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The Future of Universities in the Age of AGI: A Call for Qualified Educators Artificial General Intelligence (AGI) is on the horizon, marking a significant shift from AI as a mere information retrieval tool to a system capable of independent thought and complex task execution. The global industrial landscape and advanced research fields are evolving rapidly, prompting the government to invest heavily in initiatives aimed at establishing South Korea as one of the world's top three AI powerhouses. However, a troubling reality emerges when we turn our attention to universities, the frontline of higher education in South Korea. There is a significant shortage of professors capable of leading practical AI integration education and effectively teaching future talent in the AGI era. Recent observations of university environments reveal that many faculty members, including those in STEM fields, lack the necessary skills for practical AI application and education. Many professors are still at a basic level of AI utilization, often limited to using chatbots for simple tasks like asking questions or refining sentences. It is challenging to find educators who can design and integrate specialized programs and AI software tailored to their respective fields to guide students in solving creative problems. Some reports from AI competency workshops indicate that while some senior faculty struggled to keep pace with rapid technological changes and practical training, doctoral students and early-career researchers adapted quickly to new tools. It is concerning that the knowledge bearers, the professors, may be less adept at navigating the tools and trends of the AI era than their students. What is needed in the AGI era is not grand technological discourse or simplistic dialogues, but the ability to organically integrate AI into various academic disciplines to produce tangible creative and research outcomes. However, the structural inertia within the academic community that fails to respond swiftly to change has become a significant bottleneck in technology adoption. The root cause of this phenomenon lies in the rigid structure of faculty training and hiring systems in universities. Currently, the professor hiring and evaluation systems in South Korean universities do not meet the demands of this monumental civilizational shift. They remain trapped in outdated metrics, such as the number of publications in traditional academic journals and doctoral dissertations obtained years ago, effectively closing off opportunities to embrace the rapidly evolving AGI technology ecosystem. Moreover, due to financial difficulties and reduced enrollment, the hiring of new faculty has essentially been frozen, leading to an aging professoriate that is extremely conservative in adopting new technologies. The industry is demanding highly skilled talent capable of using AI software to solve practical problems and projects. However, graduates from universities are entering the workforce with only superficial AI experience, akin to basic search capabilities. As one voice of self-deprecation noted, "If the industry requires a competency level of '10', the education provided by universities is only at '1.'" If this trend continues, South Korean universities risk becoming outdated institutions that fail to produce even a single qualified graduate for the industry. So, what solutions exist to overcome the serious educational disconnect and technological gap in South Korea? The most crucial step is the early involvement of emerging researchers and doctoral-level talent. A bold decision is needed to break the entrenched interests within the academic community. Instead of adhering to uniform hiring standards, universities should rapidly train and deploy young researchers, such as instructors, postdoctoral researchers, and doctoral students, as "AI-focused faculty" who are highly adaptable to AGI technologies and practical applications. Another important aspect is the innovative restructuring of university education and evaluation systems. All departments should not adhere to a one-size-fits-all curriculum; rather, a national standardization and support for "AI design and creative curricula" tailored to the characteristics of various fields, including humanities, social sciences, arts, and engineering, is essential. Instead of fixating on visible infrastructure projects like building construction, universities must prioritize the retraining of faculty in AI and invest in future human resources. The wave of AGI, a monumental civilizational shift, has already crossed the threshold of universities. Without qualified educators, universities cannot have a future. If the government and university authorities do not swiftly improve faculty capabilities and establish an innovative faculty training ecosystem, South Korean universities will remain significant outliers in the AGI era. Time is running out. * This article has been translated by AI. 2026-07-24 18:36:00 -
SK Group Chairman Ordered to Pay $944 Million in Divorce Settlement SK Group Chairman Chey Tae-won and Art Center Nabi Director Noh So-young's divorce property division lawsuit has reached a significant turning point. On July 24, the Seoul High Court ruled that Chey must pay Noh 944 billion won in cash as part of the property settlement. This decision comes nearly nine years after the legal dispute began with a divorce mediation request in 2017. The substantial changes in the property division amounts—from 66.5 billion won in the first trial to 1.38 trillion won in the second trial, and now to 944 billion won in the retrial—highlight the core issues at stake in this case.The primary issue was whether the SK shares held by Chey should be considered joint marital property. The first trial deemed the SK shares as separate property acquired through inheritance and gifts, excluding them from division. The court found it difficult to recognize Noh's substantial contribution to the formation, maintenance, and value increase of the shares. Consequently, only shares from some affiliates, real estate, and deposits were included in the division, resulting in a settlement amount of 66.5 billion won.However, the second trial overturned this decision. It concluded that the value of the SK shares significantly increased due to Chey's management activities during the marriage, and that Noh's contributions in household management, child-rearing, and external activities also played a role in maintaining and enhancing that value. As a result, the SK shares were included as joint property, and Noh's share was recognized at 35%, raising the property division amount to 1.38 trillion won.In October of last year, the Supreme Court ruled that acknowledging the late former President Roh Tae-woo's slush fund of 30 billion won as a contribution from Noh was incorrect, stating that illegal funds cannot be considered a legitimate contribution to property formation. The court also found it erroneous to include shares gifted to relatives for maintaining management rights before the marriage breakdown in the division. Following this ruling, the case returned to the Seoul High Court.The retrial reflected the Supreme Court's intent while still determining that the SK shares are joint marital property. Although the 30 billion won slush fund and gifted shares were excluded, the court recognized that Noh's long-term contributions to household management, child-rearing, and external activities contributed to the maintenance and increase in the value of the shares. The property division ratio was set at two-thirds for Chey and one-third for Noh.This ruling is noteworthy because it does not view a businessman's shares as merely personal property while broadly recognizing the spouse's contributions. While corporate shares are foundational to management rights and governance structures, if their value has significantly increased during the marriage, the spouse's contributions in household management, child-rearing, and social activities cannot be excluded from the property formation process. Even inherited property cannot be entirely considered separate if its value has been maintained and increased during the marriage.The criteria for stock valuation also hold significant implications. The court assessed the property value based on the date of the conclusion of the appeal hearing on April 16, 2024. At that time, the SK stock price was around 160,000 won, but it rose to the 800,000 won range by the end of the retrial. However, the court did not directly reflect this increase in the property value. Following Supreme Court precedents, the valuation date for property division in confirmed divorce cases is the conclusion of the factual hearing. Nonetheless, the stock price surge was considered in determining the division ratio. This decision balances legal stability with practical equity. Given the high volatility of publicly traded stocks, subsequent price fluctuations after the divorce confirmation are influenced by both managerial actions and market conditions. If all future stock price changes were retroactively divided, it could complicate the resolution of property division cases. Conversely, failing to reflect significant value increases would contradict the intent of equitable liquidation.Deciding on cash payment for the property division was also deemed appropriate. The SK shares held by Chey are directly linked to the group's management rights. Dividing these shares directly could introduce uncertainties into corporate governance and market stability. While ensuring the spouse's property rights, it is crucial to avoid situations where corporate management rights are jeopardized due to divorce litigation. This decision considers both individual rights and corporate stability.This case sets an important precedent for property division principles in South Korea, extending beyond the personal divorce of a conglomerate leader. Household management and child-rearing are not secondary roles separate from economic activities. The roles spouses play during long-term marriages can impact corporate value and asset growth. At the same time, it has been reaffirmed that illegal funds cannot be recognized as legitimate contributions under any circumstances.The court's ruling aims to fairly evaluate the contributions of the marital partnership while preserving the continuity of corporate management. This ruling is a result of efforts to balance these two principles. In future similar cases, it will be essential to establish consistent standards by specifically examining the property formation process, the spouse's actual contributions, and the impact on corporate management rights. 2026-07-24 18:32:00
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Court Orders Choi Tae-won to Pay 944 Billion Won to Noh So-young A South Korean court has ruled that Choi Tae-won, chairman of SK Group, must pay 944 billion won to Noh So-young, director of the Art Center Nabi. This ruling has raised expectations regarding the potential success fees for Noh's legal team.The Seoul High Court's Family Division, presided over by Judge Lee Seung-joo, announced on July 24 that Choi is obligated to pay Noh the specified amount as part of their property division case.Legal experts are closely watching the success fees for Noh's legal team, as they could range from 1% to 7% of the total amount due to the high value of the lawsuit.If the ruling is upheld by the Supreme Court, Noh's lawyers could receive between 1% (approximately 9.4 billion won) and 7% (around 66 billion won) as their success fee, although the exact amount will depend on the specific terms of their agreement. Currently, Noh's legal team is composed of the law firms Haegwang, Hannuri, and Onsesang.This ruling comes nearly nine years after Choi and Noh's marriage, which began in September 1998, ended in separation. In 2015, Choi publicly acknowledged the existence of an extramarital child.Noh filed for divorce mediation in July 2017, but the process failed, leading to formal litigation in February 2018. Noh subsequently filed a counterclaim in 2019, indicating her willingness to proceed with the divorce.In a previous ruling, the first court ordered Choi to pay Noh 100 million won in alimony and 665 million won in property division. The second court, however, recognized Noh's contributions to the growth of SK Group, which included a 30 billion won slush fund linked to former President Roh Tae-woo, and awarded her 200 million won in alimony and 1.38 trillion won in property division.However, in October of last year, the Supreme Court upheld the 200 million won alimony but ruled that the 30 billion won slush fund could not be considered illegal funds attributable to Noh's contributions, sending the case back to the Seoul High Court.The appellate court held its first hearing on January 9 and, after three months, attempted mediation. However, disagreements over key issues, including the division of SK shares, led to the failure of mediation, prompting the court to conclude the hearing and issue its ruling.If either party contests the ruling, they may appeal to the Supreme Court, indicating that further legal proceedings could follow.* This article has been translated by AI. 2026-07-24 18:28:00
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Illegal Drugs Detected in Wastewater: 31 Substances Found, Including 8 Club Drugs in Yongsan Last year, 31 types of illegal drugs, including methamphetamine, synthetic cannabinoids, and ketamine, were detected in wastewater across the country. The Ministry of Food and Drug Safety expanded its analysis from a maximum of 22 substances to 243, revealing the use of new drugs and so-called 'club drugs' that had previously gone undetected.On July 24, the Ministry announced the results of the '2025 Illegal Drug Usage Survey.' The analysis was conducted on wastewater samples collected from 34 sewage treatment plants across 17 cities and provinces, as well as from densely populated areas such as Yongsan in Seoul, Incheon, Gwangju, and Jeonnam. The upper drainage basin refers to an intermediate collection area where wastewater from various regions converges before entering treatment plants.The survey found 31 types of illegal drugs, including methamphetamine, and 25 types of medical narcotics, such as zolpidem, in the wastewater samples. Among the illegal drugs, 28 were classified as controlled substances under the Narcotics Control Act, while three were temporary narcotics. Notably, synthetic cannabinoids accounted for the largest share, with 21 types detected.A significant aspect of this survey was the expanded scope of analysis. Since last year, the Ministry has increased the number of detectable drugs to 243 and broadened the survey methodology from focusing solely on sewage treatment plants to include upper drainage basins and specific densely populated areas. As a result, the number of detected illegal drugs rose sharply compared to the previous year, which recorded only seven types.Methamphetamine was found at all survey sites. The estimated daily usage per 1,000 residents at sewage treatment plants was 85 mg, which is lower than levels in the United States (2,109 mg), Australia (1,518 mg), and the Czech Republic (1,175 mg). However, when adjusted for population, it suggests that approximately one in every 10,000 people is using methamphetamine, indicating a widespread issue nationwide.By sampling location, 11 types of illegal drugs were confirmed at sewage treatment plants, 18 types in upper drainage basins, and eight types in densely populated areas. Notably, during the Halloween period last October, wastewater collected near entertainment venues in Yongsan revealed multiple club drugs, including cocaine, MDMA (ecstasy), and ketamine. These substances were not detected in general sewage treatment plants or upper drainage basins.Considering that only four types of drugs, including club drugs, were detected during weekend surveys in the same area, it suggests that drug usage patterns can vary significantly depending on specific times and locations. There is a possibility that drug distribution and usage surged during events attracting foreign visitors and young people.Based on the survey results, the Ministry plans to expand its monitoring scope. Next year, the number of upper drainage basin survey sites will increase from three to six, and the number of densely populated area surveys will rise from one to three. If illegal drugs are detected during the survey process, the Ministry will promptly provide information to law enforcement and local governments for enforcement actions.Additionally, substances suspected to be new drugs will undergo further analysis for rapid classification as temporary narcotics. A Ministry official stated, "Wastewater-based epidemiological surveys are a means to quickly identify regional drug usage trends," adding that they aim to enhance the utility of these findings for enforcement and policy development.* This article has been translated by AI. 2026-07-24 18:04:00
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SK Group's Chey Tae-won and NVIDIA's Jensen Huang Discuss AI Semiconductor Collaboration in the U.S. Chey Tae-won, chairman of SK Group, and Jensen Huang, CEO of NVIDIA, met in the United States to discuss collaboration in artificial intelligence semiconductors, data centers, and physical AI.NVIDIA announced on July 24 that the two leaders dined in Woodside, California, a day before the San Francisco AI Summit. Officials from SK hynix, SK Telecom, and NVIDIA also attended the meeting.The two sides reviewed their ongoing collaboration in AI semiconductors, including high-bandwidth memory (HBM), data center infrastructure, and robotics.SK hynix supplies HBM to NVIDIA. Last month, the companies agreed to jointly develop memory for NVIDIA platforms used in AI infrastructure, personal AI, and physical AI.SK Telecom is also working to build AI infrastructure to support physical AI and robotics services. This meeting increased the likelihood that the collaboration between SK and NVIDIA will expand from memory supply to AI infrastructure and services.* This article has been translated by AI. 2026-07-24 18:00:00
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Extreme Heat Continues Across South Korea This Weekend On Saturday, July 25, extreme heat and tropical nights will persist across most of South Korea, with rain expected primarily in the Seoul metropolitan area and Gangwon Province. Showers are also forecast for Chungcheong Province and Jeju Island.According to the Korea Meteorological Administration on July 24, heat advisories are in effect for most regions, with the perceived temperature rising to around 33 degrees Celsius. In particular, southern Gyeonggi Province, eastern Gangwon, and parts of Chungcheong, Jeolla, and Gyeongsang provinces, as well as Jeju Island, are expected to see perceived temperatures soar to around 35 degrees Celsius.In areas under a severe heat warning, such as the southern coastal region of North Gyeongsang Province (Gyeongju and Pohang), the maximum perceived temperature could reach 38 degrees Celsius, with actual temperatures exceeding 39 degrees Celsius, necessitating careful health management. Tropical nights, where temperatures do not drop below 25 degrees Celsius, are also expected in various locations nationwide.Rain and showers are anticipated in some areas. While rain is expected in the Seoul metropolitan area and Gangwon Province, many places may experience a lull in precipitation.Expected rainfall amounts are as follows: 10 to 60 mm in northern Gyeonggi, the western five islands, northern inland and mountainous areas of Gangwon; 5 to 40 mm in Seoul, Incheon, southern Gyeonggi, and central and southern inland and mountainous areas of Gangwon. In Chungcheong Province (5 to 40 mm) and Jeju Island (5 to 10 mm), showers accompanied by gusty winds and thunder are expected from morning to evening.Morning low temperatures are forecasted to range from 22 to 26 degrees Celsius, while daytime highs are expected to reach between 29 and 37 degrees Celsius.In major regions, morning low temperatures are predicted to be: 26 degrees in Seoul, 26 degrees in Incheon, 25 degrees in Suwon, 24 degrees in Chuncheon, 25 degrees in Gangneung, 24 degrees in Daejeon, 25 degrees in Daegu, 25 degrees in Busan, and 27 degrees in Jeju.Daytime high temperatures are expected to be: 32 degrees in Seoul, 30 degrees in Incheon, 30 degrees in Chuncheon, 35 degrees in Gangneung, 33 degrees in Cheongju, 32 degrees in Daejeon, 33 degrees in Jeonju, 34 degrees in Gwangju, 35 degrees in Daegu, 37 degrees in Pohang, 32 degrees in Busan, and 34 degrees in Jeju.Fine dust levels are expected to be at a 'good' level across all regions due to smooth atmospheric circulation.* This article has been translated by AI. 2026-07-24 18:00:00
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CNN: Despite AI Boom, Chey Tae-won’s Ex-Wife Receives Limited Asset Division Despite a surge in SK Hynix's corporate value due to the AI boom, this increase was not reflected in the asset division between Chey Tae-won, chairman of SK Group, and Noh So-young, director of the Art Center Nabi. CNN reported that the AI boom did not alter the outcome of what has been termed the 'divorce of the century.'On July 24, the Seoul High Court ruled that Chey must pay Noh 944 billion won (approximately $644 million) in asset division. This amount falls significantly short of what Noh had requested.The central issue in the lawsuit was the timing of the asset valuation. Noh's side argued that the valuation should be based on 2026, when the corporate value of SK Group had significantly increased due to the AI boom. SK Hynix, a subsidiary of SK Group, emerged as a major beneficiary of the soaring demand for AI semiconductors, leading to a substantial rise in the group's asset value.However, the court set the valuation date as 2024, when the appeal process concluded, prior to the fivefold increase in SK Hynix's stock price driven by AI investments. Consequently, the rise in corporate value attributed to AI was not included in the asset division.CNN explained that this ruling extends last year's Supreme Court decision, which rejected claims that former President Roh Tae-woo's financial support contributed to SK Group's growth, leading to the annulment of a previous asset division ruling of 1.38 trillion won. As a result, the Seoul High Court determined that Noh's share of the asset division would be one-third, while Chey would receive two-thirds.Chey and Noh were married in 1988 at the Blue House, a ceremony dubbed 'the wedding of the century.' However, Chey announced the end of their marriage in 2015 after revealing he had a child with another woman, leading to a protracted legal battle that has lasted over a decade and is often referred to as 'the divorce of the century.'CNN noted that when Chey disclosed the divorce in 2015, SK Hynix's stock was around 33,000 won, but the company surpassed a $1 trillion valuation in May due to explosive growth in AI semiconductor demand. Additionally, this month, it raised $26.5 billion, achieving the largest IPO by a foreign company in U.S. stock market history, highlighting the company's elevated status.Furthermore, CNN remarked, 'The AI boom has transformed the memory semiconductor industry into one of the hottest investment sectors globally,' and emphasized that this case illustrates that the substantial increase in corporate value generated by AI does not automatically influence all legal disputes.* This article has been translated by AI. 2026-07-24 17:44:00
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Korean shipbuilders expand US partnerships in $150B cooperation push SEOUL, July 24 (AJP) - South Korea’s three major shipbuilders are expanding partnerships with U.S. companies in naval ship design, smart shipyards, workforce training and supply chains, as Seoul moves to accelerate a $150 billion shipbuilding cooperation package with Washington. The moves follow the opening of the Korea-U.S. Shipbuilding Partnership Center in Washington, D.C., this week. The center is expected to serve as a key platform for Korea’s participation in efforts to rebuild the U.S. shipbuilding industry. Hanwha Ocean signed a professional services contract with Leidos Gibbs & Cox, a U.S. naval ship design firm, to jointly design a global strategic sealift vessel. The vessel is a dual-use ship designed for commercial logistics in peacetime and rapid transport of military supplies in a contingency. Hanwha Ocean also signed separate agreements on workforce training and supply chain development with U.S. partners. HD Korea Shipbuilding & Offshore Engineering signed a contract with Siemens Digital Industries Software to introduce a next-generation marine platform that connects ship design, production, supply chain management, quality control and maintenance through a single 3D data-based system. The company also plans to build a virtual shipyard and develop a “physical AI” shipyard where robots and autonomous production equipment carry out parts of the shipbuilding process. Samsung Heavy Industries received approval in principle from the American Bureau of Shipping for a 12,000-cubic-meter LNG bunkering vessel jointly developed with Conrad Shipyard. The company also agreed to cooperate with U.S. unmanned surface vessel startup Saronic Technologies on autonomous navigation, AI software and automated shipyard processes. Samsung Heavy Industries also signed an agreement with Vigor Marine Group to establish a training center for welding and painting workers and plans to work with U.S. universities on virtual training systems for shipbuilding workers. Industry officials expect Korea-U.S. shipbuilding cooperation to expand further as Korean shipbuilders combine their construction technologies and productivity with U.S. production bases. 2026-07-24 17:38:36 -
New Balance Halts Sales of T-Shirt Featuring Upside-Down Taeguk Pattern Eland World’s fashion brand New Balance has officially apologized and halted both online and offline sales of a T-shirt that misrepresented the Taeguk pattern after facing backlash. On July 24, New Balance issued a statement on its official website, saying, "We sincerely apologize for causing concern to many due to the Taeguk pattern design T-shirt we released. We immediately suspended all online and offline sales of the product upon recognizing the issue." The controversial item is part of New Balance's 'NB Seoul Collection' and is called the 'UNI NB Geon-Gon-Gam-Ri Exclusive Short-Sleeve T-Shirt.' It was designed to promote the appeal of Korea and Seoul to both domestic and international customers, including foreign tourists. New Balance emphasized, "There was no intention to convey any political or ideological message during the design and production process. We want to clarify that this product was not created to support or oppose any specific political stance or group." However, the company acknowledged, "Regardless of intent, we did not handle the national symbol carefully, and we take the disappointment and concerns of many seriously. We accept responsibility for not adequately considering the meaning of the design and the various interpretations it could evoke among customers." For consumers who have already purchased the product, the company announced it would provide full refunds regardless of the purchase method. Customers can contact their nearest New Balance store or the official website for prompt assistance. New Balance also promised to implement stricter review and verification processes during the planning and production stages when utilizing national symbols and elements with historical and cultural significance. The company stated it would reassess its internal design review system to prevent similar incidents from occurring in the future. Earlier, major online communities pointed out that the red and blue positions of the Taeguk pattern on the T-shirt appeared reversed compared to the standard Taeguk flag, and the Geon-Gon-Gam-Ri was depicted in a manner inconsistent with the official arrangement of the flag. Social media saw a surge of posts criticizing the product and calling for a boycott. Seok Kyung-deok, a professor at Sungshin Women's University, noted on social media, "New Balance is embroiled in controversy for depicting an 'incorrect Taeguk flag' on its T-shirt. Based on reports from netizens, it has been confirmed that the Taeguk pattern on the New Balance T-shirt was designed in reverse compared to the actual flag." He added, "During the North Central America World Cup, a Shake Shack in Abu Dhabi, UAE, faced backlash for providing World Cup merchandise featuring an incorrect Taeguk flag. It is unacceptable for a global company to continuously use a flawed Taeguk flag in its products." He concluded, "A true global company should first possess the basic manners of understanding the fundamental information about the countries in which it operates."* This article has been translated by AI. 2026-07-24 17:36:00
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Japan to Cut Diabetes Drug Prices, Increasing Cosmetic Prescriptions? Japan will reduce the price of the diabetes medication 'Mounjaro' by 25% starting in August. While this will lessen the financial burden on diabetes patients, the Nihon Keizai Shimbun reports that prescriptions for Mounjaro for cosmetic and weight loss purposes may increase.Mounjaro, developed by Eli Lilly, is a treatment for type 2 diabetes that was approved in Japan in 2022. It mimics the action of the gut hormone incretin to suppress appetite and lower blood sugar levels. Its weight loss effects have led to increased use among young women for cosmetic purposes, representing an 'off-label use' of a drug approved for diabetes treatment.In Japan, such off-label prescriptions are recognized at the discretion of medical professionals. However, public health insurance does not cover these prescriptions, meaning patients must bear the full cost, similar to non-covered treatments in South Korea. The legal basis for direct regulation of off-label prescriptions by administrative authorities is also limited.Despite the existence of separate obesity treatments with the same active ingredient, Mounjaro is widely prescribed in cosmetic settings. Eli Lilly also sells an obesity treatment called 'Zepbound,' which contains the same active ingredient, but it is subject to specific conditions for prescription by medical institutions under the Ministry of Health, Labour and Welfare's optimal use guidelines. Mounjaro does not have such restrictions, and its wholesale price is lower than that of Zepbound.So, how much of the Mounjaro sold in Japan is prescribed for cosmetic and weight loss purposes? While exact figures are not publicly available, sales statistics provide a rough outline. According to the U.S. research firm IQVIA, Mounjaro's sales in Japan from October to December last year amounted to approximately 38.8 billion yen (about $345 million), making it the third highest-selling medical drug. This averages to about 13 billion yen per month. In contrast, estimates based on the National Database (NDB) of the Ministry of Health, Labour and Welfare, which only accounts for insurance-covered treatments, suggest a monthly sales figure of about 8.3 billion to 12.5 billion yen. The Nihon Keizai Shimbun estimates that the sales for off-label use could reach up to 5 billion yen per month when considering the differences in these statistics.The growth of Mounjaro's off-label market can be attributed to Japan's online medical consultation structure, which allows patients to complete consultations, prescriptions, and deliveries via smartphone without visiting medical institutions or undergoing in-person examinations. The process is convenient and cost-effective. The online medical service 'Diet Beauty' advertises Mounjaro prescriptions starting at 18,000 yen per month. For medical institutions, it is easier to enter the market by providing online prescriptions without significant capital investment. The beauty medical market in Japan is also rapidly expanding, with the Yano Research Institute reporting that its size has increased by about 1.6 times since 2020, reaching 631 billion yen in 2024.In response to the surge in Mounjaro sales, the Japanese government has decided to cut the drug's price by 25% starting in August. This decision follows the application of a 'sustainability special price adjustment' rule, which reduces prices when the sales of insured drugs exceed expectations. While this aims to alleviate the burden on diabetes patients and health insurance finances, it may have the opposite effect in the cosmetic off-label market.Concerns Over Price Reduction Side EffectsThe issue is that the effects of the price reduction will not be limited to insured treatments. Pharmaceuticals are supplied from manufacturers to wholesalers and then to medical institutions. Wholesalers do not distinguish whether Mounjaro is used for diabetes treatment under insurance or for cosmetic purposes in off-label use. If the price decreases, the purchase price for cosmetic clinics may also drop. Hiroaki Mamiya, an associate professor at Ritsumeikan University, warns that the price reduction intended to lower medical costs could inadvertently encourage the use of Mounjaro for cosmetic purposes in the off-label market. If clinics pass on the price drop to patients, accessibility will increase, and if they maintain existing prices, profitability will improve, incentivizing expanded prescriptions.In practice, there have already been reports of side effects. A gastroenterologist operating a clinic in Tokyo treated three young female patients who complained of bloating and nausea. Endoscopic examinations revealed that all three had food from the previous evening still in their stomachs. Mounjaro has a known effect of slowing gastrointestinal motility. The doctor believes that all three cases are related to Mounjaro use.The side effects are not trivial. Nausea and lethargy can occur, as well as severe side effects like acute pancreatitis. The effects of long-term use in healthy individuals, as opposed to diabetes patients, are still unknown. The doctor cautioned, 'Suppressing appetite with medication can lead to eating disorders.' The Ministry of Health, Labour and Welfare issued a notice on June 16 requesting medical institutions to ensure appropriate use.While the side effects themselves are concerning, another issue is who will bear the treatment costs. Patients prescribed Mounjaro through off-label use must pay the full price, but treatment for side effects may be covered by health insurance. While the price reduction may increase profits for cosmetic clinics, the costs of treating health complications could fall on public insurance, potentially creating a new burden from a measure intended to reduce medical expenses. The doctor pointed out, 'It is insufficient for the Ministry of Health, Labour and Welfare to merely issue a notice for appropriate use. Without specific sanctions against doctors who prescribe inappropriately, the trend of cosmetic prescriptions will not decrease.'South Korea's situation is different. The Ministry of Health and Welfare plans to include obesity treatments in the list of medications restricted to non-face-to-face prescriptions starting in December 2024, making it unlikely that Japan's online structure, which allows consultations, prescriptions, and deliveries to be completed online, will spread. However, the trend of increasing off-label prescriptions for cosmetic purposes is not unique to Japan. The paradox of policies aimed at lowering drug prices encouraging misuse and shifting the costs of side effect treatments to public insurance is not just a Japanese issue.* This article has been translated by AI. 2026-07-24 17:36:00