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Former Sejong City Councilor Sentenced for Sexual Assault of Male Colleagues A former Sejong City councilor, Sang Byeong-heon, who was convicted of sexually assaulting male colleagues, faced a two-year prison sentence requested by prosecutors during his appeal hearing.On September 16, the Daejeon District Court's Criminal Appeals Division 5-2, presided over by Judge Ahn Yeong-hwa, held a hearing to conclude the appeal regarding Sang's sexual assault charges. The prosecution requested the same two-year sentence as in the first trial.Sang was accused of groping a male councilor, identified as A, from his own party, and kissing another male councilor, B, from the opposition People Power Party, during a dinner and drinking session in August 2022 in Yeouido, Seoul.During the investigation, Sang also filed a counter-complaint against A for sexual assault. However, this claim was deemed false, leading to additional charges of false accusation against him.In the first trial, prosecutors sought a two-year prison sentence for Sang. The court acknowledged the sexual assault charges and sentenced him to 18 months in prison, along with a requirement to complete 40 hours of sexual violence treatment programs.However, the court did not place Sang in custody, citing no risk of evidence tampering or flight, and the need to provide him an opportunity to compensate the victims.Following the initiation of expulsion procedures from the Sejong City Council, Sang resigned from his position. He had previously been expelled by the Democratic Party's Sejong City chapter.The appeal ruling is scheduled for November 25, with the final sentence to be determined by the court's decision.* This article has been translated by AI. 2026-09-17 07:36:00 -
Concerns Rise Over '10 Trillion Yen Carry Trade' Ahead of U.S. and Japan Rate Decisions ◆아주경제 주요뉴스▷미·일 금리인상 결정 앞두고…커지는 '10조 엔캐리' 청산 공포-On September 16, the U.S. Federal Reserve is expected to announce its decision on interest rates, followed by the Bank of Japan on September 18. Both central banks are anticipated to raise rates by 25 basis points (1 basis point = 0.01 percentage points).-As the possibility of simultaneous rate hikes in the U.S. and Japan looms, market participants are closely monitoring the direction of the yen's value. The impact of this coordinated rate increase on the yen's strength or weakness is significant for the global capital markets. If the yen continues its upward trend, there is speculation about the unwinding of the 'yen carry trade,' which could reach $1 trillion.-Leading indicators in the global capital markets suggest an impending unwinding of the yen carry trade. According to the Commodity Futures Trading Commission (CFTC) report on investor positions as of September 8, speculative net positions in yen futures totaled 10,796 contracts.-Tension is rising in the domestic capital markets as well. Concerns are growing that a surprise rate hike by the Bank of Japan in August 2024 could trigger a repeat of the yen carry trade unwinding. According to Eugene Investment & Securities, the foreign currency-denominated assets of Japanese investment trusts reached 133.3091 trillion yen (approximately $1.167 trillion) as of July, a 75% increase from 76.7558 trillion yen in August 2024.◆주요 리포트▷AI 회사채 시대, 늘어나는 장기 듀레이션 공급 -The yield on the U.S. 10-year Treasury bond has risen more than 100 basis points since the beginning of the year. Rising oil prices have fueled expectations of inflation, reflecting a robust economy and leading to upward adjustments in the Federal Reserve's interest rate trajectory. The increase in Treasury and corporate bond supply is contributing to rising term premiums.-Previously, the increase in long-duration supply was primarily driven by the expansion of Treasury issuance due to rising fiscal deficits. However, with the growing investment in artificial intelligence (AI), large tech companies are rapidly increasing their external funding.-Notably, the issuance of high-quality corporate bonds related to AI is concentrated in long maturities, leading to an increase in new long-duration supply from the private sector. It is important to note that while the issuers of Treasury and corporate bonds differ, the investor base accepting long durations overlaps to some extent.-Although Treasury bonds and high-quality corporate bonds differ in terms of safety and liquidity, long-duration investors such as insurance companies and pension funds compare the yields and risks of both markets to allocate funds accordingly.-When Treasury yields rise, corporate bonds must also be issued at higher rates. Conversely, if a large supply of corporate bonds increases their yields, the relative attractiveness of Treasuries may decrease. In an environment where both Treasury and corporate bond supplies are increasing simultaneously, the required yields in both markets can influence each other, adding upward pressure on long-term interest rates.◆장 마감 후(16일) 주요공시▷STX, 670억원 유상증자…범한산업 주식회사에 제3자배정▷모아라이프플러스, 20억원 유상증자…에이원성장투자조합에 제3자배정▷앤씨앤, 100억원 유상증자…주식회사 비투엔 등에 3자 배정▷아리바이오랩, 180억 제3자배정 유상증자◆펀드 동향(15일 기준, ETF 제외) ▷국내 주식형: +3조4053억원▷해외 주식형: +1590억원* This article has been translated by AI. 2026-09-17 07:24:00
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South Korea and Central Asia Expand Cooperation on Key Minerals and Manufacturing AI South Korea and five Central Asian countries are expanding cooperation on key mineral supply chains and the transition to manufacturing artificial intelligence (AI). They have also established a new multilateral ministerial consultative body and signed cooperation documents and memorandums of understanding (MOUs) between governments and businesses.The Ministry of Trade, Industry and Energy announced on September 17 that the first Korea-Central Asia Summit, held in Seoul from September 14 to 16, laid the groundwork for economic cooperation with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan.This marks the first time in 34 years of diplomatic relations that South Korea and the five Central Asian countries have gathered to discuss industrial and key mineral supply chain cooperation. The plan is to connect the strategic minerals held by each country with South Korea's manufacturing and processing technologies to establish a cooperative system that spans from local refining to high-value processing and finished product production.Initially, the governments held the first Korea-Central Asia Ministerial Meeting on September 14, where they signed an MOU on industrial and supply chain cooperation. This created a ministerial-level consultative channel to discuss responses to supply chain crises and industrial diversification.Eight bilateral cooperation documents were also signed. With Kazakhstan, a basic agreement on oil cooperation was established to enhance collaboration across the entire oil value chain, including oil field development and petrochemicals. An MOU on nuclear cooperation was also signed to support comprehensive collaboration in nuclear power and the entry of South Korean companies into the local market.With Kyrgyzstan, the existing trade and investment cooperation MOU was revised to expand the scope of cooperation to include key minerals, halal products, and digital transformation, along with the establishment of a regular consultative body at the director level. Tajikistan and South Korea signed their first industrial cooperation MOU since establishing diplomatic relations, laying the groundwork for collaboration in mining, key minerals, AI, textiles, and chemicals.In cooperation with Turkmenistan, they will promote policy, technology, and human resource collaboration in the chemical industry and plant sectors. With Uzbekistan, three MOUs were signed covering a comprehensive cooperation platform for key minerals, the transition to manufacturing AI, and strengthening export capabilities. Plans are in place to expand cooperation in processing technology and human resource development through a rare metals center and to promote AI manufacturing innovation linked to official development assistance (ODA).Private business cooperation also progressed. At a bilateral event on September 15, 97 MOUs were signed, including 78 with Kazakhstan, five with Uzbekistan, and 14 with Turkmenistan. These agreements encompass the construction of gas processing plants, expansion of petrochemical facilities, development of the Alatau smart city, and exploration and development of key minerals.On September 16, a business summit attended by leaders from six countries and over 520 businesspeople adopted a joint declaration and exchanged an additional 19 MOUs. These included Hyundai Motor's collaboration on the Alatau smart city, the Korea Institute of Industrial Technology's cooperation on rare metals technology, and SAC's export of alloy plant equipment.The Ministry stated, "We plan to regularize the ministerial meetings and monitor the implementation of key projects through practical consultative bodies, while also addressing business challenges by linking local embassies and the Korea Trade-Investment Promotion Agency (KOTRA) trade offices."* This article has been translated by AI. 2026-09-17 06:04:10
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Siemens Expands AI Ecosystem in South Korea's Semiconductor, Shipbuilding, and Bio Industries Artificial intelligence (AI) is evolving from merely assisting engineers to making decisions about the movement of production equipment, a development referred to as 'Physical AI.' Siemens is broadening the application of AI in manufacturing by integrating digital twins, industrial AI, and automation technologies. The company is expanding its collaborations with domestic firms in key industries such as semiconductors, shipbuilding, and biotechnology.In an interview with Aju Economy on September 16, Jeong Ha-jung, CEO of Siemens Korea, noted, "Even global experts did not anticipate such a rapid transition from agentic AI to Physical AI," indicating that the shift in South Korea's manufacturing sector towards AI is occurring much faster than expected.Changes are already evident in the engineering field. A prime example is the Siemens Industrial Copilot, developed in collaboration with Microsoft, which utilizes generative AI. Previously, engineers had to write programmable logic controller (PLC) programs and design human-machine interface (HMI) screens manually. Now, they can input requirements in natural language, allowing AI to suggest program code and generate drafts for screen layouts.Jeong explained, "In the past, changing the factory control screen required rewriting the program, but now you can simply say, 'Put temperature and humidity on the left and create a change graph on the right,' and the AI will adjust the screen accordingly." He added that while natural language-based technology is still new and has not yet been widely applied in domestic manufacturing, its adoption is expected to accelerate significantly.The role of AI is expanding from assisting in program writing to determining the actual actions of machines. Jeong cited a robotic arm showcased at the Hannover Messe as an example. When instructed to place items of varying shapes and materials, such as shoes, hats, and scarves, into a bag, the AI-guided robotic arm recognizes the outcome and adjusts its next actions accordingly.He described a scenario where the robotic arm placed a scarf into the bag, but half of it spilled out. The AI then determined there was an issue with the task outcome. "While traditional manufacturing focused on repeating standardized tasks, AI can now assess situations and results to modify its approach," he said.Automated guided vehicles (AGVs) are also moving beyond fixed routes by integrating AI. Jeong explained, "If you instruct an AGV to transport a 10 kg item to a specific location, it can recognize obstacles along the way and navigate around them to reach the destination," highlighting how AI enables these vehicles to make decisions based on their surroundings.Supporting this Physical AI is another key component: the 'digital twin.' This technology creates a virtual representation of actual products and production processes, allowing for pre-validation and optimization of design and production conditions. Siemens is developing an industrial foundation model (IFM) that understands the 'engineering language' of industrial sites, linking digital twins with the Industrial Copilot.The company is broadening its industrial collaboration scope in South Korea, recently signing a memorandum of understanding (MOU) with HD Hyundai to explore cooperative opportunities. Jeong emphasized the significant value of digital twins in shipbuilding, where vessels can contain up to a million components, making their structures complex. He noted that traditionally, verifying whether designs functioned correctly required physical testing, which incurred substantial costs. "If we can simulate in a digital environment, we can validate various conditions before actual production," he said, explaining that this approach can significantly reduce cost burdens.Siemens is also pursuing collaboration with Naver Cloud to combine AI and cloud technologies with Siemens' industrial expertise. Jeong stressed that the transition to AI in manufacturing cannot be achieved by a single company alone, highlighting the need for collaboration across various sectors.He stated, "Digital transformation and AI cannot be accomplished by one company alone. Siemens also requires collaboration with various partners, making alliances crucial." He noted that Naver Cloud has strengths in AI and cloud technology, which can synergize with Siemens' industrial capabilities.Jeong also emphasized that manufacturing AI should enhance product quality and price competitiveness. "The competitiveness of manufacturing ultimately lies in supplying good products at low prices," he said, adding that products lacking quality, even if inexpensive, are meaningless, and conversely, high-quality products that are excessively priced struggle to compete. He concluded, "Ultimately, we must consider how to produce good products at lower costs."* This article has been translated by AI. 2026-09-17 06:04:00
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Government to Develop Ultra-Regional Transportation Network Linking Five Regions The government is set to establish an ultra-regional transportation system that connects regions in line with the 'Five Regions and Three Special Zones' national balanced development strategy.On September 17, the Ministry of Land, Infrastructure and Transport's Metropolitan Transportation Commission announced the formation of an 'Ultra-Regional Transportation Policy Forum' to develop policies related to ultra-regional transportation in conjunction with the Five Regions and Three Special Zones initiative.This forum aims to discuss the direction for building transportation networks between regions, moving beyond the existing metropolitan-centered transportation system to address the regionalization of living, economic, and industrial areas. Approximately 20 experts from academia and research institutions in related fields such as transportation, railways, roads, urban planning, regional development, and balanced development will participate.The forum will analyze transportation demand and travel characteristics for each ultra-regional area and discuss the direction for constructing the ultra-regional transportation network, funding strategies, implementation systems, and improvements to related laws and regulations. It will particularly focus on developing transportation network plans that reflect the characteristics of each region and functional connections between them, in line with the Five Regions and Three Special Zones strategy.The forum will hold its first meeting on September 29 and will conduct monthly policy workshops. Separate advisory meetings will also be held as needed for major issues. Based on the discussions, the commission plans to announce the final ultra-regional transportation strategy by the end of the year following a policy discussion in December.The commission will also link the regional field tasks identified by the 'Regional Public Transportation Network Expert Committee' of the Local Era Committee with the 'Five Regions and Three Special Zones Regional Development Strategies' being developed by local governments. It will work with relevant ministries, local governments, the Local Era Committee, and the Office for Government Policy Coordination to refine the ultra-regional transportation policy direction at the government level.Kim Yong-seok, chairman of the commission, stated, "As the major transformation of the national spatial structure under the Five Regions and Three Special Zones initiative begins, the ultra-regional transportation network that enhances connectivity will be a key infrastructure to boost regional economic and industrial competitiveness and drive national balanced development. We will create transportation policies that ensure practical mobility rights for regions and enhance the competitiveness of ultra-regional areas."* This article has been translated by AI. 2026-09-17 06:04:00
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Exploring Astra and AGI Entrepreneurship Is OpenAI's Astra (GPT-6) an example of Artificial General Intelligence (AGI)? Can AGI innovate business and elevate the economy to a new level? What exactly is AGI, and how does it compare to human intelligence?Human intelligence defines and solves problems simultaneously. AGI addresses given problems independently, finding solutions without prior knowledge in unfamiliar environments, though it currently operates only in digital contexts. It lacks the understanding of the physical world, limiting its ability to effectively engage with real-world issues.While a human can perform tasks with 20 watts of energy, current AGI systems require hundreds of megawatts and large-scale systems. Humans, constrained by energy limits, rely on experience and intuition for leaps in reasoning, whereas AGI can derive optimized answers through extensive repetition over days, producing results beyond human imagination.Humans alone bear the responsibility for outcomes. AGI-equipped agents communicate efficiently in a language called Neuralese, encoded as vector values, while humans, despite their less efficient communication, collaborate through empathy and the creation of invisible narratives. To control AGI, it is essential to develop technologies that can decode their communications while avoiding interference.Can we dismiss Astra as not being AGI? It has achieved a 92.7% accuracy in the ScreenSpot-Pro benchmark test, which measures the ability to accurately perceive screens in commonly used operating systems and web browsers. In the OSWorld 2.0 benchmark, which assesses the ability to complete complex tasks using a mouse and keyboard, Astra recorded a 72.6% success rate within an average of 40 minutes.Other AI models perform at approximately 60-70% efficiency within an average of 75 minutes, while humans fall into the 72.3% range. These results reflect Astra's efficient mechanisms in problem-solving through repeated reasoning. In the GPQA Diamond benchmark for doctoral-level reasoning, Astra achieved a success rate of about 96%. Other AI models encounter hallucinations in the 70-90% range, while expert human reasoning yields an average of 65-74%.In the ARC-AGI benchmark, which tests problem-solving in unfamiliar environments without prior knowledge, Astra reached a remarkable 99.9%. Other AI models have been stuck at 30-40% for years, while humans average around 48%.Can AGI generate revenue? Is it possible for nations to sustain growth through AGI? Will we continue to see an era where increasing employment and system improvements lead to higher revenues? Perhaps we should ask where AGI's computational power is not needed. Is it in questioning, multi-agent management, and the ability to validate AGI outputs?If autonomous reasoning by AGI becomes the norm, then competitiveness may hinge not on software sales or labor costs, but on the ability to solve problems effectively. This suggests a rapid shift towards an Agent-as-a-Service (AaaS) model, where clients are charged for the results achieved by agents. Will there be a future if we do not disrupt today's revenue model?Is a competitive advantage achieved by providing proactive services to a single customer, securing closed local data, and enhancing AGI alignment? We are entering an era where challenging humanity's complex problems in real-time and boldly discarding traditional work methods is becoming common sense.We must fully integrate AGI into manufacturing and services, merging agents previously confined to digital spaces with robotics to create Physical AI, supported by gigawatt-level infrastructure. Can we cultivate a system that produces paradigm designers who explore uncharted paths alongside AGI, rather than merely training individuals to find quick answers?* This article has been translated by AI. 2026-09-17 06:04:00
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Are We Ready to Face the Era of Humanoid Robots? The shockwaves from China's mass production of humanoid robots are being felt worldwide.Two years ago, a video of a humanoid robot stumbling and falling after taking a few steps went viral on YouTube, drawing laughter and ridicule. However, the second Humanoid Robot Olympics held in Beijing in August 2026 changed that perception. The Tian Gong Ultra completed a 100-meter dash in 9.39 seconds, faster than Usain Bolt's record of 9.58 seconds. The previous year's winning time for the same event was 21.50 seconds. While running was a spectacle, the main events included cable connections, industrial assembly, logistics loading, and electric vehicle charging.China has long been known as the world's factory. In recent years, its products have crossed borders in small parcel deliveries, driven by platforms like AliExpress and Temu. Goods are often cheaper than those produced in South Korean factories. Small factories that once produced stationery, kitchenware, small appliances, and clothing are closing daily, echoing the cries of small manufacturers in the U.S., Europe, Malaysia, and Central Asia. Now, consumer goods in shipping boxes are set to transform into humanoid robotic laborers from China.Consider a metal processing factory in South Korea with 20 employees. The owner has already lost a third of his orders due to competition from AliExpress and Temu. Then, a Chinese humanoid robot priced at 20 million won arrives, half the annual labor cost. The owner decides to replace workers with robots, and neighboring factories follow suit. The question remains: what happens when this choice is made simultaneously across thousands of factories?According to the British research firm Omdia, approximately 13,000 humanoid robots were shipped worldwide in 2025, with a single Chinese company, AjiBot, accounting for 5,168 units. In contrast, American companies like Tesla, Figure AI, and Agility Robotics produced around 150 units each. In the first half of 2026, shipments from China alone exceeded 40,000 units, raising its market share to 97%. Prices have also plummeted, with Unitree selling its G1 model for 99,000 yuan, about 19 million won. A year ago, industrial humanoids were priced at 1 million yuan. This price drop is attributed to the mass production of components like motors, gear reducers, and sensors in China. However, many of the shipped robots remain in laboratories and showrooms. Nevertheless, Ubitech's Walker S2 has been working 24 hours a day in a Geely factory under extreme heat.Even Tesla's Optimus, a symbol of American innovation, relies on Chinese components for its motors, gear reducers, bearings, sensors, batteries, and screws. According to Morgan Stanley, removing Chinese parts could triple the production cost of an Optimus robot from $46,000 to $131,000.Humanoid robots can replace human workers in various settings, including hospitals, nursing homes, package sorting, electrical work, and equipment repair. In South Korea, the daily cost of nursing care exceeds 150,000 won, and there is a shortage of caregivers. As robot prices decrease, hospitals and nursing homes are likely to be the first to adopt them. A day may come when human caregivers compete with robotic ones. The same robots that wash dishes could also wield rifles, becoming soldiers. In May 2025, a Chinese robot dog equipped with a rifle was showcased during joint military exercises between China and Cambodia. Reuters analyzed over 100 procurement announcements and papers from the Chinese military in September 2026, revealing that the People's Liberation Army is accelerating research to develop humanoids for roles beyond reconnaissance and transport, including combat.This situation intersects with demographic challenges. South Korea's total fertility rate is around 0.7, and Japan and Europe also struggle to maintain military personnel. The assumption that soldiers must be human is now in question. At the current pace, China could produce hundreds of thousands of humanoid robots annually within two to three years. Human soldiers take 20 years to train, while robot soldiers can be manufactured in a matter of hours. The balance of power in the Taiwan Strait, South China Sea, and Korean Peninsula will be recalibrated based on the number of these robotic soldiers. South Korea, separated from China by just one sea, is in a position to face the first wave of this change.The economic wave is already here. As Chinese humanoids arrive in shipping containers, workers will lose their jobs. The introduction of humanoids represents not just the import of goods but the import of labor. There are no immigration checks or visas required. Machines that require only electricity instead of salaries are entering through ports. Following the reduction of entry-level jobs for college graduates due to artificial intelligence, humanoids are now targeting blue-collar jobs in factories, warehouses, construction sites, and hospitals. No one has an answer for what jobs will remain for humans.The U.S. has proposed legislation to block federal procurement of Unitree and AjiBot robots. However, given that most components of the leading American humanoid are sourced from China, this barrier may not hold for long. While the U.S. controls the semiconductor and software sectors, a smart head without a body cannot stand on the battlefield. The side that holds the hardware components will be stronger than those building barriers. The situation is even more urgent for Asian countries. Japan, Taiwan, Vietnam, and the Philippines lack the component networks that China has established. Even South Korea, which boasts the highest density of robots, imports a significant portion of its gear reducers and motors.This is not just a U.S.-China technological rivalry; it is also a military and ideological competition. In capitalist countries, markets dictate production. In China, the Communist Party directs industrial strategy and output. China has established robot funds worth 10 billion yuan in various local governments and included humanoids in its five-year national plan. In contrast, liberal democracies have left such decisions to individual companies. As of September 2026, China is winning in terms of volume and price. Volume and cost will soon set the standard. If Chinese robots dominate global factories, their operating systems and component specifications will become the global standard.Time is running out, with only two to three years left for South Korea to make critical decisions. The starting point is components. A thorough assessment is needed to determine whether gear reducers, motors, and sensors can be produced domestically. The potential job losses due to humanoids should be calculated by industry, and plans for retraining and safety nets must be established in advance. The military must set deadlines for when and how to acquire unmanned ground forces. Amid all this, I wonder if there is any discussion in the government and the National Assembly with a timeline attached. As previously suggested, South Korea should establish a public enterprise for humanoids, similar to how KAI was created to boost the aerospace industry.Two years ago, a stumbling robot has now outpaced Usain Bolt. Before China's humanoid military forces geopolitically pressure countries across Asia and replace workers worldwide, the world must prepare for this shift. South Korea, located right next to China, faces this urgency more than anyone else. Yet, no one seems to be paying attention.* This article has been translated by AI. 2026-09-17 06:04:00
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Siemens Korea CEO Jeong Ha-jung: South Korea's Manufacturing AI is Not Too Late "There are concerns that the adoption of AI in manufacturing is lagging, but in my view, it is being implemented much faster than the general public perceives," said Jeong Ha-jung, CEO of Siemens Korea, during an interview with Aju Economy on September 16. He assessed the pace of AI transformation in South Korea's manufacturing sector, noting that the country possesses ample industrial data and expertise accumulated from global manufacturing hubs in semiconductors, automotive, and shipbuilding, which provides a strong competitive edge. He emphasized that the key moving forward is not just the quantity of data but how effectively it can be organized for AI to drive results on the production floor. Jeong believes that the speed of advancements in manufacturing AI technology is exceeding expectations. He remarked, "Even global experts did not predict such a rapid transition from agentic AI to physical AI." He highlighted South Korea's strength in its long-standing accumulation of high-quality data. "South Korea is a manufacturing powerhouse," he stated, adding that the necessary data for effective AI utilization is abundant, with extensive industry-specific knowledge and quality data available across sectors like semiconductor design and production, shipbuilding, marine, and automotive. He stressed, "The important question now is how to leverage this data through AI." However, having data and being able to utilize it with AI are two different challenges. Data is often scattered in various formats, such as paper documents or Excel and Word files, necessitating a process of refinement and integration. Jeong noted, "While there is a lot of data, it is crucial to systematically classify it into formats that can be directly applied to digital industries," and he praised South Korea's large corporations for their strong capabilities, stating, "Korean conglomerates are truly world-class." The challenge lies with small and medium-sized enterprises (SMEs), many of which lack the specialized personnel and investment capacity to adopt AI, despite recognizing its necessity. Jeong explained, "SMEs often know they need to adopt AI but feel overwhelmed due to a lack of expertise and funding. They need to decide which partners and technologies to integrate, and this is where government support appears necessary." He pointed to the rapid AI transition in Chinese manufacturing as being supported by extensive government backing and a conducive environment for technology validation. "The Chinese government provides substantial support," he said, noting that it fosters an environment where various trials and errors in applying new technologies like AI and autonomous driving can be flexibly accepted, which is advantageous for industrial development. Siemens is also committed to supporting the AI transformation of domestic manufacturers by integrating automation, industrial software, digital twins, and industrial AI. Jeong expressed, "The competitiveness of manufacturing AI is not just about how much technology is adopted, but how quickly results can be achieved on the production floor. We aim to be a long-term technology partner that helps Korean manufacturers connect AI to tangible business outcomes." * This article has been translated by AI. 2026-09-17 06:04:00
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POSCO Faces Internal and External Challenges Amid Labor Disputes POSCO is currently facing turmoil both internally and externally. The prolonged labor dispute over wages and collective agreements has been exacerbated by ongoing internal discord within the union. As global steel market conditions worsen and competition from low-cost Chinese products increases, the need for a united response from both management and labor has never been more critical, yet the conflict shows little sign of resolution.The internal discord within the union has intensified recently due to controversies surrounding its leadership. Kim Seong-ho, chairman of the POSCO Labor Union, faced scrutiny after meeting with a senior company executive for a golf outing just before a critical round of negotiations. While Kim acknowledged the meeting, he denied any possibility of a secret agreement.As news of the meeting surfaced during a time of intense negotiations, questions about its appropriateness have arisen within the union. Reports indicate that there are calls for a public explanation regarding the circumstances of the meeting. With the upcoming union leadership elections scheduled for October, the atmosphere remains tense.It is important to note that the internal controversies and labor disputes are separate issues. However, internal instability during negotiations is detrimental to all parties involved. To strengthen its bargaining power against management, the union must foster trust and unity among its members. If there are concerns raised internally, they should be addressed transparently to eliminate unnecessary disputes and focus on negotiations.With elections approaching, it is crucial that this controversy does not devolve into mere political infighting within the union. Before determining who is right or wrong, it is essential to address the questions raised by union members. This approach will allow the upcoming leadership elections to focus on policies and visions rather than unnecessary suspicions and conflicts.Management must also recognize that this conflict cannot be dismissed as merely an internal union issue or something that time will resolve. The differences in positions regarding wages and bonuses, as well as accumulated grievances related to staffing, safety, and working conditions, are all being expressed through this conflict.POSCO is navigating a challenging external environment. The company must address global steel oversupply, competition from low-cost Chinese products, and sluggish domestic demand while also making significant investments for carbon neutrality and securing future growth drivers. Maintaining competitiveness in the core steel sector while continuing future investments is a daunting task.In such times, trust among employees is essential. If the company seeks to ask its members to share the burden of a difficult business environment, it must provide clear explanations for why this is necessary. Conversely, employees should not prioritize their demands without acknowledging the realities faced by the company, as this will hinder the search for sustainable solutions. A process of mutual recognition and finding common ground is necessary.Moreover, POSCO is closely linked to key domestic industries such as automotive and shipbuilding. If the labor dispute continues for an extended period, it could lead to production disruptions that would not only affect POSCO but also jeopardize the hard-won trust and stability of supply with customers.What is needed now between POSCO and its labor force is not a contest of endurance. The external competition is intensifying, and there are numerous internal challenges that must be addressed. Instead of wasting energy on mutual blame, both sides should work swiftly to resolve the conflict and realign their focus.Signing an agreement does not automatically resolve all conflicts. To achieve true reconciliation, the distrust and internal divisions revealed during this process must also be addressed. To withstand external pressures, internal cohesion is essential. What POSCO needs most at this moment is to rebuild internal trust.* This article has been translated by AI. 2026-09-17 05:04:00
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Fed Raises Interest Rate by 0.25% Amid Inflation Concerns In a move anticipated by Wall Street, Federal Reserve Chair Kevin Warsh announced a 0.25 percentage point increase in the benchmark interest rate on September 16. The Federal Open Market Committee (FOMC) voted unanimously to raise the rate from the current range of 3.5% to 3.75% to a new range of 3.75% to 4%. This marks the first rate hike since July 2023 during the Biden administration.The decision to raise rates was widely expected, with Yahoo Finance reporting that traders had predicted the first rate increase in three years. Inflation has remained above the Fed's target of 2% for over five years, exacerbated by rising prices due to the ongoing conflict in the Middle East. The CME Group's FedWatch tool indicated a 92% probability of a rate hike prior to the meeting.Political reactions are anticipated, particularly from President Donald Trump, who may express discontent over the rising costs of living and government borrowing, which has reached a 20-year high. Politico noted that these factors could negatively impact the Republican Party ahead of the November midterm elections, potentially inciting Trump's wrath. Warsh was appointed by Trump earlier this year, who had hoped for a rate cut at the time of his nomination, as Warsh had previously supported the idea.According to NBC News, while Trump criticized former Chair Jerome Powell for not lowering rates, he has refrained from publicly criticizing Warsh, despite the new chair's term being less than four months old. Representative Frank Lucas, a Republican from Oklahoma, stated in an interview with Politico that this decision could test the Fed's independence.However, some analysts predict that the rate decision will have minimal impact on the upcoming midterm elections. Jason Furman, a Harvard professor and former chair of the White House Council of Economic Advisers under President Obama, pointed out that there is often a significant gap between political perceptions of the Fed's influence on elections and the actual effects, noting that the impact on jobs and inflation will likely not be felt until well after the election. Representative Bill Huizenga, a Republican from Michigan, emphasized that rising oil prices are currently a more pressing concern than interest rates.* This article has been translated by AI. 2026-09-17 03:12:00