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Bitcoin Drops to $76,000 Despite $6 Billion U.S. Treasury Buyback Bitcoin fell to around $76,000 despite the U.S. Treasury's expansion of its long-term Treasury buyback program. The announced buyback amount did not meet market expectations, leading to a rise in U.S. Treasury yields and a continued lack of investor confidence in risk assets within the cryptocurrency market.According to CoinMarketCap, as of 8 a.m. on September 11, Bitcoin was trading at $76,936, down 1.38% from the previous day.Major altcoins also experienced declines. Ethereum dropped 0.18% to $2,449, while Ripple (XRP) fell 3.08% to $1.34. Solana decreased by 1.80% to $99.47, and Binance Coin (BNB) was down 1.08% at $712.47.Although the U.S. Treasury announced a significant increase in the buyback program, it failed to meet market expectations. On September 9, the Treasury revealed plans for a buyback of up to $6 billion for 10- to 20-year Treasury bonds, three times the amount of the previous long-term buyback.However, some on Wall Street had anticipated a buyback of $7 billion to $8 billion, leading to disappointment in the market following the announcement. Despite the expanded buyback, U.S. Treasury yields actually rose.Steven Zeng, a strategist at Deutsche Bank, commented, "The Treasury increased the amount threefold, but it fell short of the shock investors were hoping for, resulting in a disappointed market reaction."Meanwhile, in the domestic market, Bitcoin also showed weakness. As of 8 a.m. on the same day, Bitcoin was trading at 1,021,300 won on Bithumb, down 0.33% from the previous day. The 'Kimchi Premium,' which indicates the extent to which domestic prices are higher than international prices, was recorded at 1.33%.* This article has been translated by AI. 2026-09-11 08:28:10 -
US Treasury Yields Surge Amid Rising Oil Prices and Iran Conflict The rise in oil prices is intensifying inflationary pressures, increasing the likelihood of further interest rate hikes by the Federal Reserve. Additionally, concerns over the prolonged conflict between the United States and Iran have pushed the yield on 10-year U.S. Treasury bonds to its highest level in over three years. According to the International Financial Center, the yield on 10-year U.S. Treasury bonds rose by 12 basis points to 4.96%, marking the highest level since October 2023. The increase is attributed to fears of an extended military conflict between the U.S. and Iran, which has driven international oil prices above $100, alongside higher-than-expected producer prices in the U.S. Concerns that the Middle East conflict may last longer than initially anticipated have contributed to the rise in oil prices. President Donald Trump had suggested that the conflict would cease after the midterm elections, but market sentiment reflects skepticism about this claim. Reports indicate that some of Trump's close associates are worried the conflict could extend until the end of his term. As a result, Brent crude oil prices surged by 6.3% in one day, while West Texas Intermediate (WTI) rose by 6.7% to $102.48 per barrel. The military demonstrations by Houthi rebels in the Red Sea are also cited as a factor contributing to rising oil prices. Iran announced a temporary suspension of surcharges on foreign vessels transporting energy to facilitate smooth energy transport, but geopolitical tensions in the region remain high. Inflationary pressures in the U.S. are also on the rise. The Producer Price Index (PPI) for August showed a year-over-year increase of 5.4% and a month-over-month increase of 0.4%. The year-over-year increase was higher than July's 4.8%, and the month-over-month increase was up from 0.1%. These factors have heightened expectations for interest rate hikes by the Federal Reserve, leading to a corresponding rise in U.S. Treasury yields. The market anticipates additional rate increases of 0.25 percentage points in December of this year and March of next year. In Japan, the possibility of further interest rate hikes is also increasing. Bank of Japan member Masu has stated that rates should continue to rise to keep the core inflation rate below 2%. A 0.25 percentage point rate hike is being strongly considered at the upcoming Bank of Japan meeting.* This article has been translated by AI. 2026-09-11 08:28:00
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KDRT Team 2 Departs for Nepal with 4 Tons of Relief Supplies The second team of the Korea Disaster Relief Team (KDRT) departed for flood-affected Nepal on September 11. The team consists of eight members and will be deployed for seven days.The Ministry of Foreign Affairs announced that the KDRT team left at 2:55 a.m. on a military transport aircraft (KC-330) carrying approximately four tons of relief supplies, valued at 180 million won. According to officials, the team is composed of two members each from the Ministry of Foreign Affairs, the National Fire Agency, the Korea International Cooperation Agency (KOICA), and a medical team.Previously, Park Du-sun, spokesperson for the Ministry of Foreign Affairs, held a regular briefing in Jongno-gu, Seoul, on September 10, stating, "We will form a small search and rescue team and a reconstruction and recovery team to closely coordinate with the Nepalese authorities for relief activities and emergency response on the ground in Nepal."Meanwhile, the first KDRT team, which was dispatched on September 2, is scheduled to return on September 11 as their mission comes to an end. This team, consisting of 44 members, was deployed for ten days and successfully rescued one Chinese survivor ten days after the flood, but they were unable to locate any of the nine missing South Koreans.* This article has been translated by AI. 2026-09-11 08:28:00
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Shinhan Securities Maintains Target Price of 700,000 Won for Shinsegae Amid Strong Department Store Performance Shinhan Investment Corp. announced on September 11 that it is maintaining its target price of 700,000 won and a "buy" rating for Shinsegae, citing strong performance in the department store sector.In a report released that day, analyst Jo Sang-hoon noted, "The renewal of large stores and a higher proportion of luxury sales compared to competitors have significantly contributed to growth." Jo pointed out that the strong performance of the department store sector in the first half of the year was driven by rising asset prices and a surge in foreign sales. However, he also mentioned that recent stock market volatility and concerns over the strengthening won have led to a decline in share prices.Despite market concerns, the department store's performance remains solid. Jo stated, "The performance indicators (transaction growth rates of +24% in July and +15% in August) are favorable," adding that the improvement in sales mix is also positive. He noted that while growth has slowed due to a high base in luxury sales and a decline in sales following major electronics events in June and July, the high-margin fashion sector has begun to recover since June.Furthermore, Jo assessed that the impact of the recent rapid appreciation of the won on performance has been minimal. He explained, "The structural growth in inbound sales has increased the attractiveness of department store channels. Although the rapid strengthening of the won has raised duty-free cost ratios, the improvement in purchasing power among domestic tourists, who account for 70% of individual tourists, has offset this effect." * This article has been translated by AI. 2026-09-11 08:12:00
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iM Securities Expects HD Hyundai Heavy Industries to See Over 4 Trillion Won Revenue Increase from Engine Expansion iM Securities stated that HD Hyundai Heavy Industries is expected to see growth in performance due to the expansion of medium engine production capacity, maintaining a 'buy' rating and a target price of 860,000 won. This represents a potential upside of 89.6% compared to the closing price of 453,500 won on September 10.Researcher Byun Yong-jin noted, "The details of the long-awaited engine expansion have finally been revealed," explaining that HD Hyundai Heavy Industries announced a total investment plan of 1.0722 trillion won for medium engines and small modular reactors (SMR).HD Hyundai Heavy Industries will invest 833.6 billion won to expand its medium engine production capacity. Currently, the annual production capacity of 3 GW is expected to increase to 7.2 GW after the expansion is completed. The first engine delivery is anticipated in the second half of 2028, with the new plant's operating rate projected to rise from 30% in 2028 to 100% by 2030.Byun estimated that the revenue would be approximately 1 trillion won per GW annually, with an operating profit margin exceeding 20%. He analyzed that if the expansion is completed as planned and work is secured, a total revenue increase of over 4 trillion won is expected.For the SMR project, 238.6 billion won will be invested. This investment aims to respond to the entry into the main equipment manufacturing business for SMRs and the increase in order volume, with plans to establish production capacity to manufacture two sodium SMR main equipment units annually after the expansion.Despite the recent weakness in stock prices, Byun assessed that the fundamentals of HD Hyundai Heavy Industries remain solid. He stated, "While the third-quarter performance may take a slight pause, revenue and operating profit based on the order backlog are expected to steadily rise until 2028," adding that the current stock price, which has actually declined compared to last year, is significantly undervalued.* This article has been translated by AI. 2026-09-11 08:08:00
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Prime Minister's Office Denies Han Dong-hoon's Surveillance Allegations The Prime Minister's Office has denied allegations of surveillance raised by independent lawmaker Han Dong-hoon, stating that an official simply asked a question in a public setting.On September 11, the Prime Minister's Office clarified that claims of 'surveillance of lawmakers' or 'instructions from the Prime Minister' made by Han are completely unfounded. They emphasized that regardless of the circumstances, it is inappropriate for a current public official to ask questions at a press conference without disclosing their identity, and a stern warning was issued regarding this behavior.On the previous day, Han held a Q&A session with reporters in the Rotunda of the National Assembly before a government question-and-answer session. During this time, an official from the Prime Minister's Office, referred to as A, asked Han, "You posted on Facebook that the Prime Minister is directing the investigation; do you really believe that?" When Han inquired about A's affiliation, A responded, "I am a civilian," before leaving the scene.In response, Han took to Facebook to express his frustration, stating, "The Prime Minister's Office has not only failed to apologize but has also made baseless accusations against me, claiming that the employee acted alone without reason and that a warning suffices. They have not even attempted to explain why the employee lied twice by claiming to be a 'civilian.' This indicates an awareness of the violation of political neutrality and surveillance, leading them to falsely identify as a civilian to avoid detection as a public official."Han further criticized the Prime Minister's Office, saying, "They falsely claimed that anyone can enter the Rotunda. If that is true, can martial law troops also enter the Rotunda? This explanation suggests that the Prime Minister's Office intends to continue such undercover surveillance. The true motives behind this need to be revealed." 2026-09-11 08:08:00
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High-Risk Funds Yield Strong Long-Term Returns ◆Aju Economy Major News▷High-risk funds outperform low-risk counterparts in long-term returns- Funds with higher risk levels yielded greater long-term returns, with a five-year return of 141.78% for those rated 'very high,' nearly ten times that of 'low' rated funds at 14.81%.- The five-year returns were 141.78% for 'very high,' 133.90% for 'high,' and 61.16% for 'somewhat high,' indicating that higher risk generally correlates with better performance.- In three-year returns, 'very high' rated funds achieved 185.94%, while 'high' rated funds reached 151.05%, significantly outperforming low-risk funds.- However, short-term returns showed considerable volatility. The 'very high' category had a one-month return of 21.16%, but a sharp decline of -21.31% over three months.- Conversely, 'low' rated funds exhibited smaller fluctuations in short-term returns, suggesting that investors seeking higher returns must also accept the potential for significant losses, necessitating careful consideration of investment duration and risk tolerance.◆Major Reports▷知 - How to Respond to the Strengthening Won - From September 4 to 10, the KOSPI and KOSDAQ rose by 6.9% and 5.9%, respectively, driven by renewed expectations for AI demand, particularly in the semiconductor sector, which led to upward revisions in KOSPI earnings estimates.- Despite concerns over the impact of the recent sharp drop in the won-dollar exchange rate on export companies' performance, historical instances of a strong won have generally seen improvements in KOSPI and 12-month forward EPS, indicating that economic conditions and supply-demand dynamics are more critical to stock prices than the exchange rate itself.- However, unlike past periods of a strong won, foreign investors have sold off more than 17 trillion won since July, and domestic institutions and individuals have not sufficiently absorbed this selling pressure, leading to weaker supply-demand conditions.- Therefore, rather than solely attributing potential profit losses for export companies to a strong won, it is essential to monitor changes in export volumes, sales prices, and earnings estimates, particularly as rising memory prices and increased AI demand in the semiconductor sector may offset exchange rate pressures.- Strategically, a favorable outlook on semiconductors and large-cap KOSPI stocks is maintained, while short-term market volatility is expected to hinge on next week's FOMC meeting and whether U.S. 10-year Treasury yields surpass 5%.◆Key Corporate Announcements After Market Close (September 10)▷Samsung E&C signs a single sales and supply contract▷Doosan Tesna designated as a short-selling overheated stock (short-selling ban applied)▷TCK designated as a short-selling overheated stock (short-selling ban applied)▷Rino Industrial designated as a short-selling overheated stock (short-selling ban applied)▷ISC designated as a short-selling overheated stock (short-selling ban applied)◆Fund Trends (as of September 9, excluding ETFs)▷Domestic equity funds: -156.7 billion won▷Overseas equity funds: +288.2 billion won◆Key Schedule for Today (September 11)▷United Kingdom: Industrial Production (July)▷United States: Consumer Price Index (August), Consumer Sentiment Index (September)* This article has been translated by AI. 2026-09-11 08:00:20
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Hanwha lands Chunmoo deal in Croatia, widening K-defense footprint in Europe SEOUL, September 11 (AJP) - South Korea's K-defense drive is spreading beyond its Polish beachhead into a broader European network, with Hanwha Aerospace adding Croatia as the fourth European operator of its Chunmoo multiple launch rocket system in a 410 million euro ($477 million) deal. Hanwha Aerospace signed the contract Thursday to supply 18 Chunmoo systems to Croatia, according to the Defense Acquisition Program Administration (DAPA). The deal is worth about 640 billion won. Croatia follows Poland, Estonia and Norway in adopting the South Korean rocket artillery system, extending Hanwha's reach across European militaries accelerating weapons procurement and seeking alternatives to traditional U.S. and European suppliers. The contract also marks the first major arms deal between South Korea and Croatia and is intended to open cooperation beyond the initial weapons sale, including industrial partnerships and military logistics support, DAPA said. Defense Minister Ahn Gyu-back and Croatian Prime Minister Andrej Plenkovic attended the signing ceremony alongside government and Hanwha officials. "The Chunmoo system will significantly boost Croatia's defense capability and serve as an opportunity to expand and further deepen cooperation between our two countries in the defense and security domains," Ahn said. Ahn separately signed a memorandum of understanding on defense cooperation with Croatian Defense Minister Ivan Anusic. The agreement establishes a framework for regular working-level dialogue and broader bilateral defense ties, according to Seoul's Defense Ministry. The Croatia order adds to a wider Korean push to turn recent weapons exports into longer-term defense partnerships across Europe. Chunmoo has picked up three European orders this year alone. Norway signed a $922 million deal for 16 launchers in January, Estonia ordered three more in May only five months after its initial six-unit purchase, and Croatia followed Thursday with 18 launchers worth about 640 billion won. The three contracts bring Chunmoo orders signed in Europe this year to 37 launchers. Poland remains the system's largest European customer, with agreements covering 290 Homar-K launchers, the Polish variant of Chunmoo. Hanwha also signed a roughly $4 billion contract in December 2025 to supply and eventually produce thousands of 80-kilometer CGR-080 guided rockets in Poland. At Poland's MSPO 2026 defense exhibition this week, DAPA chief Lee Yong-cheol met senior procurement officials from Poland and Estonia and discussed expanding cooperation into joint research, joint production and follow-on logistics support, rather than limiting ties to equipment sales. DAPA described Poland as a "strategic cooperation country" for Korean defense companies seeking wider access to European markets. The agency also brought eight smaller Korean defense companies into a joint Korea pavilion at MSPO, alongside individual booths run by major companies including Hanwha Group, Hyundai Rotem and Korea Aerospace Industries. A total of 16 Korean companies were represented around the pavilion, underscoring the effort to build an industry-wide European presence rather than rely on a handful of headline weapons contracts. Poland has been the cornerstone of that expansion, emerging as one of the biggest buyers of Korean weapons after Russia's invasion of Ukraine. Large Polish orders for K2 tanks, K9 self-propelled howitzers, FA-50 light combat aircraft and Chunmoo launchers gave Korean manufacturers their first large-scale foothold in Europe. The subsequent entry of Chunmoo into Estonia, Norway and now Croatia suggests that foothold is beginning to broaden. For Hanwha, the European expansion is particularly important because rocket artillery systems generate business well beyond the initial launcher sale. Ammunition replenishment, maintenance, training, upgrades and potentially local production can extend defense relationships for decades. Chunmoo was originally developed as a central component of South Korea's artillery forces, designed in large part to counter North Korea's extensive long-range artillery and multiple rocket launcher arsenal. The system can fire different types of guided rockets and strike targets at ranges of up to 80 kilometers with the ammunition cited by DAPA, giving forces both precision-strike and wider-area fire capabilities. Croatia's order is comparatively modest next to Poland's massive Korean arms purchases, but its significance lies elsewhere as it adds another European NATO member incorporating a Korean weapons platform into its force structure. AJP Takeaways - Hanwha Aerospace signed a 640 billion won ($477 million) deal to supply 18 Chunmoo launchers to Croatia, making it the fourth European operator after Poland, Estonia and Norway. - Chunmoo has secured three European contracts this year alone — 16 launchers for Norway in January, three additional units for Estonia in May and 18 for Croatia in September, totaling 37 launchers. - The widening customer base shows South Korea’s rocket artillery exports spreading beyond Poland into a broader NATO network, with Seoul seeking follow-on business in ammunition, logistics support, joint production and industrial cooperation. 2026-09-11 07:59:00 -
South Korea's Per Capita Income Approaches $40,000 Amid Economic Challenges South Korea is increasingly likely to achieve a per capita national income of $40,000 this year, driven by strong semiconductor exports and improved trade conditions. However, the dollar-denominated income is subject to fluctuations in the exchange rate, and rising prices and household debt may hinder the impact of increased income on consumption and living standards.On September 10, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol stated at a government meeting in Seoul that the possibility of reaching a per capita gross national income (GNI) of $40,000 has grown. He noted, "The recovery of our economy is becoming more evident," adding that the current account GDP increased by 26.4% in the second quarter compared to the same period last year, marking the highest growth rate in 47 years.Koo pointed to an increase of 184,000 jobs in August compared to the previous year and improvements in income across all sectors as evidence of the recovery. He emphasized that the government will not rest on these economic indicators but will design policies to ensure that citizens can feel the growth and strengthen the foundation for growth through structural innovation.The driving force behind the increase in national income is the rise in export prices, particularly in semiconductors. According to the Bank of Korea's monetary credit policy report released on the same day, the nominal growth rate exceeded 20% in the first half of the year. The bank analyzed that the recent surge in nominal growth rates was driven by improved trade conditions due to rising export prices.When export prices rise compared to import prices, it allows for the purchase of more imports with the same export volume, thereby improving overall purchasing power. The Bank of Korea expects this change to first increase corporate profits and, with a lag, spread to investment, tax revenue, and household income.The key variable determining whether the $40,000 target is met is the exchange rate. The dollar-denominated per capita GNI is calculated by converting the national income in won to dollars and dividing by the population. Therefore, even if won-denominated income increases, a rise in the won-dollar exchange rate can reduce the increase in dollar-denominated income. The average exchange rate for the year is more important than the exchange rate at a specific point in time.Moreover, the growth rate of current account GDP does not necessarily equate to the growth rate of GNI. GNI reflects not only income generated from domestic production activities but also the difference between wages, interest, and dividends received from abroad and income paid to foreign entities. To assess the annual achievement, it is necessary to consider second-half export performance, net income from abroad, and exchange rate trends. The Bank of Korea has also warned of the potential for increased exchange rate volatility due to changes in the U.S. Federal Reserve's monetary policy.Inflation affects how citizens perceive the increase in national income. Even if nominal income rises, if the prices of goods and services necessary for living also increase, the actual improvement in purchasing power may be limited. The Bank of Korea projects that the inflation rate will exceed the target level of 2% for a considerable period due to accumulated cost increases and demand-side pressures.Interest rate hikes to combat inflation pose a burden on heavily indebted households and businesses. The Bank of Korea raised the base rate twice in July and August, increasing it from 2.50% to 3.00%. It plans to determine the timing and pace of further increases while monitoring inflation, economic conditions, and financial stability. This is crucial as financial burdens may increase in vulnerable sectors before the benefits of income growth are fully realized.Even if nominal GDP increases and the household debt ratio decreases relative to GDP, this does not eliminate debt risks. The Bank of Korea notes that South Korea's household debt ratio remains high compared to major advanced countries, and improved income conditions could increase demand for housing purchases. If increased purchasing power shifts towards real estate rather than consumption and leads to more borrowing, financial imbalances could worsen.Another challenge is whether the benefits of the semiconductor boom will spread throughout the economy. According to the Bank of Korea, wage growth in the first half of the year has slowed somewhat. While household income conditions are expected to improve, if the positive effects of the strong IT sector remain confined to related companies and workers, the overall recovery in consumption may be limited.In terms of sustained growth, global investment trends in artificial intelligence (AI) are a variable. The Bank of Korea anticipates that AI investment will increase significantly over time but also identifies concerns about profitability and increased reliance on external funding as risk factors. If financial conditions worsen or uncertainties about actual profit generation grow, investment could slow more quickly than expected, impacting domestic semiconductor production and exports.Coordinating the government's proposed structural innovations with the Bank of Korea's responses to inflation and financial stability has become increasingly important. The Bank of Korea believes that the surge in nominal growth rates will lead to increases in investment, wages, and tax revenue, but it also cautions about the potential for financial imbalances and widening gaps between households and businesses. There is a need for effective policy combinations that can maintain macroeconomic stability while enhancing growth potential.* This article has been translated by AI. 2026-09-11 07:56:00
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South Korea's Economic Growth Driven by Semiconductor Boom Thanks to a booming semiconductor industry, South Korea's nominal growth rate exceeded 20% in the first half of the year, significantly improving income conditions for both businesses and households. The Bank of Korea warned that this income increase could support a recovery in investment and consumption while also raising demand-side inflation pressures and stimulating housing demand and borrowing, thereby increasing the risk of financial imbalance.In its 'September Monetary and Credit Policy Report' released on the 10th, the Bank of Korea assessed that the country's nominal growth rate is showing an unusual expansion. In the first quarter of this year, nominal Gross Domestic Product (GDP) increased by 17.1% compared to the same period last year, while the second quarter saw a growth of 26.4%. Typically, the gap between real and nominal growth rates is not significant, but it has widened sharply this year.Bank of Korea Deputy Governor Park Jong-woo described the current nominal income increase as the first of its kind since the high-growth period of the 1970s. He noted, 'The impact of the domestic economic environment on income is substantial, fundamentally changing our economy, making forecasts very challenging.'Improvements in trade conditions are primarily leading to increased corporate profits, which will gradually spill over to the government and households. This year, not only the information technology (IT) sector but also other manufacturing industries, such as shipbuilding and machinery, have seen improved profitability, resulting in a significant increase in capital investment. This trend is expected to continue into next year, sustaining high growth rates in capital investment.With national tax revenues significantly increasing in the first half of the year, further growth in tax revenues is anticipated next year, enhancing the government's fiscal capacity. Households are also expected to see gradual improvements in income conditions, leading to increased consumption capacity. The effects observed in related companies and regions may spread throughout the economy over time, through increased tax revenues and expanded consumption.In fact, an analysis of card spending in the so-called 'semiconductor belt' areas, including Yongin, Hwaseong, and Pyeongtaek, revealed that cumulative consumption increased by approximately 1.1 trillion won from February of last year to June of this year. If this trend continues, it is projected to reach about 1.7 trillion won by the end of the year. The average annual increase from 2025 to 2026 is expected to be around 800 billion won, which corresponds to 2% of last year's total private consumption increase of 41.3 trillion won.However, the surge in nominal growth rates and the resulting income increase do not solely bring positive effects to the economy. The Bank of Korea has indicated that demand-side pressures are gradually increasing, which could lead to inflation rates exceeding target levels for an extended period. In particular, how much of the increased income translates into private consumption rather than savings or asset acquisition will likely influence inflationary pressures.The risks of financial imbalance surrounding the housing market and household debt may also grow. Despite stringent government lending regulations and total management by financial institutions, household loans have continued to rise this year. There are concerns about increased housing demand due to improved income conditions. Following the payment of performance bonuses, the average monthly purchase count in the Dongtan area has nearly doubled compared to the previous year. With high expectations for rising asset prices, the combination of increased borrowing and asset price inflation could exacerbate financial imbalance risks.The sustainability of the semiconductor industry's growth, which is driving economic expansion, remains a key concern. Currently, the semiconductor sector is thriving due to increased global investment in artificial intelligence (AI), but this investment growth is expected to peak this year and gradually slow down. Major international institutions predict that the global AI investment growth rate will peak in 2026 (61-95%) before declining to 38-40% in 2027 and 13-21% in 2028.Choi Chang-ho, head of the Bank of Korea's Monetary Policy Division, stated, 'Despite the rapid revenue growth of major AI companies, concerns about profitability remain, and the reliance on external funding by big tech firms is increasing. If financial conditions worsen and uncertainties about revenue generation grow, AI investments could slow down more quickly than expected. It is essential to continuously monitor related risk factors.'* This article has been translated by AI. 2026-09-11 07:48:00