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Yeosu World Island Expo Highlights Historical Significance of Dokdo on Dokdo Day At the southern tip of the Korean Peninsula, Geomundo and Dokdo are two islands that, despite their distance, share a historical connection through the fishermen who once relied on the sea for their livelihoods.In observance of Dokdo Day on October 25, the 2026 Yeosu World Island Expo is shedding light on the historical ties between Geomundo and Dokdo, providing an opportunity to reflect on the territorial and cultural significance of these islands.According to the organizing committee of the 2026 Yeosu World Island Expo, the Island Theme Zone at the expo showcases Dokdo along with representative islands from Korea and around the world.Ahead of Dokdo Day, historical records of fishermen from Geomundo traveling between Ulleungdo and Dokdo have garnered attention.Dokdo Day commemorates the proclamation of Imperial Decree No. 41 by the Korean Empire on October 25, 1900, which designated Ulleungdo and its surrounding islands, including Dokdo, as part of Uldo County. This decree is viewed as historical evidence of the Korean Empires jurisdiction over Dokdo.Dokdo is recognized as Korean territory from historical, geographical, and international legal perspectives. The history of Dokdo encompasses not only administrative jurisdiction but also the activities of fishermen who traversed the waters for their livelihoods.During the reign of King Sukjong of Joseon, Ahn Yong-bok is known for asserting Koreas sovereignty during disputes with Japanese fishermen operating near Ulleungdo and Dokdo.In the 1950s, the Ulleungdo residents organized the Dokdo Volunteer Defense Corps to protect the island.The relationship between Dokdo and fishermen from the southern coast is also documented in historical records.In 1882, Lee Gyu-won’s records of Ulleungdo mention people from Jeolla Province engaged in logging and fishing activities there.Additionally, records left by Geomundo resident Kim Byeong-soon indicate that he harvested seaweed and caught otters around Dokdo.These examples illustrate that what is now perceived as a distant journey to Ulleungdo and Dokdo was once a vital area for the livelihoods of southern coast fishermen.Notably, the fact that residents of Geomundo and Chodo engaged in fishing activities between Ulleungdo and Dokdo suggests that these islands were not isolated but rather part of an interconnected living space accessible by sea.The Yeosu World Island Expo has established the Island Theme Zone to promote the history and culture accumulated around islands and the sea.This zone introduces the natural environments and cultural characteristics of representative islands from both domestic and international locations, allowing visitors to compare the features of various islands.In the section dedicated to Korean islands, visitors can explore Dokdo, several islands from Yeosu, as well as Gapado in Jeju and Cheongsando in Wando, Jeollanam-do.The expo highlights the historical significance of Dokdo while also showcasing the natural landscapes, cultural practices, and tourism resources of each regions islands.The section introducing islands from around the world features notable locations such as Chiles Easter Island, Madagascar with its unique ecosystems, the Azores in Portugal, and the Maldives in the Indian Ocean.Visitors can compare Korean islands with those from around the globe, observing the diverse lifestyles and ecological characteristics shaped by geographical environments.This years Dokdo Day serves not only to emphasize the territorial significance of the islands but also to reflect on the realities faced by domestic island regions struggling with population decline, aging, and climate change.Islands are not only spaces that constitute maritime territory but also the homes where residents have lived for generations. To ensure the sustainability of island regions, a comprehensive approach is needed that includes environmental conservation, improving living conditions, and preserving cultural practices.The organizing committee aims to raise social awareness of the future value of island regions by promoting the nature, history, and culture of islands through this expo.Kim Jong-ki, Secretary General of the 2026 Yeosu World Island Expo Organizing Committee, stated, On Dokdo Day, I hope this expo serves as a reminder of the significance of our islands and fosters continued warm interest in them.The history of Geomundo fishermen traveling to Dokdo illustrates that islands are not merely isolated spaces but vibrant areas where people, goods, and culture have exchanged hands.As we observe Dokdo Day, it is crucial to consider whether revisiting the history of our islands will lead to a reflection on the present and future of island regions.Meanwhile, the 2026 Yeosu World Island Expo, themed Islands, Connecting the Sea and the Future, opened on September 5 and will run until November 4 at the Jinnam District of Yeosu, the Yeosu World Expo site, and the surrounding areas of Gaedo and Geumo Island. The expo features exhibitions and experiential programs showcasing the ecology, culture, history, and future value of islands from both domestic and international perspectives.* This article has been translated by AI. October 24, 2026 14 -
North Korea Remains Silent on South's Proposal for Military Talks North Korea has not responded to South Koreas proposal for military talks aimed at confirming the location of the military demarcation line (MDL) and preventing accidental clashes in border areas.According to North Korean state media, including the Korean Central News Agency and Rodong Sinmun, North Korea had not issued any official stance on the military talks proposed by the South Korean Defense Ministry as of the morning of October 24.In contrast to the ten statements made by Kim Yo Jong, deputy director of the Workers Party, regarding South Korea in the past month, there has been no official comment from her or other senior North Korean officials regarding this latest proposal.Instead, state media focused on Kim Jong Uns leadership at the third meeting of company commanders of the Korean Peoples Army, which took place in Pyongyang on October 22 and 23.During the meeting, Kim stated, The fundamental spirit of the conference is to cultivate the strongest companies to build the strongest army and accelerate our style of military revolution.He emphasized the importance of military readiness, saying, If all companies in the army are prepared to the fullest, our militarys combat readiness will be complete, and the goal of building a strong army in the new era will be achieved.Earlier, on October 23, the South Korean Defense Ministry officially proposed a meeting between the military authorities of the two Koreas, led by Defense Policy Director Kim Hong Cheol. The agenda included mutual confirmation of the MDL location, restoration of military communication lines, and measures to prevent accidental military clashes in border areas.The ministry also indicated that a three-party meeting involving the United Nations Command could be possible if necessary, urging North Korea to respond positively.This marks the second time the current government has proposed official talks with North Korea since taking office, following a similar proposal in November of last year. At that time, the Defense Ministry also suggested talks to discuss the establishment of MDL reference lines, but North Korea did not respond.* This article has been translated by AI. October 24, 2026 12
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Japan Considers Including AI and Infrastructure in Defense Budget Amid U.S. Pressure The United States has demanded that Japan increase its defense spending to 3.5% of its gross domestic product (GDP), prompting the Japanese government to consider including artificial intelligence (AI), infrastructure, and development aid budgets in its defense expenditures.According to the Nihon Keizai Shimbun (Nikkei) on October 24, the cabinet of Sanae Takaichi is exploring options to expand the categories of government spending that can be counted as defense expenditures in response to U.S. demands.The Japanese government plans to revise its three security documents by the end of this year. Among these, the Defense Capability Development Plan will determine the total defense budget for the next five years starting in 2027, including the number of Self-Defense Forces equipment and necessary expenses.The existing Defense Capability Development Plan, established in 2022, allocated a total of 43 trillion yen (approximately $363 billion) for defense spending over five years. However, projections indicate that the next plan could significantly increase this amount to between 60 trillion and 80 trillion yen (approximately $506 billion to $675 billion).The challenge is that even with this increase, it may still fall short of meeting the U.S. requirement of 3.5% of GDP. To align with U.S. expectations, Japans annual defense spending would need to reach about 20 trillion yen.In response, the Japanese government is considering including expenditures related to economic security, such as energy, government development aid (ODA), and AI investments that contribute to security in its defense budget.However, the Japanese government remains cautious about explicitly stating the 3.5% of GDP figure in its defense budget plans. The Nikkei reported that while the government is mindful of U.S. demands, it intends to calculate defense spending by aggregating necessary expenses individually.The rising defense budget is also raising concerns about fiscal burdens. The Tokyo Shimbun reported that fixed costs, including repayments for previously signed arms purchase contracts and personnel expenses, are already expected to reach 30 trillion yen (approximately $253 billion) over the next five years starting in 2027.Additionally, there are concerns that the Japanese governments plan to temporarily reduce the consumption tax on food starting next year could further increase fiscal pressure. However, the Takaichi cabinet has yet to present specific funding measures needed for both the defense budget increase and tax cuts.Reducing energy subsidies is also under consideration. The Takaichi government and the ruling party are exploring a gradual reduction of subsidies provided to oil companies to maintain gasoline retail prices at around 170 yen (approximately $1.43) per liter following the Middle East crisis. The aim is to adjust gasoline prices to about 180 yen (approximately $1.52) per liter. As the prolonged Middle East crisis reduces the funding for energy subsidies, the combination of expanding defense spending and tax cuts is expected to further strain the Japanese governments fiscal management.* This article has been translated by AI. October 24, 2026 10
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Japan Considers Including AI and Infrastructure in Defense Budget Amid U.S. Pressure The United States has demanded that Japan increase its defense spending to 3.5% of its gross domestic product (GDP), prompting the Japanese government to consider including artificial intelligence (AI), infrastructure, and development aid budgets in its defense expenditures.According to the Nihon Keizai Shimbun (Nikkei) on October 24, the cabinet led by Sanae Takaichi has begun reviewing options to expand the categories of government spending that can be counted as defense expenditures in response to U.S. demands.The Japanese government plans to revise its three security documents by the end of this year. Among these, the Defense Capability Maintenance Plan will outline the quantity of equipment the Self-Defense Forces will possess and the necessary expenses, determining the total defense budget for the five years starting in 2027.The existing Defense Capability Maintenance Plan, established in 2022, allocated a total of 43 trillion yen (approximately $363 billion) for defense spending over five years. However, projections indicate that the next plan could significantly increase this amount to between 60 trillion and 80 trillion yen (approximately $506 billion to $675 billion).The challenge is that even with such increases, it may still be difficult to meet the U.S. requirement of 3.5% of GDP. To align with this demand, Japans annual defense spending would need to reach about 20 trillion yen.In response, the Japanese government is considering including expenditures related to economic security, such as energy, government development aid (ODA), and AI investments that contribute to security in its defense budget.However, the Japanese government remains cautious about explicitly stating the 3.5% of GDP figure in its defense budget plans. The Nikkei reported that while the government is mindful of U.S. demands, it intends to calculate defense spending by aggregating necessary expenses individually.The financial burden resulting from the surge in defense spending has also emerged as a significant issue. The Tokyo Shimbun reported that from 2027, fixed costs, including repayments for previously signed arms purchase contracts and personnel expenses, are expected to reach 30 trillion yen (approximately $253 billion).Additionally, concerns are growing that the Japanese government’s plan to temporarily reduce the consumption tax on food products starting next year could further increase fiscal pressure. However, the Takaichi cabinet has yet to present specific funding measures needed for both the increase in defense spending and tax cuts.Reducing energy subsidies is also under consideration. The Takaichi government and the ruling party are reviewing plans to gradually decrease subsidies provided to oil companies to maintain gasoline retail prices at around 170 yen (approximately $1.43) per liter. This aims to adjust gasoline prices to about 180 yen (approximately $1.52) per liter. As the prolonged Middle East crisis reduces the funding for energy subsidies, the combination of increased defense spending and tax cuts is expected to further strain the Japanese governments fiscal management.* This article has been translated by AI. October 24, 2026 10
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Kim Jong Un Leads Large Military Event Amid Death Rumors, Emphasizes Military Strength Kim Jong Un, the Chairman of North Koreas State Affairs Commission, has directly overseen a large military event, ordering the establishment of internal discipline and the enhancement of combat capabilities. Amid recent rumors of his death circulating on foreign social media, he continues to make public appearances to demonstrate his vitality.According to the Korean Central News Agency, Kim led the Third Company Commanders Conference of the Korean Peoples Army held in Pyongyang from October 22 to 23.In a speech themed Building a Strong Army in the New Era and the Duties of Company Commanders, Kim outlined tasks aimed at strengthening the combat power and military capabilities of the companies.He stated, The overall direction for strengthening companies is to revamp their combat power and appearance to match the status and prestige of an elite revolutionary armed force, emphasizing that all companies in the military must be ideologically pure and militarily elite.Kim further noted, The fundamental spirit of the Third Company Commanders Conference is to cultivate the strongest companies to build the strongest army and accelerate our style of military revolution.He specifically instructed company commanders to ensure the ideological elite status of their companies and to continuously improve management and soldier life under strict military discipline. This reflects a commitment to strengthening ideological training and military discipline centered around the company, the basic combat unit of the military.This event is particularly noteworthy as it took place amid the recent spread of rumors regarding Kims death. North Korea had previously released images of Kim visiting an exhibition in the light industry sector on October 20, followed by reports of him leading this large military event.The National Intelligence Service reported to the National Assemblys Intelligence Committee on October 23 that the rumors of Kims death were false.The conference was attended by senior military officials, including Park Jong-cheon, Vice Chairman of the Workers Party Central Military Commission, Defense Minister Kim Song-ki, First Deputy Director of the General Political Bureau Yu Kwang-u, and Chief of the General Staff Ri Yong-gil, along with company commanders and commanders of various military agencies.The agency assessed that this conference served as an opportunity to cultivate companies into multi-functional units capable of independently carrying out any combat mission.Following Kims speech, Defense Minister Kim Song-ki presented a report, and there were screenings of videos featuring the practical experiences of company commanders, along with a ceremony to award exemplary company commanders with party and state honors.Previous Company Commanders Conferences were held in November 1991 and February 1999. Additionally, a conference for company commanders and political instructors was held in March 2019, indicating that such events are relatively frequent. October 24, 2026 08
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President Yoon to Meet German Chancellor Merz on October 29 to Discuss Semiconductor and AI Cooperation President Lee Jae-myung will hold a summit with German Chancellor Friedrich Merz on October 29 to discuss expanding cooperation in advanced industries, including artificial intelligence and semiconductors.Chief Presidential Spokesperson Kang Yu-jeong announced in a written briefing on October 23 that Chancellor Merz will officially visit South Korea for two days starting on October 29.This will be Merzs first visit to South Korea since taking office, marking the first official bilateral visit by a German Chancellor in three years.President Lee and Chancellor Merz are scheduled to meet at the Blue House on the afternoon of October 29 to discuss ways to enhance trade and investment, as well as cooperation in future advanced industries such as batteries, semiconductors, and AI. They will also exchange views on regional situations and major international issues. Following the summit, a joint press conference and an official dinner are planned.This meeting will be the third encounter between the two leaders, following the G20 summit in November last year and the G7 summit in June this year.Spokesperson Kang noted, Germany is South Koreas largest trading partner in Europe, with around 850 South Korean companies operating there, making it a key partner for cooperation. This summit will involve in-depth discussions on economic cooperation, including trade and investment, collaboration in future industries such as batteries, semiconductors, and AI, defense and military cooperation, and expanding people-to-people exchanges, as well as regional and international issues.She added, We expect this meeting to serve as an opportunity for the bilateral relationship to leap forward in a strategic and future-oriented direction.* This article has been translated by AI. October 23, 2026 21
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South Korea Donates Eight Retired 500MD Helicopters to Kenya The Ministry of Defense has delivered eight retired 500MD helicopters to Kenya after maintenance and technical support from the United States. This initiative, aimed at supporting United Nations peacekeeping operations, signifies the expansion of military cooperation between South Korea and the U.S. to the international community. On October 23, a ceremony for the helicopter donation was held at the Kenya Army Aviation Command in Nairobi, where the eight retired helicopters were officially handed over. The event was attended by over 200 participants, including officials from the defense ministries of South Korea, the U.S., and Kenya, as well as local diplomats and UN representatives. Rear Admiral Ryu Yoon-sang, head of the South Korea-U.S. Alliance Development Task Force, represented Minister of Defense Kang Shin-cheol and delivered a congratulatory message. This donation follows a commitment made by the South Korean government during the UN Peacekeeping Ministerial held in Seoul in 2021, where it pledged to provide helicopters to support peacekeeping efforts in Africa. At that time, South Korea announced plans to donate retired 500MD helicopters, with the U.S. agreeing to assist with maintenance and transportation. From December 2023, the eight retired 500MD helicopters were transported to the U.S. for maintenance, which took approximately two years, and were shipped to Kenya in September after completing maintenance and passing recent test flights. In his congratulatory message delivered by Rear Admiral Ryu, Minister Kang stated, The 500MD helicopters being transferred today symbolize South Koreas support and solidarity for Kenyas development and peace in Africa. This achievement is a result of close cooperation between South Korea and the U.S., marking a significant outcome for the South Korea-U.S. alliance. The Ministry of Defense added, We will continue to expand our contributions to peacekeeping operations, establishing ourselves as a leading donor of advanced technology.* This article has been translated by AI. October 23, 2026 20
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Goseong-seok Calls for Accountability on National Industrial Complex Promises As discussions continue regarding the relocation of the Muan military airport, a member of the Jeonnam Gwangju Integrated Special City Council has called for the disclosure of specific implementation plans for the national industrial complex sales guarantee and the promised 1 trillion won in support before a resident vote. The council member emphasized that before persuading Muan residents about the burdens associated with the military airport relocation, the government and the integrated special city must clarify the feasibility and financial responsibilities of the promised support projects. Goseong-seok, a council member from the Democratic Party representing Muan 1, urged during a five-minute speech at the council meeting on October 23 for the documentation and public disclosure of the six-party agreement related to the military airport relocation before the resident vote. He criticized the mayors recent response to concerns about the 500,000-pyeong sales guarantee, stating, Do not worry, while only indicating that the acquisition of unsold land would be actively considered. If a sales guarantee has been promised, it is essential to specify who will purchase unsold land if actual sales do not occur and which agency will bear the resulting losses. Goseong-seok stressed that since the establishment of the national industrial complex is a key support project linked to the military airport relocation, mere declarative promises will not earn the trust of the residents. He also pointed out that while there are agreements with 101 companies regarding 330,000 pyeong of the 630,000 pyeong of industrial land, the actual implementation of these investments must be scrutinized. He argued that agreements with companies do not guarantee actual investment and occupancy, and plans must be developed to secure demand for the remaining industrial land and address potential unsold land issues. Rather than merely presenting the number of agreements as a measure of success in attracting businesses, a concrete management system is needed to verify investment scale, occupancy timelines, and the feasibility of actual project implementation. Regarding the 1 trillion won support promise linked to the military airport relocation, he called for responsible implementation. Goseong-seok referenced comments made by a member of the National Assemblys Defense Committee on October 15, who mentioned the 1 trillion won support and requested Muan residents to welcome the military airport relocation. He emphasized that the 1 trillion won support was not a unilateral demand from Muan residents but rather a promise initially proposed by the former Gwangju city and agreed upon by the government and the former Jeonnam and Gwangju in the six-party agreement. He added, Demands to uphold a jointly agreed promise should not be dismissed as local selfishness. We should not ask residents, who are concerned about the future of the region, to make unilateral sacrifices but instead demonstrate a responsible attitude by fulfilling promises first. Goseong-seok argued that to resolve conflicts surrounding the military airport relocation, the feasibility of implementing the agreed-upon terms must be objectively verified before asking for residents choices. He reiterated the demand for the documentation and public disclosure of the six-party agreement before the resident vote. Additionally, he called for a comprehensive plan to enhance the practical sales potential of the national industrial complex by attracting anchor companies, securing demand for industrial land, and linking the revitalization of Muan International Airport with the establishment of the national industrial complex. He specifically requested that the sources of support related to the national industrial complex sales guarantee, the acquisition of unsold land, and the burden of losses be clearly outlined, and that the progress of investments and occupancy by company be reported to the council quarterly. This is seen as a way to continuously verify the feasibility of the national industrial complex development plan and ensure that the promises of support related to the military airport relocation are translating into actual projects at the council level. Goseong-seok stated, The establishment of the national industrial complex is a promise made to Muan residents who must bear the burdens of the military airport relocation and is a critical issue that will determine the future of the region. If we respect the choices of Muan residents, we must first fulfill our promises, and the responsibility also lies with the Jeonnam Gwangju Integrated Special City. His remarks are noteworthy as they emphasize the need for clarity and accountability regarding the specifics of the agreements and responsibilities related to the national industrial complex and financial support, separate from the debate over the military airport relocation. However, the legal binding nature of the national industrial complex sales guarantee and the funding methods for the 1 trillion won support, as well as the scope of responsibilities among agencies, must be confirmed through related agreements and subsequent implementation plans. Meanwhile, the establishment of the national industrial complex and support projects linked to the relocation of the Muan military airport are considered major issues that will impact the expansion of the regional industrial base and the revitalization of the airport. Goseong-seok reiterated the need to clarify the responsible parties for the national industrial complex sales guarantee and the funding sources before the resident vote.* This article has been translated by AI. October 23, 2026 18
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South Korea proposes military talks with North to clarify MDL SEOUL, October 23 (AJP) - South Korea renewed its call for military talks with North Korea on Friday to clarify the Military Demarcation Line (MDL), restore military communication lines and prevent accidental border clashes. The proposal follows a September 21 land mine explosion that injured three South Korean soldiers inside the Demilitarized Zone (DMZ). A military investigation concluded that the explosion was caused by North Korean mines planted south of the MDL. The incident highlighted longstanding differences between the two Koreas over the precise location of the MDL in certain areas, raising concerns that troops could inadvertently cross what the other side considers the boundary, increasing the risk of accidental clashes. "We formally propose holding talks between the military authorities of the two Koreas to mutually confirm the precise location of the land Military Demarcation Line, discuss restoring military communication lines and explore ways to prevent accidental clashes in border areas," said Kim Hong-chul, director of the defense ministry's Defense Policy Office. "If necessary, a three-way meeting involving the United Nations Command would also be possible," he added. Kim said the ministry had closely monitored North Korea's construction of tactical roads and fences, mine-laying activities and repeated crossings of the MDL in recent years. South Korea's military estimates that North Korea has planted approximately 960,000 land mines in the DMZ area since 2024, according to multiple lawmakers' offices on the National Assembly's defense committees on Friday. The military has also identified several suspected North Korean minefields south of the MDL and is conducting further investigations with the United Nations Command. "Given the reality of military confrontation along the Military Demarcation Line, it is difficult to predict what further incidents could occur if this situation is left unaddressed," said Kim. "The potential damage would not be limited to either side," he added. Kim also warned that the unresolved boundary issue had contributed to an increase in North Korean military activities and South Korean warning broadcasts and warning shots near the MDL. A total of 1,292 markers were installed along the MDL following the 1953 Korean War Armistice Agreement, but only about 200 remain identifiable today. South Korea previously proposed military talks in November 2025 to address differences over the MDL's location, but North Korea has not responded. Kim said the date and venue for the proposed talks could be discussed through Panmunjom. "We hope for a positive response from the North," he said. October 23, 2026 15 -
Defense Ministry Proposes Military Talks with North Korea to Confirm Border Line The Defense Ministry officially proposed military talks with North Korea on October 23 to mutually confirm the precise location of the Military Demarcation Line (MDL) and discuss the restoration of military communication lines and measures to prevent accidental clashes in border areas. The ministry indicated that a three-party meeting, including the United Nations Command, could be possible if necessary.Kim Hong-cheol, head of the Defense Policy Office, stated during a briefing that the differing perceptions regarding some locations of the military demarcation line still exist, adding, Without special measures, soldiers will operate based on their own understanding of the locations, which increases the risk of accidental clashes.The ministry has been closely monitoring North Korean military activities, including the construction of tactical roads and barbed wire fences near the MDL and the laying of landmines, as well as incidents of crossing the MDL. It noted that it had proposed military talks last November to resolve differences in perceptions regarding the MDL, but North Korea did not respond.Kim also referenced the investigation into a landmine explosion that injured South Korean soldiers during a search operation in the Demilitarized Zone (DMZ) on September 21. He explained that the investigation confirmed that the explosion was related to landmines laid by North Korea south of the MDL.He emphasized that given the current military standoff at the MDL, if such situations continue to be neglected, it is difficult to predict what other incidents may arise, stating, The anticipated damage will not be limited to one side.The ministry explained that the recent increase in North Korean activities near the MDL and the South Korean militarys warning broadcasts and warning shots are related to the differing perceptions of the MDL.The agenda for the proposed talks includes mutual confirmation of the precise location of the MDL, restoration of military communication lines, and measures to prevent accidental clashes in border areas.Kim stated, If necessary, a three-party meeting including the United Nations Command is possible, adding that specific schedules and locations could be discussed through Panmunjom. He expressed hope for a positive response from the North.Meanwhile, Kim Yo-jong, the deputy director of the Workers Party of Korea, inspected the so-called border fortification construction site in the border area with Park Jeong-cheon, a senior advisor to the Ministry of National Defense, early on October 21. In a statement that day, she revealed the site visit and emphasized the need to solidify the border in accordance with Kim Jong-uns directive.Kim also announced that psychological warfare loudspeakers targeting South Korea would be operational along the entire border by the end of October, indicating a resumption of broadcasts aimed at the South. She claimed this was a response to the Souths warning broadcasts and warning shots. Additionally, recent movements by North Korean troops to maintain existing loudspeakers aimed at the South have been detected.* This article has been translated by AI. October 23, 2026 14
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Market Resilience: Banks, Telecoms, and Tobacco Stocks Amid Decline The KOSPI index has dropped nearly 20% this month, leading to significant losses for investors. However, key defensive stocks in the banking, telecommunications, and tobacco sectors have shown relative resilience. All 12 stocks in these categories either fell less than the KOSPI or increased in value, but only KT&G reported actual gains.According to data from the Korea Exchange, the KOSPI fell by 19.07% from October 1 to 22. The index, which stood at 6,838.04 on September 30, rose to 7,003.74 on October 2 before plummeting to 5,533.77 by October 22.Defensive stocks are typically companies that maintain stable performance during economic downturns or reduced consumer spending. Telecommunications and tobacco are prime examples. Even in a poor economy, consumers are unlikely to significantly reduce their use of mobile phones and internet services, ensuring steady monthly revenue. Similarly, tobacco products tend to have relatively stable demand, making them less susceptible to drastic sales declines during recessions.Banks, however, differ from typical defensive stocks as they are sensitive to economic conditions and interest rate changes. Nonetheless, their broad customer base generates interest income, and their dividend appeal, along with the capital strength of large financial groups, can provide some defense during market downturns. Stable cash flow and high dividend yields become attractive to investors when expectations for stock price increases diminish. Conversely, banks can also suffer if economic downturns lead to higher delinquency rates and increased loan loss provisions.During this market decline, defensive effects were evident. The average return for eight bank stocks during the same period was -9.27%, while three telecommunications stocks averaged -6.92%. Compared to the KOSPI, these returns were 9.80 percentage points and 12.15 percentage points higher, respectively. In contrast, KT&G, the leading domestic tobacco company, saw its stock rise by 9.99%, making it the only stock in the analysis to record positive returns.Among bank stocks, Industrial Bank of Korea fared the best, with a decline of only 1.73% from October 1 to 22. KB Financial (-6.28%) and Hana Financial Group (-7.77%) also experienced relatively smaller declines.On the other hand, Shinhan Financial Group suffered the most, with a drop of 14.89%. BNK Financial Group (-12.44%), Woori Financial Group (-10.46%), JB Financial Group (-10.31%), and iM Financial Group (-10.24%) also recorded double-digit declines.Concerns over capital burdens related to Shinhans acquisition of Lotte Insurance have been cited as a factor affecting its stock price. On October 13, Shinhan Financial signed a contract to acquire a 77.04% stake in Lotte Insurance for 693.3 billion won. While this acquisition could strengthen its non-banking sector, potential future capital increases remain a variable.The performance of the three major telecommunications companies varied. LG Uplus saw a slight decline of 0.69%, effectively maintaining its stock price, while KT and SK Telecom fell by 9.08% and 10.98%, respectively. Despite being in the same sector, there was a significant difference in stock price resilience.Analysts attribute these differences to the investment burdens of AI data centers and shareholder return policies. Daol Investment & Securities recently identified cash flow burdens from AI data center investments and stock buyback policies as factors differentiating the stock performances of the three telecommunications companies. LG Uplus managed to mitigate investment burdens through partnerships with external operators while also engaging in stock buybacks, resulting in relatively stronger stock price resilience.KT&G stood out among the stocks analyzed. Its share price rose from 176,200 won on September 30 to 193,800 won by October 22. On October 21, it even reached an intraday high of 196,400 won, setting a new 52-week record.This stock strength is attributed not only to its defensive stock characteristics but also to expectations of improved performance and expanded shareholder returns. KT&G announced a plan last month to buy back and retire shares worth 360 billion won. The company is also expected to report increased operating profits for the third quarter compared to the same period last year, driven by growth in its overseas tobacco business.Even when extending the analysis period from July 1 to October 22, the relative strength of defensive stocks remains evident. During this period, the KOSPI fell by 34.72%, while the average return for the eight bank stocks was -1.19%, and the three telecommunications stocks averaged -6.95%. KT&G actually rose by 14.20%.Notably, Woori Financial Group (7.76%), JB Financial Group (5.24%), Hana Financial Group (4.62%), and LG Uplus (3.07%) also recorded positive returns. Among the 12 stocks analyzed, five provided returns to investors during the four-month decline.However, it is important to note that being classified as a defensive stock does not eliminate the risk of stock price declines. Even with a stable revenue structure, stock prices can fluctuate significantly due to rising interest rates, increased investment costs, and individual companies financial burdens. In this analysis, while many bank and telecommunications stocks outperformed the KOSPI, they still could not avoid actual losses.* This article has been translated by AI. October 23, 2026 13
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Military Estimates North Korea Laid 960,000 Landmines in Two Years North Korea is estimated to have laid approximately 960,000 landmines in the Demilitarized Zone (DMZ) over the past two years, accounting for about half of the total landmines in the area.On October 23, multiple lawmakers from the National Assemblys Intelligence and Defense Committees reported that the military provided this information to the Assembly. Earlier, Unification Minister Jeong Dong-young mentioned during a National Assembly audit on October 7 that the total number of landmines in the DMZ is around 2 million, a figure also supported by experts who estimated the number, including friendly landmines, to be about 2 million. According to military reports, it is estimated that about half of the total landmines in the DMZ were laid relatively recently.Recently, North Korea has been fortifying its borders, which some interpret as a response to discrepancies along the Military Demarcation Line (MDL). Minister Jeong referred to the recent landmine explosions near the MDL as incidents rather than accidents.Additionally, as a response to the situation, the Ministry of Foreign Affairs is considering sanctions against North Koreas illegal cyber activities, although Minister Jeong has drawn a line, stating that this is a separate issue. This has led to speculation about conflicts with Foreign Minister Park Jin.Furthermore, our military continues to issue warning broadcasts and conduct warning shots towards North Korean troops that cross the MDL, but North Korea has expressed opposition, claiming that it threatens the safety of its soldiers. Recently, Kim Yo-jong, the deputy director of the Workers Party of Korea, has escalated rhetoric by announcing plans for loudspeaker broadcasts directed at South Korea.In response to the situation, the government has sent a letter to the chair of the United Nations Security Council. The letter is expected to be registered as an official Security Council document and posted on its website within a few days. October 23, 2026 11
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BYD cars banned from US base in Okinawa, with USFK possibly next SEOUL, October 23 (AJP) - Chinese-made BYD electric vehicles will be banned from Kadena Air Base in Okinawa, Japan, starting next week, U.S. Forces Japan (USFJ) said on Friday, citing concerns that the vehicles could collect sensitive information about military facilities. Effective Oct. 26, all BYD-manufactured vehicles will be prohibited from entering the base including private cars, taxis, delivery trucks and other commercial vehicles, with no exceptions. Kadena, one of the largest U.S. air bases in the Indo-Pacific, plays a key role in American military operations in the region and hosts the U.S. Typhon missile system, which can launch Tomahawk cruise missiles. The ban aims to prevent sensitive military information from being collected through vehicle-mounted cameras, sensors, GPS systems and internet-connected technologies, with similar restrictions potentially expanding to U.S. military bases in South Korea. According to data disclosed last week by lawmaker Kang Dae-sik of the main opposition People Power Party (PPP), at least 190 Chinese-made connected vehicles are registered to enter South Korean military facilities, including naval bases in Busan and Jinhae and Air Force bases in Cheongju, North Chungcheong Province, and Yecheon, North Gyeongsang Province, which house F-35 stealth fighters and KF-21 jets. The revelations have raised concerns over security risks posed by these vehicles, which could expose sensitive information around military installations, as they can collect surrounding data through cameras, radar, microphones and precise GPS systems. In June, the U.S. Department of War added BYD and 187 other companies including Chinese tech giants Alibaba and Baidu to its list of Chinese military companies, potentially subjecting them to restrictions. The department has also taken earlier steps to address security concerns, banning the sale and use of Huawei- and ZTE-made smartphones at stores on U.S. military bases worldwide in 2018 and restricting the use of Huawei telecommunications equipment near military facilities and overseas bases. Unlike the U.S., the Ministry of National Defense here has reportedly yet to impose security measures, such as restricting connected vehicles' access to military facilities or ask automakers to cooperate on security measures. October 23, 2026 10 -
President Lee's Approval Rating Reaches 40% After Seven Weeks President Lee Jae-myungs approval rating has slightly increased, recovering the 40% mark for the first time in seven weeks, according to a poll released on October 23.The Korea Gallup survey conducted from October 20 to 22 among 1,001 eligible voters aged 18 and older found that 40% approved of President Lees job performance. Disapproval stood at 50%, with 10% undecided.The approval rating rose by 1 percentage point from the previous week, while disapproval decreased by 2 percentage points. The gap between approval and disapproval narrowed from 13 percentage points to 10 percentage points.Among those who approved, the most cited reason was diplomacy at 21%. This was followed by economy and livelihood at 14%, communication at 7%, and both generally doing well and working hard at 5% each.Conversely, the primary reason for disapproval was real estate policy at 18%. Other reasons included economy and livelihood at 16%, national defense and security at 10%, and generally doing poorly at 6%.Korea Gallup noted that real estate issues have consistently ranked as the top reason for disapproval since the fourth week of July, and there has been an increase in mentions of economic issues in both approval and disapproval ratings compared to the previous week.Among centrist voters, approval was at 40% and disapproval at 47%. Among those without party affiliation, approval was at 21% and disapproval at 54%.In terms of party support, the Democratic Party of Korea stood at 37%, and the People Power Party at 28%, with both parties gaining 1 percentage point from the previous week. The gap between the two parties was 9 percentage points. The Justice Party received 3%, and the Reform Party received 2%, while the undecided group accounted for 27%.This survey was conducted by Korea Gallup using randomly selected mobile phone virtual numbers provided by the three major telecommunications companies. The response rate was 10.6%, with a margin of error of ±3.1 percentage points at a 95% confidence level. For more details, refer to the Central Election Survey Deliberation Committee and Korea Gallups website.* This article has been translated by AI. October 23, 2026 10
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SM Group's SM Gukil Pursues Acquisition of Daijin Machinery SM Groups subsidiary SM Gukil (formerly Kukil Paper) is moving to acquire Daijin Machinery, a company specializing in production equipment for secondary batteries and semiconductors.On October 23, SM Gukil announced that it has been selected as the preferred bidder for Daijin Machinery. This selection is part of SM Gukils strategy to discover new business opportunities and diversify its operations following a recent restructuring of its management.SM Gukil has recently changed its name and is focusing on securing new growth engines beyond its traditional paper business by merging with Han-Duk Iron Ore Industry, the only iron ore producer in South Korea.Founded in 1980, Daijin Machinery is a specialized manufacturer of industrial production equipment, primarily producing automation equipment for assembling battery modules and packs, as well as ingot growth equipment for semiconductor wafer manufacturing.In the secondary battery sector, Daijin Machinery has supplied battery production equipment for energy storage systems (ESS) to LG Energy Solution, with related sales accounting for about 70% of its total revenue, establishing a solid foundation in the ESS equipment market.Daijin Machinerys automation equipment for battery module and pack assembly is used in the production process that combines multiple battery cells into modules and packs. The ESS market is rapidly expanding due to increased electricity demand, the proliferation of renewable energy, and investments in AI data center infrastructure.Daijin Machinery possesses technology related to secondary battery production and the manufacturing of single crystals of silicon for semiconductor wafer production.Through this acquisition, SM Gukil plans to restructure its business model, which has primarily focused on industrial specialty paper, to expand into the fields of secondary battery and semiconductor production equipment. Additionally, it aims to maximize synergies within the group by collaborating with another subsidiary, SM Vexel, which produces batteries and specialty batteries for defense, drones, and ESS.An SM Group official stated, By pursuing the acquisition of Daijin Machinery, we will intensify our entry into new businesses such as ESS battery and semiconductor wafer production and processing equipment, while enhancing synergies with SM Vexel, which is already engaged in battery operations. We will also strengthen our capabilities in the advanced industrial equipment sector to steadily increase our corporate value.* This article has been translated by AI. October 23, 2026 10