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  • South Korea Bets $100 Billion on AI: A Risky Gamble?
    South Korea Bets $100 Billion on AI: A Risky Gamble? SEOUL, September 26 (AJP) - South Korea's $100 Billion AI Bet: A Risky Gamble? The New York Times recently likened data centers to thermometers of the tech industry's health and symbols of the AI bubble. This duality highlights the contradictions of the AI era. Building a data center costs billions, requiring GPUs, cooling technology, power grids, and stable sites. Despite this, companies like Google, Microsoft, and Amazon are increasing investments. Countries like Japan and Singapore are also competing to attract these centers. For investors, data centers are both indicators of the AI boom and potential bubbles. Amid this, South Korea's new government has announced a national strategy to become a top-three AI power, committing to secure 50,000 GPUs and invest 100 trillion won. This unprecedented move is not just political rhetoric but a significant resource allocation. The question is whether this will propel South Korea to new heights or lead to a bubble collapse. The government's bold focus on AI stems from three main reasons. First, traditional growth engines like semiconductors and automobiles no longer drive double-digit growth. With aging and low growth, AI appears as a key future growth candidate. Second, there's a sense of urgency in industrial competitiveness. The U.S. and China have made AI central to national security and dominance. The U.S. is reorganizing semiconductor supply chains, drawing South Korea in, while China is shifting its strategy to AI. South Korea fears becoming a subordinate state if it hesitates. Third, the Lee Jae-myung administration, emerging post-impeachment, needed a clear vision to unify society and drive governance. The 'AI powerhouse' slogan addresses both international tech competition and domestic growth challenges. This bold all-in strategy presents opportunities. It positions South Korea at the forefront of global AI competition. Infrastructure like GPUs and data centers are hard for latecomers to match. Early investment could recreate the semiconductor success. AI could revolutionize productivity in healthcare, administration, finance, manufacturing, and education, benefiting citizens. If small and medium enterprises can access national infrastructure affordably, they could leap forward, reducing reliance on large corporations. However, there are shadows. The sustainability of the 100 trillion won investment is questionable given South Korea's fiscal reality, with rising welfare costs and declining tax revenue. AI investment could become a political target, especially if a new administration takes over. The public-private partnership's uncertainty is another concern. Major companies like Samsung and SK are key to the AI strategy, but cooperation is challenging amid calls for chaebol reform. A special social consensus is needed for unified public-private efforts in AI. Energy is another issue. Data centers require stable power, but the government is hinting at phasing out nuclear energy, focusing on solar and wind. The gap between ideal goals and real demand is vast. Relying solely on renewables without transitional solutions is risky. External risks also loom. The U.S. seeks to control GPU and semiconductor supply chains through alliances, while China remains South Korea's largest trade partner. Leaning too much toward one side could lead to diplomatic burdens. The spread of AI regulations in Europe could pose new barriers for South Korean companies. In this context, a meeting on Sept. 22 in New York marked a turning point. President Lee Jae-myung met with Larry Fink, chairman of BlackRock, the world's largest asset manager. They discussed various cooperation plans, including AI and energy transition. BlackRock, managing over $10 trillion in assets, is a major player in global finance, focusing on sustainability and risk management. It is a significant investor in South Korea, holding stakes in companies like Samsung and Hyundai. The meeting suggests that South Korea's AI strategy could expand beyond domestic projects to global initiatives connected with international capital. BlackRock's risk management philosophy could help South Korea's all-in strategy gain international trust. However, challenges remain. The progressive Lee administration favors a big government approach, which could conflict with AI investment. Policy reversals are possible if political situations change. An AI fund involving private matching, policy finance, and pension funds is needed for continuity. The government plans to create a large national growth fund for high-tech industries. Relations with large corporations are also tricky. Progressive governments traditionally emphasize chaebol reform, but AI requires corporate participation. A political agreement for a public-private alliance in AI is essential. Energy policy must also be adjusted realistically. While expanding renewables is right, data centers need 24/7 stable power. Without a mix of traditional energy sources, the AI all-in could increase bubble risks. Foreign relations are another test. If South Korea appears aligned with the U.S. in AI, economic conflicts with China are inevitable. Cooperation with Japan should be framed as a global public good, and influence in ASEAN, India, and the Middle East should be expanded. The connection with BlackRock could be a practical foundation for this international expansion strategy. South Korea's AI all-in strategy is like a high-speed elevator for the country's future. Success could write a new growth story, but failure could lead to a significant fall. Everything depends on South Korea's approach. Securing fiscal sustainability, building public-private trust, achieving realistic energy transitions, and maintaining balance and expansion in diplomacy are crucial. As the BlackRock meeting showed, partnering with global capital and accumulating small successes could turn South Korea's all-in into a platform for new growth, not a risky gamble. BlackRock's Four Key Points in South Korea AI and digital transformation potential: South Korea's AI strategy and corporate investments in GPUs and digital infrastructure are future growth areas for global capital. Accelerated energy transition: Expanding renewables and a hydrogen-nuclear strategy align with BlackRock's ESG and green infrastructure investment philosophy. South Korea has the opportunity to grow as a Northeast Asian energy hub. Innovative corporate ecosystem: Global competitive 'national champion companies' like Samsung, SK, Hyundai, and POSCO offer stable, long-term returns through partnerships with BlackRock. Institutionalization of public-private cooperation: Potential for formalized collaboration between government and corporations. About Jaewon Kwak Former Deputy Editor of JoongAng Ilbo's Economic Department and Tokyo Correspondent Former Visiting Professor at Seoul National University and Hanyang University Former President of Gyeonggi Science and Technology Promotion Agency Current Visiting Professor at Gachon University and Hoseo University Current Editorial Director at Aju Business Daily * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-26 07:35:38
  • PHOTOS: Highland harvest in full swing
    PHOTOS: Highland harvest in full swing SEOUL, September 25 (AJP) - The hills of Daegwallyeong, South Korea's largest production base for prized highland vegetables, are typically a scene of bustling harvest activity as the nation prepares for the major fall holiday, Chuseok. The annual harvest of goraengji baechu (highland cabbage) and goraengji mu (highland radish) is in full swing. These vegetables are distinct because they are exclusively grown in regions situated 1,000 meters or more above sea level, giving them a unique texture and flavor highly sought after for traditional meals. For the farmers in this high-altitude region, the current harvest season is proving to be a difficult one. Crews are working tirelessly to gather the crops, but the yields are noticeably down, hit by a severe drought and a heatwave this year. 2025-09-25 16:39:24
  • North Korea now has 2,000 kg of highly enriched uranium
    North Korea now 'has 2,000 kg of highly enriched uranium' SEOUL, September 25 (AJP) - North Korea is believed to possess up to 2,000 kg of highly enriched uranium (HEU), which could be used to produce nuclear weapons, Minister of Unification Chung Dong-young said on Thursday. "Estimates suggest that North Korea's HEU stockpiles are around 2,000 kg," he said during a press conference in Seoul, citing assessments from experts. If accurate, this would be enough for roughly 100 nuclear weapons, as 20 to 25 kg of uranium is sufficient to produce one bomb. Chung flatly dismissed the need for additional sanctions against North Korea, saying they would no longer be effective in pressuring the country to abandon its nuclear weapons program, as centrifuges are already operating at several facilities. He then added, "Any breakthrough in North Korea's denuclearization can be made through direct talks between Pyongyang and Washington." Due to North Korea's secrete enrichment facilities, which make precise assessment difficult, South Korea's biennial Defense White Paper has merely described the country as having a "substantial amount" of HEU. The minister also mentioned that a more practical and flexible approach to inter-Korean relations is now needed, as the two Koreas should accept a new reality by recognizing each other as independent states, insisting that this would not mean giving up the long-cherished goal of reunification. 2025-09-25 16:34:04
  • K-beauty popularity props up Busans tourism and retail market
    K-beauty popularity props up Busan's tourism and retail market BUSAN, September 25 (AJP) - South Korea’s southern port city of Busan is riding a surge of foreign arrivals as more visitors venture beyond the capital region — and beauty chain Olive Young is reaping the rewards. According to Busan metropolitan authorities, foreign tourist arrivals reached 2.03 million through July, up 23 percent from a year earlier. The influx has delivered a welcome boost to the local retail market. International purchases at Busan Olive Young outlets totaled 758,385 as of August, up 70 percent from a year earlier — and a staggering leap from just 19,439 in 2022. Olive Young’s test bed outside Seoul Busan carries strategic importance for Olive Young, serving as the brand’s first franchising test bed beyond the Seoul metropolitan area. Starting with its Busan National University Station branch in 2008, the chain now operates 85 stores across the city. A field visit to three flagship locations highlighted strategies tailored to diverse foreign shoppers. “We came to Busan because our social media Xiaohongshu recommended the area to us,” said Jesse Wang, 37, from China, browsing at Olive Young’s Delight Project Store. “We came here to pick up snacks for our friends back home.” At the Seomyeon 1st Street store, product names are displayed in both Korean and English, while shelves mix K-beauty items with instant noodles and snacks promoted alongside Netflix hit K-pop Demon Hunters. Foreign customers account for 65 percent of this location’s revenue. Nearby, the Seomyeon Town branch — spanning 270 pyeong (about 8,900 square feet) — stands as the largest Olive Young store outside Seoul. During June’s Olive Young sale, daily visitors topped 10,000. Global draw, local twists Tourists from 170 countries visited Busan Olive Young stores in 2024, representing 88 percent of UN member nations. In the Haeundae tourism district, foreign purchases jumped 105 percent year-on-year between January and August. Just blocks from the Town branch, the Seomyeon Bujeon Central store operates until 11 p.m., the latest hours among all Olive Young outlets nationwide. The extended schedule makes it the top location for product tester usage, as late-night shoppers from nearby bars and entertainment venues sample skincare lines. “We’ve been to many Olive Young stores during our trip, but this one stood out,” said Janet Yim, 30, and Hira Qureshi, 31, from Chicago at the Jeonpo Station branch. “We even got our skin analyzed by a machine — like a fun dermatology test. We didn’t know we had dry skin until then.” The Jeonpo Station outlet caters to younger shoppers in their 20s and 30s with skin analysis and personal color consultation services. Olive Young has expanded such experiential features nationwide, designating more than 110 stores as “Global Tourism Commercial Districts” with multilingual signage, foreign-language staff, and immediate tax refunds on purchases over 15,000 won. Local flavors, new frontiers Region-specific products drive much of the foreign enthusiasm. The Delight Project Haeundae store, the first standalone branch for Olive Young’s health snack brand, features Busan-themed specialties such as Seed Hotteok Dalgona and the Haeundae Red Pepper Cake Gift Collection. Olive Young aims to cement its role as a tourist retail magnet by fusing experiential content with merchandising — positioning itself at the crossroads of K-beauty, tourism, and local flavor. 2025-09-25 16:06:20
  • Koreas birth growth streak hits 13 mos, gains skewed to capital and better-off
    Korea's birth growth streak hits 13 mos, gains skewed to capital and better-off SEOUL, September 25 (AJP) - Korea's birth tally has grown for 13 consecutive months, offering a rare silver lining in the country's demographic crisis as more young people show willingness to marry and have children. But experts warn the rebound is heavily concentrated in Seoul and the capital region — and largely confined to better-off couples. According to Statistics Korea, 21,803 babies were born in July, up 1,223 or 5.9 percent from a year earlier and the largest July tally since 2021. From January to July, births totaled 147,804 — a 7.2 percent increase year-on-year, marking the sharpest rise since records began in 1981. Marriages also jumped, with 20,394 couples tying the knot in July, up 8.4 percent from a year earlier and the highest for the month since 2016. The rebound is partly attributed to the so-called "Echo Generation," born between 1991 and 1995, who are now entering their early 30s, traditionally viewed as the prime family-forming years. It also reflects a modest shift in women's attitudes toward childbirth. A government survey of 2,800 people nationwide aged 25–49, conducted August 20–27, showed that 37.2 percent of childless women aged 25–29 said they intend to have children — up from 26.4 percent a year earlier. Among women already with children, 40 percent said they were willing to have another child, nearly 20 percentage points higher than last year. Yet the gains remain uneven. In July alone, 10,477 babies were born in Seoul and Gyeonggi Province — nearly half of the nationwide total. From January to July, the capital region accounted for 70,771 births out of 147,804, again just under 50 percent. With more than half of Koreans in their 20s and 30s now living in the capital area, Seoul continues to hold a demographic edge while widening the gap with provincial regions. Experts caution that structural obstacles — including high housing prices, soaring private education costs, and difficulties women face balancing careers after childbirth — remain firmly in place. "Before concluding that women's attitudes toward marriage and childbirth are really shifting, we need to check whether survey questions were consistent across years," said Kim Cheong-seok, sociology professor at Dongguk University. "If the wording changed, results could be distorted. Broad values like 'marriage is essential' differ greatly from specific intentions such as 'I plan to have children.'" Lee Joo-hee, sociology professor at Ewha Womans University, echoed skepticism. "I don't view the slight rise in birth intentions as a sign of a fundamental shift. The core barriers — costs of private education, and the challenge for women to sustain careers after childbirth — remain intact." She added that income-based disparities in childbirth are still severe. "The improvements are mostly among higher-income groups, while lower-income households are effectively giving up on having children," Lee said. 2025-09-25 16:02:15
  • Seoul claims progress in wartime command transfer talk with US
    Seoul claims progress in wartime command transfer talk with US SEOUL, September 25 (AJP) - Seoul claims it has made substantial strides in latest round of negotiation with Washington on the transfer of U.S. wartime operational control (OPCON) to South Korea. The 27th Korea-U.S. Integrated Defense Dialogue (KIDD), a regular consultative meeting between the two defense ministries, was held in Seoul on Sept. 23-24, in which, the ministry said that the two have made "significant progress" toward meeting the conditions for the transfer, a campaign promise of President Lee Jae Myung to complete within his five-year term. Wartime operational control determines who commands the combined military force if a war breaks out. A change is seen as more than a military procedure. It is widely viewed as a matter of national sovereignty, who ultimately commands the South Korean military in a crisis. South Korea remains one of the few countries whose wartime command authority lies with another nation. The arrangement dates back to 1950, when then-President Rhee Syng-man handed command authority to the U.S.-led UN Command at the outbreak of the Korean War. Peacetime control was restored in 1994, but wartime control has remained in U.S. hands. "Back in the 1950s, South Korea depended on U.S. support for survival, but today the country has the strength to defend itself," said Shin Seung-ki, a research fellow at the Korea Institute for Defense Analyses (KIDA). Under the bilateral agreement, the handover is tied to three conditions: South Korea has to demonstrate the military capability to lead the alliance, the two sides have to jointly respond to North Korea's nuclear and missile threats, and the regional security environment on the peninsula has to be stable enough to support the change. Progress is reviewed in stages. Seoul has already cleared the initial assessment and is now in the full operational capability stage, with one final review left before the full handover. Experts are divided on Korea's readiness. Some think Seoul still relies heavily on U.S. intelligence and surveillance to counter North Korea's advancing nuclear arsenal, while others believe South Korea's military has advanced far beyond what it was in the past, according to Shin. President Lee has made OPCON transfer as a core national agenda, vowing to strengthen defense posture while maintaining a robust alliance with the U.S. His timing may be favorable, as U.S. President Donald Trump has called allies to take on more security responsibilities. But the U.S.'s stance is unclear. While Seoul's defense ministry highlighted "significant progress" in its summary of the KIDD meeting, the phrase was absent from the joint press release with Washington. This has prompted speculation about differences in perception, though officials insist it simply reflected brevity, not disagreement. The debate over wartime command has stretched for decades. In 2006, the Roh Moo-hyun administration agreed with the Bush administration to complete the transfer by 2012. The timeline was later delayed by the Lee Myung-bak government to 2015, and then the Park Geun-hye administration eventually shifted to a conditions-based approach rather than setting a fixed timeline – an approach that has continued ever since. 2025-09-25 15:58:23
  • Suicide Becomes Leading Cause of Death for Koreans from Teens to 40s
    Suicide Becomes Leading Cause of Death for Koreans from Teens to 40s SEOUL, September 25 (AJP) -Suicide has become the leading cause of death among South Koreans from their teens through their 40s, with self-inflicted deaths overtaking cancer among people in their 40s for the first time since records began in 1983, according to a government report released Wednesday. The Statistics Korea data showed suicides accounted for 26.0 percent of deaths among those in their 40s in 2024, surpassing cancer at 24.5 percent. The total number of suicide deaths reached 14,872 last year, the highest since 2011 and up 6.4 percent from a year earlier. The suicide rate rose to 29.1 per 100,000 people — also the highest since 2011. Men were more than twice as likely to take their own lives as women, with rates of 41.8 versus 16.6 per 100,000. South Korea’s suicide rate stands out sharply on the global stage, with an OECD-standardized rate of 26.2 per 100,000 — more than double the OECD average of 10.8. Suicides among younger groups also climbed. Among teenagers, suicides accounted for 48.2 percent of all deaths, up from 46.1 percent a year earlier. In the 30s age group, the share rose to 44.4 percent from 40.2 percent. Overall deaths in Korea increased 1.7 percent last year to 358,569, reversing a pandemic-era decline. The daily average was 980 deaths. More than half (54.1 percent) were aged 80 or older, reflecting the country’s fast-aging demographics. Cancer remained the top cause of death overall, responsible for nearly one in four fatalities (24.8 percent). The cancer mortality rate stood at 174.3 per 100,000, led by lung cancer (38.0), liver cancer (20.4), colorectal cancer (19.0), pancreatic cancer (16.0), and stomach cancer (14.1). Deaths from prostate cancer (+9.7 percent), esophageal cancer (+9.0 percent), and pancreatic cancer (+6.7 percent) rose sharply year-on-year. 2025-09-25 15:31:12
  • HMM races toward net-zero as privatization battle looms
    HMM races toward net-zero as privatization battle looms Editor's Note: This article is the 37th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, September 25 (AJP) - South Korea's state-run sea carrier HMM is betting big on clean fuel, digitalized fleet management, and business diversification as it navigates a turbulent freight cycle and an uncertain privatization push. On Sept. 12, HMM signed a 10-year transportation contract with Brazil's mining giant Vale worth 430 billion won ($310 million), its second major deal with the company this year. The agreement, running from 2026 to 2036, will deploy five vessels to ship iron ore, building on a 636 billion won deal inked in May. The back-to-back contracts highlight HMM's pivot beyond everyday container shipping toward bulk cargo, a strategy that has cushioned volatility in freight markets while making the company more attractive as an acquisition target. Shipping tailwinds, market headwinds South Korea's shipbuilding industry is bracing for an earlier-than-expected super cycle, driven by record orders for LNG carriers and floating production facilities. The government's proposed Korea-U.S. shipbuilding partnership, dubbed the "Make American Shipbuilding Great Again (MASGA)" initiative, is further boosting sentiment. But freight oversupply clouds the outlook. "Shipping fares had a brief spike in May after tariff suspensions between the U.S. and China, but rates are now trending downward," said Choi Ji-yun, analyst at Yuanta Securities Korea. "With backlogs now covering more than 30 percent of the global container fleet, supply is overwhelming demand. Freight rates will remain under pressure, and HMM cannot avoid the impact." Despite market headwinds, HMM is pressing ahead with its modernization program. The company is scheduled to take delivery of seven methanol-powered 9,000-TEU container ships between late 2025 and mid-2026. "Since 2020, all newly built vessels have been designed as smart ships," an HMM spokesperson said. "Roughly 10,000 sensors on each ship transmit real-time data to our integrated operations center, enabling safe voyage planning and big-data analysis for fuel and route optimization." Existing ships are also being retrofitted with digital systems as part of a broader push for efficiency and carbon reduction. HMM has pledged to achieve net-zero emissions by 2045 — five years ahead of the global maritime industry's 2050 goal. In September 2024, it announced a 14.4 trillion won ($10.4 billion) investment plan through 2030, with 60 percent earmarked for green initiatives such as alternative fuels and electrification. The company is exploring ammonia and hydrogen as next-generation fuel sources. It is also expanding its bulk fleet, with 13 new carriers entering service in stages — including seven car and truck carriers, four multipurpose ships, and two MR tankers. Strategic acquisitions of second-hand vessels are also under review. From state rescue to national champion Founded in 1976 as Asia Merchant Marine, the company began with just three crude carriers before rebranding as Hyundai Merchant Marine in 1983. After rapid expansion, HMM was hit hard by the global financial crisis and eventually fell under state control in 2016 when the Korea Development Bank (KDB) became the largest shareholder. In 2017, HMM absorbed assets from bankrupt rival Hanjin Shipping, cementing its position as Korea's flagship carrier. It rebranded as HMM in 2020. Ownership, however, remains unsettled. A 2023 privatization bid collapsed after food-to-shipping conglomerate Harim Group withdrew. Once HMM completes its 2.2 trillion won stock buyback this month, state shareholders KDB and the Korea Ocean Business Corporation will hold just over 30 percent, opening the door to a new auction. POSCO Group has emerged as a likely contender. Industry watchers say the steelmaker would benefit from a dedicated shipping arm to secure stable transport of iron ore and coal. "HMM's growing pivot toward bulk shipping aligns naturally with POSCO's raw material needs," said Jang Woon-jae, professor of maritime transportation science at Mokpo National University. "But private shareholders must recognize that HMM's large vessels are obliged to operate even when demand is weak — volatility is built into the business." As HMM pushes toward a green future while its ownership remains up for grabs, the company finds itself straddling two identities: a vital national strategic asset and a prize in Korea's evolving industrial landscape. 2025-09-25 15:13:26
  • Kuwait revives delayed housing project with South Korean partner
    Kuwait revives delayed housing project with South Korean partner SEOUL, September 25 (AJP) - South Korea’s state-run Land and Housing Corporation said Friday that work has resumed on a long-delayed housing development in Kuwait, reviving one of the Middle East’s largest urban projects. The development of Abdullah New City, located about 30 kilometers west of Kuwait City, is designed to provide 43,000 homes across 6.44 million square meters of desert land. The project, which carries an estimated budget of 23.6 trillion won, or about $17 billion, is scheduled for completion by 2045. The Land and Housing Corporation, known as LH, secured the project management contract last year and is currently advancing a pilot complex of 550 housing units on a 490,000-square-meter site. The project had been stalled for years by pandemic disruptions and regulatory hurdles before restarting in late 2023. The revival of the Abdullah New City initiative has opened the door for South Korean companies to expand their footprint in Kuwait. On Sept. 22, Hanmi Global, a Seoul-based project management firm, secured three additional contracts worth 31 billion won from Kuwait’s Public Authority for Housing Welfare. LH is also exploring partnerships with Samsung Electronics to introduce smart home technologies and with Isu Chemical to develop climate-resilient vertical farms within the city. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-09-25 15:12:02
  • Another K-pop themed movie set for release early next year
    Another K-pop themed movie set for release early next year SEOUL, September 25 (AJP) - Another K-pop themed movie has begun filming after finalizing its cast, following the success of Netflix's South Korean anime "KPop Demon Hunters," talent mill HYBE's U.S. branch said on Thursday. Produced by HYBE in collaboration with Paramount Pictures, the film stars singer-songwriter Eric Nam and Yoo Ji-young, an American actress of Korean descent known for her roles in American drama "Expats" on Amazon Prime Video as well as "KPop Demon Hunters." American actor and comedian Tony Revolori and Gia Kim, a Korean-born actress who spent most of her childhood in Hong Kong, had already joined the cast earlier this month. Set for release in mid-February next year, the film will be shot entirely in Seoul and surrounding areas including Incheon and Gapyeong in Gyeonggi Province. It revolves around a Korean-American girl who dreams of joining a K-pop girl group and travels to Seoul for a TV audition show, despite opposition from her parents. 2025-09-25 14:57:44