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Chicken Industry Targets Summer Season with New Menus and Discounts With 'Chobok' approaching on July 15, the chicken industry is ramping up efforts to capture the summer peak season. Three major chicken companies are launching new menus and employing discount promotions, character collaborations, and offline festival marketing to attract consumers.According to the Korea Consumer Agency's price information portal, as of May this year, the average price of a bowl of samgyetang in Seoul was 18,154 won, a 2.8% increase from the same month last year and a staggering 25.5% rise compared to three years ago in 2023 (14,462 won). As the price of samgyetang rises, chicken is becoming a more reasonable alternative for consumers seeking nutritious meals during the dog days.To capitalize on this demand, bhc has launched 'Curling,' a new addition to its popular 'Bburinkle' lineup, which has sold over 100 million units. This new product combines curry powder and honey butter yogurt sauce, aiming to replicate the success of 'Soy Garlic King,' which sold 1 million units in just three months. bhc is also offering discounts of up to 5,000 won daily through its app until July 19 and providing up to 9,000 won off in collaboration with the delivery app, Ddaeng-yo. Additionally, they are running a character marketing campaign in partnership with the movie 'Minions & Monsters,' offering keychains with set purchases.BBQ has launched 'FilCrunch,' a new menu item developed in collaboration with Stray Kids member Felix, simultaneously in Korea and the United States. Designed with international consumers in mind, FilCrunch features caramelized onion sauce and glutinous brown rice flakes for a sweet and crispy taste. The advertising campaign featuring Felix garnered over 6 million views across major digital channels within three days of its release. BBQ plans to expand its launch to more countries, starting with the U.S., while continuing promotions through its app.Kyochon Chicken participated as the main sponsor of the '2026 Daegu Chimaek Festival,' which attracted 1.15 million visitors from July 1 to 5, expanding its offline consumer engagement. At the event, they showcased a new menu featuring four types of half wings (soy, red, honey garlic, and mala red) to gauge audience reactions. They also promoted their traditional liquor brand, Fermentation Workshop 1991, highlighting a unique trend called 'Chimak' (chicken and makgeolli) that has received positive feedback.As Chobok is one of the peak seasons of the year, the industry aims to maximize performance in July and August through new menu offerings, discount promotions, and collaborative marketing. An industry insider noted, 'As dining out becomes more burdensome due to high prices, more consumers are choosing chicken even during the dog days. We plan to actively target summer demand with new menus and various promotions.' 2026-07-12 15:20:00
DS Networks Pursues Financial Stabilization Amid Market Challenges DS Networks, a leading developer in South Korea, is pursuing financial stabilization through a "hybrid restructuring" with creditors instead of entering corporate rehabilitation amid liquidity constraints and a sluggish real estate market. While the company faced inevitable impacts on its financial statements, analysts suggest this shift reflects a proactive approach to address potential weaknesses that arose from its previous reliance on leverage during boom years.According to the Financial Supervisory Service's electronic disclosure system, DS Networks reported a consolidated revenue of 492.4 billion won for 2025, a 33.9% decrease from 745 billion won the previous year. Due to rising construction costs, the cost of sales (566 billion won) exceeded revenue, resulting in a gross loss of 73.6 billion won. Consequently, the operating loss reached 142.8 billion won, marking two consecutive years of deficits. The net loss for the period, impacted by asset value reassessments, totaled 190.4 billion won.As cumulative losses mounted, the company's capital base weakened significantly. Total equity, which stood at 209 billion won at the end of 2024, plummeted to 17.8 billion won by the end of last year, a 91.5% decline, raising concerns about capital erosion. Although total liabilities decreased by approximately 415.7 billion won compared to the previous year, the sharp drop in equity led to a misleading increase in the debt-to-equity ratio, which soared to 6,258%. The entry of major subsidiaries like DS DNC into capital erosion also contributed to this decline.A notable change in the financial statements is the reduction in future assets, specifically construction land. DS Networks' construction land decreased from 904.1 billion won in 2024 to 530.1 billion won last year, a 41.3% reduction. The company had already recognized a loss related to land in its operating expenses, amounting to 107.3 billion won during the 2024 fiscal year, and has now nearly doubled the provision for inventory valuation of construction land from 87.5 billion won to 168.7 billion won. This move is seen as a measure to eliminate uncertainties by reflecting accumulated potential weaknesses in the books.The company also explicitly outlined risks associated with major local projects. For instance, in the case of the mixed-use development in Pohang, North Gyeongsang Province, a provision of 94.6 billion won was set against an acquisition cost of 164.6 billion won. Additionally, significant value declines were recorded for other key regional projects, including 20.9 billion won in Oncheon-dong, Busan, and 26.3 billion won in Gwaebul-dong, as well as 14.4 billion won for the Terrace House project in Baebang, Asan, reflecting hundreds of billions of won in losses.The inventory of completed buildings, which indicates unsold properties, surged from 119.2 billion won to 388.8 billion won during the same period, presenting a short-term liquidity burden. However, since these are already completed physical assets, they could potentially be converted into cash through discounted sales or liquidity measures led by creditors during a market recovery.The significant reduction of debt is viewed as a positive indicator. In September of last year, DS Networks applied for the Autonomous Restructuring Support (ARS) program at the Seoul Rehabilitation Court, temporarily halting creditor enforcement while negotiations took place. By December, the company reached an agreement on debt restructuring, withdrawing from the rehabilitation process.As a result, short-term borrowings, which had been a source of credit risk, decreased from 360.9 billion won to 249.4 billion won, while long-term borrowings fell from 262.3 billion won to 121.6 billion won. The company fully repaid loans from financial institutions for three projects, including the development project in Baekseok-dong, Goyang, which had faced urgent repayment concerns, and also settled all long-term loans for key sites with high future value, such as the Incheon Songdo Landmark City A9BL residential project (181.8 billion won).However, there are still many challenges to establishing a sustainable independent survival structure. With limited access to institutional project financing (PF), the company has become increasingly reliant on internal funding, borrowing over 100 billion won from its holding company, DSN Holdings. The ongoing limitation of available funds is expected to be a significant hurdle in the process of achieving solid management.An industry insider commented, "In a real estate market downturn, transparently reflecting the decline in sales value on the books to proactively eliminate uncertainties and repaying loans for quality projects is a pragmatic choice. If the company can gradually liquidate unsold assets in regional markets and reduce its reliance on internal borrowing, it could lay the groundwork for a resurgence based on its past development expertise." 2026-07-12 15:20:00
Typhoon Babi Makes Landfall in China, Displacing 2.6 Million; Over 130 Injured in Taiwan Typhoon Babi made landfall in China's eastern Zhejiang province, prompting the evacuation of more than 2.6 million people due to strong winds and heavy rain. In Taiwan, at least 130 people were reported injured as a result of the storm's impact.According to the Associated Press, Babi made landfall in Zhejiang on the night of July 11 and is moving northwest across eastern China. Chinese meteorological authorities have warned of continued strong winds and heavy rain in major eastern cities, including Shanghai.Large-scale evacuations took place in areas at risk of typhoon damage, with approximately 2.2 million people evacuated in Zhejiang and over 290,000 in Shanghai. More than 180,000 people also moved to safety in Fujian province.Flight operations have been disrupted, with China's state-run Xinhua News Agency reporting that around 653 flights are expected to be canceled at Shanghai's Pudong and Hongqiao international airports.In the coastal city of Wenzhou, Zhejiang, strong winds caused over 1,300 trees to fall, with at least 700 uprooted.Before making landfall in China, Babi passed over waters north of Taiwan but did not directly hit the island. According to Taiwan's fire department, at least 134 people were injured as of 7 a.m. on July 12, with some accidents occurring while riding motorcycles or bicycles in strong winds, and others due to slippery roads.* This article has been translated by AI. 2026-07-12 15:12:00
Meritz Securities' Kim Jung-hyuk Discusses Evolution of ELS After Hong Kong H Index Crisis Two years have passed since the significant losses related to Hong Kong's equity-linked securities (ELS) raised concerns in the market. Once facing calls for elimination, ELS has regained investor interest. Enhanced investor protection regulations have led to more conservative product structures and sales processes, while the current high-interest and high-volatility environment has increased the appeal of ELS.In a recent interview with Aju Economy, Kim Jung-hyuk, head of the derivatives team at Meritz Securities, stated, "Today's ELS is entirely different from what it was two years ago. Following the Hong Kong H Index crisis, ELS has evolved rather than disappeared, focusing on strengthening investor protection."The most significant change since the crisis has been in product structure. Previously, products with a knock-in barrier of 45-50% were common, but now more conservative structures dominate, with index-based products at 20-30% and individual stock products at 15-20%. A knock-in refers to a threshold below which the underlying asset's price must fall to trigger potential principal loss.Kim explained, "In the past, we offered high coupons even at a 50% knock-in level, but now we design the structure much more conservatively. While trading burdens have increased, the industry has voluntarily enhanced safety to restore market trust."The sales process has also been significantly strengthened. Viewing a video before subscribing to complex financial products is now mandatory, and starting this year, the revised standard investment recommendation guidelines require a reassessment of investor suitability (KYC) each time a product is recommended. The addition of a reflection period and confirmation of subscription intent has made the actual subscription process considerably time-consuming. Financial authorities and the industry continue to discuss further consumer protection measures.He noted, "Previously, the focus was on understanding the product itself, but now the process has become much more thorough in ensuring that investors fully comprehend it. The sales process is far stricter than before."Kim emphasized that the current market environment is actually favorable for ELS. Generally, as market volatility increases, option premiums rise, and since ELS involves investors selling options, this can be utilized as a source for coupon payments.He stated, "In the past, ELS linked to the KOSPI index offered coupons of 5-7% annually, but now we can design products that provide annual coupons of 20-30% while lowering the knock-in to around 30% by leveraging high volatility. The recent changes in ELS involve not just raising coupons due to increased volatility but also maintaining expected returns at a certain level while making products safer by lowering knock-ins."He added, "If you feel that stock prices have risen too much to invest directly, and you believe that companies like Samsung Electronics or SK Hynix are unlikely to drop more than 70% within three years, ELS can be a viable alternative. ELS is not a product designed to maximize upside returns but rather a structured product that seeks coupon income while managing downside risks."The market dynamics are also shifting. Currently, about 60-70% of ELS issuances are still index-based, but the proportion of 'KOSPI Single' products, which use the KOSPI single index as the underlying asset, is rapidly increasing. This structure is easier for investors to understand and can secure sufficient product appeal based solely on domestic market volatility, unlike the previous requirement for multiple indices to meet early redemption conditions.In the individual stock category, products based on Samsung Electronics and SK Hynix have become new mainstays. In June, the issuance scale of ELS including Samsung Electronics and SK Hynix reached approximately 650 billion won.Kim remarked, "Previously, the focus was on overseas tech stocks or indices, but now there is a growing preference for products utilizing domestic semiconductor leaders. The combination of high volatility and interest rates has enhanced the competitiveness of ELS based on domestic assets." He concluded, "If you want to manage the burden of high prices while seeking stable returns, the current ELS can be a highly competitive investment alternative."However, he advised against investing solely based on high coupons.Kim cautioned, "A lower coupon can indicate a product designed with greater stability. For first-time investors, it is advisable to start with products offering the lowest coupons in small amounts to gain experience, rather than investing a large sum all at once. Diversifying investments over time is preferable."* This article has been translated by AI. 2026-07-12 15:04:00
Prepaid Balances for Naver Pay, Kakao Pay, and Toss Rise 11% Year-on-Year Prepaid balances for South Korea's major fintech companies, including Naver Pay, Kakao Pay, and Toss, surpassed 980 billion won as of the end of June. This figure represents an increase of over 10% compared to the same period last year, indicating that mobile payments have become a common method of transaction. However, the total has slightly decreased from the previous quarter, as the companies prepare to cross the 1 trillion won mark.According to reports from the companies on July 12, Kakao Pay's prepaid balance stood at 594.128 billion won at the end of Q2, reflecting a 0.5% increase year-on-year. Toss reported a balance of 207.865 billion won, marking a significant 54.7% rise, the highest among the three. Naver Pay also saw an increase of 11.8%, reaching 180.930 billion won.As a result, the combined prepaid balance of the three companies totaled 982.897 billion won, up 10.8% from 887.2 billion won a year earlier. The combined balance has steadily grown from 887.2 billion won in Q2 of last year to 931.8 billion won in Q3 and 964.8 billion won in Q4.However, this figure represents a decrease of about 7.3 billion won compared to Q1 of this year, when the total was 990.2 billion won, primarily due to a drop of approximately 8 billion won in Kakao Pay's prepaid balance.Prepaid balances are funds that users load onto platforms for payments or transfers. They enhance user convenience while encouraging spending within the platform, making them a key indicator of growth in the mobile payment sector.Recently, competition for securing prepaid balances has intensified as companies accelerate their efforts in the offline mobile payment market. Naver Pay is expanding its presence in both online and offline payment markets with its 'Naver Pay Connect' service, which features facial recognition payment technology called 'Face Sign.'Toss is attracting users by promoting its remittance service and devices equipped with 'Face Pay' technology. It is also broadening the use of prepaid balances through its shopping platform. Kakao Pay maintains the largest prepaid balance among the three, thanks to its integration of everyday services like remittance, shopping, and gifting through the KakaoTalk platform.Industry experts anticipate that competition in the mobile payment market will become even more intense. This is fueled by the announcement from Coupang, the country's largest e-commerce company, that it will expand its 'Coupang Pay' service, previously limited to its platform, into a universal mobile payment service called 'Rocket Pay.' As of the end of Q2, Coupang Pay's prepaid balance was 114.981 billion won, already exceeding 100 billion won with its existing service. Once Rocket Pay is officially launched, it is expected to compete directly with Naver Pay, Kakao Pay, and Toss.* This article has been translated by AI. 2026-07-12 15:04:00
KB Financial Leads in Inclusive Finance Supply; Shinhan Tops in Debt Management KB Financial has ranked first among the top five financial groups in inclusive finance supply for the first half of this year. Shinhan Financial led in managing delinquent loans, accounting for about 40% of the total performance in debt restructuring and loan write-offs.According to the Financial Services Commission on July 12, the top five financial groups—KB, Shinhan, Hana, Woori, and NH Nonghyup—supplied a total of 11.2912 trillion won in inclusive finance during the first half of the year. The target for supply from 2026 to 2030 is set at 70.7672 trillion won.KB Financial topped the supply figures with 2.4883 trillion won, followed closely by Shinhan Financial with 2.42 trillion won. NH Nonghyup, Hana, and Woori Financial also each supplied over 2 trillion won.Shinhan Financial's impact was particularly notable in managing delinquent loans. The company restructured 813.6 billion won in delinquent loans and wrote off or completed the statute of limitations on 719.4 billion won in loans. Combined, this totals 1.533 trillion won, representing over 40% of the total delinquent loan management performance among the top five financial groups.Shinhan Financial has expanded its approach beyond merely recovering delinquent loans, focusing on supporting vulnerable borrowers, including the elderly and low-income individuals. The company has shifted its review process to assess all loans that have been overdue for a certain period, rather than only those nearing the statute of limitations.KB Financial is also concentrating on helping borrowers achieve actual recovery. Through a dedicated non-face-to-face debt restructuring team, the company enables borrowers who cannot visit in person to handle consultations and execution in one go. Additionally, it collaborates with the Credit Recovery Committee to provide counseling for borrowers experiencing psychological distress due to financial difficulties.The inclusive finance strategies vary among the financial groups. Hana Financial has introduced a mid-interest loan with a fixed rate of 5.5% for those in the bottom 50% of credit scores, while Woori Financial is promoting a refinancing product that allows borrowers to switch from secondary financial institution loans to bank loans. NH Nonghyup is expanding products aimed at specific regional and demographic needs, targeting farmers, young residents, and diligent repayers of debt restructuring.Although Woori Financial had the lowest absolute supply amount at 2.1 trillion won, it achieved the highest progress rate against its five-year target of 7.4 trillion won, reaching 28.4% in the first half.The competition in inclusive finance among financial institutions is expected to broaden, focusing not only on new fund supply but also on debt restructuring, loan write-offs, refinancing, and credit recovery support. The Financial Services Commission plans to move away from performance management based solely on supply amounts and introduce a comprehensive evaluation system for inclusive finance, designating dedicated chief officers for each financial group. 2026-07-12 15:04:00
Delivery Apps Thrive as Foreign Tourist Numbers Surge Foreign delivery applications are experiencing a boom, fueled by a rise in foreign tourists and an increase in individual travel (FIT) rather than group tours.According to the Ministry of Culture, Sports and Tourism and industry sources, the number of foreign tourists visiting South Korea surpassed 10 million in the first half of this year. This milestone was reached about a month earlier than last year, when the 10 million mark was crossed in mid-July. In May, 1.95 million foreign tourists visited South Korea, a 19.4% increase compared to the same period last year. The cumulative number of visitors from January to May reached 8.72 million, up 21% from the previous year.Spending by foreign tourists has also seen significant growth. As of May, the total domestic card spending by foreign tourists, including online purchases, reached approximately 2.1 trillion won, marking the first time monthly spending exceeded 2 trillion won since tracking began in January 2018.Domestic delivery apps have benefited from this trend. The number and value of foreign orders on Baemin, operated by Woowa Brothers, have more than quadrupled over the past year. In the first half of this year, the number of food delivery orders made through overseas-issued credit cards and global payment services like WeChat Pay, Alipay, and Apple Pay increased by 331%, while the order value rose by 308% compared to the same period last year.The most ordered item was chicken, which saw a 281% increase compared to the previous year. The late-night snack category experienced the highest growth rate at 520%.The increase in delivery platform orders from foreign tourists is attributed to the growing popularity of individual travel. According to the Korea Tourism Organization's survey of foreign tourists, the proportion of individual travelers who freely plan their accommodations and itineraries reached 80.1% last year, while group tours, which follow a guide, accounted for only 11.5%.Eased visa regulations have also contributed to the rise in orders. In April, as the peak spring tourism season began and measures to issue multiple-entry visas for Chinese tourists were implemented, Baemin reported a 22% increase in foreign orders compared to the previous month.* This article has been translated by AI. 2026-07-12 14:56:00
Korean navy searches for missing sailor near NLL in East Sea SEOUL, July 12 (AJP) -South Korea's Navy is searching for a missing sailor who disappeared while serving aboard a frigate conducting a patrol mission near the Northern Limit Line (NLL) in the East Sea, military officials said Sunday. The missing sailor, a private first class, was reported missing after failing to report for duty at around 8 a.m., according to the Navy. He was last seen between midnight and 2 a.m. by a watchstander conducting an internal security patrol through one of the ship's passageways while the frigate was operating about 50 kilometers east of Geojin, Goseong County, near the maritime border with North Korea. The Navy has launched a joint search operation with the Korea Coast Guard, deploying around 10 naval and coast guard vessels along with multiple aircraft to scour the area. Authorities have also requested assistance from nearby fishing boats and commercial vessels operating in the vicinity. The Navy said it notified North Korea of the incident through international maritime communication channels that are accessible to the North, in line with maritime safety procedures. Defense Minister Ahn Gyu-back was briefed on the incident Sunday morning and instructed the military to make every effort to locate and rescue the missing sailor as quickly and safely as possible. He also ordered close coordination with the Coast Guard and other relevant agencies throughout the search operation. 2026-07-12 14:55:35
AI Revolution in Defense: South Korea Aims to Become a Global Leader The calculus of warfare is changing. In the age of AI, the speed at which artificial intelligence can analyze the battlefield and support decision-making is becoming the decisive factor, rather than the size of troops or firepower. Drones are conducting surveillance, unmanned systems are carrying out missions, and AI is assisting commanders in their decisions, marking the dawn of the physical AI era. South Korea boasts a strong semiconductor and manufacturing sector, along with a globally recognized K-defense industry. The question now is whether AI can be integrated into this framework. At the forefront of this challenge is the Defense Acquisition Program Administration (DAPA) and its head, Lee Yong-cheol. The history of warfare is evolving. In the past, the number of troops and weapons determined victory, while the industrial revolution shifted the focus to tanks, ships, fighter jets, and missiles. However, the AI era is different. Drones monitor the battlefield, AI analyzes data from satellites, radars, and various sensors, while unmanned vehicles and robots perform tasks in place of humans. Fighter jets and drones operate together, with AI supporting commanders' judgments. We have entered an era where artificial intelligence is integrated with real-world machines and weapons. The global defense industry landscape is also shifting. The competition is moving from who can create the most powerful weapons to who can more rapidly integrate AI, semiconductors, drones, and robots into weapon systems. South Korea is well-positioned to capitalize on this trend, with its semiconductor industry, automotive, shipbuilding, and battery sectors, as well as its robotics and information communication technologies. Additionally, South Korea has recognized K-defense products such as the K9 self-propelled howitzer, K2 tank, FA-50 light attack aircraft, and Cheongung-II, which are acknowledged in the global market. The next challenge is to combine K-defense with AI, with DAPA at the center of this effort. DAPA is not just a research institution for AI; it is an organization that transforms AI technology into actual weapons. Its role includes discovering technologies from the private sector and research institutions, developing them into weapon systems, testing and evaluating them for military deployment, and nurturing companies for export to the global market. The ongoing war in Ukraine and conflicts in the Middle East demonstrate that expensive tanks and fighter jets alone do not guarantee victory. Drones are monitoring the battlefield, AI is analyzing reconnaissance data, and AI-based command and control systems are processing vast amounts of information to support operational decisions. Data and AI are now at the heart of warfare. The South Korean military must also establish AI-based surveillance and reconnaissance systems, unmanned aerial vehicles, unmanned combat vehicles, and AI command and control systems, as well as integrated combat systems that include both manned and unmanned elements. However, mere technological research is insufficient. These technologies must be developed into actual weapon systems that can be deployed in the field. This is DAPA's role, and countries that can rapidly transform good technologies into weapon systems are more likely to possess strong militaries and defense industries. South Korea has a wealth of excellent AI technologies developed by universities, government-funded research institutions, large corporations, and startups. The challenge is that it often takes a long time for these technologies to be connected to actual weapon systems. The traditional process of determining military requirements, conducting research and development, testing and evaluation, mass production, and deployment can take over a decade. Given that AI technology can advance in months rather than years, relying solely on this method makes it difficult to compete. The task assigned to Lee Yong-cheol is clear. He must quickly identify outstanding private sector technologies, allow the military to use them, and rapidly iterate the process of improving and reusing these technologies. In the defense industry of the AI era, competitiveness will stem from speed. South Korea is a global manufacturing powerhouse, producing semiconductors, automobiles, ships, fighter jets, tanks, self-propelled howitzers, robots, and batteries. This industrial base can become a significant competitive advantage in the AI defense era, as AI weapon systems require not only AI but also semiconductors, sensors, communication technologies, batteries, and precision manufacturing capabilities. By integrating AI into tanks, ships, and fighter jets, and connecting drones and robots, South Korea can evolve from a country that excels at producing individual weapons to one that creates intelligent weapon systems connected by AI. The next competitive edge for K-defense lies in AI and semiconductors. National defense is one of the fields where physical AI can spread the fastest. Examples include unmanned combat vehicles, AI drones, autonomous military vehicles, unmanned surface vessels, and unmanned submarines, as well as AI-integrated surveillance and reconnaissance systems. Merely having good AI models is not enough to become a physical AI powerhouse; there must be physical entities—vehicles, robots, ships, and aircraft—for AI to operate. South Korea already has this manufacturing base, making the combination of AI, manufacturing, and K-defense a potential new engine for national growth. While creating perfect weapons is important, speed is equally crucial in the AI era. If a weapon takes ten years to develop, it may be outdated by the time it is completed. This is why rapid acquisition systems are essential. There is a need for a process that quickly identifies private sector technologies, creates prototypes for military use, improves performance, and rapidly scales up once effectiveness is proven. In the AI era, the competitiveness of weapon development depends more on how quickly one can develop, validate, and improve than on how perfect the initial plan is. South Korea's excellent AI technologies are not limited to large corporations. Many startups possess capabilities in video analysis, autonomous driving, robotics, drones, cybersecurity, and quantum technology. However, the defense market has high entry barriers, making it difficult for small companies to enter independently. This structure must change in the AI era. A growth ladder is needed that allows good technologies to be discovered, used and validated by the military, and then applied to weapon systems for entry into the global market, fostering an open ecosystem where established defense giants collaborate with AI startups. If the manufacturing capabilities of major defense companies like Hanwha Aerospace, Hyundai Rotem, Korea Aerospace Industries, and LIG Nex1 are combined with the technological innovation of startups, competitiveness can be significantly enhanced. DAPA must evolve from merely managing companies to becoming a platform that connects businesses, technologies, the military, and the market. AI weapon systems are perfected through field use. The entire South Korean military can become a vast proving ground for AI defense technologies, from the Army's AI drones and the Navy's unmanned surface vessels to the Air Force's integrated combat systems and the Marine Corps' AI surveillance systems, as well as AI applications in logistics and maintenance. Successful technologies will be expanded within the military, and defense companies will commercialize them for export to the global market. This will create a seamless connection between defense demand, industrial development, and defense exports. The competitiveness of K-defense 1.0, symbolized by the K9 self-propelled howitzer, K2 tank, FA-50, and Cheongung-II, was based on price, quality, delivery time, and customization capabilities. However, the global defense market is changing again. AI drones, unmanned combat systems, AI command and control systems, autonomous military vehicles, and AI surveillance and reconnaissance systems are the future export products. K-defense 2.0 must evolve from selling individual weapons to exporting integrated combat systems connected by AI and data. AI can also transform the defense acquisition process itself. By analyzing the vast data accumulated at DAPA, AI can enhance productivity in cost analysis, risk detection, contract and regulation review, and schedule management. Creating AI weapons is just as important as establishing an AI-driven DAPA. Protecting technology must also be a priority. As K-defense exports and international collaborations increase, the risks of technology leakage and cyberattacks grow. Data protection, algorithm security, and supply chain management are essential. Additionally, ethical and legal issues must be addressed, such as accountability when AI misidentifies targets, the decision-making scope of autonomous weapon systems, and the validation of AI decision processes. It is crucial to uphold the principle that while AI supports human judgment, the ultimate responsibility for life and safety lies with humans. The integration of AI into the defense sector can also create new opportunities for regional economies in areas like Changwon, Sacheon, Gumi, Daejeon, and Nonsan-Gyeongju, leading to youth employment and the development of local industries. The task assigned to Lee Yong-cheol goes beyond developing and procuring good weapons; it involves designing a new defense industry for South Korea that aligns with the AI era. This includes transitioning AI from the laboratory to the battlefield, integrating civilian technologies into weapon systems, bringing startups into the defense market, and positioning K-defense in the global AI defense market. This is the path to making South Korea the world's leading AI defense powerhouse. :Lee Yong-cheol, Head of DAPA: He has experience in both administrative and defense sectors. He has accumulated policy coordination and administrative experience in key government positions and is leading innovations in the defense industry, improvements in weapon acquisition systems, and enhancements in K-defense competitiveness as the head of DAPA amid rapidly changing security environments. His task is to swiftly apply AI, semiconductors, drones, and unmanned systems to weapon systems, combining civilian technology and manufacturing competitiveness with K-defense to create a growth ladder that exports AI weapon systems validated in South Korea to the global market.* This article has been translated by AI. 2026-07-12 14:48:00
Supreme Court Calls for Safeguards Amid Proposed Abolition of Prosecutorial Investigative Powers The ruling Democratic Party of Korea has proposed a complete abolition of the prosecutorial investigative powers, prompting the Supreme Court to issue its first official stance, stating that "safeguards must be established to prevent adverse effects."On July 12, according to Shin Dong-wook, a member of the National Assembly's Legislation and Judiciary Committee from the People Power Party, the Supreme Court's Administrative Office recently submitted a review opinion on the proposed amendments to the criminal procedure law, introduced by Democratic Party lawmaker Kim Yong-min and Park Eun-jung of the Justice Party.The proposed amendments by the Democratic Party aim to entirely eliminate the direct investigative powers and supplementary investigative powers of prosecutors, leaving only the 'request for supplementary investigation' intact. The amendments also seek to abolish the prosecutorial authority over special judicial police and significantly limit the scope of prosecutors' direct warrant requests.In its opinion, the Administrative Office stated, "The National Assembly must closely examine the pros and cons of institutional changes regarding the adjustment of powers among investigative agencies, as well as the diverse opinions of the public and experts," adding that it is a matter that requires careful deliberation and legislative policy decisions. It emphasized the need for sufficient safeguards to prevent potential adverse effects arising from institutional changes.Conversely, the proposal to establish prosecution review committees in local courts to decide on the appropriateness of indictments raised clear concerns. The Administrative Office noted, "The appropriateness of indictments can be controlled through trials after charges are filed, and decisions not to prosecute can be challenged through retrials," warning that if courts operate prosecution review committees, it may hinder judges from making independent decisions in future rulings.However, the Administrative Office expressed strong support for the introduction of 'conditional release and bail systems' and 'preliminary hearings for search and seizure warrants' included in the amendments.Regarding the conditional release system, the Administrative Office stated, "It can correct the societal misconception that 'detention equals punishment' and practically implement the principles of non-custodial investigation and presumption of innocence." By imposing conditions such as electronic monitoring or residence restrictions, it believes that it can maintain investigative efficiency while enabling practices seen in advanced countries.On the preliminary hearing for search and seizure warrants, it remarked, "Previous written hearings did not provide a way to resolve questions about the requirements or scope of warrants," predicting that the introduction of preliminary hearings would prevent 'exploratory searches' conducted without specific allegations and encourage more careful investigations. It countered concerns about hindering the confidentiality of investigations by stating that closed hearings could actually reduce the time spent on dismissals or reapplications for investigations.However, it urged caution regarding the proposal to allow defendants to request retrials for deferred prosecution, citing potential inefficiencies in the distribution of judicial resources and the possibility of prolonged rights protection procedures.Additionally, it pointed out that expanding the current retrial requests, which are only available to complainants, to include informants could lead to prolonged instability for the accused due to indiscriminate challenges from complainants, increasing social dispute costs.Nonetheless, it suggested that a more refined legislative alternative is needed to selectively allow retrial requests from informants in specific crimes such as child abuse, domestic violence, and abuse of the disabled, where mandatory reporting is required.Recently, the ruling Democratic Party has been actively pursuing amendments to the criminal procedure law aimed at abolishing the supplementary investigative powers of prosecutors. Initially, there was conflict with the government over the necessity of retaining these powers, but on June 25, the government decided to support the abolition, and the National Assembly's Legislation and Judiciary Committee is currently reviewing the proposals.However, following the recent case of the murder of a high school girl in Gwangju, which raised concerns about police mishandling of the investigation and evidence destruction, public opinion, particularly from the opposition, has shifted towards the necessity of maintaining supplementary investigative powers, leading to ongoing disagreements between the ruling and opposition parties over this issue.* This article has been translated by AI. 2026-07-12 14:36:00