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Medytox Increases Damages Claim Against Daewoong Pharmaceutical to $4.5 Billion Medytox has increased its damages claim against Daewoong Pharmaceutical for trade secret infringement from 50 billion won to 500 billion won, a tenfold increase. On September 3, the company explained that this adjustment reflects additional sales figures and quantities of the infringing products identified during the appeals process. Medytox submitted a request to amend the claim and grounds for the lawsuit during the ongoing appeal at the Seoul High Court on August 31. As a result, the damages claim has significantly risen from 50 billion won to 500 billion won. The company stated that the increase is based on a comprehensive consideration of the sales quantities and revenues of Daewoong's infringing products up to July 31 of last year, the period for calculating damages, and the provisions for increased damages under the Unfair Competition Prevention Act. They have incorporated the damages data collected so far, evidence of intentional trade secret infringement, and the relevant provisions of the Unfair Competition Prevention Act. According to Medytox, under the Unfair Competition Prevention Act, damages incurred after July 9, 2019, can be multiplied by up to three times, while damages after August 21, 2024, can be multiplied by up to five times. However, the specific application and scope of these multipliers will be determined through court proceedings. The 500 billion won claim is a 'partial explicit claim.' It represents a portion of the total potential damages calculated so far, and damages incurred after August 1 of last year are not included in this assessment. Medytox and Daewoong Pharmaceutical have been embroiled in litigation since 2017 over the source of botulinum toxin strains. In February 2023, the first-instance court ruled partially in favor of Medytox, ordering Daewoong to pay approximately 40 billion won in damages. Both parties have appealed the first-instance ruling, and the second-instance trial is currently underway at the Seoul High Court. A Medytox official emphasized, "It is essential to establish the principle that the responsibility for intentional technology theft far outweighs the economic benefits gained from such infringement to protect technological innovation and fair competition in South Korea." Daewoong Pharmaceutical stated that it plans to respond legally to ensure that shareholder value is not compromised.* This article has been translated by AI. 2026-09-03 15:16:00 -
Homeplus Avoids Bankruptcy, Faces New Challenges Ahead Homeplus, which was on the brink of bankruptcy, has narrowly secured an opportunity for rehabilitation. After entering corporate rehabilitation procedures in March of last year, a legal foundation for management normalization has been established after 18 months.However, this decision does not mean that Homeplus has fully recovered. It is more accurate to say that the company has received a final chance to revive.The most urgent task is to restore its damaged operational foundation. The competitiveness of the retail industry ultimately stems from its products. As financial difficulties have persisted, some suppliers have tightened trading conditions or reduced product supply, leading to a vicious cycle of declining sales. If a large supermarket cannot provide the desired products on time, there is no reason for customers to return. This is why restoring trust with suppliers and normalizing the supply chain must be the first priority following the approval of the rehabilitation plan.The starting point for this is to properly repay overdue supply payments. Homeplus has over 500 billion won in commercial public claims, which are supply payments. The rehabilitation plan includes a proposal for long-term installment repayments. However, while waiting for several years may be part of a financial plan for large corporations, it can become a matter of survival for smaller suppliers.Asset sales must also be expedited. According to the rehabilitation plan, Homeplus needs to sell its stores and other assets to use the proceeds for debt repayment. The challenge lies in whether it can sell these assets at the planned prices and times, considering the real estate market and the outlook for large supermarket operations. Delays in sales or lower-than-expected prices could jeopardize both debt repayment and the securing of operating funds.Ultimately, the success of the rehabilitation hinges on whether Homeplus can return to being a 'company that makes money through operations.' With e-commerce platforms like Coupang becoming central to the retail market and competition among large supermarkets intensifying, merely reverting to the old Homeplus will not suffice. The company must decisively restructure underperforming stores and high-cost structures while rebuilding its unique competitiveness in fresh products, private brands, and online delivery.Finding a new owner is also an urgent task that cannot be postponed. Homeplus management has stated that immediately after the approval of the rehabilitation plan, they will focus on normalizing operations, achieving profitability, repaying debts, and ultimately finding a suitable acquirer to complete a merger and acquisition. Given the current situation, it is a significant burden for Homeplus to manage both investment and debt repayment solely through its own cash generation.Throughout the rehabilitation process, creditors, suppliers, and employees have already endured considerable hardship. Under the pretext of saving the company, it is unacceptable to demand further sacrifices from cooperating firms and employees. Existing major shareholders and management must also take responsibility commensurate with their financial support and management normalization efforts.The government and financial sectors should not view Homeplus as just a single corporate issue. Homeplus is connected to numerous workers, suppliers, and small businesses. If it collapses, the shock could ripple beyond the retail sector into the financial industry and local economies. However, unconditional support is not the solution either.With the approval of the rehabilitation plan, Homeplus has extinguished the immediate threat of bankruptcy. However, the court can revoke the rehabilitation process and declare bankruptcy if the repayment is not executed as planned. What Homeplus must do now is clear: repay its debts, restore trust with suppliers, and normalize its stores to attract customers again. The approval of the rehabilitation plan is not the end but the beginning. If it fails to seize this hard-won final opportunity, both the market and creditors may not be willing to wait again. 2026-09-03 15:12:00
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The Value of Tuff: Transforming Mokpo's Volcanic Ash into a Tourist Attraction A single stone we often overlook can become a part of a city's history and a tourist attraction. Turkey's Cappadocia has transformed volcanic ash into a world-renowned tourist destination through thousands of years of natural erosion and human intervention. Similarly, the Bandelier National Monument in New Mexico, USA, utilizes massive tuff cliffs and the remnants of Native American dwellings as key tourist resources. What about Mokpo? Remarkably, much of Mokpo is also a city built on tuff. According to the Mokpo City Natural Environment Report, most of the city is composed of tuff, and the Korea Institute of Geoscience and Mineral Resources has designated the tuff in the area as 'Yudal Mountain Tuff.' The distribution of Yudal Mountain Tuff is extensive. It stretches from the northern area near Mokpo City Hall in Yongdang-dong to the southern region around Samho in Yeongam, and from the eastern area of Buhungsan to the western islands of Jangjwa and Goha. This means Mokpo is essentially a vast 'geological museum.' Volcanic Ash Turned to Stone: Millions of Years of History Hidden Beneath Mokpo Tuff is a rock formed from volcanic ash and debris that has accumulated and solidified over time following a volcanic eruption. Mokpo's tuff is particularly well observed around Yudal Mountain and Gatbawi. The characteristics of tuff can be seen at the summit of Yudal Mountain and around Madang Rock, where various sizes and types of tuff fragments are present. The Yudal Mountain and Gatbawi we see every day are not just ordinary mountains and rock formations; they are 'natural history books' recording the massive volcanic activity and geological changes Mokpo has experienced. If geological resources are connected to the islands of Goha, Jangjwa, and Dalido, Mokpo has the potential to become a unique geotourism city that combines mountains, sea, islands, and modern cultural heritage. The World Has Already Turned Tuff into a Tourist Product A prime example is Turkey's Cappadocia. The region around Nevşehir, Ürgüp, and Avanos features tuff layers formed by volcanic activity that have eroded over time, creating unique formations known as 'fairy chimneys.' People have carved this relatively easy-to-work stone to build homes, churches, monasteries, and underground cities. Today, Göreme National Park and the rock sites of Cappadocia are designated as UNESCO World Heritage sites, attracting global tourists. Similarly, the Bandelier National Monument in New Mexico showcases massive tuff layers formed by volcanic eruptions. Indigenous peoples utilized the soft and easily workable tuff to carve out living spaces in cliffs and used it in construction. Now, this 'relationship between stone and humanity' has become a tourist attraction. Tuff is no longer just a common stone. It is a tourism resource that connects geology, history, architecture, and human life into a single narrative. Mokpo Also Has Buildings Made of Tuff One of the representative buildings showcasing the value of tuff in Mokpo is the Muntae High School main building, a registered cultural heritage site. Constructed between 1953 and 1958, this building is confirmed to be made from tuff quarried in Mokpo's Sanjeong-dong. The structure features an E-shape with protruding central and end sections, highlighting the unique texture of the tuff through different finishing techniques. Notably, the central section incorporates 33 tuff blocks, symbolizing the 33 representatives of the March 1st Movement. This marks the beginning of new possibilities for tourism in Mokpo. Mokpo is home to numerous modern buildings, including the former Japanese consulate, now the Mokpo Modern History Museum, and the former Oriental Development Company Mokpo branch, which houses the second modern history museum. The second modern history museum is a two-story stone building constructed in 1921. This area was registered in 2018 as Korea's first spatial unit national registered cultural heritage site, covering an area of 114,038 square meters. However, there is currently insufficient academic evidence to definitively state that all the stone used in these buildings is Mokpo tuff. This presents an opportunity for new tourism policies. Investigating the 'Stone DNA' of Modern Stone Architecture Mokpo City needs to conduct a comprehensive survey of the stones used in modern buildings in the old downtown area, collaborating with local universities and geology and architecture experts. This involves scientifically verifying which rocks were used in which buildings, where they were quarried, and whether they are the same as Yudal Mountain tuff or other local rocks. If additional buildings using locally quarried tuff, like the Muntae High School main building, are confirmed, the narrative changes. A new story emerges: 'Mokpo's buildings were made from Mokpo's stone.' This connects the geological resources formed at Yudal Mountain with the modern architecture of the old downtown as a single tourism content. Creating the 'Mokpo Stone Road' Mokpo's tourism needs to expand from mere sightseeing to 'walking tourism in search of stories.' Considering the creation of a 'Mokpo Yudal Mountain Tuff Geo-Road' is worthwhile. This would connect Yudal Mountain and Madang Rock to Nojeokbong, the old downtown, the Mokpo Modern History Museum 1 and 2, the modern history cultural space, Gatbawi, and Goha. The Muntae High School main building, constructed from tuff quarried in Sanjeong-dong, could serve as a key hub for 'Mokpo Tuff Architectural Heritage.' QR codes could be installed at each location to provide information on the rock formation process, construction years, stone processing methods, and Mokpo's modern history via smartphones. This would go beyond simply stating, 'This building is old,' to telling visitors, 'Where did this stone come from, when was it made, and who built it?' Mokpo's Unique Geotourism Potential Compared to Jeju and Cheorwon In South Korea, volcanic landscapes, such as Jeju's Suwolbong and the Han River area in Cheorwon, are utilized as tourist resources. However, Mokpo has distinct advantages. It is where geology and the history of a modern city intersect. Visitors can see natural tuff at Yudal Mountain and Gatbawi, then descend to the old downtown to explore how locally sourced stone was used as building material, and finally encounter the history of Mokpo's opening and urban development in the modern history cultural space. Connecting Mokpo's sea, islands, aerial cable cars, and modern history cultural space could also expand the potential for stay-type tourism products. Cappadocia Also Started with 'Stone' Tourism resources do not always need to be newly created. They can begin with something that has been there for millions of years, waiting for us to discover its value. Just as the people of Cappadocia carved tuff to build homes and cities, the people of Mokpo have used locally sourced stone to construct buildings. And those traces still remain today. What Mokpo needs to do is not create new tourist resources but find the value in the resources it already possesses and weave them into a single narrative. The name 'Yudal Mountain Tuff' itself should be utilized as a tourism resource. By connecting the natural geological heritage of Yudal Mountain and Gatbawi, the tuff architectural heritage including the Muntae High School main building, and the modern history cultural space, a brand called 'Mokpo: The City Made of Stone' can be established. Stones do not speak. Yet, they hold the history of a city from volcanic activity millions of years ago to the opening of the port, urban formation, and the lives of today's Mokpo residents. The 'stones of Mokpo,' which have been overlooked beneath our feet, could become a new cornerstone attracting tourists to Mokpo.* This article has been translated by AI. 2026-09-03 15:08:10
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Yoo Young-kuk's Artwork Sells for 2.5 Billion Won at Frieze Seoul The artwork of Yoo Young-kuk (1916–2002), a pioneer of Korean abstract art, sold for between 220 million and 250 million won at Frieze Seoul 2026, held at COEX in Seoul on September 3. This sale marks the highest price among the works sold at this year's Frieze Seoul.International Gallery stated, "The Yoo Young-kuk piece showcased at our booth has been sold for the highest price among the works at Frieze Seoul," adding that it was acquired by a board member of a North American art museum visiting Korea.Interest in Yoo Young-kuk continues to grow, as evidenced by a retrospective exhibition titled 'Yoo Young-kuk: The Mountain is Within Me,' currently running at the Seoul Museum of Art. Since its opening in May, the exhibition has attracted over 300,000 visitors and features 170 works, including 115 oil paintings, making it the largest retrospective of Yoo Young-kuk to date.Since its inception in 2022, the highest price for a single artwork at Frieze Seoul was approximately 6.3 billion won. Last year, Hauser & Wirth sold American artist Mark Bradford's large triptych 'Okay, then I apologize' (2025) for $4.5 million, equivalent to about 6.26 billion won.This year, the fair has seen a strong start, with multiple artworks selling for over 100 million won on the opening day. Templon sold Adrian Ghenie's painting 'Figure with Funerary Stele' (2026) for 1.1 million euros (about 170 million won). A sculpture by Antony Gormley also found a new owner for 750,000 pounds (approximately 140 million won). Among Korean artists, several works by Kim Chang-yeul were sold, priced between $180,000 and $1 million (up to about 150 million won).International galleries have assessed that the purchasing power in the Korean art market remains robust. Nick Simunovic, managing director of Gagosian, remarked, "It was a strong opening," noting that major works by Damien Hirst were sold to prominent collections, although specific prices were not disclosed.James Green, associate partner at David Zwirner, stated, "The purchasing power in this region remains strong," while Rachel Lehmann, co-founder of Lehmann Maupin, mentioned, "We sold a significant number of works on preview day, with many buyers being Asian, indicating that the Asian art market is still solid."* This article has been translated by AI. 2026-09-03 15:08:00
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Alteogen Shares Drop Despite $32 Billion Deal with Novartis Alteogen's shares fell despite news of a technology transfer agreement worth approximately 32 trillion won with Swiss pharmaceutical company Novartis.According to the Korea Exchange, as of 2:59 PM on September 3, Alteogen's stock was trading at 287,500 won, down 11,000 won (3.69%) from the previous trading day.On September 2, Alteogen announced it had signed an exclusive option and license agreement with Novartis for ALT-B4, a hyaluronidase based on its Hybrozyme platform technology.The agreement grants Novartis the rights to develop and commercialize subcutaneous (SC) formulations using ALT-B4. The total contract value could reach up to $3.223 billion (approximately 44 trillion won), which includes upfront payments, milestone payments based on development and commercialization stages, and additional payments for each product option exercised. Royalties from sales will be received separately.ALT-B4 is a recombinant human hyaluronidase developed by Alteogen using its proprietary Hybrozyme platform technology. It is considered a key technology for converting intravenous (IV) medications to subcutaneous administration.Analysts view the agreement positively, noting that Alteogen has secured a partnership with a major global pharmaceutical company.Notably, the choice of ALT-B4 over Novartis's existing subcutaneous formulation technology, 'Enhanze,' indicates a preference for Alteogen's technology among global big pharma, according to analysts.Samsung Securities stated that given Novartis's portfolio of blockbuster drugs for treating immune diseases, cancer, and immuno-oncology, there is potential for ALT-B4 to be utilized in the transition of key pipeline products to subcutaneous formulations.However, the market has interpreted the lack of specific pipeline applications related to the large contract as a source of short-term uncertainty. It appears that profit-taking from the previous day's price increase, driven by the contract announcement, has also contributed to the stock's decline.Reflecting the value of the Novartis agreement, Samsung Securities has raised its target price for Alteogen from 350,000 won to 370,000 won, an increase of 5.7%.* This article has been translated by AI. 2026-09-03 15:08:00
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Life Insurance Association Selects 1,000 Golden Fellows 생명보험협회는 제10회 Golden Fellow 인증식을 개최했다고 3일 밝혔다. 올해 주제는 ‘믿음주는 골든펠로우 신뢰받는 생명보험’이다. Golden Fellow는 생명보험협회가 우수인증설계사 인증 10주년을 기념해 2017년 도입한 제도다. 이날 행사에는 국회 정무위원장인 유동수 더불어민주당 의원과 신진창 금융위원회 사무처장, 각 생명보험사 최고경영자(CEO)들이 참석했다. 생명보험협회는 올해 Golden Fellow로 1000명을 선정했다. 이는 전체 생명보험설계사 12만813명 중 약 0.83%, 2026년 생명보험 우수인증설계사 1만1460명 중 약 8.7%에 해당하는 인원이다. 올해 선정된 Golden Fellow들은 소속 생명보험회사에서 평균 23.5년간 근속하였으며 평균 연 소득은 2억7056만원에 이른다. 보험계약 유지율도 13회 차 98.4%, 25회 차 93.6%로 높은 수준을 기록하고 있다. 이는 소비자 필요에 맞는 최적의 상품을 판매함은 물론 유지관리에도 최선을 다하는 등 꾸준한 정도영업을 실천한 결과다. 김철주 생명보험협회장은 "생명보험산업의 가장 중요한 자산은 ‘신뢰’이며 보험설계사들이 쌓아온 신뢰가 생명보험산업 성장의 역사를 이끌어 왔다"며 "Golden Fellow가 생명보험산업과 국민을 연결하는 신뢰의 얼굴로 높은 전문성과 윤리의식을 갖추고 보험의 보호가 필요한 분들에게 먼저 다가가야 한다"고 말했다. * This article has been translated by AI. 2026-09-03 15:04:10
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Financial Authority Expands AI Security Testing by Easing Network Separation Regulations The financial authorities are expanding the scope of emergency easing of network separation regulations to enhance security vulnerability assessments using artificial intelligence (AI) in the financial sector. The second round of testing will increase participation and selection size to include the second financial sector and electronic financial service providers, aiming to bolster their AI security capabilities.On September 3, the Financial Services Commission (FSC) held its fifth meeting of the 'Frontier AI Response Team' led by Yu Young-jun, Director of Digital Finance Policy, alongside the Financial Supervisory Service and the Financial Security Institute, where they finalized the details of the 'Second Emergency Easing Measures for Network Separation Regulations.'The second round of testing will include a total of 75 companies, an increase of 26 from the 49 companies that participated in the first round held in June. The actual selection size will also expand from 10 to 15 companies.The application criteria for financial companies will be relaxed from 'total assets of 10 trillion won or more and 1,000 or more employees' to 'total assets of 2 trillion won or more and 300 or more employees.' However, to ensure accountability and independence in information security, only financial companies where the Chief Information Security Officer (CISO) does not hold concurrent duties in other IT sectors will be eligible. A total of 59 companies meet this criterion.Separate criteria will be applied to electronic financial service providers to broaden participation opportunities. They must have annual electronic financial transaction amounts exceeding 2 trillion won and electronic financial service-related revenue constituting more than 10% of total revenue. The same requirement regarding the CISO's concurrent duties will apply. Sixteen electronic financial service providers meet these criteria.Selected financial companies and electronic financial service providers will establish alternative control measures for network separation and utilize Frontier AI and security software as a service (SaaS) to detect and improve security vulnerabilities in their IT systems.The FSC plans to evaluate the security capabilities and AI utilization of the applying companies through a private technical advisory group this month, and will issue a one-year temporary non-objection opinion on network separation regulations after reporting to the FSC on October 7.This initiative aims to enhance the defensive capabilities of the financial sector amid increasing risks of cyberattacks utilizing AI. A uniform application of network separation regulations could hinder the use of external AI services for security purposes, so the regulations will be temporarily eased for financial companies that meet certain security requirements.The government intends to quickly determine the timing and selection size for a third round of testing based on the application status and results from the first and second rounds. If additional demand is confirmed, further emergency easing measures for network separation regulations will be considered, or the possibility of institutionalizing them will be explored.* This article has been translated by AI. 2026-09-03 15:04:10
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Revised party rules tighten North Korean leader's grip on power, think tank says SEOUL, September 3 (AJP) - North Korea has revised the rules governing its ruling Workers' Party to solidify leader Kim Jong-un's power and streamline decision-making structures for wartime and other similar emergencies, according to an analysis revealed by South Korea's Institute for National Security Strategy at a press briefing in Seoul on Thursday. The institute said the revisions, adopted at the party's ninth congress in February, further strengthened Kim's power, giving him a greater say in appointing and dismissing senior party officials, making decisions on party membership, and expelling members for serious misconduct. Other changes included the introduction of wartime provisions for the first time since the party's founding, allowing the powerful politburo to make major decisions when a plenary session of the party's central committee cannot be held during a war or other emergency situations. Leadership elections can also be suspended in emergencies, allowing senior party officials to discuss and make key decisions under delegated authority. Analysts from the institute said the changes appear intended to institutionalize North Korea's leadership structure, further consolidating Kim's grip on power and paving the way for his prolonged rule by clearly laying out his authority. The revised rules also removed remaining references to South Korea and reunification between the two Koreas, reflecting Pyongyang's increasingly hostile stance toward Seoul. However, the institute pointed out that the North has not included expressions like "hostile state" or "belligerent state" to refer to the South. The party's eligible age for membership was raised from 18 to 20, a change analysts say is more likely to reflect current practice than to signal a possible succession plan involving Kim's daughter, Ju-ae. The institute also warned that if North Korea agrees to resume talks with the U.S., Pyongyang is likely to demand more concessions than before. It believes North Korea's growing military ties with Russia would give it greater bargaining power and that it no longer sees denuclearization as a condition for negotiations. AJP Takeaways • South Korea's Institute for National Security Strategy said on Sept. 3, 2026, that North Korea revised its Workers' Party rules at its ninth congress in February 2026, expanding leader Kim Jong-un's power over senior appointments, party membership, and expulsions. • The revisions added first-ever wartime provisions letting the politburo make major decisions when a full central committee session can't be held, and allow leadership elections to be suspended in emergencies. • The rules dropped references to South Korea and reunification and raised the party membership age from 18 to 20, which analysts linked to existing practice rather than a succession plan involving Kim Jong-un's daughter, Ju-ae. 2026-09-03 15:00:17 -
Lee Hyung-il, Key Figure in 1997 Financial Crisis, Nominated as Economic Deputy Prime Minister The repayment of the government’s share of public funds injected during the 1997 financial crisis will conclude next year. As the 2002 government promise of repayment within 25 years comes to fruition, Lee Hyung-il, the first deputy minister of the Ministry of Finance and Economy, has been nominated as a candidate for economic deputy prime minister. This nomination comes at a time when the long journey of public fund repayment is nearing its end, with an economic bureaucrat who managed the initial repayment system now in line to lead economic policy.According to the Ministry of Finance and Economy on September 3, the government plans to allocate 7.9226 trillion won in next year’s budget to fully repay the remaining debts from public funds incurred during the financial crisis. It has been nearly 30 years since large-scale public funds were injected to stabilize the financial market and restructure failing financial institutions after the 1997 crisis.As the nominee for economic deputy prime minister, Lee has a deep connection to public funds. He entered public service after passing the administrative examination in 1992 and began working in the Financial Policy Bureau in 1999, shortly after the financial crisis. From May 2001 to February 2003, he worked in the Office of the Public Fund Management Committee, overseeing tasks related to public funds and financial restructuring.The Public Fund Management Committee was established to manage the restructuring of failing financial institutions and the operation and recovery of public funds following the financial crisis. Lee’s tenure at the committee coincided with a critical transition from large-scale public fund injections to a recovery and repayment system.In September 2002, the government developed a repayment plan for public funds, establishing a long-term repayment strategy where the government and financial sector would share the burden of anticipated losses. The actual repayment process began in 2003, centered around the Public Fund Repayment Fund, during the same period Lee worked at the committee.Since then, the government has been recovering the injected public funds through the sale of financial institution shares and the collection of bad debts, while continuously repaying the debts of the Public Fund Repayment Fund.According to the National Assembly Budget Office, the remaining debt of the Public Fund Repayment Fund was 15.0712 trillion won at the end of last year. The government repaid 7.1486 trillion won this year and plans to allocate 7.9226 trillion won in next year’s budget to fully repay the remaining debt.If the repayment proceeds as planned, the government’s share of repayment will conclude 24 years after the formal repayment process began in 2003. The Public Fund Repayment Fund is scheduled to be liquidated by the end of 2027, according to relevant laws.Park Hong-keun, Minister of the Ministry of Economy and Finance, stated at a Cabinet meeting on September 1, “Next year, we will complete the repayment of public funds injected to respond to the financial crisis,” adding, “We will fulfill the government’s promise made in 2002 to repay within 25 years.”As the repayment of public funds approaches its conclusion, Lee was nominated as deputy prime minister and minister of the Ministry of Finance and Economy on August 30, nearly 25 years after he handled related tasks at the Public Fund Management Committee.Since his time at the committee, Lee has held key positions in the economic and financial sectors, including director of economic analysis and comprehensive policy at the Ministry of Finance and Economy, director of economic policy, and vice minister. He also served as the head of the Statistics Korea before becoming the first deputy minister of the Ministry of Finance and Economy.During his tenure in the financial policy sector immediately after the financial crisis, key issues included the restructuring of failing financial institutions, stabilizing the financial market, and managing public funds. Currently, major challenges include fiscal management, household and corporate debt, stabilizing financial and foreign exchange markets, and responding to external uncertainties.If he passes the National Assembly confirmation hearing, Lee will oversee overall economic policy as deputy prime minister and minister of the Ministry of Finance and Economy. His extensive experience in financial policy and public fund management will likely be highlighted during the confirmation process. 2026-09-03 15:00:10
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U.S. Treasury Secretary Calls for Japan to End 'Reflation Policy' Scott Vessent, the U.S. Treasury Secretary, has publicly called on Japan to halt its 'reflation policy,' which combines fiscal expansion with monetary easing. Previously, he had only hinted at expectations for the Bank of Japan (BOJ) to raise interest rates in response to a stronger yen through media interviews. However, he has now demanded a change in the core economic policies of the Takaiichi government. The response from Japan to this public pressure from the U.S. is being closely watched.According to the Yomiuri Shimbun, Vessent made his remarks on September 1 during a press conference following the G20 finance ministers and central bank governors meeting in Asheville, North Carolina. He specifically called for Japan to 'end the reflation policy,' effectively urging the Takaiichi government to revise its active fiscal stance and the BOJ to raise interest rates to correct the yen's weakness.To support his argument, Vessent referenced Abenomics, the economic policy initiated by former Prime Minister Shinzo Abe. He described Abenomics as a successful strategy that led Japan out of deflation, asserting that if inflation had reached 2%, the reflation policy had already achieved its goals. He emphasized that it is now time to consider the outcomes of that success, stating, 'Now is the time for Takaiichinomics,' urging a policy shift to align with the changed economic circumstances. Vessent referred to Prime Minister Takaiichi's economic policy, commonly known as 'Sanaenomics,' as 'Takaiichinomics.'This is not the first time Vessent has expressed such views. The New York Times reported that prior to this public criticism, he had dined for over two hours with Finance Minister Satsuki Katayama at a high-end restaurant in Tokyo on May 11, where he voiced dissatisfaction with the Takaiichi government's economic policies. He reportedly questioned the combination of pushing for fiscal expansion while demanding the BOJ maintain low interest rates, asking, 'Why is independence not granted to the BOJ?'The Yomiuri Shimbun noted that Vessent's shift from private dissatisfaction to public pressure reflects growing concerns about Japan's fiscal policy and its side effects. The U.S. government is also wary of the potential spillover effects of rising long-term interest rates in Japan on U.S. financial markets. The yield on U.S. 10-year Treasury bonds has risen to 4.8%, the highest level since January 2025. With the midterm elections approaching in November, the Trump administration is particularly concerned that rising long-term rates could increase mortgage rates, burdening voters.Japanese Government's Response DiffersIn contrast, the Japanese government has provided a different explanation regarding Vessent's comments. According to the Nihon Keizai Shimbun (Nikkei), Finance Minister Katayama stated at a press conference on September 1 that there had been 'surprisingly little' concern expressed by other countries, including the U.S., regarding Japan's fiscal policy. He cited that Japan has the smallest ratio of annual fiscal deficit to GDP among the G7 nations. He claimed that the Takaiichi government has garnered support from participants, including Vessent, by explaining its commitment to balancing economic growth with fiscal sustainability. While the U.S. has called for a policy shift, Japan has portrayed that it has received understanding for its policy direction from the U.S.BOJ Governor Ueda also drew a line regarding the U.S. demands. At a press conference on September 1, when asked if there was a need to respond more strongly to currency movements, he replied, 'I do not think there has been such a change.' However, according to the Asahi Shimbun, when asked about the possibility of raising rates at the monetary policy meeting on September 17-18, Ueda stated, 'I want to discuss it thoroughly at every meeting, including the next one,' leaving the door open for a rate hike. The Nikkei reported that the market's expectation for a September rate increase stood at 97% as of the afternoon of September 2.As the differences in perception between the U.S. and Japan become evident, the pressure from the U.S. may not end with this press conference. The Yomiuri Shimbun speculated that depending on future currency and bond market trends, Vessent may continue to call for a policy shift from Japan ahead of the next G20 meeting in October. However, some analysts suggest that rather than a significant immediate change in policy implementation, there may be a shift in the way Japan explains its policies externally. Toru Suehiro, chief economist at Daiwa Securities, noted that the Takaiichi government might explain that it has already moved beyond the reflation policy stage, while gradually downplaying the active fiscal stance and placing greater emphasis on market stability and fiscal discipline. 2026-09-03 15:00:10