Data Agency, the restaurant industry business trend index for the second quarter of this year was 78.82, falling below the baseline of 100. The Seoul Business Analysis Service reported that 5,747 restaurants closed in the first quarter of this year, significantly outpacing the 4,701 new openings.An industry insider stated, "While food manufacturers are strengthening their restaurant businesses to overcome stagnant profitability, the restaurant sector is also directly impacted by high inflation and consumer recession. To achieve stable growth, it is essential to focus on brand differentiation and thorough profitability management rather than merely expanding the number of locations."* This article has been translated by AI. 2026-07-26 17:32:00
  • OpenAI and Anthropic Refuse to Join Distillation Regulation Opposition Amid Chinas Push
    OpenAI and Anthropic Refuse to Join Distillation Regulation Opposition Amid China's Push Twenty-five major U.S. tech companies issued a statement opposing regulations on AI model "distillation" technology, but leaders like OpenAI and Anthropic did not sign. As the U.S. AI industry divides over openness and regulation in response to China's distillation push, South Korea finds itself unable to align with either side due to a growing atmosphere of self-censorship regarding the adoption of distillation.According to the IT industry on July 26, companies including Nvidia, Microsoft, Meta, Palantir, Dell Technologies, IBM, Hugging Face, Mistral, and Andreessen Horowitz released a joint letter on July 24, stating that "hasty restrictions on open-weight AI models could stifle competition or drive innovation overseas."Distillation is a technique that trains smaller, lighter models using the output of larger models. The companies described distillation as "a widely used technique that plays a crucial role in AI innovation," arguing that concerns about illegal distillation should be addressed through targeted legal and commercial frameworks rather than comprehensive regulations. Nvidia CEO Jensen Huang and Microsoft CEO Satya Nadella also shared the letter on their personal social media accounts to lend support.The letter makes three main points: 1) open-weight models are essential for maintaining U.S. AI leadership; 2) they are safer than closed models because they can be verified by multiple researchers; and 3) distillation has been a standard practice since the era of open-source software.Box CEO Aaron Levie, a signatory, stated that "the more innovation there is, whether in the U.S. or China, the more affordable and efficient AI will become." In contrast, OpenAI, Anthropic, Google, and xAI did not sign the letter, highlighting a divide between leading companies focused on closed models and those with vested interests in the open-weight ecosystem. Notably, OpenAI and Anthropic have prohibited the distillation of their models in their service agreements.The backdrop to this statement is the shock from China's Moonshot AI's Kimi K3. After Kimi K3 demonstrated performance comparable to top U.S. models when unveiled on July 16, Michael Kratsios, head of the White House Office of Science and Technology Policy, claimed on July 22 that Moonshot AI had distilled Anthropic's Claude model to develop Kimi K3.Kratsios pointed out that Moonshot AI has built a sophisticated internal platform to evade detection by switching access routes and raised suspicions that it obtained banned Nvidia GB300 servers via Thailand. U.S. Treasury Secretary Scott Vessen also suggested that sanctions could be imposed if illegal distillation is confirmed.This is not the first controversy surrounding distillation from China. On February 24, Anthropic revealed that three Chinese AI companies—DeepSeek, Moonshot AI, and MiniMax—used approximately 24,000 fake accounts to collect over 16 million outputs from Claude. MiniMax was responsible for about 13 million of those outputs, and there were indications that the new Claude model was altering its response patterns within 24 hours of its release. The U.S. industry views this as evidence that China is leveraging distillation at a national level to circumvent its overwhelming capital gap.In South Korea, the atmosphere is markedly different. Following controversies over theft and derivation in the Ministry of Science and ICT's independent AI foundation model (Dopamo) project, there is a growing trend of self-censorship regarding the adoption of distillation.On January 15, the Ministry announced that the Naver Cloud and NC AI consortium was eliminated in the first phase evaluation of Dopamo. A key factor was the high similarity between the vision encoder weights of Naver Cloud's "HyperCLOVA X Seed 32B Sync" model and Alibaba's "Qwen 2.4" series. Upsstage also faced allegations that parts of its "Solar Open 100B" model were similar to China's Zhipu AI's "GLM-4.5-Air," although the accuser later acknowledged a lack of evidence and apologized three days later. Both cases are more about allegations of theft and derivation due to weight similarity rather than distillation itself, but they have contributed to a growing reluctance to adopt distillation domestically, according to industry insiders.The issue is that South Korea's AI development capital significantly lags behind that of the U.S. and China. Even combined government budgets and corporate investments fall short of the scale of individual investments by global tech giants, making efficiency through distillation necessary. However, within the competitive landscape among domestic companies, prioritizing relative advantage over objective performance complicates the introduction of distillation, which could lead to reporting among competitors.Unlike the U.S., which invests astronomical capital, and China, which fosters corporate collaboration through state leadership, competition among domestic companies is reportedly dragging down the level of AI models.Meanwhile, the second phase evaluation of Dopamo is set to begin in early August, with four consortiums including SK Telecom, LG AI Research, Upsstage, and Motif Technology participating.* This article has been translated by AI. 2026-07-26 17:28:00