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  • Seoul aims for AIs top two, plans nationwide model this year
    Seoul aims for AI's top two, plans nationwide model this year SEOUL, July 16 (AJP) - South Korea's technology chief announced the country would push to break into the world's top two artificial-intelligence powers, buoyed by an international assessment ranking it third, and vowed to build a frontier model rivalling those Washington now guards as strategic weapons. Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT, told a presidential briefing on Thursday at the Cheong Wa Dae that a second round of model evaluations due in August could vault the country beyond its current third-place standing. A third assessment is scheduled for December, he added. Pressed by a citizens' panel on whether Korea could match the frontier-class models the United States has moved to restrict, Bae was emphatic. "I dare say the Republic of Korea can build one too," he said, arguing that the country could reach the highest tier of performance if its computing infrastructure were adequately backed. The bottleneck, he stressed, is hardware. Bae said about 10,000 graphics processing units would be enough to compete at that level, but noted that developers of sovereign foundation models had been receiving only 500 B200-class GPUs each, a figure that has since risen to about 735 — still far short of what the race demands. President Lee Jae Myung threw his weight behind the appeal, comparing years of under-investment to fighting rivals armed with electronic calculators while Korea made do with counting rods. Bae said additional budget for frontier-grade development would hinge on active support from fiscal authorities. The minister also pledged to release a security-specialized sovereign model within the year, training existing domestic models on additional security data to shore up self-reliance against an uncertain environment in which US access controls could tighten again at any moment. On physical AI, Bae said the government would develop a general-purpose model while building sector-specific variants in parallel, aiming within three years for a framework that can be deployed on site with as little as 100 to 1,000 hours of data. Localizing data, models and components, he said, would lay the groundwork for exporting the technology abroad. Bae unveiled plans for a nationwide service, "AI for All," to launch this year, expanding public AI agents and advancing toward one AI agent per citizen from 2027. Lee said strong multilingual support could draw middle-income nations into a cooperative bloc, and Bae cast the effort as the basis for a horizontal AI network free of dependence on the US-China duopoly. Under its "K-Moonshot" project, the ministry will begin work on a quantum computer by 2029, a cancer-focused AI bio model by 2028 and brain-computer interface technology by 2030, while a new "asset-ising failure" scheme, effective this month, will keep funding promising research even when it misses its targets. 2026-07-16 14:26:24
  • Oh Se-hoon Highlights Housing Supply Achievements Amid Government Policy Contrast
    Oh Se-hoon Highlights Housing Supply Achievements Amid Government Policy Contrast Seoul Mayor Oh Se-hoon emphasized the achievements in housing supply through the relaxation of regulations in semi-industrial areas on July 16, clearly differentiating his approach from the current government's real estate policies. He reiterated his philosophy of stabilizing housing prices through increased supply rather than suppressing demand. After visiting the reconstruction site of the Yangpyeong Shin-Dong-A Apartment in Yeongdeungpo District, Mayor Oh stated on his Facebook page, "Seoul is demonstrating its achievements in housing supply in semi-industrial areas," adding, "This site shows how a city comes alive when the clogged arteries of regulation are opened." The core of his message was not just a declaration of increased supply but a detailed execution plan addressing 'where, how, and how much' supply will be increased. Mayor Oh defined, "Seoul is no longer a city with vast empty land," asserting that redevelopment and reconstruction are the only realistic solutions for supply. He specifically highlighted semi-industrial areas, which had previously stalled due to low profitability, as a key focus for supply. In 2024, the city announced the 'Southwest Region Revitalization' policy, significantly increasing the residential floor area ratio for semi-industrial areas from 250% to a maximum of 400%. This strategy aims to enhance profitability and stimulate private redevelopment projects. As a result, approximately 27,000 housing units are currently being developed across 32 semi-industrial areas in Seoul. The Yangpyeong Shin-Dong-A Apartment is a prime example. The complex, which originally had 563 units, will increase to 762 units through reconstruction, with the burden on members decreasing by about 10 million won per unit. With the project's feasibility secured, it passed integrated review in March and is now on track. Mayor Oh emphasized that this success is "evidence that relaxing regulations revives supply." Notably, he referenced the amendment of regulations for semi-industrial areas during his first term as mayor in 2008, highlighting the continuity of his supply policies. He remarked, "Opening the way to build apartments on old factory sites 18 years ago marked the beginning of today's Southwest Region Revitalization," stressing that consistency and sustainability in policy are crucial. He also outlined future plans, stating that areas requiring industrial functions will be developed as high-tech industrial hubs, while already residential areas will undergo redevelopment and reconstruction, along with the expansion of green spaces and community facilities to transform them into 'mixed-use cities' for living and working. Additionally, the city reaffirmed its goal to start construction on a total of 310,000 housing units across Seoul by 2031 through the advanced 'New Integrated Planning 2.0.' Supply Expansion vs. Demand Suppression: A Clear Contrast in Real Estate Policies This message naturally contrasts with the current government's real estate policies. The Lee Jae-myung administration has introduced a series of measures focused on market stability through financial regulations, loan management, and curbing speculative demand. In contrast, the Seoul city government believes that the fundamental cause of housing price instability is a lack of supply, proposing the relaxation of redevelopment and reconstruction regulations and increasing floor area ratios as key remedies. While the government aims to stabilize the market by managing demand, Seoul is taking an approach to stabilize prices by expanding supply. Mayor Oh is also reforming administrative procedures to facilitate supply expansion. Through the New Integrated Planning, the city is shortening urban planning and maintenance procedures and expanding integrated reviews to reduce project timelines, making supply speed a policy target. This approach is seen as not just setting supply goals but also establishing a supply system that includes regulatory improvements and innovation in permits. City officials stated, "Seoul is no longer in an era of developing new sites but in an era of urban renewal," explaining that how efficiently existing urban areas are restructured will determine the success of future supply. Mayor Oh reiterated, "To keep the promise of housing supply to citizens, Seoul is working diligently," vowing to steadily pursue the revitalization of previously less desirable areas into spaces where anyone would want to live. This Facebook message is interpreted not merely as a reflection on a site visit but as a clear reaffirmation of Seoul's real estate policy direction focused on 'expanding supply through regulatory relaxation,' highlighting its distinction from the current government's demand management-centered policies. 2026-07-16 14:16:00
  • Lee Chan-jin: Finance Should Be a Stepping Stone for Life
    Lee Chan-jin: Finance Should Be a Stepping Stone for Life Lee Chan-jin, head of the Financial Supervisory Service (FSS), expressed his commitment to listening to the voices of financial consumers and incorporating their feedback into policy improvements. His aim is to enhance financial accessibility for vulnerable groups, including the elderly and disabled, and to address consumer inconveniences related to product explanations and fraud prevention.On July 16, the FSS held a 'Consumer Voice Listening Session' chaired by Lee, where over 30 participants, including representatives from elderly and disabled organizations, consumer groups, and the financial industry, discussed measures for consumer protection. This session was designed to directly hear the challenges consumers face in financial settings and to reflect these insights in consumer protection oversight and policy reforms.Lee stated, "Finance should not be an obstacle in anyone's daily life but rather a stepping stone that supports life." He emphasized that the session was an opportunity to hear firsthand about the inconveniences and challenges consumers encounter in financial transactions. He urged participants to candidly present the difficulties they experience.Key topics of discussion included strategies for preventing financial fraud targeting the elderly and improving financial accessibility. Attendees suggested providing clear explanatory materials for high-risk financial products and implementing alert systems for unusual transactions above a certain threshold. They also recommended expanding alternative financial services, such as mobile branches, post office counters, and senior-friendly ATMs, to mitigate service gaps caused by bank branch closures.The session also addressed ways to enhance accessibility for disabled financial consumers. Participants proposed expanding fee waivers for in-person and phone transactions for visually impaired individuals and suggested evaluating the accessibility levels of financial institutions to encourage voluntary improvements. The need for text-based counseling for the hearing impaired and the expansion of braille and audio guidance materials, as well as enhanced financial services and education for disabled individuals in rural areas, was also highlighted.General financial consumers called for stronger explanations of key risks during the product subscription process while advocating for the simplification of unnecessary paperwork and procedures.* This article has been translated by AI. 2026-07-16 14:16:00
  • South Korea and Saudi Arabia to Establish Joint Fund for AI and Semiconductors
    South Korea and Saudi Arabia to Establish Joint Fund for AI and Semiconductors South Korea and Saudi Arabia are set to enhance cooperation in the fields of artificial intelligence (AI) and digital innovation, focusing on small and medium-sized enterprises (SMEs) and startups.According to the Ministry of SMEs and Startups, Deputy Minister Noh Yong-seok met with Saudi Minister of Communications and Information Technology Abdullah Al-Swaha in Seoul on the afternoon of July 16 to discuss collaboration in digital innovation.The meeting was initiated at the request of the Saudi side. Both officials acknowledged the need for cooperation between the two countries and discussed topics such as the AI and digital transformation (AX·DX) of SMEs, the international expansion of startups, and the activation of venture investments.In the venture sector, they exchanged views on a joint fund currently under discussion. Korea Venture Investment and the Saudi government’s investment agency, Riyadh Valley Company (RVC), are negotiating the establishment of a Korea-Saudi joint fund. This fund is expected to focus on investing in SMEs and startups in deep tech areas, including AI and semiconductors.Minister Al-Swaha, who is also a board member of RVC, requested Deputy Minister Noh's active cooperation to ensure the joint fund is established within the year.Deputy Minister Noh explained the South Korean government's policies on SME AX·DX and urged interest and investment in innovative South Korean SMEs and startups. He also suggested that Saudi government officials, investors, and startups actively participate in the upcoming 'COMEUP' event, the largest startup event in South Korea, scheduled for December 9-11.Deputy Minister Noh stated, "I will actively support the establishment of the joint fund, investment, and the activation of mutual entry to enhance practical exchanges as a result of this meeting."Meanwhile, Saudi Arabia is a key export market for South Korean SMEs in the Middle East. In the first quarter of this year, exports to Saudi Arabia reached $270 million, making it the second-largest market among 20 Middle Eastern countries, accounting for 21.1% of total exports.* This article has been translated by AI. 2026-07-16 14:08:00
  • President Lees Approval Rating Drops to 55%, Down 3% from Two Weeks Ago
    President Lee's Approval Rating Drops to 55%, Down 3% from Two Weeks Ago President Lee Jae-myung's approval rating has dropped by 3 percentage points to 55%, according to a recent poll released on July 16. The Democratic Party's support also fell by 4 percentage points during the same period.The nationwide survey, conducted by Embrain Public, K-Stat Research, Korea Research, and Hankook Research from July 13 to 15, involved 1,000 men and women aged 18 and older. The results showed that 55% of respondents believe President Lee is doing a 'good job' in his administration, while 34% expressed the opposite view.Meanwhile, the percentage of respondents who answered 'don't know' or did not respond increased from 7% to 11%.In terms of party support, the Democratic Party's approval rating fell to 38%, a decrease of 4 percentage points from the previous survey, while the People Power Party rose by 2 percentage points to 22%.Additionally, 61% of respondents supported the idea of using additional tax revenue from the semiconductor boom to establish a future response fund aimed at fostering future industries, promoting regional balanced development, and implementing youth policies. In contrast, 24% opposed this plan.This survey utilized a telephone interview method with virtual mobile numbers (100%). The margin of error is ±3.1 percentage points at a 95% confidence level, with a response rate of 16.4%. For more details, please refer to the website of the National Election Survey Deliberation Commission.* This article has been translated by AI. 2026-07-16 14:08:00
  • Housing Prices in Dongtan Stabilize, But Rent Prices Rise Amid Strong Demand in Gyeonggi Province
    Housing Prices in Dongtan Stabilize, But Rent Prices Rise Amid Strong Demand in Gyeonggi Province In Dongtan, Hwaseong, and other regulated areas, the increase in housing prices has slowed, but the rental market remains strong. Meanwhile, buying interest is spreading to nearby areas like Giheung in Yongin.According to the Korea Real Estate Agency's report on national weekly apartment price trends for the second week of July (as of July 13), the national average apartment sale price rose by 0.11% compared to the previous week. In the metropolitan area, prices increased by 0.21%, while Seoul saw a 0.30% rise, and regional areas experienced a 0.01% increase, maintaining an upward trend.In southern Gyeonggi Province, the trends diverged between regulated and adjacent areas. Dongtan in Hwaseong recorded a 0.73% increase this week, the highest in the metropolitan area, but this was a significant slowdown from the previous week's 1.29%. Yeongtong in Suwon also saw its growth rate decrease from 1.19% to 0.64%. Similarly, the increase in Guri City dropped from 0.64% to 0.31%.Conversely, Giheung in Yongin experienced a 0.59% rise, an increase from the previous week's 0.56%. Gwangmyeong City also saw its growth rate rise from 0.44% to 0.59%, continuing the strength in the metropolitan area, driven by rising transactions in Haandong and Cheolsan-dong.Unlike the sales market, the rental market has continued to strengthen. In Dongtan, while the sale price growth rate slowed from 1.29% to 0.73%, rental prices increased from 0.36% to 0.50%. Giheung also saw rental prices rise from 0.26% to 0.31%, while Yeongtong experienced a slowdown in both sales and rental price increases.Nam Hyuk-woo, a researcher at Woori Bank's Real Estate Research Institute, stated, "The strong demand in southern Gyeonggi Province, which began in Dongtan, continues due to expectations of a recovery in the semiconductor industry. Although Dongtan and Yeongtong have seen a reduction in growth rates due to short-term surges and regulatory impacts, demand is shifting to Giheung in Yongin, where price burdens are relatively lower, leading to a spread of strength in the market."He added, "As housing prices in areas like Dongtan rise significantly, existing sellers are attempting to move to preferred areas such as Seongnam Bundang and Yongin Suji, which is also attracting demand and sustaining high growth rates in those regions."Meanwhile, Seoul maintained a growth rate of 0.30%, the same as the previous week. Although some areas showed a wait-and-see attitude among sellers and buyers, the Korea Real Estate Agency noted that transactions continued to rise, particularly around transportation hubs, large complexes, and redevelopment projects.Regionally, Seongbuk-gu saw the highest increase at 0.49%, followed by Guro-gu (0.44%), Jung-gu (0.40%), Gangseo-gu (0.38%), and Mapo-gu and Nowon-gu (each at 0.37%). In contrast, Gangnam-gu (0.16%) and Seocho-gu (0.11%) experienced relatively lower growth rates.* This article has been translated by AI. 2026-07-16 14:04:00
  • Samsung Contributes 200 Billion Won to Expand Inclusive Finance, Supporting 40,000 Vulnerable Individuals
    Samsung Contributes 200 Billion Won to Expand Inclusive Finance, Supporting 40,000 Vulnerable Individuals Samsung is establishing a fund of 200 billion won to support financially vulnerable individuals and small business owners.On July 16, Samsung announced it will contribute a total of 200 billion won to the Samsung Microfinance Foundation. Samsung Electronics will provide 150 billion won, while its financial affiliates, including Samsung Life, Samsung Fire & Marine Insurance, Samsung Card, and Samsung Securities, will jointly contribute 50 billion won.This contribution follows Samsung Electronics' announcement in May of a plan to expand its social contributions to 5 trillion won over five years, made after a labor-management agreement.The funds will be used through the Samsung Microfinance Foundation to support operating capital, startup funds, and emergency living expenses for financially vulnerable individuals and small business owners. Loans will be provided without collateral or guarantees, with interest rates set at 4.5% or lower. Samsung estimates that around 40,000 individuals will benefit from this initiative.Previously, Samsung Electronics held the 'Samsung Electronics Audit Festival with the Public' last month, where a portion of purchase amounts was refunded in Onnuri gift certificates. The company anticipates that the benefits from the Onnuri gift certificates, initially estimated at around 400 billion won, will double due to customer response.Industry observers note that major companies are increasingly shifting their social contributions from one-time donations to sustainable support methods, such as financial assistance and revitalizing local economies.A Samsung official stated, "We will support the economic independence and stable lives of vulnerable groups through expanded financial assistance, and we will continue to practice the value of inclusive finance for marginalized neighbors."* This article has been translated by AI. 2026-07-16 14:04:00
  • Government to Support 45,000 Youths with Private Sector Job Experience This Year
    Government to Support 45,000 Youths with Private Sector Job Experience This Year The government will provide job experience opportunities to 45,000 youths this year through private sector initiatives.On July 16, the Ministry of Employment and Labor held the first public-private council on youth job experience at the Korea Chamber of Commerce and Industry, with participation from companies such as SK Hynix, Samsung Electronics, LG, Naver, and Kakao.The youth job experience program is expanding beyond simple internships to support job exploration and portfolio development before hiring. This approach allows companies to identify suitable candidates early, while helping youths gain practical experience and reduce trial-and-error in their job preparations.Since 2023, the 'Future Tomorrow Job Experience' program has provided job experience opportunities to approximately 140,000 youths over three years. This year, the program will be expanded and diversified to target 45,000 participants. Additionally, a specialized program for 1,500 participants will be implemented to assist youths in gradually adapting to society, featuring close mentorship and reduced job experience hours.During the meeting, the ministry awarded ministerial prizes to three outstanding operating organizations. The Aerospace Industry-University Convergence Center, recognized as the best operating organization last year, collaborated with Trinity Aviation and Korea Airport to offer programs that allow participants to experience roles in passenger service, route planning, and aircraft maintenance.Alvaderb, which operates an entertainment job experience program called 'Entertainment Business Master Class,' enabled youths to work on team projects in real work environments, such as recording studios and filming facilities, to build their portfolios. A consortium led by Hyundai Motor Company and the Industrial Safety and Coexistence Foundation introduced a new job experience program in the field of industrial safety, providing on-site training and expert mentoring.Examples of operations utilizing the metaverse were also presented. Komento's 'Dreambus Company' was designed to allow participants to perform various roles, including research and development, production, sales, and human resources, in a virtual space similar to a real company. This initiative aims to enhance accessibility for youths in non-metropolitan areas and those preparing for employment.Vice Minister of Labor Kwon Chang-jun stated, "The Future Tomorrow Job Experience program has established itself as a representative youth support initiative amid high interest from young people. We will work with companies to increase job experience opportunities that youths desire and expand specialized programs for those preparing for employment and regional youths."* This article has been translated by AI. 2026-07-16 14:04:00
  • Interest Rates Expected to Reach 8% Following Central Bank Hike
    Interest Rates Expected to Reach 8% Following Central Bank Hike The Bank of Korea's recent increase in the key interest rate is causing fluctuations in loan rates across the banking sector. Major banks are raising their loan rates in anticipation of further increases while also reducing preferential rates. With the latest hike, both variable and fixed mortgage rates are projected to approach 8%.On July 16, the Bank of Korea raised the key interest rate from 2.50% to 2.75%, an increase of 0.25 percentage points.As a result, further rate hikes by banks are expected. Typically, when the key interest rate rises, commercial banks increase their deposit and savings rates, leading to higher borrowing costs.Prior to the rate hike, banks had already begun to adjust for the risks associated with an increase. The June new handling CoFIX (Cost of Funds Index) rose to 3.05%, up 0.15 percentage points from the previous month. This marks the first time in 1 year and 5 months that the CoFIX has exceeded 3%. It has increased for two consecutive months, following rates of 2.89% in April and 2.90% in May.Consequently, interest rates for specific products, such as mortgages, are also rising. The variable mortgage rates at the five largest banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) have increased by 0.14 percentage points at the upper end and 0.09 percentage points at the lower end, now ranging from 4.12% to 6.37% compared to a month ago.The upper limit for fixed-rate mortgages has surpassed 7%. As of July 13, the fixed and mixed-rate mortgage rates at these banks ranged from 4.68% to 7.39%, an increase of 0.75 percentage points at the lower end and 1.16 percentage points at the upper end compared to the end of last year, when rates were between 3.93% and 6.23%.Looking ahead, the pace of rate increases is expected to accelerate further with the recent hike. KB Kookmin Bank and Woori Bank have already decided to raise the rates on their variable mortgage products by 0.15 percentage points starting today. Other banks are likely to follow suit.However, there are concerns that this rate hike may not be the last. The consumer price inflation rate reached 3.1% in May, the highest since March 2024, and the won-dollar exchange rate continues to rise. Some analysts predict that further increases in the key interest rate could occur in October and January of next year.In addition to rising rates, there is a trend toward tightening loan limits, making it more difficult to secure loans. KB Kookmin Bank has set a nationwide mortgage limit of 300 million won, while Hana Bank has completely suspended the acceptance of applications for mortgage and jeonse loans for September. Woori Bank has limited its monthly mortgage handling limit from 3 billion won to 1 billion won per branch. All five major banks have temporarily halted new registrations for mortgage insurance.To further tighten lending, preferential rates are also being reduced. NH Nonghyup Bank raised its variable and fixed mortgage rates by 0.2 percentage points last month. Woori Bank ended its maximum preferential rate of 1.1 percentage points for its five-year fixed-rate 'Woori Apartment Loan' product as of July 1.Financial authorities are closely monitoring the impact of these rate increases. Lee Chan-jin, head of the Financial Supervisory Service, convened a 'financial situation review meeting' today, urging a thorough assessment of the risk factors associated with the rate hike. He particularly emphasized the need to pay attention to the debt repayment burdens on vulnerable groups and the impact on the supply of productive and inclusive finance by banks.* This article has been translated by AI. 2026-07-16 14:00:00
  • Diverging Views on Inflation and Interest Rates Emerge Within the Fed
    Diverging Views on Inflation and Interest Rates Emerge Within the Fed Internal divisions are emerging within the U.S. Federal Reserve regarding inflation and the future direction of interest rates. Lisa Cook, a member of the Fed, warned that "if inflation does not sufficiently slow down, we may need to take policy action," while John Williams, president of the Federal Reserve Bank of New York, stated that "inflation has already peaked."On July 15, Cook made her remarks at an event in Washington, indicating that she is prepared to act if signs of disinflation do not appear soon. Although she did not specify a particular policy direction, her comments were interpreted as leaving open the possibility of further tightening.Cook emphasized that the risks of inflation should be prioritized over employment concerns, noting that while the labor market remains stable, prices are still at elevated levels.She identified factors contributing to rising prices, including increased investment in artificial intelligence (AI), supply shocks from tariffs, and tensions between the U.S. and Iran. Cook specifically warned that "recent price increases cannot be explained solely by energy prices," suggesting a risk of prolonged high inflation.In contrast, Williams expressed optimism that inflation will gradually decrease. Speaking in New York, he acknowledged that "inflation is undoubtedly too high," but added that "it has peaked, and there are reasons to expect it to decline gradually over the next few quarters."Williams explained that the impact of price increases due to tariffs has largely been accounted for, and the upward pressure from housing and energy costs is also easing. He noted that the labor market is not creating additional inflationary pressures.He also projected that the supply-demand imbalance caused by AI investment will gradually resolve as supply increases. Williams expects the inflation rate to drop to about 3.25% by the end of this year and to reach the Fed's target of 2% by 2028.While Williams assessed that current monetary policy is appropriate for reducing inflation, he did not provide specific signals regarding the future path of interest rates.* This article has been translated by AI. 2026-07-16 14:00:00