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Hana Securities Maintains Positive Outlook for SK Telecom's Data Center Expansion Hana Securities has positively evaluated SK Telecom's data center expansion project, maintaining a target price of 140,000 won and a 'buy' investment rating.In a report released on September 9, analyst Kim Hong-sik stated, "Despite aggressive data center expansions, the likelihood of excessive capital expenditure (CAPEX) increases is low. Considering the first half's performance, there is a high possibility of an increase in the dividend per share (DPS) in the fourth quarter, when tax-exempt dividends become possible."Kim noted, "SK Telecom has established a dedicated data center subsidiary, SK Hyper, and plans to spin off its wired subsidiary, SK Broadband, to create new data centers under SK Broadband and SK Horizon. Assuming an annual traffic increase of 45%, SK Telecom's total data center capacity is expected to reach 1.5 GW by 2032."He added, "Optimistically, SK Telecom's data center revenue could reach 5 trillion won and operating profit 1 trillion won by 2032. Given that it currently achieves around 500 billion won in revenue based on 140 MW, simple calculations suggest that revenue could increase tenfold."Kim emphasized, "Considering the traffic situation, 1.5 GW by 2032 is a realistically achievable figure. Given that this approach can reduce investment burdens and increase dividends for shareholders, the data center expansion could enhance SK Telecom's investment appeal."However, he cautioned, "It is difficult to estimate SK Telecom's total data center revenue from an accounting perspective. In the case of SK Hyper, it operates as a special purpose company (SPC), meaning revenue is likely to be reflected as fees or dividends rather than direct sales, and the profit-sharing method with investors and SK Horizon must also be considered."* This article has been translated by AI. 2026-09-09 08:04:10 -
Labor, Youth, and Non-Regular Workers Discuss 'Social Contract for the AI Era' To address changes in employment due to the rise of artificial intelligence (AI), as well as the restructuring of social safety nets and methods of profit distribution, labor representatives, business leaders, youth and non-regular worker organizations, and experts are convening. The outcomes of these discussions will be compiled into a 'green paper' that will serve as a starting point for future social dialogue.The Ministry of Employment and Labor announced the launch of the 'Discussion Group for a New Social Contract in the AI Era' on the morning of September 9 at the Koreana Hotel in Seoul.This discussion group aims to explore new issues arising from the AI transformation, including changes in jobs and labor forms, social safety nets, industrial competitiveness, and profit distribution, while identifying key questions that society must collectively address.Participating organizations include the Korean Confederation of Trade Unions, the Federation of Korean Trade Unions, the Korea Employers Federation, and the Korea Economic Association. Organizations representing youth, non-regular, and unorganized workers, such as the Youth Union and the Korean Non-Regular Workers' Association Network, are also involved.Experts from various fields, including economics, business, political science, sociology, and labor law, will contribute to the discussions, with Professor Kang Sung-jin of Korea University, who is also the president of the Korean Economic Association, serving as the chair.Over the next three months, the group will discuss topics such as changes in youth employment due to AI and technological advancements, representation of new labor forms, the role of government in social safety nets, industrial competitiveness and polarization, and new models for social dialogue and profit sharing.Rather than providing specific answers or conclusions, the discussions will systematically outline key questions that require further social dialogue. The Ministry plans to use this green paper as a basis for ongoing discussions and public discourse regarding a new social contract for the AI era.Minister of Employment and Labor Kim Young-hoon emphasized, "The existing framework from the industrial era cannot fully capture the new age, and a new social contract suitable for the AI era is necessary."He highlighted the need to support stable job transitions during the changes brought about by AI, protect the rights of platform, special employment, and freelance workers, and design social safety nets that respond to changes in employment forms as key tasks.Kim added, "The competitiveness of the AI era should not be limited to the productivity and profit increases of a few large companies. The benefits must enhance the innovation capabilities of workers, partner companies, and the entire industrial ecosystem, creating a structure where fair distribution leads to successful reinvestment."He also noted, "The government cannot establish a new order alone. We must find answers together with labor and management, as well as voices from youth, non-regular workers, and platform and freelance workers, who have not been adequately represented in social dialogue."* This article has been translated by AI. 2026-09-09 08:04:00
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Government Releases Climate Risk Map, Plans Support for Vulnerable Communities The government has unveiled a spatial map visualizing regional climate risks and is set to provide tailored support for vulnerable communities that repeatedly suffer from climate disasters. It will also establish a regulatory framework for the introduction of climate insurance and the development of climate adaptation industries.On September 9, the Ministry of Climate Energy and Environment announced during an expert advisory meeting at the Seoul Biz Hub Center that it has begun drafting subordinate regulations for the Climate Crisis Adaptation and Resilience Enhancement Act, which passed the National Assembly on August 26.The Climate Crisis Adaptation Act systematically organizes climate adaptation measures that were previously outlined in the existing Basic Act on Carbon Neutrality and Green Growth for Climate Crisis Response. Its goal is to enhance the nation’s adaptation capabilities based on scientific climate risk assessments and to strengthen public safety against climate disasters.Once the law is implemented, a management system will be established to provide a comprehensive view of climate adaptation information. It will investigate and analyze climate impacts and vulnerabilities by sector and region, and visualize and disclose climate risk spatial information. Relevant agencies will be able to utilize this information for climate risk reduction projects.The government plans to form a policy council to manage adaptation policies comprehensively and will establish adaptation measures for national and local governments, as well as public institutions. It will also strengthen the monitoring and feedback system to evaluate the implementation of adaptation measures and the overall performance of the nation’s climate crisis adaptation efforts.Central and local governments will conduct surveys on the status of vulnerable groups affected by the climate crisis and will implement tailored support projects for these communities and areas that experience repeated damage. Plans are also in place to introduce climate insurance to prepare for climate disaster impacts and to foster climate adaptation industries.During the advisory meeting, climate adaptation information standardization, climate risk assessment, and support measures for vulnerable groups were discussed among experts in climate adaptation and law.Oh Il-young, head of the Climate Energy Policy Office, stated, "The enactment of the Climate Crisis Adaptation Act is a starting point for systematically responding to the intensifying climate crisis. We will prepare for the drafting of subordinate regulations to protect the lives and property of citizens from climate disasters and to establish a climate safety net that vulnerable groups can feel." * This article has been translated by AI. 2026-09-09 08:04:00
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KOSDAQ Companies Find Alternative to Delisting with KONEX Transition ◆Aju Economic Major News▷KOSDAQ firms facing delisting can transition to KONEX under new government plan- The government has established a pathway allowing KOSDAQ companies at risk of delisting due to a market capitalization below 20 billion won to transition to KONEX if they meet certain financial criteria.- As of August 26, among the 97 KOSDAQ companies with a market cap under 20 billion won, 43 (44.3%) are estimated to qualify for this benefit by meeting requirements such as reporting operating profit.- Many of the targeted companies have recorded operating profits for more than two years in the past three years, highlighting the intent of the system to rescue firms facing delisting solely due to market cap issues.- However, concerns have been raised about the effectiveness of KONEX, which has only 109 listed companies and an average daily trading volume of about 1.2 billion won, indicating limited liquidity and fundraising capabilities.- The securities industry has pointed out that simply providing a transition option for delisted companies is insufficient, and additional measures are needed to enhance trading activity on KONEX and broaden the investor base.◆Major Reports▷Samsung Electronics and SK Hynix: The Power of Shareholder Returns - Shareholder returns varied in impact based on method and industry, with financial stocks showing total shareholder returns and non-financial stocks benefiting more from share buybacks.- Samsung Electronics is pursuing a shareholder return plan focused on cash dividends amounting to 90 trillion to 110 trillion won, while SK Hynix is detailing a share buyback and cancellation plan exceeding 40 trillion won.- Share buybacks by non-financial companies have shown greater defensive effects in downturns compared to upturns, with the top buyback companies outperforming in bear markets by an average of 0.16 percentage points.- Notably, the buyback effect is more pronounced for companies with rising EPS, with those improving their performance showing an average outperformance of 1.68 percentage points.- While the profit levels of Samsung Electronics and SK Hynix remain robust, the pace of EPS growth is slowing, suggesting that shareholder returns may support stock price stability, with future upside potential dependent on sustained earnings.◆Key Disclosures After Market Close (September 8)▷Semifive to supply AI inference accelerators for data centers to HyperExcel▷The Codi decides to issue convertible bonds worth 30 billion won▷NH Investment & Securities begins subscription for government bonds dedicated to DC and IRP individual investors◆Fund Trends (as of September 7, excluding ETFs)▷Domestic equity: -48 billion won▷Overseas equity: -6.4 billion won◆Key Schedule for Today (September 9)▷South Korea: Unemployment rate (August)▷China: Consumer Price Index (August), Producer Price Index (August)* This article has been translated by AI. 2026-09-09 08:04:00
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Majority of Property Price Appeals Accepted in Seoul Amid Rising Home Values This year, most of the accepted appeals regarding the publicly announced prices of multi-family housing have been concentrated in Seoul. The significant increase in property prices in the city has led to a surge in both the number of appeals filed and those accepted.According to data submitted to the National Assembly's Land, Infrastructure and Transport Committee by Kim Jong-yang, a member of the ruling People Power Party, there were a total of 121 accepted appeals nationwide for publicly announced multi-family housing prices this year. Of these, 118 appeals, or 97.5%, were from Seoul.The acceptance rate for appeals in Seoul was 2.48% this year, significantly higher than last year's rate of 0.79%. This marks an increase for the second consecutive year, compared to 0.32% in 2024.The number of accepted appeals has also risen sharply. A total of 4,758 appeals were filed in Seoul this year, with 118 being accepted. In contrast, last year, only 11 out of 1,393 appeals were accepted.In non-capital regions, however, there were 388 appeals filed this year, but none were accepted. Cities such as Busan had 82 appeals, Daegu 24, Gwangju 6, Daejeon 15, Sejong 13, and Chungnam 182, all recording a 0% acceptance rate. Incheon also had 55 appeals filed, with no cases accepted.In Gyeonggi Province, 3 out of 865 appeals were accepted, resulting in an acceptance rate of 0.35%. Excluding the 118 accepted appeals in Seoul and the 3 in Gyeonggi, there were no accepted cases in other regions.The concentration of appeals in the capital region is evident, with Seoul accounting for 78.4% of the 6,066 appeals filed nationwide this year. When including Gyeonggi and Incheon, the total number of appeals from the capital region reached 5,678, or 93.6% of the total.The significant increase in appeals from Seoul can be attributed to the rise in publicly announced property prices. As of January 1 this year, the average publicly announced price for multi-family housing nationwide increased by 9.13%, while in Seoul, it surged by 18.60%, the highest rate among all regions.Since publicly announced prices affect property taxes, health insurance premiums, and various fees, the growing number of appeals in Seoul appears to be driven by concerns over increased tax burdens.Kim Jong-yang stated, "The fact that accepted appeals are virtually concentrated in Seoul, with none in the provinces, indicates that the appeal system for publicly announced prices operates differently across regions. The high acceptance rate suggests that the Ministry of Land, Infrastructure and Transport miscalculated the property prices and has only now begun to correct them."* This article has been translated by AI. 2026-09-09 08:00:00
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Korean Rescue Team in Nepal Fails to Locate Missing Persons On September 8, the Korean international emergency rescue team (KDRT) conducted search and rescue operations in Nepal's flood-affected areas. Despite focusing their efforts on regions requested by the families of missing South Koreans, they reported no significant findings.According to Yonhap News, the team traveled with two helicopters to the Rasuwagadhi area in central-northern Bagmati Province. They attempted searches around the Upper Trishuli (UT)-1 hydropower plant's powerhouse and the surrounding mountainous areas near the main camp.This area was specifically requested by the families of the missing individuals.One helicopter landed near the powerhouse, while the other landed at a Nepalese military base camp located six kilometers away.The team that landed at the powerhouse, following the Nepalese military's assessment that the steep terrain was unsuitable for foot searches, concentrated their efforts using drones.Another team attempted a foot search along a temporary road upstream to find possible evacuation points but halted when the road was blocked. They conducted drone searches for about an hour and 40 minutes.However, KDRT stated, "No unusual findings related to the missing persons were discovered."During a briefing in Batar, Bagmati Province, KDRT's Chief of Rescue Operations, Cho Hyun-moon, expressed feelings of helplessness due to the unique nature of the disaster and the geographical challenges, stating, "We are doing our best in a situation where our citizens are unaccounted for, but I feel sorry and regretful for the limitations we face."Meanwhile, as of today, the death toll from the massive flooding that occurred in the Himalayan mountainous region on August 26 has reached 1,358 in Nepal alone. Including 43 fatalities from landslides in the Tibet Autonomous Region of China related to the flooding, the total death toll stands at 1,401.The number of missing persons is reported to be 5,845, comprising 5,326 from Nepal and 519 from the Tibet region.Among the missing are nine South Korean workers who were employed at the UT-1 hydropower plant, including six from Doosan Enerbility and three from Korea South-East Power.* This article has been translated by AI. 2026-09-09 07:52:00
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Semiconductor Boom Boosts Chemical, Shipbuilding, and Service Sectors as GNI Approaches $40,000 The semiconductor boom driving South Korea's economy is gradually spreading to manufacturing sectors such as chemicals and transportation equipment, as well as to retail and service industries. There are growing expectations that the profits accumulated by companies will support domestic recovery through wages, dividends, and taxes flowing to households and the government.According to the Bank of Korea on September 8, the real Gross National Income (GNI) increased by 3.1% in the second quarter compared to the previous quarter, significantly outpacing the real Gross Domestic Product (GDP) growth rate. This improvement was attributed to a rise in export prices relative to import prices, enhancing trade conditions.As income has increased, savings have also risen, even as consumption has not kept pace. The total savings rate climbed to 45.6%, the highest level recorded since statistics began in 1970. This indicates that the increase in income, primarily among businesses, has not yet fully translated into household consumption, suggesting potential for future spending.Kim Hwa-yong, head of the Bank of Korea's National Income Division, stated, "The increase in the total savings rate could influence future consumption, private spending, and investment. While income has risen, consumption has not increased correspondingly, leaving room for future spending." There are expectations that the transfer of corporate profits to households and the government will accelerate. As companies distribute earnings through bonuses and dividends, household income will rise, and government revenue from corporate taxes, income taxes, and dividend taxes will also increase. This could support private consumption and domestic recovery.Kim added, "The increase in total operating surplus due to strong corporate performance will manifest as increased household income through bonuses and dividends, while government income from corporate taxes, income taxes, and dividend taxes will also rise, leading to domestic growth over time. He further noted, "Starting in the second half of this year, the distribution of corporate income to the government and households will gradually become visible, particularly with Samsung Electronics' cash dividends and related taxes." There are indications that the positive performance driven by semiconductors is already spreading to other sectors. Kim stated, "The operating profit of the semiconductor manufacturing industry has significantly increased, and improvements in performance are gradually being observed in other sectors, including chemicals, transportation equipment manufacturing, and retail services. The petroleum refining industry has seen improvements due to better refining margins, while the chemical manufacturing sector has benefited from increased exports of pharmaceuticals and cosmetics. The machinery and equipment manufacturing sector is experiencing growth due to expanded semiconductor facility investments, and the shipbuilding industry is benefiting from increased exports of high-value ships." If the economic recovery continues into the second half of the year, the Bank of Korea believes that achieving the annual growth rate forecast is possible. Mathematically, if the growth rate in the second half averages between 0.2% and 0.3% compared to the previous quarter, an annual growth rate of 3.3% could be achieved.The outlook for the semiconductor industry remains positive. The Bank of Korea anticipates that demand for semiconductors will exceed supply for the time being, driven by ongoing U.S. investments in artificial intelligence (AI). Even if the rise in semiconductor prices slows, there is a likelihood that the increase in volume will continue. In fact, the value-added growth rate in the computer, electronics, and optical equipment manufacturing sector has recorded a high level in the low 20% range.As the income growth from strong semiconductor exports continues, the possibility of achieving a per capita GNI of $40,000 this year has increased. Last year, South Korea's nominal per capita GNI was $36,855, remaining in the $36,000 range for three consecutive years. With Taiwan surpassing $40,000 for the first time last year and Japan recording around $38,000, South Korea is also likely to exceed the $40,000 mark this year.Kim stated, "If there are no unexpected shocks in the remaining months of the year and the annual nominal GNI growth rate maintains its current level while exchange rates stabilize, the likelihood of per capita GNI exceeding $40,000 in U.S. dollar terms is very high." * This article has been translated by AI. 2026-09-09 07:44:00
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Body of 60-Year-Old Found in Freezer at Paju Cafe; Investigation Expands Police investigating the murder case of a 60-year-old woman found in a freezer at a cafe in Paju, South Korea, are expanding their inquiry to consider the possibility that the victim was killed in connection with a fraud case involving counterfeit gift certificates worth hundreds of millions of won.According to reports from Yonhap News and police on September 8, the victim, identified as A, had never met the suspect, a man in his 30s named B. A was reportedly asked to visit the cafe to verify the authenticity of gift certificates that B had acquired through a third party.Upon arriving at the cafe, A entered the freezer after B claimed the gift certificates were stored there. She did not emerge and was later found dead.Authorities suspect that B may have locked A in the freezer after she realized the gift certificates were counterfeit.Police are also investigating the involvement of other individuals, including a man who drove A from Seoul to Paju on the day of the incident, to determine if there were any accomplices.The counterfeit gift certificates discovered in the freezer are estimated to have a face value of around 50 billion won.Investigators are working to confirm the authenticity and distribution channels of the gift certificates while looking into the possibility of additional accomplices or masterminds behind the crime.However, police noted that determining whether the gift certificates are indeed counterfeit requires legal review.The freezer is a container-like structure measuring approximately 30 square meters and is located adjacent to the cafe operated by B.Previously, on September 4, police discovered A's body in the freezer after she had been reported missing. B is currently in custody on charges of murder.A police official stated, "While it is true that the investigation into accomplices is ongoing, we ask that speculation about unverified accomplice relationships be refrained from, as it may hinder the investigation."* This article has been translated by AI. 2026-09-09 07:08:00
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Peru Faces Economic Risks as Climate Change Fuels El Niño The impacts of climate change are becoming a reality across the globe. In Europe and North America, extreme heat and drought have led to recurring wildfires, while the Panama Canal, a key global shipping route, is facing restrictions due to water shortages. Climate change has evolved from an environmental issue to one that disrupts agriculture, energy, industry, logistics, finance, and health. Amid this backdrop, a strong El Niño is re-emerging in 2026, heightening tensions in Latin America. While climate change does not create El Niño, the combination of already elevated average temperatures and sea surface temperatures with a strong El Niño increases the risks of extreme weather events such as heatwaves, heavy rainfall, and droughts.The greater challenge lies in the unpredictability of how far-reaching these impacts will be. Disasters in specific regions can quickly translate into economic repercussions worldwide, affecting production costs, prices, shipping rates, delivery times, energy supply, and financial burdens. The climate shocks occurring in the seas and Andes of Latin America could ripple all the way to factories and dinner tables in South Korea.Why Peru is Most ConcernedPeru is currently one of the most anxious countries in Latin America. President Keiko Fujimori, who took office on July 28, identified restoring public safety and responding to El Niño as urgent priorities in her inaugural address. The new government’s immediate focus on disaster response underscores the seriousness of the situation. For me, El Niño is not just an abstract concept learned in meteorology textbooks; it was one of the first issues I encountered when I arrived in Peru in 1998. At that time, our country's distant squid fleet paid significant fees to fish in Peruvian waters, but rapid changes in the marine environment led to disappointing catches and substantial losses.The fleet demanded that the Peruvian government take action, and I met with local officials to discuss the issue. It became clear that El Niño is not merely a natural phenomenon but can have far-reaching effects on fisheries, agriculture, prices, national finances, and even diplomatic relations. The cold Humboldt Current and nutrient-rich upwelling off the coast of Peru create a world-renowned fishing ground. However, when El Niño occurs, upwelling weakens, altering the distribution of plankton and fish. A decline in anchovy catches, a key resource for Peru's fishing industry, can impact the production of fishmeal and fish oil, which in turn affects international feed prices and global aquaculture production costs.Fishing at Sea, Huaico on LandThe land-based impacts of El Niño are even more direct. The Pacific coast of Peru is a desert region that typically receives little rainfall, with the Andes Mountains rising steeply behind it. Heavy rainfall can trigger huaicos, where water, mud, and rocks flow down in a torrent. During the coastal El Niño of 2017, northern regions such as Piura, Tumbes, Lambayeque, and La Libertad suffered significant damage from heavy rains, flooding, and huaicos. Roads and bridges were washed out, farmland was inundated, and the water supply in the capital, Lima, was disrupted.When I returned to Peru in 2018, the scars from that disaster were still evident. The Peruvian government established a separate reconstruction agency and launched a national reconstruction plan worth approximately 256 billion soles (about $78 billion). One natural disaster had shifted the country’s financial and investment priorities. If damage occurs again, it could affect not only agricultural and fishery production but also logistics networks, including roads, bridges, and ports. High temperatures and flooding also increase the risk of infectious diseases such as dengue fever and leptospirosis. Large-scale damage could burden the new government's infrastructure projects financially.WMO Issues Strong WarningThis El Niño is particularly noteworthy due to its intensity. The World Meteorological Organization (WMO) announced on September 3 that El Niño has already firmly established itself and is expected to reach a 'very strong' level by the end of the year. There is nearly a 100% chance it will persist until February 2027. The U.S. National Oceanic and Atmospheric Administration (NOAA) also predicts a greater than 90% likelihood of a very strong El Niño this fall and winter. The WMO warns that the issue is not just rising sea temperatures. One region may experience flooding and heavy rainfall, while another faces drought and extreme heat. While the scale of potential damage cannot be determined now, we must prepare for simultaneous pressures on food, water, health, and energy systems.Chile, Colombia, and Panama Also AffectedThe impacts of El Niño are not confined to Peru. The same climate changes are manifesting as different economic risks in various countries due to their industrial structures. In Chile, recent heavy snowfall and rainfall in the Andes mining region have affected actual mining operations. The Caserones copper and molybdenum mine temporarily halted operations due to heavy snow and power supply disruptions. Chile and Peru are key countries in global copper supply, which is essential for electric vehicles, power grids, data centers, and AI infrastructure.Conversely, Colombia is grappling with drought. Given its reliance on hydropower, reduced rainfall and reservoir inflows can lead to water shortages, which in turn threaten electricity production and energy security. In Panama, water shortages pose a global logistics problem. The Panama Canal uses freshwater to allow ships to pass, so when reservoir levels drop, transit capacity and cargo loads must be restricted. During past severe droughts, ships transporting LPG from the U.S. to South Korea have paid millions of dollars in additional costs to secure expedited canal passage.Peru's fisheries and agriculture, Chile's minerals, Colombia's electricity, and Panama's logistics may seem like separate issues. However, they represent a complex economic risk where a single climate shock can cascade through food, energy, industry, logistics, finance, and health.South Korea is Not ImmuneOur dinner tables are already connected to Peru. Squid and shrimp from Peru are imported into South Korea, along with agricultural products like avocados, grapes, and mangoes. Notably, the major agricultural regions in northern Peru are often hit hard by flooding during El Niño. We should pay particular attention to fishmeal. Peru is a leading producer of fishmeal and fish oil. A decline in anchovy catches due to El Niño could drive up international fishmeal prices, impacting our aquaculture production costs. Changes in sea temperatures off the coast of Peru could affect feed costs in South Korean aquaculture.The ripple effects of minerals are even greater. If copper production in Chile and Peru is disrupted, it could impact electric vehicles, batteries, power grids, and AI infrastructure. If disruptions at the Panama Canal are added to the mix, it could increase not only raw material prices but also transportation costs and delivery times. However, the repercussions may not end there. If climate disasters persist, reduced agricultural and fishery production and logistics disruptions could drive up prices, while increased recovery costs could strain local government finances, and energy shortages could affect manufacturing output. If infectious diseases spread, the impacts could extend to labor, tourism, and local economies.Therefore, our government and businesses should not view the climate anomalies in Latin America as mere overseas disaster news. We need to monitor weather and production trends in key agricultural and mineral-producing regions, as well as critical logistics hubs like the Panama Canal. For high-risk items, we should assess the potential for diversifying supply sources and stockpiling. We must also strengthen systems to quickly relay information about production and logistics disruptions to our businesses through overseas networks like embassies and KOTRA. Food, feed, key minerals, energy, and logistics should not be treated as separate issues but managed as interconnected complex risks.Lessons from Peru 30 Years AgoNearly 30 years have passed since I first realized the economic power of El Niño while discussing our squid fleet issues in Peru in 1998. In that time, the world has become interconnected in ways that are incomparable. El Niño is a natural phenomenon that has recurred for a long time. We cannot stop nature. However, we can learn from past experiences and anticipate how risks approach our industries and dinner tables to mitigate shocks.Changes in sea temperatures off the coast of Peru can shake our aquaculture feed costs, heavy rains and snow in the Andes can affect the costs of advanced industries, droughts in Colombia can threaten electricity production, and water shortages in the Panama Canal can raise shipping costs for vessels heading to South Korea. The next shock could emerge from anywhere, and no one can predict it with certainty.This year's Super El Niño warning should not be viewed as merely a weather issue in Latin America or a simple supply chain problem. Climate shocks can cascade through food, energy, industry, logistics, finance, and health, creating complex economic impacts. Given the uncertainty of how far-reaching these effects may be, the most practical response is to read the signals of risk early and prepare accordingly. This is the lesson that the El Niño I experienced in Peru 30 years ago teaches us today.* This article has been translated by AI. 2026-09-09 06:04:00
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Political Strife Overshadows Regular National Assembly Session The second regular session of the National Assembly since the inauguration of President Lee Jae-myung began with a plenary session on September 1. As National Assembly Speaker Chung Jin-suk noted in his opening remarks, urgent action is needed on livelihood-related bills and next year's budget by the legal deadline. However, it appears that the National Assembly is not yet prepared to prioritize these issues.Most concerning is the ongoing prelude to conflict between the ruling and opposition parties over the confirmation hearings for the second cabinet of this administration, various legislative proposals, and the massive budget exceeding 800 trillion won. If this pattern continues, as seen in the first half of the 22nd National Assembly, the session may devolve into repeated disruptions, with political strife overshadowing the needs of the public.The first major issue on the agenda is the confirmation hearings. The Democratic Party has set a goal to complete the hearings before the Chuseok holiday, signaling the start of a significant political battle rather than focusing on public welfare.Following the announcement of President Lee's second cabinet on August 30, both the Democratic Party and the People Power Party have engaged in fierce competition over the appointments. The People Power Party has intensified its attacks on Justice Minister nominee Kim Seung-won and Gender Equality and Family Minister nominee Yong Hye-in, while the Democratic Party has responded vigorously, indicating a full-scale battle even before the hearings officially begin.The Democratic Party is actively clarifying allegations involving its own member, Kim, related to a 'new drug solicitation' and 'prosecution cancellation meeting,' demonstrating its commitment to minimizing the government's policy vacuum. However, there are divisions within the party regarding Yong, with concerns about 'privilege' and 'unfairness' surfacing.During the August 17 party convention, Democratic Party leader Kim Min-seok and former leader Song Young-gil emphasized their connections with President Lee, revealing that the party is taking Yong's nomination seriously.In this context, the People Power Party is also ramping up its attacks on both nominees, signaling a major offensive during the confirmation hearings. While the Democratic Party argues for a swift conclusion to the hearings to facilitate the launch of the second cabinet, if the cabinet fails to gain trust within its own party, it will face significant opposition from the opposition, further sidelining public welfare.Next year's budget, which directly impacts the public, is also expected to be mired in conflict as both parties continue their confrontational stance. The People Power Party, led by Representative Jang Dong-hyuk, has labeled the government's proposed record budget as 'populism' and 'money distribution,' tightening its grip on the issue. They have raised concerns about soaring prices and potential tax increases, citing a consumer price inflation rate of 3.1% as of August.Given the People Power Party's strong opposition to the budget, the processing of what is supposed to be a 'budget for the people' is likely to face significant challenges. However, the difficulties in reaching a consensus on the budget are not solely the fault of the People Power Party's outright rejection. The Democratic Party, as the ruling party with a majority in the National Assembly, is also pushing for unconditional approval of the budget, deepening the conflict.Most importantly, statements urging the People Power Party to 'bring alternatives instead of slogans' and calling them 'shameless' have complicated negotiations over the budget.The existence of the National Assembly, representing the people, should not be about the power struggles of the ruling and opposition parties or political conflicts for re-election. A National Assembly that prioritizes its political interests over the public's needs loses its reason for existence and justification for support. It is hoped that a National Assembly focused on public welfare and healthy discussions will emerge soon.* This article has been translated by AI. 2026-09-09 06:04:00