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  • Chinas Supply Overcapacity: Between Failure and Strategy
    China's Supply Overcapacity: Between Failure and Strategy China's supply overcapacity is not a new issue. Since the rapid growth of the Chinese economy in the 2000s, overcapacity in traditional industries such as steel, cement, coal, and petrochemicals has been identified as a problem that needs to be addressed. In 2013, the Chinese State Council identified steel, cement, flat glass, and shipbuilding as key industries suffering from overcapacity. The government pointed to blind investments by companies, competition among local governments for growth, redundant construction, and reliance on investment as factors exacerbating the issue. Consequently, it initiated supply-side reforms aimed at reducing production capacity, particularly in steel and coal. However, more than a decade later, the debate over overcapacity has shifted to electric vehicles, batteries, and solar energy. The problems that emerged in industries that once drove China's growth are now reappearing in sectors that the country has nurtured as future growth engines.However, it is not entirely accurate to view the current overcapacity in the same light as past issues in steel or coal. This is because the industries being criticized for severe overcapacity coincide with those in which China is rapidly enhancing its global competitiveness. According to the International Energy Agency (IEA), by 2024, approximately 85% of the world's battery cell production capacity will be concentrated in China, and by 2025, Chinese companies are expected to account for about 75% of the global electric vehicle battery market. Additionally, around 75% of the world's electric vehicle production is taking place in China, with exports nearly doubling from the previous year to over 2.5 million units. The very industries that are said to be producing too much are also where Chinese companies are gaining dominance in the global market. So, should China's overcapacity be viewed merely as a failure of industrial policy?Of course, producing more does not automatically lead to competitiveness. The growth of China's electric vehicle and battery industries is the result of a massive domestic market, supportive industrial policies, a supply chain that connects raw materials to components and finished products, and sustained investment in research and development. Additionally, China's unique competitive structure plays a role. When the central government identifies strategic industries, local governments pursue investment and business attraction, prompting companies to increase production capacity to capture market share. This alignment of local governments seeking investment and companies aiming to boost market share has led to repeated instances where investment outpaces actual demand.When increased production capacity cannot be absorbed by the market, the situation becomes complicated. Companies that have invested heavily in production facilities find it difficult to reduce output immediately when demand decreases. Cutting production increases fixed costs and risks losing market share to competitors. As a result, companies may lower prices to maintain market presence, leading to a cycle of destructive competition where even increased sales do not translate into profits. The term 'neijuan' (内卷), often used in China, aptly describes this situation.Recently, the Chinese government has begun to emphasize 'fan neijuan' (反内卷), which aims to curb excessive low-price competition and chaotic expansion of production capacity, reducing bloodletting competition among companies. In the second quarter of this year, the operating rate of China's manufacturing production facilities was only 73%, with the automotive sector even lower at 70.8%. While operating rates alone cannot definitively indicate overcapacity, the government's emphasis on fan neijuan suggests a recognition that the current competitive landscape cannot remain unchanged. It remains to be seen whether fan neijuan will merely restore price order or lead to adjustments in production capacity and corporate restructuring.Interestingly, while China emphasizes fan neijuan domestically, it strongly rebuffs claims of overcapacity raised internationally. In July, the Chinese Ministry of Commerce released a statement addressing the so-called 'overcapacity issue,' countering assertions made by the U.S. and Europe. The argument is that global production capacity is a result of international industrial division of labor, and one should not judge overcapacity solely based on production capacity or export volume. At first glance, this may seem contradictory, but from China's perspective, it is not. What China wants to reduce domestically is excessive competition among companies, not the hard-won industrial competitiveness.It is unlikely that the Chinese government intended to create overcapacity from the outset. Over-investment, redundant investment, and cutthroat competition among companies are indeed challenges that the Chinese economy must address. However, it cannot be deemed a failure to have already established production capacity, supply chains, technology, and price competitiveness. The key question is how to manage these going forward. If fan neijuan can reduce excessive competition and overcapacity while preserving competitive companies and industrial ecosystems, the outcome could be significantly different from the present.Thus, my focus is not solely on the overcapacity itself but on what follows. If fan neijuan goes beyond merely curbing price competition and leads to the restructuring of overcapacity and marginal companies, it could result in a sorting process within China's manufacturing sector. Not all companies can be sustained indefinitely, nor is there a reason to dismantle a hard-won industrial ecosystem.From South Korea's perspective, the timing of these developments is crucial. A more concerning scenario for us would be if China successfully addresses its overcapacity. While overcapacity and marginal companies may decrease, if production and markets concentrate around competitive firms, China's manufacturing competitiveness could strengthen. Having already experienced the impact of China's capacity expansion on prices and profitability in steel and petrochemicals, we must also consider the competition surrounding technology and supply chains in electric vehicles, batteries, and solar energy.Ultimately, our perspective on China's overcapacity needs to change. Merely pointing out the issues of over-investment and cutthroat competition in the Chinese economy may cause us to miss the changes that will follow. What we should closely examine is not how severe China's overcapacity is, but who will survive after it is addressed. Perhaps the moment our industry needs to be most vigilant is not during the current overcapacity but after China has resolved its overcapacity.Author's Major Background△ Ph.D. from Renmin University of China △ Postdoctoral researcher at Jeju Peace Institute △ Secretary-General of the Korea-China Social Science Association △ Editor of the China Regional Studies Editorial Committee △ CEO of Hans Global Town Co., Ltd. △ Associate Professor of Chinese Economy and Trade at Hannam University* This article has been translated by AI. 2026-08-27 15:36:10
  • Hong Won-sik Loses Lawsuit for 44.3 Billion Won Severance Pay from Namyang Dairy
    Hong Won-sik Loses Lawsuit for 44.3 Billion Won Severance Pay from Namyang Dairy Hong Won-sik, the former chairman of Namyang Dairy, has lost his lawsuit seeking 44.3 billion won in severance pay from the company. Instead, the court ruled that Hong must return 1.1 billion won in unjust enrichment to Namyang Dairy.The Seoul Central District Court's Civil Division 41, presided over by Judge Lee Gyu-hoon, announced its decision on August 27 regarding Hong's claim for executive severance pay.Conversely, the court ordered Hong to pay Namyang Dairy 11,724,285,570 won plus delayed interest in a counterclaim filed by the company.The court stated, "The costs of both lawsuits will be borne 90% by Hong and 10% by Namyang Dairy."Hong, who resigned in March 2024, demanded severance pay of 44.3 billion won from Namyang Dairy. After failing to reach an agreement, he filed the lawsuit in May of the same year.The key issue in the trial was the salary during Hong's tenure. At the 2023 shareholders' meeting, Hong approved a proposal to set the director's salary limit at 5 billion won.However, according to the Commercial Act, "Shareholders with a special interest in the resolution cannot exercise their voting rights." Namyang Dairy subsequently filed a lawsuit to annul the resolution, and the Supreme Court concluded that Hong's exercise of voting rights was illegal.Based on this, Namyang Dairy argued that the salary during the period without a valid resolution could not be included in the severance pay calculation.The court also noted, "The ruling to annul the shareholders' meeting resolutions from 2023 and 2024 has been finalized, and the payments made to the plaintiff, who is a director, from January 2023 to April 2024 were made without legal grounds and are deemed unjust enrichment."In a statement, Namyang Dairy said, "Hong's claim for severance pay was not recognized, and it has been confirmed that he must return approximately 1.1 billion won to Namyang Dairy. We respect the judgment of the first-instance court."Meanwhile, Hong has been indicted on eight charges, including causing damage to the company by unnecessarily involving businesses operated by relatives in transactions. In January of this year, he was sentenced to three years in prison and ordered to pay 4.376 billion won in restitution. An appeal is currently underway.* This article has been translated by AI. 2026-08-27 15:36:00
  • Nvidias Strong Performance Alleviates AI Peak Concerns, Boosts K-Semiconductor
    Nvidia's Strong Performance Alleviates AI Peak Concerns, Boosts K-Semiconductor Nvidia's recent performance has alleviated concerns about a potential peak in the artificial intelligence (AI) industry. As fears of overinvestment and a bubble in AI grow, Nvidia, a leading company in the AI era, has once again demonstrated its growth potential. On August 26, Nvidia announced that its revenue for the second quarter of the 2027 fiscal year reached $96.22 billion, significantly exceeding market expectations of $92 billion. The company also reported earnings per share of $2.22, surpassing forecasts. Additionally, Nvidia raised its revenue outlook for the third quarter to $108 billion. Notably, CEO Jensen Huang expressed strong confidence in the sustainability of AI demand, emphasizing that the establishment of AI infrastructure is at a critical turning point. He projected a 70% revenue growth by the 2028 fiscal year, signaling that the AI investment cycle will continue for a considerable time. Concerns about a peak in AI investment have been persistent in the market. Questions have arisen about whether the astronomical investments in AI data centers will translate into actual profits. Criticism has also been directed at big tech companies for excessive AI investments, leading to speculation that semiconductor demand may have peaked and is set to decline. However, Nvidia's latest results clearly indicate that there are no signs of a downturn in AI infrastructure investment as of now. In fact, the bottleneck lies not in demand but in supply. Nvidia noted that while strong demand continues, rising memory prices could impact profitability. This suggests that the next battleground in the AI semiconductor market is shifting from GPUs to memory. The importance of AI-specific memory, such as high-bandwidth memory (HBM) and high-performance DRAM, is expected to grow significantly. For South Korean companies collaborating with Nvidia, this presents a substantial opportunity. The demand for memory, packaging, substrates, and power and cooling related to AI accelerators is likely to increase. In particular, this could serve as a crucial momentum for Samsung Electronics and SK Hynix to sustain the supercycle of AI semiconductors. Following Nvidia's earnings announcement, both Samsung and SK Hynix saw their stock prices rise in the domestic market, reflecting investor optimism. However, Nvidia's strong performance does not completely dispel concerns about an AI bubble. There remains a need to verify whether the massive capital expenditures by AI companies will translate into actual profits. Even with good results, if market expectations are higher, stock prices may still fluctuate. There have been instances in the past where Nvidia's stock fell despite exceeding market expectations. It is essential to distinguish between the direction of the industry and corporate performance. While some bubble exists in the AI sector, the notion that demand for AI semiconductors has peaked is a separate issue. Nvidia's latest results indicate that such concerns have not yet materialized. Leading in the AI semiconductor competition is crucial for national industrial competitiveness. Samsung Electronics and SK Hynix must enhance their research and development and capital investment to improve their next-generation memory competitiveness, including HBM. Issues related to power, water, and talent in the semiconductor infrastructure should not be left solely to companies. Now is the time to focus on securing technology and production capacity ahead of competitors while managing risks calmly, rather than delaying investments due to fears of an AI peak. 2026-08-27 15:32:20
  • In Tae-yeon, Head of the Small Business Market Promotion Agency, Calls for Enhanced Support for Local Governments and Small Businesses
    In Tae-yeon, Head of the Small Business Market Promotion Agency, Calls for Enhanced Support for Local Governments and Small Businesses In Tae-yeon, the head of the Small Business Market Promotion Agency, stated on the 27th, "We will strengthen cooperation with local governments and communities to ensure that the agency can be a strong ally for local small businesses, traditional markets, and alley economies."During his speech at the opening ceremony of the '2026 Summer Academic Conference of the Korean Association for Local Government Studies' held at the Korea Railroad Corporation in Dong-gu, Daejeon, In emphasized, "Sustainable development in the region is possible when local resources and capabilities are utilized, and the community works together to solve on-site issues," according to the agency.The conference, which runs from the 27th to the 28th, focuses on the theme of 'Local Era and Balanced Growth' and will discuss policy agendas for sustainable regional development. Topics include decentralization, balanced development, responses to regional extinction, fostering local innovation and future growth industries, and cooperation among local governments.The Small Business Market Promotion Agency plans to enhance collaboration among local governments and related organizations in line with the discussions on regional innovation and national balanced development at this conference. The agency aims to expand support for small businesses and traditional markets that reflect local characteristics and on-site demands, contributing to the revitalization of local economies.* This article has been translated by AI. 2026-08-27 15:32:10
  • Ruling Party Proposes Alliance with Progressives Ahead of National Assembly Session
    Ruling Party Proposes Alliance with Progressives Ahead of National Assembly Session The Democratic Party of Korea announced plans for a legislative push in preparation for the upcoming National Assembly session in September during a workshop held on August 27. The party aims to share its direction as a centrist conservative party through alliances with progressive groups to ensure the success of the Lee Jae-myung administration.During the workshop at the Inspire Hotel in Incheon, Democratic Party leader Kim Min-seok emphasized the importance of uniting with progressive forces to secure victory in the next general election."The ruling party must work tirelessly to create a chance for victory in the general election in two years," Kim said, urging party members to be active in their roles as the party faces a critical juncture for re-election.He highlighted the significance of collaboration with progressive reform groups such as the Justice Party, Progressive Party, and Social Democratic Party, stating, "We need to understand our differences through comradely discussions and align our direction. We must plan for the Democratic Party's innovation amid change."Han Byeong-do, the party's floor leader, described the upcoming National Assembly session as a pivotal moment for the success of the Lee Jae-myung administration, stressing the need for concrete outcomes from the workshop."We must resolve various issues to ensure the success of the Lee Jae-myung government," Han said, adding that the party needs to present a vision to the public. He listed urgent tasks, including legislation on housing supply, the success of three major mega-projects, addressing youth issues, and police reform.Han declared, "The Democratic Party is entering a legislative battle from now on. We will prioritize national tasks and livelihood bills through more organic cooperation among the party, government, and the Blue House, establishing timelines and negotiation strategies. We will activate all National Assembly committees to expedite the legislative process."* This article has been translated by AI. 2026-08-27 15:32:10
  • LH to Begin Construction of 100,000 Homes Annually from 2028
    LH to Begin Construction of 100,000 Homes Annually from 2028 The Korea Land and Housing Corporation (LH) plans to initiate the construction of over 100,000 homes annually starting in 2028. The annual project scale is set to expand to 30 trillion won, aiming to accelerate the implementation of the government's August 13 housing supply measures.On August 27, LH announced that following the government's August 13 measures, it will continue to construct 50,000 homes in 2026, 76,000 homes in 2027, and over 100,000 homes each year from 2028 to 2030.The project scale is projected to be 14.9 trillion won in 2026 and 25.7 trillion won in 2027. From 2028 onward, it will exceed 30 trillion won annually.The government plans to increase the construction of public housing by 180,000 units through the August 13 measures, which includes 100,000 new homes in the metropolitan area.In line with this, LH will expedite its housing construction and project plans. It aims to accelerate the approval and design processes for urban housing projects utilizing idle land and school sites, with plans to begin construction sequentially from 2027.Among the urban idle land projects, the Seongdae Baseball Stadium is set to receive approval in 2026 and begin construction in 2027. Three sites in Gangseo-gu, Seoul, aim for design competitions in 2026, approvals in 2027, and construction in 2028. Four leading projects on school sites are scheduled for design competitions in 2026, approvals in 2027, and construction in 2028.On the same day, LH held a 'Housing Supply Forum' and 'Housing Supply Briefing' at its Southern Gyeonggi Regional Headquarters in Seongnam, discussing collaboration with the private construction industry. Representatives from the Korea Construction Association, Korea Housing Association, Korea Housing Builders Association, and Korea Construction Engineering Association attended the forum.LH President Lee Seong-hoon stated, "It is crucial to strengthen collaboration with the private construction industry at this pivotal moment so that the effects of housing policies can be felt by the public more quickly and effectively. I hope that both the private and public sectors can unite to address challenges on the ground and accelerate housing supply."During the housing supply briefing, plans for annual housing construction, private cooperation projects, universal rental housing initiatives, and modular housing activation were shared. Approximately 150 attendees, including construction and management representatives, participated in the briefing.The construction industry expressed optimism that LH's increase in construction volume would aid in the recovery of the stagnant construction market and job creation. However, they also emphasized the need for institutional support, such as appropriate construction periods and cost assurance, to prevent safety accidents and poor construction quality alongside rapid housing supply.As large-scale public projects commence, it is expected to positively impact not only the expansion of housing supply but also the recovery of related jobs in the construction sector.President Lee remarked, "LH is fully committed to achieving an average housing supply target of 120,000 units annually over the next five years, including public land, urban areas, and newly built acquisitions, and will enhance communication and cooperation with the construction industry to successfully meet this goal."* This article has been translated by AI. 2026-08-27 15:32:00
  • Government to Establish Grid Code for AI Data Centers by Year-End
    Government to Establish 'Grid Code' for AI Data Centers by Year-End The government plans to establish a dedicated 'Grid Code' for data centers by the end of the year. This initiative aims to set minimum technical standards required for data centers to receive stable power supply and to clarify the criteria for power grid access and operation.The Ministry of Climate, Energy and Environment announced on August 27 that it held the first meeting of the 'Artificial Intelligence Data Center (AIDC) Research Group' in Seoul, chaired by Second Vice Minister Lee Ho-hyun, to discuss this plan.AI data centers can experience rapid fluctuations in power usage, changing by megawatts in just milliseconds during AI training and inference processes that utilize graphics processing units (GPUs). In the case of hyperscale data centers, the required power capacity can reach gigawatts.Such sudden spikes in power demand can impact the stability of the power grid's frequency and voltage. This concern has prompted power authorities in major countries to consider requiring separate system stabilization capabilities for large power-consuming facilities as AI data centers proliferate globally.The Grid Code being developed by the government will outline the minimum technical requirements for AI data centers to connect to the power grid and receive stable electricity. The ministry plans to analyze the characteristics of the domestic power system and the power consumption patterns of data centers through the research group and establish the standards by the end of this year.Options for utilizing energy storage systems (ESS) and uninterruptible power supplies (UPS) owned by data centers for power system stability are also under consideration. AI data centers are equipped with supplementary facilities like ESS and UPS to protect sensitive equipment from power fluctuations and maintain consistent power quality. The government intends to explore connection strategies and regulations that can leverage these facilities for power system stabilization without compromising their primary functions.The research group will further categorize the equipment composition and demand types of AI data centers and analyze their power usage efficiency (PUE). Based on this analysis, the group aims to develop connection strategies and related regulations tailored to the characteristics of data centers.Second Vice Minister Lee Ho-hyun expressed hope that the research group would facilitate discussions on connection strategies and regulations suitable for the power system conditions, stating, "We plan to derive the Grid Code, which is essential for the stable operation of AI data centers, by the end of this year."* This article has been translated by AI. 2026-08-27 15:32:00
  • Professor Jeong Ran-soo: Regional Airports Need Tailored Strategies to Boost Tourism
    Professor Jeong Ran-soo: Regional Airports Need Tailored Strategies to Boost Tourism To effectively attract foreign tourists through regional airports and enhance local tourism, tailored strategies for each airport are essential. It is crucial to not only increase passenger numbers but also to create conditions that promote local stays and spending through tourism products and transportation.During a panel discussion at the '2nd Current Trends in Korean Tourism Data Seminar' held on August 27 in Seoul, Jeong Ran-soo, a professor at Hanyang University, stated, "Policies have been implemented with regional airports viewed as a collective, but each airport has its own characteristics and tourist travel patterns." Professor Jeong emphasized the growing importance of regional airports in revitalizing local tourism. He noted that while tourists were previously attracted to hub airports, there is now a trend toward a 'local to local (L2L)' approach that connects regions directly.He explained, "Tourists arriving at Incheon or Gimpo airports must return to the metropolitan area to depart, which means direct access through regional airports can help increase local stays." However, he pointed out that each airport faces unique challenges.Cheongju Airport has demonstrated the potential for growth among regional airports, but there are limitations in connecting the increased number of arrivals to local stays and spending. Professor Jeong remarked, "Cheongju Airport has shown that regional airports can succeed, but it still faces the challenge of many tourists moving back to the metropolitan area or not spending significantly in the region." Social data reflected a similar trend. Professor Jeong noted, "Discourse related to stays around Cheongju Airport is almost nonexistent," analyzing that Cheongju serves more as a gateway for travelers heading to other regions rather than a final destination. He suggested that there is a need to increase tourism products that allow visitors to enjoy the area and improve transportation links between the airport and major tourist sites.In contrast, Daegu Airport presents a different situation. Although the number of foreign arrivals has not significantly increased, there is a noticeable trend of visitors staying and spending in the Daegu-Gyeongbuk region. The issue lies in its low recognition.Professor Jeong stated, "While the number of tourists at Daegu Airport has not increased significantly, those who do arrive tend to stay and spend in the Daegu-Gyeongbuk area. However, Daegu Airport lacks visibility." He believes that before encouraging longer stays, efforts must be made to raise awareness of the airport and the region among international tourists.He cited examples from Japan, mentioning Kobe and Matsuyama. Professor Jeong noted that with the recent expansion of international flights at Kobe Airport, the number of Korean travelers has increased. Previously, tourists would enter through Kansai Airport and visit Osaka before heading to Kobe, but now more travelers are choosing Kobe as their destination.Matsuyama is highlighted as a case where air routes are actively linked with local tourism services. The city offers free limousines from the airport to the city center for Korean tourists and provides benefits for using tourist facilities like cable cars, effectively connecting regional visits to stays and spending.Professor Jeong concluded, "We should not approach airports as a single package but rather develop different policies and travel routes for each airport. Designing strategies that consider the language and nationality of users will be much more effective." * This article has been translated by AI. 2026-08-27 15:32:00
  • Bank of Korea Raises Economic Growth Forecast to 3.3%, Projects $450 Billion Current Account Surplus
    Bank of Korea Raises Economic Growth Forecast to 3.3%, Projects $450 Billion Current Account Surplus The Bank of Korea has revised its economic growth forecast for this year from 2.6% to 3.3%, marking the highest adjustment in five years since 2021's 4.7%. The increase is attributed to strong semiconductor exports.In its economic outlook released on August 27, the Bank projected a real GDP growth rate of 3.3%, surpassing the government's estimate of 3.0%.This marks a 0.7 percentage point increase from the forecast made in May, representing the largest adjustment since May 2021, when the estimate was raised from 3.0% to 4.0%.Despite ongoing uncertainties from the conflict in the Middle East, analysts expect robust growth driven by a semiconductor boom and its ripple effects. Contributing factors include a 0.35 percentage point boost from the semiconductor sector, a 0.1 percentage point increase from accelerated investments in three major projects, and a 0.1 percentage point impact from a smaller-than-expected influence from the Middle East.Lee Dong-ryul, head of the Bank's Economic Research Department, stated, "The semiconductor industry's better-than-expected performance accounts for a significant portion of the 0.7 percentage point upward adjustment from the May forecast. Both volume and price factors contributed, with price having a greater impact."The Bank forecasts a 9.7% increase in merchandise exports this year, doubling the previous estimate of 4.9% made in May. The growth rate for facility investment is projected at 6.8%, significantly higher than the May forecast of 4.4%, while private consumption is expected to rise from 2.0% to 2.1%. Conversely, construction investment has been lowered from 0.6% to 0.2%.After a substantial 1.8% growth in GDP in the first quarter, the second quarter saw a 0.6% increase. The Bank anticipates continued strong performance in exports and investments, particularly in the IT sector, with consumer spending showing a healthy recovery. As a result, the third quarter is expected to see a slight slowdown to 0.3% growth due to base effects from previous high growth, while the fourth quarter is projected to maintain a solid growth rate of 0.5%.Reflecting the surge in semiconductor exports, the Bank has significantly raised its current account surplus forecast for this year to $450 billion, up from the May estimate of $250 billion. This figure is more than four times last year's record surplus of $123.1 billion.The Bank also predicts an increase of 140,000 jobs this year, a decrease from the previous estimate of 180,000 due to the impact of the Middle East conflict and sluggishness in vulnerable sectors like construction.Looking ahead, the Bank has adjusted its growth forecast for next year from 2.1% to 2.9%. Lee noted, "This forecast assumes that the semiconductor industry's expansion will continue into next year, with supply shortages expected to persist until the first half of next year."As the semiconductor sector continues to thrive, its effects are expected to spread to other sectors, leading to robust domestic and export performance. Lee explained, "The share of the IT manufacturing sector has increased from 9% last year to 16.4% in the first quarter of this year, indicating a restructuring of the economy. As the IT sector's share grows, the contribution to overall economic growth from the same growth rate could be about twice as high as in the past."However, there are growing concerns regarding the slowdown in AI investment by big tech companies, which could impact the semiconductor market. In an optimistic scenario analyzed by the Bank, if the growth in semiconductor exports expands further, export volumes could increase to the mid-20% range, maintaining a high level in the mid-10% range next year, potentially raising domestic growth rates by 0.2 percentage points this year and 0.6 percentage points next year. In this case, inflation is expected to rise by 0.2 percentage points next year compared to this year.Conversely, in a pessimistic scenario where semiconductor export growth slows to the mid-10% range this year, growth rates could decrease by 0.1 percentage points this year and 0.4 percentage points next year.The Bank anticipates that the ripple effects of the semiconductor boom will become more pronounced next year. Lee stated, "Next year, we expect a significant increase in performance bonuses for semiconductor companies, leading to greater employment effects. As consumption spreads across various sectors, the impact of the semiconductor market is expected to grow even larger."* This article has been translated by AI. 2026-08-27 15:28:00
  • South Koreas homegrown Nuri rocket set for liftoff in early October
    South Korea's homegrown Nuri rocket set for liftoff in early October SEOUL, August 27 (AJP) - South Korea will launch its homegrown Nuri rocket for the fifth time this fall, the Korea AeroSpace Administration (KASA) said on Thursday. KASA decided to launch the rocket on Oct. 7, at a meeting in Sacheon, South Gyeongsang Province earlier in the day after reviewing preparations for the space mission. The rocket carrying 15 satellites is scheduled to lift off between 12:23 p.m. and 1:23 p.m., with the exact time to be determined on the day based on weather and other conditions. A backup window has also been set from Oct. 8 through Oct. 14 in case of unexpected changes. It will be Nuri's fifth launch since its first attempt in October 2021, which failed to place its satellite into orbit. South Korea successfully launched the rocket on its second attempt in June 2022. The third mission in May 2023 deployed eight satellites, while the fourth in November 2025 put 13 satellites into orbit. The upcoming launch will carry a record 15 satellites including five ultra-small constellation satellites developed by the Korea Advanced Institute of Science and Technology (KAIST) to obtain high-resolution images for disaster monitoring and other security purposes. The launch will also carry satellites developed by universities, research institutes and private companies to observe Earth’s upper atmosphere, monitor fine dust and space radiation, track marine debris, test space communications and evaluate locally developed components. Preparations are already underway at the Naro Space Center in Goheung, South Jeolla Province, where the final assembly of the Nuri rocket is underway. The five ultra-small constellation satellites arrived at the center earlier this week and are undergoing final checks before being mounted on the rocket. The remaining 10 small cube-shaped satellites, known as CubeSats, are expected to arrive by the end of August. "The upcoming launch will be an important mission because it will carry the largest number of satellites along with South Korea's first constellation satellites, helping strengthen the country's space capabilities," Oh Tae-seok, head of KASA, said, vowing that the agency will be fully prepared to ensure a successful launch. AJP Takeaways • South Korea will launch its homegrown Nuri rocket for the fifth time on Oct. 7, with liftoff scheduled between 12:23 p.m. and 1:23 p.m. A backup launch window is set for Oct. 8 through Oct. 14. • The Nuri rocket will carry a record 15 satellites, including five ultra-small satellites developed by the Korea Advanced Institute of Science and Technology for a constellation aimed at disaster monitoring and security purposes. • The mission will also carry satellites developed by universities, research institutes and private companies for various purposes, including observing Earth's upper atmosphere, monitoring fine dust and space radiation, tracking marine debris and testing space technologies. 2026-08-27 15:25:39