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  • In Dongtan, Semiconductor Boom Fails to Benefit Local Businesses
    In Dongtan, Semiconductor Boom Fails to Benefit Local Businesses "My husband made a lot of money this time, so why not buy this?"At the Lotte Department Store in Dongtan, a sales associate made this unsolicited pitch to a customer. The associate did not mention that the customer had a husband or that he worked for Samsung Electronics. Yet, the phrase "husband who made a lot of money this time" seemed to need no explanation. This is Dongtan.Dongtan is a prominent "semiconductor city" in South Korea, located near Samsung Electronics' Hwaseong and Giheung semiconductor plants and connected by shuttle bus to SK Hynix's Icheon facility. With an unprecedented boom in AI-driven memory production, Samsung and SK Hynix have reported record earnings, significantly increasing the disposable income of local employees. SK Hynix workers are expected to receive bonuses totaling around 700 million won, while Samsung semiconductor employees are projected to receive bonuses of about 600 million won.Evidence of this financial influx is visible in various sectors. Sales at Lotte Department Store in Dongtan increased by 25% in the first half of the year, with luxury goods, overseas watches, and jewelry seeing a rise of 40-45%. New registrations of imported cars in Hwaseong surged by 42.5%. Apartment prices in Dongtan have risen by 16.3% this year, marking the highest increase in the country.However, stepping out of the department store and into the alleyways reveals a stark contrast. A café owner remarked, "We haven't seen an increase in customers." An optical shop reported a decline in sales, and a travel agency stated, "We don't feel the effects of the bonuses." Despite the semiconductor industry experiencing its largest boom, why are local businesses in Dongtan not sharing in the prosperity?The answer lies in the sheer scale of the bonuses received by semiconductor employees. If bonuses are in the hundreds of thousands of won, they can be spent on dining out and shopping. However, when bonuses reach tens of millions, the narrative changes. The money begins to function as "capital" rather than just a "bonus."Even with a 600 million won bonus... "Dongtan is out of reach"The first signs of this financial shift are evident in the real estate market. According to the Korea Real Estate Agency, apartment prices in Dongtan have surged by 16.3% this year, with jeonse (long-term rental) prices also rising by 10.9%. Ham Young-jin, head of the real estate research lab at Woori Bank, analyzed actual transaction prices from the Ministry of Land, Infrastructure and Transport and found that from June to August 25, 64.6% of the 494 apartment types traded in Dongtan reached record highs during this period, the highest ratio in Gyeonggi Province.A 97-square-meter unit in Cheonggye-dong The Sharp Central City sold for 2.16 billion won, exceeding the previous record by 500 million won. A 128-square-meter unit in Dongtan Station Hanwha Dream Green Prestige also changed hands for 2.4 billion won, up 420 million won from the previous record.The pace of rising home prices has outstripped the bonuses received by some employees.A Samsung Electronics employee, who wished to remain anonymous, said, "I was looking to move to Dongtan after receiving my bonus, but prices have risen so much that now I can't even dream of it."Even within Dongtan, the flow of money varies. A real estate agent in Dongtan 1 New Town noted, "There are many Samsung Electronics employees nearby, but we don't feel a significant impact here. Prices have risen, but Dongtan 2 has seen much larger increases."Professor Seo Jeong-ryeol from Yeongsan University explained that just because semiconductor employees receive large bonuses, it does not mean they indiscriminately buy nearby homes.He stated that funds tend to concentrate in areas where proximity to work, living conditions, and investment value converge."If conditions are similar, people will naturally prefer areas with better living conditions or higher investment value," he said. "Just because large companies like Samsung or SK Hynix are making money, it doesn't mean employees will buy homes anywhere. Apartments that are close to work and have investment potential take priority."Additionally, a new financial opportunity will arise next month. Starting September 1, Samsung Electronics will offer housing loans of up to 500 million won at an interest rate of 1.5% per year to eligible employees without homes. This will apply to properties valued at 2.5 billion won or less and with a floor area of 85 square meters or less in the metropolitan area.As expectations for price increases grow, some existing contracts are being canceled. A Dongtan resident, Mr. Kim, reported that he received an unexpected notice of contract termination from the landlord of an apartment he was set to move into. "The landlord deposited double the deposit without any explanation. I think they believe prices will rise further." Professor Seo explained that a landlord canceling a contract while offering double the deposit indicates a belief that the future increase in home prices will outweigh the cost.Stepping outside the apartment complex, the 'semiconductor boom' disappearsHowever, just a few blocks away from the apartment complexes, the atmosphere changes. An optical shop employee stated, "When asked if the local economy has improved, I would say no. They say bonuses have been issued, but sales have not increased; in fact, they have decreased." He observed that young professionals seem more interested in other investments. "It seems like they are investing a lot in stocks and are also very interested in real estate."A café owner had high hopes when Samsung's performance began to soar. "Honestly, we thought we would benefit. When Samsung issues bonuses, we thought money would circulate in the area." However, customer numbers did not increase as expected. In previous boom periods, corporate orders for snacks and meals would flow into local businesses, but this time, many local merchants are reporting that "business is tough."The café owner reflected on his own spending habits to explain the situation. "If I suddenly came into a lot of money, I would probably move or pay off debts first. Shopping doesn't leave anything behind, does it?"Local shops are quiet, yet luxury goods have surged over 40%Shopping patterns have also changed with the size of expenditures. Sales at Lotte Department Store in Dongtan increased by 25% in the first half of the year, surpassing the overall growth rate of about 20% for all Lotte stores. Notably, sales of luxury goods and overseas brand watches and jewelry surged by 40-45%.The automotive sector has seen similar trends. According to the Korea Automobile Importers and Distributors Association (KAIDA), new registrations of imported cars in Hwaseong, where Dongtan and Samsung Electronics' Hwaseong plant are located, increased by 42.5% in the first half of the year, rising to 4,273 from 2,998 in the same period last year. The national increase rate during the same period was 33.2%. While it cannot be definitively stated that Samsung's bonuses directly caused the increase in imported cars, employees' spending plans do include vehicles. A Samsung employee, Mr. Lee, said, "I have wanted to change my car for a while, and I am considering doing it now."Travel increased, but local travel agencies saw no benefitTracking the flow of money in travel is more challenging. A travel agency in Dongtan reported that despite the semiconductor bonuses, there has not been a noticeable increase in bookings. "Corporate employees often use travel agencies affiliated with their companies. Even for the same products, they tend to use those agencies to receive employee discounts." Young employees also book flights and accommodations directly through applications. Money may be flowing overseas, but it is simply not passing through local travel agencies.In fact, an educator in Dongtan noted a significant increase in students missing classes due to travel this summer. "In the past, a family would typically take a 3-4 day trip abroad during vacation. This time, however, families are going on multiple trips, such as visiting Vietnam and then returning to Japan during the same break." However, these families have not doubled their education expenses.Lee Eun-hee, an emeritus professor of consumer studies at Inha University, explained that large sums like bonuses are spent differently than regular salaries. High-priority expenses, such as education, do not suddenly increase just because unexpected money comes in. Instead, unanticipated funds are often used to expand living spaces, accumulate assets, or enable purchases that are typically difficult to make with regular salaries. She noted that money may flow toward travel, luxury goods, and imported cars—things people want but find hard to afford normally."You don't eat two meals, do you?"Professor Yang Jun-mo from Yonsei University simplified this concept further. "You don't eat two meals, and a child already attending an academy isn't going to pay double the tuition." The moment bonuses reach tens of millions of won, the nature of the money itself changes.Professor Yang explained, "For example, if you suddenly receive 600 million won, you will start to consider whether to buy a home in Dongtan or add more money to move to Gangnam. At that point, the logic of money changes completely." He noted that during past export booms, money earned in prosperous regions did not all get spent locally; instead, it often shifted toward higher-value real estate or financial assets. "When a large sum of money suddenly appears, it transitions into the concept of asset investment."The semiconductor factories are thriving, and employees are enjoying increased financial security. Apartment prices in Dongtan are reaching new highs, and luxury sales and imported car registrations are soaring. Yet, the cash registers in the alleyways outside the apartment complexes remain quiet.The money generated by the semiconductor industry that sustains Dongtan has not been distributed evenly throughout the community. Rather, it has flowed in different directions. 2026-08-28 13:48:00
  • Interest Rate Hike to 3% May Reduce Borrowing for Stock Investments
    Interest Rate Hike to 3% May Reduce Borrowing for Stock Investments The Bank of Korea has raised the base interest rate to 3%, increasing the burden on stock investors who engage in borrowed investments. As the interest rates for margin trading are influenced by market rates, further increases in the base rate could lead to higher borrowing costs. The balance of margin trading, which had significantly decreased from its peak, has recently begun to rise again, raising concerns that the interest rate hike may hinder the recovery of leveraged investments.According to the Korea Financial Investment Association, as of August 26, the balance of margin trading in the combined KOSPI and KOSDAQ markets was recorded at 33.1024 trillion won. After reaching a peak of 38.6328 trillion won on June 24, it declined to 27.4038 trillion won by August 4. Although it has shown signs of recovery, it remains 5.5304 trillion won (14.3%) lower than the year's high.However, there are concerns that the increase in the base rate may slow the recovery of borrowed investments. The Bank of Korea's Monetary Policy Committee raised the base rate from 2.75% to 3.00% on the previous day. As securities firms calculate margin trading interest rates based on the 91-day Certificate of Deposit (CD) rate and additional spreads, the increase in the base rate could lead to higher margin trading rates. This is particularly significant for longer borrowing periods, which can result in greater interest costs for investors.Currently, margin trading interest rates are not low. According to the latest disclosures, the short-term rates for non-face-to-face transactions range from 3.90% at Hyundai Motor Securities to 7.75% at Shin Young Securities. For general customers who do not qualify for preferential rates, interest rates of 7% to 9% are common for margin trading lasting over a month. However, the immediate impact of the base rate increase on margin trading rates may vary among securities firms.The possibility of further base rate hikes is also a variable. Choi Je-min, a researcher at Hyundai Motor Securities, stated, "Given the Bank of Korea's proactive stance and the significant upward revision of growth and core inflation forecasts for next year, there is a strong possibility of additional hikes within the year. Considering the upward risks to growth and inflation, reaching 3.5% cannot be ruled out."However, it is difficult to attribute the decline in margin trading solely to interest rates. Stock price trends, market volatility, and individual investor sentiment also influence the demand for leverage. If the burden of interest rates increases while expectations for a rising stock market diminish, the recent recovery in borrowed investments may falter again.Kwon Beom-seok, a senior researcher at Samsung Securities, noted, "Indicators related to leverage, such as the balance of margin trading and the amount of collateralized securities lending, are on a downward trend. The personal buying sentiment index, which is derived from various market funding indicators, has been declining since June, suggesting that individual selling pressure may continue under the assumption of mean reversion."* This article has been translated by AI. 2026-08-28 13:44:00
  • Gwangju City Selects Four Exemplary Cases for Regulatory Reform Competition
    Gwangju City Selects Four Exemplary Cases for Regulatory Reform Competition Gwangju City has selected four exemplary cases of regulatory reform in its first competition since the city's integration, including the recognition of rice blast disease as an agricultural disaster.The city announced that it chose the final exemplary cases submitted by the Food Horticulture Division, Energy Policy Division, Land Management Division, and Chemical Steel Industry Division during the recent regulatory reform competition.The competition focused on nine cases identified over the past year by the former Jeonnam and Gwangju departments, which proposed improvements to central government agencies that led to actual amendments to laws or system improvements.Six judges, including members of the former Jeonnam and Gwangju Regulatory Reform Committee and private experts, evaluated the cases based on criteria such as creativity, difficulty, effectiveness, and potential for dissemination, with 60% of the score based on case excellence and 40% on presentation quality and preparedness.The Food Horticulture Division received high marks for its case recognizing the rice blast disease, which spread due to abnormal high temperatures, as an agricultural disaster.Gwangju City demonstrated through joint sampling investigations that the damage rate from rice blast disease exceeded 30%, achieving the distinction of being the first in the nation to have this damage recognized as an agricultural disaster. This significant achievement provides a basis for institutional support backed by objective investigation data from the agricultural field.The Energy Policy Division improved regulations related to solar power facilities in agricultural promotion zones. The previous law restricted solar installations in these zones and limited temporary usage permits to eight years. The new regulations extend the permit period to a maximum of 23 years.This change reflects the long-term operational needs of solar power projects and addresses discrepancies between project duration and licensing requirements raised in the field.The Land Management Division tackled the issue of unregistered land in the former Jeonnam region, which was registered during the Japanese colonial land survey but never officially recorded.This unregistered land comprises over 116,000 parcels. Gwangju City collaborated with the Anti-Corruption and Civil Rights Commission to resolve long-standing property rights and administrative management issues, leading to the proposal of a special law regarding the nationalization of unregistered land.The Chemical Steel Industry Division was recognized for improving road setback regulations that hindered the construction of high-pressure gas pipelines in the Yeosu National Industrial Complex, which has been established for 45 years.Previously, existing regulations made it difficult to build new high-pressure gas pipelines, but the regulatory improvements now allow exceptions to the road setback regulations for facilities that meet safety standards. This case is seen as a regulatory reform that considers both the improvement of industrial infrastructure in aging national industrial complexes and the investment conditions for businesses.Song Mun-jeong, the legal officer of Gwangju City, stated, "This achievement is the result of efforts to connect the voices from the field to institutional improvements. We will widely publicize the selected exemplary cases and continue to identify and improve unreasonable regulations that are felt in the field."The four selected cases will represent Gwangju City in the 'Local Regulatory Reform Exemplary Case Competition' organized by the Ministry of the Interior and Safety in September.* This article has been translated by AI. 2026-08-28 13:40:00
  • Hanwha Aerospace Plans Mass Production of Drone Engines Using Fighter Jet Technology
    Hanwha Aerospace Plans Mass Production of Drone Engines Using Fighter Jet Technology Hanwha Aerospace has unveiled its strategy for developing engines for both manned and unmanned aircraft to respond to future battlefield needs. The company aims to leverage its expertise gained from large fighter jet engine projects to mass-produce small engines for drones and unmanned aerial vehicles.Kim Sun, Vice President of Hanwha Aerospace, presented the 'One Sky' paradigm for future aircraft engine development at the 'Gas Turbine Symposium 2026' held on August 27 in Yeosu, South Jeolla Province.The goal is to apply the 'Legacy Excellence' technology accumulated over 47 years of developing and mass-producing various engines to the development of future aircraft engines, including drones.Hanwha Aerospace plans to shift from a focus on high-performance, high-cost engine development to a system that emphasizes reasonable pricing and mass production capabilities. The strategy prioritizes production efficiency over premium features.This strategic shift is driven by changes in the battlefield environment. Recent conflicts in Europe and the Middle East have seen tactics that utilize relatively inexpensive drones and unmanned vehicles to neutralize costly strategic assets like tanks and missiles. Consequently, the ability to quickly acquire a significant amount of aerial power at a reasonable cost has emerged as a key competitive advantage in future warfare.Kim stated, "To rapidly develop aircraft engines that meet the evolving security environment and new market demands, we must actively utilize our existing technologies and experiential assets."The company is also pursuing innovations in engine development through artificial intelligence (AI). Hanwha Aerospace plans to use its proprietary AI model, 'Engineers,' which has been trained on decades of accumulated aircraft engine data, to reduce potential errors and costs in the engine development process.Hanwha Aerospace has already gathered substantial data, having resolved over 1,000 issues through more than 10,000 engine test runs. The company has also established a database of approximately 35,000 materials for aircraft engines.In July, the company unveiled prototypes of a 5,500-pound (lbf) turbofan engine for low-observable unmanned formations and a 1,400-horsepower turboprop engine for medium-altitude unmanned vehicles, developed using domestic technology under government leadership.Looking ahead, Hanwha Aerospace plans to actively participate in government-led aircraft engine development projects, including a 10,000-pound turbofan engine for stealth unmanned vehicles and advanced aircraft engines for next-generation fighters like the KF-21.Utilizing its global supply chain network and smart factory capabilities in the U.S. and Vietnam, the company aims to comprehensively manage quality, cost, and delivery times.Kim emphasized, "Each failure in engine testing incurs costs in the billions of won and adds at least several months of time, so a development system that minimizes errors is essential. AI can play a central role in that process." He added, "Based on Hanwha's technology and experience, we will strive to lead the 'New Sky' era in the future aviation market for South Korea."* This article has been translated by AI. 2026-08-28 13:40:00
  • KB Financial Group Supports K-Startups Expansion in Singapore
    KB Financial Group Supports K-Startups' Expansion in Singapore KB Financial Group has hosted a Global Demo Day in Singapore to support domestic startups' entry into the Southeast Asian market. On August 26-27, KB Financial, in collaboration with the Korea Small Business and Startup Agency's K-Startup Center in Singapore, conducted a program aimed at assisting local startups in expanding their business. The event was announced on August 28. Twelve startups participated in the event, including seven selected for the 'KB Starters' program in May. This year's program, the second of its kind, featured not only a demo day but also meetups and visits to key local institutions to experience the startup ecosystem firsthand. Participating companies visited TechX Ventures, a subsidiary of Singapore's Home Team Science and Technology Agency, the startup industry association ACE.SG, the Open Innovation Center The GEAR in Kashima, Japan, and Temasek Polytechnic. They discussed commercialization possibilities with local officials and explored investment opportunities through one-on-one meetings with Southeast Asian and global venture capitalists. On August 27, KB Financial also held a 'Global IR Day' at its hub in Singapore. Startups presented their business plans to potential investors and partners while networking with local stakeholders. KB Financial explained that this program provided domestic startups with direct access to local markets and investors. The group plans to continue supporting promising domestic startups in their overseas expansion using its global network. A KB Financial representative stated, "We will continue to act as a growth partner so that promising domestic startups can showcase their technology and business capabilities in the global market." * This article has been translated by AI. 2026-08-28 13:28:00
  • U.S. and China Discuss Inclusion of Chinese Business Leaders During Xis Visit
    U.S. and China Discuss Inclusion of Chinese Business Leaders During Xi's Visit U.S. and Chinese officials are reportedly discussing the inclusion of Chinese business leaders in President Xi Jinping's upcoming visit to the United States next month.The South China Morning Post reported on August 28, citing sources familiar with the negotiations, that U.S. and Chinese authorities are considering including Chinese business leaders in Xi's delegation during his visit.Xi is expected to meet with U.S. President Donald Trump in Washington on September 24. During Trump's visit to China in May, he was accompanied by CEOs from major American companies, including Tesla, Apple, NVIDIA, and Boeing.Sources indicated that the decision on whether Chinese business leaders will accompany Xi has not yet been finalized, and there are conflicting reports regarding which side made the initial request. However, two sources noted that the Chinese side is keen on including business leaders, as many Chinese companies remain interested in investing in the U.S.The discussions about the business delegation are linked to negotiations for the activation of the investment and trade committees agreed upon during the U.S.-China summit in May. The two countries are currently finalizing plans to reduce tariffs on non-sensitive industries and products by up to $30 billion (approximately 41 trillion won). There is also speculation that relevant Chinese companies could be included in Xi's delegation.One source stated that including Chinese business leaders could help shift U.S.-China relations from confrontation to 'managed economic competition' and contribute to building relationships between businesses in both countries during the summit.In advance of Xi's visit, discussions are also underway regarding the extension of the U.S.-China trade truce agreement signed last October in Busan. At that time, both countries agreed to a reduction in some U.S. tariffs on China, a halt to additional regulations on Chinese companies, a one-year suspension of certain export controls on rare earth materials, and enhanced management of U.S. soybean purchases and fentanyl raw materials.Despite some recent retaliatory measures exchanged between the two countries, sources indicate that the likelihood of extending the Busan agreement is very high. However, while China prefers an extension until the end of Trump's term, the U.S. is seeking a one-year extension. Currently, a one-year extension appears to be the most likely outcome.U.S. and China are reportedly focusing on managing related issues separately from the upcoming summit to ensure that conflicts over robotics, power inverters, and export controls do not affect the meeting.* This article has been translated by AI. 2026-08-28 13:24:20
  • Korea Southern Power Introduces AI Safety Management for 2.5GW Coal Replacement Plant
    Korea Southern Power Introduces AI Safety Management for 2.5GW Coal Replacement Plant Korea Southern Power will implement an AI-based smart safety management system at its 2.5GW coal replacement combined power plant construction site. The system aims to predict risks in advance using AI video analysis and drone monitoring to prevent industrial accidents.On August 27, Korea Southern Power held an 'AI-based Smart Construction Safety Workshop' at its headquarters in Busan to discuss the prevention of industrial accidents and the establishment of a smart safety management system for power plant construction sites.The company is currently advancing large-scale coal replacement combined construction projects, including the Hadong Combined Units 1 and 2 (1,000MW), Goyang Changneung Combined Heat and Power Plant (500MW), and Yongin Combined Units 3 and 4 (1,000MW).The workshop focused on applying AI and smart technologies to these construction sites and establishing a site-centered safety management system. The theme of the event was 'Connecting the Site with AI, Completing Safety.'Experts in smart safety technology presented the latest construction safety technologies, including AI video analysis, smart safety equipment, and drone-based monitoring, along with case studies of their application on-site. Participants discussed ways to enhance risk prediction and accident prevention functions using AI, based on existing safety management experiences from power plant construction sites.There was a consensus on the need to build a smart construction safety platform that connects on-site experience with overall safety management capabilities and to apply safety technologies suitable for the characteristics of tasks and risks in each process.Korea Southern Power plans to complete the design of the AI-based smart safety management system this year and begin operations at the construction site with the start of the coal replacement combined power plant next year.Ahn Yong-hwan, head of the construction division at Korea Southern Power, stated, "AI smart safety management at power plant construction sites will be a turning point in transforming the paradigm of safety management beyond mere technology application. We will establish a smart safety management system tailored to the characteristics of power plant construction by combining advanced safety technologies with on-site experience."* This article has been translated by AI. 2026-08-28 13:24:00
  • Korea widens anti-scalping rules
    Korea widens anti-scalping rules SEOUL, August 28 (AJP) - South Korea began enforcing tougher anti-scalping rules for concert and sports tickets Friday, rolling out the detailed penalties and procedures behind a law that expanded the definition of illegal ticket buying and resale. The enforcement decrees under the Performance Act and the National Sports Promotion Act took effect Friday, the Ministry of Culture, Sports and Tourism said. The underlying laws, amended in February, newly banned illegal ticket buying and expanded the ban on illegal resale regardless of whether a macro program was used, moving beyond the previous rule that only targeted resale of tickets bought through automated programs. Friday's decrees fill in the details, including penalty schedules, reporting-body requirements and reward payments. Under the law, illegal ticket buying covers purchases made for resale by bypassing or disrupting the fair purchasing process set by the original seller. Illegal resale covers the repeated or business-like sale or brokering of tickets above the purchase price without the consent of the original or authorized ticket seller. Violators face up to one year in prison or a criminal fine of up to 10 million won ($7,200), and profits from such transactions can be confiscated. The ministry can also impose administrative penalties on illegal resellers of up to 50 times the sales amount, with the multiplier set according to the number of tickets and total resale value. A new reward system will pay up to 50 million won ($36,000) to those who report illegal ticket buying, and up to half of the administrative penalty imposed on an offender to those who report illegal resale. Ticket sellers and online platforms will be required to verify users' identities, offer reporting functions, warn users of possible penalties, and block posts linked to illegal transactions when notified by designated reporting bodies or investigators. Those bodies can request seller information, transaction records and access logs from sellers and platforms. Companies that refuse without valid reason, or submit false data, face administrative fines of up to 5 million won. Culture Minister Choi Hwi-young chaired a joint inspection meeting Friday with 19 agencies and companies, including the Fair Trade Commission, the National Police Agency, ticketing platforms such as NOL Ticket and Yes24, and resale marketplaces including Naver and Danggeun Market. Choi said the revised rules would help the government crack down on scalping and protect fair access to tickets for concertgoers and sports fans. The ministry also said it would move to revise the Motion Picture and Video Products Promotion Act to close a regulatory gap around movie ticket scalping, especially for premium and special-format screenings. AJP Takeaways · Korea’s tougher anti-scalping rules for concert and sports tickets took effect Friday. · The rules expand enforcement beyond macro-based ticket buying and resale. · Illegal resellers may face fines of up to 50 times the sales amount. 2026-08-28 13:18:36
  • Genians, SANDS Lab jump on AI cyberattack warning
    Genians, SANDS Lab jump on AI cyberattack warning SEOUL, August 28 (AJP) - South Korean cybersecurity stocks surged Friday after more than 100 global technology and security companies warned that AI-powered cyberattacks could become far more widespread and sophisticated in the coming months. Shares of Genians, which provides security software for corporate networks and individual devices, jumped 26.76 percent to 18,330 won as of 10:55 a.m. on the KOSDAQ, after rising as much as 28.56 percent to an intraday high of 18,590 won. SANDS Lab, which specializes in analyzing cyber threats using AI and big data, climbed 12.38 percent to 4,585 won, after surging as much as 26.72 percent to 5,170 won. The rally followed an open letter published Thursday on the website of OpenAI, the U.S. artificial intelligence company behind ChatGPT, and signed by more than 100 companies and organizations, including Anthropic, Google, Microsoft, Amazon Web Services and Oracle. Cybersecurity firms including CrowdStrike and Palo Alto Networks also joined the initiative. The letter called for companies to strengthen existing security tools with AI, continuously test their defenses against emerging threats and share information on cyberattacks. It also urged governments to give hospitals, water utilities and other critical services greater access to AI-powered security tools and support. The push for stronger AI-based defenses put a spotlight on domestic cybersecurity companies with technologies used to protect networks, devices and systems from attacks. Genians is a cybersecurity software company that helps businesses control access to corporate networks and protect devices connected to them. Its products include network access control, zero-trust network access, which requires users and devices to be verified before they can access a network, and endpoint detection and response systems. The company serves more than 5,000 customers across sectors including government, finance and manufacturing. The firm has also examined how hackers are adopting AI. Earlier this month, it reported that North Korean hacking group Kimsuky was using AI tools and exploring ways to use them to develop malware, analyze data and automate parts of cyberattacks. SANDS Lab focuses on cyber threat intelligence, using AI and big data to collect and analyze information on malware and hacking attempts. Its technology is designed to help identify new malware and previously unknown attack methods. It is also a member of the Cyber Threat Alliance, an international cybersecurity group whose members share threat information to help detect and respond to attacks. AJP Takeaways • Genians shares jumped 26.76 percent to 18,330 won as of 10:55 a.m. Friday, while SANDS Lab rose 12.38 percent to 4,585 won. • More than 100 companies and organizations, including OpenAI, Google, Microsoft and major cybersecurity firms, warned that AI-powered cyberattacks could become more widespread and sophisticated in the coming months. • Genians provides network and device security software, while SANDS Lab uses AI and big data to analyze cyber threats and identify new malware and attack methods. 2026-08-28 13:18:02
  • Korea picks SKT, Kakao, KT for nationwide AI service project
    Korea picks SKT, Kakao, KT for nationwide AI service project SEOUL, August 28 (AJP) - South Korea has selected SK Telecom, Kakao and KT to build AI services for the public under a government project aimed at widening access to artificial intelligence, the Ministry of Science said Friday. The three consortiums were chosen from six applicants following written and presentation evaluations that assessed their AI model competitiveness, GPU and infrastructure plans, user convenience, service quality and safety, and contribution to Korea's AI ecosystem, the ministry said. Evaluation scores and rankings were not disclosed at the companies' request. The proposals centered on general-purpose AI chatbot services meant to compete with foreign AI services, along with public AI agents that help users find and apply for government benefits without navigating complex procedures, according to the ministry. Each consortium also plans to expand its services through partnerships with domestic startups. The ministry plans to sign agreements with the operators in September and launch the service nationwide by the end of the year after beta testing. The government will provide the three operators with a combined 512 Nvidia B200 GPUs this year and fund the cost of running the service nationwide from 2027. SK Telecom's consortium is building an "action-based" AI service that can plan, carry out and confirm tasks from a single request. The service will work through phone calls and text messages as well as apps and the web, making it accessible to older users and others less familiar with smartphone apps. It will also include an agent function that searches for contact information for stores or government offices without official APIs and places calls on the user's behalf. Partners in the SKT consortium include Hana Card, Shinhan Card, Tmap Mobility and SK Broadband. Kakao's consortium will use its messenger app as the main gateway to a combined chatbot and AI agent service. It will roll out a lightweight version of a general-purpose AI calling service with LG Uplus by the end of the year before expanding it in stages. The service will also connect to an AI agent marketplace where developers can build, test and distribute specialized agents. Other partners include LG AI Research, LG CNS, LG Electronics, Seoul National University Hospital, Shinhan Bank and Kakao Enterprise. KT's consortium is designing a service that lets users search, compare and act on information, including public and specialized services, within a single conversation. AI access points will be built into the Daum portal and app, as well as partner platforms such as Danawa, Musinsa and Zigbang. KT's telecom and IPTV channels will also be linked to the service. The consortium includes Upstage, Rebellions, Saltlux, BC Card, EBS and NC AI, among other partners. The ministry plans to form a working-level task force with the three operators and consult with other government agencies on linking public data to the services. AJP Takeaways · South Korea selected SK Telecom, Kakao and KT for a government-backed public AI service project. · The project will offer general-purpose AI chatbots and public AI agents. · The three operators will receive access to a combined 512 Nvidia B200 GPUs this year. 2026-08-28 13:17:30