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Korea-U.S. defense ties shift from one-sided to industrial partnership SEOUL, September 09 (AJP) - Defense industrial cooperation between South Korea and the United States largely ran one way for decades, with Seoul buying American weapons and relying heavily on U.S. military technology. The once-skewed relationship is becoming more reciprocal as Washington increasingly looks to Korean artillery, shipbuilding expertise and manufacturing capacity to fill gaps of its own. Hanwha Defense USA's entry into a U.S. Army artillery program has provided the clearest example yet of the shift, while growing U.S. interest in Korean shipbuilding is opening another avenue for the two allies to move from a traditional buyer-seller relationship toward joint development and production. "We now need to think about what Korea and the United States can develop and build together," Rep. Yu Yong Weon of the main opposition People Power Party said Wednesday, calling for a model in which the allies "develop together, produce together and maintain together." Yu, a member of the National Assembly's National Defense Committee and a longtime defense specialist, said South Korea has transformed from a major importer of U.S. weapons technology into a global defense exporter supplying countries including Poland and increasingly seeking a role in the U.S. market. "There are an enormous number of areas where the two countries can work together," he said. The comments came at the 2026 AMCHAM-National Assembly Policy Seminar, titled "The Future of U.S.-ROK Defense Industrial Cooperation," hosted by the American Chamber of Commerce in Korea and Yu's office at the National Assembly in Seoul on Wednesday. The seminar focused on moving bilateral defense ties beyond arms sales into co-development, co-production, maintenance, repair and overhaul, or MRO, sustainment and integrated supply chains. It was AMCHAM's first National Assembly policy seminar dedicated to bilateral defense industrial cooperation. The shift has gained momentum since the U.S. Army selected Hanwha Defense USA last month to supply prototypes for its Mobile Tactical Cannon program. The $100.3 million initial agreement covers six K9-based wheeled self-propelled howitzer prototypes. Options could expand the program to as many as 18 systems and raise its cumulative value to $262.9 million. The contract marked the first time a domestically developed South Korean weapons system entered a U.S. military acquisition program. Kim Il-dong, vice minister of the Defense Acquisition Program Administration, said the significance was difficult to overstate after more than three decades in the defense industry. "In more than 30 years working in the defense industry, this is the first time I have seen a completed Korean weapons system enter the U.S. market," Kim said. Brent Ingraham, the U.S. Army's top acquisition official, visited Hanwha Aerospace's production facility in Changwon on Aug. 26, inspecting the K9 production line and discussing cooperation related to U.S. Army modernization, according to the company. The development represents a reversal from the earlier decades of the alliance, when South Korea depended heavily on imported U.S. weapons and technology as it built its domestic defense industry. Korean companies are now seeking not simply to sell finished weapons to the United States but to become part of its defense production base. AMCHAM Chairman and CEO James Kim said the alliance, built over more than seven decades, is increasingly extending into defense, aerospace and industrial cooperation. "By combining Korea's manufacturing strength and growing global reach with American technology and innovation, our two countries can strengthen readiness, unlock investment and enhance shared economic security," Kim said. He said AMCHAM would seek to serve as a "trusted bridge" between policymakers and industry. Shipbuilding puts U.S. needs in sharper focus If the K9 represents the changing relationship on land, shipbuilding could prove a much larger test of how far the new industrial partnership can go. The United States is seeking to rebuild naval capacity while confronting shortages in domestic shipbuilding infrastructure, workforce and production capacity. South Korea, home to some of the world's largest and most technologically advanced shipyards, has increasingly emerged as a potential partner. Kim Il-dong cited the MASGA, or "Make American Shipbuilding Great Again," initiative, Korea's U.S. investment framework and the Korea-U.S. Shipbuilding Partnership Center as platforms that could turn political support for cooperation into concrete projects. South Korea and the United States opened the Korea-U.S. Shipbuilding Partnership Center in Washington on July 23 to support Seoul's planned $150 billion investment in the U.S. shipbuilding sector. The two sides also signed 15 memoranda of understanding covering supply chains, workforce development, joint research and other areas. Korean shipbuilders are already performing MRO work on U.S. naval vessels. HD Hyundai Heavy Industries completed maintenance on the U.S. Navy logistics vessel USNS Alan Shepard and secured another MRO contract this year involving the USNS Cesar Chavez. The opportunity is growing as Washington looks for ways to overcome constraints in its domestic yards. The U.S. Navy said in May that it operated 291 battle-force ships, below the 355 ships required under U.S. law. Earlier force-structure plans have called for 381 crewed battle-force ships and 134 large unmanned surface and underwater vessels, bringing the total to 515 naval platforms. The Trump administration has also created a potential route for foreign shipbuilders to participate more directly. President Donald Trump on Aug. 13 directed the Pentagon to apply what the administration calls the "Finland Model" to as many as three ship classes. Under the approach, a foreign shipbuilder making substantial investment in U.S. yards, training American workers and transferring shipbuilding techniques can temporarily build the first two vessels at its overseas parent yard before subsequent ships are constructed in the United States. The policy is aimed at addressing near-term U.S. capacity shortages while rebuilding the domestic shipbuilding industry. For South Korean shipbuilders, the model potentially creates a role that goes considerably further than repairing U.S. vessels or exporting ships. It could allow Korean companies to bring their production methods, workforce training and supply-chain expertise directly into the rebuilding of America's maritime industrial base. Aerospace looks toward propulsion Aerospace executives at the seminar pointed to another area where the relationship could become more deeply integrated. Kim Young-je, president of GE Aerospace Korea and general manager for Asia Pacific Defense & Systems, said South Korea is one of the company's key markets in the Asia-Pacific region. According to Kim, GE Aerospace works with more than 70 Korean companies and procures about $130 million worth of parts and components from Korean suppliers. He identified advanced propulsion as a potential area for the next stage of Korea's aerospace industry. Developing advanced engines requires capabilities spanning materials, thermal management, power systems, manufacturing, testing and validation, Kim said. GE Aerospace invests about $3 billion annually in research and development and has supplied more than 30,000 military engines to roughly 300 customers worldwide, including the U.S. Air Force, Army and Navy, according to his presentation. "Korea's aerospace industry has reached an important inflection point," Kim said, adding that GE could combine its technology and global experience with Korea's engineering and manufacturing capabilities. Lee Won-ik, country executive for Korea at Lockheed Martin, traced the company's relationship with South Korea from U.S.-built aircraft used during and after the Korean War to more recent industrial programs. He cited the KF-16, T-50 advanced trainer, KF-21 fighter, UH-60 helicopter and Aegis destroyers as examples of how bilateral defense cooperation has evolved. "Going forward, we will continue leveraging Korea's exceptional industrial capabilities and Lockheed Martin's technological leadership to create new opportunities for the defense sectors of both nations," Lee said. Sikorsky's Dylan Landis also outlined potential cooperation involving the X2 next-generation helicopter, including co-development, production and possible exports to third countries. The next step, participants said, will require overcoming barriers that remain between the two defense industries, including procurement rules, export controls, technology security, certification, access to technical data, skilled labor and the need for predictable long-term demand. They also discussed developing South Korea into a regional hub for MRO and military sustainment in the Indo-Pacific. Such a role would push the alliance further beyond the model that defined it for much of the past seven decades: one country supplying weapons and technology and the other buying them. Increasingly, both sides are looking at what each can build for — and with — the other. AJP Takeaways - Korea-U.S. defense industrial ties are becoming more reciprocal after decades dominated by U.S. weapons and technology transfers to Seoul - Hanwha's K9-based artillery system becomes the first domestically developed Korean weapon to enter a U.S. military acquisition program - U.S. shipbuilding constraints are opening another major avenue for Korean yards, investment and manufacturing know-how September 9, 2026 1 -
Seoul weighs coalition role in Hormuz amid U.S. pressure, Iran warnings SEOUL, September 09 (AJP) - South Korea is keeping its options open on a possible military contribution to the Strait of Hormuz, but President Lee Jae Myung's talks in Paris risk sending the impression to Washington that Seoul is placing greater weight on a French-British multinational mission. The framework could offer Seoul a middle ground between mounting U.S. pressure for support and Iran's warnings against military involvement. “The broad direction for international cooperation has been set, but details are still under review and nothing has been decided,” a presidential official said Tuesday following Lee's summit with French President Emmanuel Macron in Paris. The official stressed that the discussion should not be interpreted as a decision to send South Korean forces to the region. Lee, however, made clear that Seoul sees stability in the strategic waterway as an important national interest. “South Korea and France will continue close cooperation to restore freedom of navigation in the Strait of Hormuz and stabilize global supply chains,” Lee said after the summit. The presidential office said Lee approached the talks on the principle that South Korea's contribution should be determined based on national interests and public consensus. Macron raised the prospect of cooperation under a broader international framework. “The multinational mission is peaceful,” Macron said, adding that France and South Korea could cooperate once the necessary agreements are in place. France and Britain have been leading efforts to establish an independent, defensive multinational mission aimed at restoring safe navigation through Hormuz. South Korea has already backed that framework politically. It endorsed an April leaders' statement establishing the initiative and was among the countries supporting a subsequent multinational mission statement in May. Neither commitment, however, amounted to a decision to deploy South Korean forces or military assets. France has maintained a cautious line since the early months of the Iran war, supporting diplomatic efforts to end the conflict while keeping the proposed Hormuz mission separate from direct U.S. military operations against Tehran. Such stance has at times put Paris and London at odds with Washington, with Trump publicly criticizing NATO allies including France and Britain for failing to provide greater support for the U.S. war effort against Iran. Macron and British Prime Minister Keir Starmer in April co-hosted a Paris conference bringing together around 50 non-belligerent countries and backing a strictly defensive multinational mission once security conditions allowed. The proposed force was designed to protect commercial vessels, restore confidence among shipowners and insurers and conduct mine-clearing operations rather than take part in combat against Iran. Macron reiterated that approach at the G7 summit in June, describing the French-British initiative as “multinational, independent and defensive” and saying around 20 countries had expressed a firm commitment to contribute. France has said the mission could protect merchant shipping and support mine-clearing once conditions in the strait permit. The government recently sent a Defense Ministry fact-finding team to the United Arab Emirates to assess conditions in and around the strait, but the presidential office said the move was only “part of the review process” and did not presuppose a deployment. Asked whether the issue could be discussed at a National Security Council standing committee meeting on Sept. 17, the official said it was difficult to discuss a schedule because “nothing has been decided.” Seoul's caution comes as pressure intensifies from both Washington and Tehran. A White House official said Sunday that the United States was “still waiting” for South Korea to commit resources to the region, after U.S. President Donald Trump repeatedly singled out Seoul over its reluctance to support U.S. efforts surrounding Hormuz. Trump has pressed countries heavily dependent on Middle Eastern energy, including South Korea and Japan, to contribute to securing the waterway since the war with Iran began on Feb. 28. Iran, meanwhile, has warned Seoul against military involvement. “Military presence or participation in operations in the Persian Gulf and Strait of Hormuz would inevitably be seen as directly supporting the aggressor,” Iranian Foreign Ministry spokesperson Esmail Baghaei said, warning of “serious consequences.” Iran’s judiciary chief Gholam-Hossein Mohseni-Ejei abruptly canceled a planned visit to Seoul next week, as South Korea weighs a possible Hormuz deployment. The reason was not officially disclosed. “We told them that the matter is under review and nothing has been decided,” the presidential official said. The competing pressure leaves the Lee administration with a difficult calculation: how far to support its U.S. ally and help secure a waterway vital to South Korea's energy supplies without becoming directly entangled in the Iran war. Defense experts say months of caution may have brought Seoul to the point where a limited contribution deserves serious consideration. “We have reached a point where it is time to consider a deployment,” Choi Ki-il, a professor of military studies at Sangji University and head of the Korea Defense Industry Research Institute, told AJP. Choi said any mission should focus on protecting South Korean vessels and crews and supporting freedom of navigation rather than taking part in direct combat against Iran. “Even if we deploy, our role should be limited to protecting our own ships,” Choi said. Possible assets reported in recent days have included P-8A Poseidon maritime patrol aircraft, the Navy's 11,000-ton ROKS Soyang fast combat support ship and mine-clearing capabilities. The government has stressed that none has been selected. One potential middle ground would be participation in the French-British multinational mission rather than an independent South Korean operation. “If South Korea participates, it should not do so independently, but as part of a coalition force,” Kim Hong-yoo, a professor at Kyung Hee University and a policy committee member of the Korea Defense Industry Association, told AJP. Kim said such a framework could allow Seoul to take on logistics or other support functions rather than lead a separate Korean operation. He also argued that Washington's requests are difficult for Seoul to ignore because the United States, South Korea's treaty ally, is directly involved in the conflict. “For the government, this is a very difficult decision,” Kim said. Kim said an NSC discussion would become more relevant if the government decides to deploy forces, as Seoul would then have to determine which military assets could be spared without weakening its defense posture on the Korean Peninsula. For now, the presidential office is drawing a line between supporting international efforts to secure Hormuz and committing South Korean forces to them. Seoul's eventual choice will have to balance its U.S. alliance and the economic importance of keeping Hormuz open against military readiness on the Korean Peninsula, relations with Iran and domestic public opinion. AJP Takeaways - Seoul says no decision has been made on deploying military assets despite deeper talks with France and other partners. - French-British defensive mission offers potential middle ground between U.S. demands and Iran's warnings. - South Korea has already backed the multinational framework politically, leaving the scale and form of any operational contribution unresolved. September 9, 2026 1 -
Joint Chiefs Chairman and USFK Commander Inspect Eastern Frontline Units Joint Chiefs of Staff Chairman Gen. Jin Young-seung and U.S. Forces Korea Commander Gen. Xavier Brunson visited the eastern front GP (guard post) and GOP (general outpost) units on September 9 to assess the operational situation in the demilitarized zone and the frontline readiness posture. The two officials checked the recent activities of North Korean forces near the Military Demarcation Line (MDL) and the readiness of the frontline units. Gen. Jin expressed serious concern over North Korean activities in the MDL area, directing that even minor signs must be closely analyzed to prevent surprise attacks by the enemy, and in the event of provocations, operations should be concluded decisively on-site. Gen. Brunson emphasized that to maintain stability under the armistice agreement, a solid preparedness posture must be supported, highlighting that the visit demonstrates the strength of the ROK-US alliance and their shared commitment to defending South Korea and ensuring peace and stability on the Korean Peninsula. The two leaders reaffirmed their commitment to joint defense readiness and agreed to continue enhancing capabilities, preparedness, and interoperability to maintain deterrence. Gen. Jin also inspected the GOP battalions defense operation systems and readiness posture, urging all operational personnel to maintain practical capabilities and readiness to act immediately.* This article has been translated by AI. September 9, 2026 1 -
South Korea Weighs Limited Deployment to Hormuz Amid U.S. Pressure The South Korean government is reviewing options for contributing to maritime safety in the Hormuz Strait, moving from international discussions to local assessments. As it becomes increasingly difficult to ignore U.S. requests for support, if South Korea decides to participate, a limited deployment focused on support roles appears to be a compromise. This would provide a political message of alliance to the U.S. while minimizing South Koreas direct combat involvement and domestic opposition.For several months, South Korea has been discussing the potential deployment to the Hormuz Strait. The Ministry of National Defense attended a video conference on May 12 regarding a multinational military mission led by the United Kingdom and France. The ministry has stated that it is considering realistic contribution options based on international law, maritime safety, the South Korea-U.S. alliance, the security situation on the Korean Peninsula, and domestic legal procedures.In August, the government publicly mentioned the possibility of military contributions. On August 17, the Blue House explained that it was discussing practical and military contribution options with the U.S., taking into account the readiness posture on the Korean Peninsula and domestic legal procedures. This coincided with President Donald Trumps expressed dissatisfaction with South Koreas contributions related to Iran and his directive to reduce joint military exercises with South Korea.By September, discussions began to focus on specific deployment capabilities and procedures. Reports on September 3 indicated that the government was considering sending reconnaissance aircraft and logistical support vessels, but both the Ministry of National Defense and the Blue House stated that no decisions had been made. A Blue House official explained on September 4 that there are various ways to contribute, including non-combat and reconnaissance roles, but emphasized that this did not imply a specific option had been chosen.On September 8, the Ministry of National Defense officially confirmed the dispatch of a local investigation team to the United Arab Emirates. However, it clarified that this was to assess the regional situation and safety, and not a prelude to actual deployment. Reports that the U.S. requested the dispatch of South Korean military assets by November were also denied.In the early hours of September 9, discussions on international cooperation for safe navigation were announced during a summit between South Korea and France. The Blue House stated that the two countries discussed practical contribution options but emphasized that this should not be interpreted as a decision to deploy troops. The dispatch of the investigation team is also part of the review process.The governments openness to military contributions while drawing a line on final decisions is seen as a strategy to secure diplomatic negotiation space and gauge domestic public opinion. This approach allows for time to adjust the scale and mission of any potential deployment while withholding a final judgment on participation.In this context, South Korea may look to the defensive multinational mission being pursued by the U.K. and France. This involves positioning forces in the surrounding area while determining the actual start of operations based on local conditions. If South Korea decides to participate, it is expected to consider a phased approach, focusing on support missions such as surveillance and reconnaissance.The U.K. has emphasized the defensive and independent nature of its mission, proposing contributions such as mine countermeasure unmanned systems, specialized personnel, fighter jets, and destroyers. It has also specified that actual operations would only commence when conditions permit, indicating that the deployment of forces does not immediately lead to operational participation, which is a point of consideration for South Korea.The background for a limited support-focused participation as a compromise lies in the political effects anticipated by the U.S. With the midterm elections approaching in November, the Trump administration seeks to highlight international support for its Iran policy and maritime safety activities through the participation of allies like South Korea, showcasing a shared burden among allies.From this perspective, the scale of the military assets South Korea may provide, as well as its military capabilities, are significant, but the mere act of participation itself holds important implications for the U.S. For South Korea, sending a small contingent to perform limited support missions could address the demands of its ally while reducing the burden of direct combat involvement.Discussions about reducing the scale of the deployment also align with this compromise potential. The plan involves focusing on specialized forces such as reconnaissance aircraft and explosive ordnance disposal (EOD) units, excluding the previously mentioned logistical support vessels. If South Korea decides to participate, it may limit its mission to surveillance and reconnaissance or support maritime safety through specialized personnel. The option of positioning forces in the region under the pretext of protecting citizens abroad and supporting evacuation in emergencies is also being considered.Shin Jong-woo, Secretary General of the Korea Defense Security Forum, stated, “In a situation where a war with Iran lacks international support, even a small deployment from South Korea could send a political message domestically and internationally for the U.S.” He added, “As U.S. pressure for deployment intensifies, it is time for a realistic review for national interests. Given the potential for prolonged conflict and instability in Gulf countries, approaching the deployment as a means to support evacuation operations for citizens abroad could secure justification for the deployment.”* This article has been translated by AI. September 9, 2026 1
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U.S. bidder challenges Hanwha with higher offer for Austal USA SEOUL, September 09 (AJP) - A U.S.-led investment group has emerged as a rival to Hanwha in the race for Austal USA, offering as much as $1.35 billion for the American shipbuilding business, above the South Korean defense group's earlier proposal. “Austal has received a non-binding indication of interest from a syndicate led by Wildcat Resources LLC” to acquire Austal USA, the Australian shipbuilder said in a filing to the Australian Securities Exchange on Wednesday. The proposal values Austal USA at between $1.25 billion and $1.35 billion on a cash-free, debt-free basis and is conditional on four weeks of due diligence. Wildcat has indicated that it “intends to operate the company as a standalone platform,” retaining the Austal brand and its U.S. operations, Austal said. AJP Takeaways - Wildcat Resources has offered $1.25 billion to $1.35 billion for Austal USA, topping Hanwha’s earlier bid. - Hanwha Defense USA has proposed $1.05 billion to $1.2 billion and is seeking to expand its U.S. shipbuilding footprint. - Austal USA builds vessels for the U.S. Navy and Coast Guard and operates key facilities in Alabama and California. The new approach puts the Wildcat-led group in direct competition with Hanwha Defense USA, which made a preliminary bid for Austal's U.S. operations last month. “Hanwha Defense USA has made a preliminary, non-binding offer to acquire Austal's U.S. business,” company spokesperson James Hewitt said in a statement. Hanwha's proposal values Austal USA at between $1.05 billion and $1.2 billion, meaning Wildcat's offer is higher at both ends of the range. Austal previously said Hanwha's proposal was also on a cash- and debt-free basis and subject to due diligence and other conditions. “Any deal will be contingent on due diligence that permits a thorough evaluation of Austal USA's operations and financials, including newly disclosed information,” Hewitt said. “Hanwha has made it a priority to significantly contribute to revitalizing American shipbuilding and is exploring a range of options to expand our footprint in the United States,” he added. Hanwha has been seeking to deepen its presence in the U.S. naval shipbuilding and defense market. It has already built a 19.9 percent economic interest in Austal and acquired Philly Shipyard in 2024. Austal USA is particularly attractive because of its role in major U.S. naval programs. The company operates a shipyard in Mobile, Alabama, where it builds vessels for the U.S. Navy and Coast Guard, and employs around 3,500 workers. It also has ship repair and support operations, including facilities in San Diego. Austal said its board and advisers will consider the Wildcat proposal. No binding transaction has been agreed with either bidder. September 9, 2026 1 -
U.S. Treasury Secretary Warns of Consequences if China Wins AI Race U.S. Treasury Secretary Scott Besant warned that if the United States loses the artificial intelligence (AI) competition with China, it could have serious consequences for national security and the economy. His comments come amid growing concerns in the U.S. over the rapid emergence of Chinas open-weight AI models.According to a Bloomberg report on September 9, Besant stated at a Breitbart News event in Washington the previous day, If China wins the AI competition, there will be no tomorrow, adding, If China gets ahead of us in AI, nothing else will matter. He also noted that even with significant defense spending, the U.S. would fail to protect itself if it falls behind China in the AI race.Besants remarks appear to reflect recent opposition in the U.S. regarding the construction of AI data centers. Former President Donald Trump has also warned that domestic backlash against data center construction could threaten the economy and ultimately risk ceding AI leadership to China.This concern is contrasted with Chinas rapid development of AI data centers in sparsely populated areas in the north and northwest, far from major cities.The growth of Chinese open-weight AI models is further fueling U.S. anxiety. Unlike the closed models led by U.S. companies such as OpenAI and Anthropic, open-weight models allow users and developers to download and modify the models weights. Chinese firms are increasingly releasing competitively priced models that approach the performance of U.S. models.According to the AI-focused newsletter Interconnects, downloads of Chinese open-weight AI models exceeded 328 million last month, more than double that of U.S. models. This surge is attributed to the release of powerful new products like Moonshot AIs Kimi K3 and DeepSeeks updated V4 Pro.The U.S. government has also raised suspicions that Chinese AI companies are engaging in large-scale distillation activities to acquire technology from leading U.S. AI models. Distillation refers to a technique that enhances the performance of one AI model by utilizing the output results of a more advanced model.On September 8, the National Security Agency (NSA), the Federal Bureau of Investigation (FBI), and the Cybersecurity and Infrastructure Security Agency (CISA) jointly released a cybersecurity document claiming that Chinese AI companies have been conducting industrial-scale distillation activities targeting advanced models from U.S. firms like Anthropic, OpenAI, Google, and SpaceX. The document also suggested that these activities likely occurred with the knowledge of the Chinese government.In response, Chinese Foreign Ministry spokesperson Mao Ning urged the U.S. on September 9 to stop its baseless accusations and slander against China, emphasizing the need for both countries to strengthen cooperation as AI powers.Meanwhile, ahead of the scheduled U.S.-China summit on September 24, both countries are preparing to discuss AI safety issues, as reported by Reuters. This will mark the first time since the start of the Trump administrations second term that the two nations will engage in official bilateral talks focused solely on AI. September 9, 2026 1
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Yoon Ho-jung: Kim Ji-yong's Philosophy on Prosecutorial Reform is Sound Yoon Ho-jung, the Minister of the Interior and Safety, stated on September 9 that Kim Ji-yong, the nominee for the inaugural head of the Serious Crimes Investigation Agency, does not have issues with the fundamental philosophy of current prosecutorial reform and the protection of human rights.During a session of the National Assemblys Legislative and Judiciary Committee, Yoon responded to a question from Rep. Yoon Sang-hyun of the People Power Party, who raised concerns about Kims past opposition to the reduction of prosecutorial investigative powers.Kim, who served as the head of the Criminal Division at the Supreme Prosecutors Office, expressed his opposition in 2022 when legislation aimed at completely stripping the prosecution of its investigative powers, known as Geumsu Wanbak, was proposed. This has led to criticisms that his stance is inconsistent with the intent of separating investigation and prosecution as part of prosecutorial reform.In response, Yoon emphasized that Kim had been thoroughly vetted by the Serious Crimes Chief Nomination Committee and noted that specific issues could be addressed during the confirmation hearing. He explained that Kims previous position on supplementary investigative powers was based on his role as the head of the Criminal Division, which primarily handles supplementary investigations.Addressing concerns about the readiness of personnel, equipment, and the criminal justice information system for the Serious Crimes Investigation Agency, which is set to launch on October 2, Yoon reiterated that there would be no issues with its normal operation. He stated, We have decided to equip the necessary equipment and systems, adding that the initial staffing would involve transferring personnel from the prosecution, with plans to hire additional staff as needed.Regarding the criticism that there are not enough prosecutors with expertise in handling serious crimes such as corruption, economic offenses, drug-related cases, and defense industry matters, Yoon clarified that the goal was not to fill all positions exclusively with former prosecutors and expressed confidence that sufficient personnel had been secured.* This article has been translated by AI. September 9, 2026 1
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South Korea takes state-led route in AI race as latecomer SEOUL, September 09 (AJP) - America's biggest technology companies are preparing to pour roughly $725 billion into artificial intelligence infrastructure this year. South Korea cannot come close to matching that private-sector firepower. So Seoul is reaching for something Silicon Valley does not need nearly as much — the state balance sheet. The government's 2027 budget bill submitted to the National Assembly on Sept. 3 lifts spending on AI and three linked mega-projects by 97.2 percent to 21.3 trillion won ($15.8 billion), equivalent to about 2.6 percent of total government expenditure of 820.9 trillion won. Their share was about 1.5 percent this year. Gartner forecasts worldwide AI spending will reach $2.59 trillion in 2026, up 47 percent from a year earlier. The four biggest U.S. hyperscalers — Amazon, Microsoft, Google and Meta — alone plan around $725 billion in capital expenditure this year, up 77 percent from 2025, according to Value Add VC's tracker. Korea's wager is different. Private AI investment in the country came to a paltry $1.78 billion in 2025, compared with $285.9 billion in the United States, according to Stanford University's 2026 AI Index. Still, Korea ranked first globally in AI patents per 100,000 people, at 14.31, and third in notable AI models released. The mismatch points to the problem Seoul is trying to solve through state-led investment. Korea has technological capability, but the pools of private capital needed to scale it remain far smaller than in the United States. The treasury is moving to fill part of that gap. The 2027 money goes beyond R&D. It includes another 10,000 high-end graphics processing units, 3.1 trillion won for physical AI and roughly 2,000 domestically produced robots to be deployed in defense, policing, firefighting, care services and agriculture. Korea has reason to believe the factory floor could be its strongest AI battlefield. It already has the world's highest industrial robot density, with 1,220 robots for every 10,000 manufacturing workers, according to the International Federation of Robotics. Singapore is second at 818, while Germany and Japan have 449 and 446, respectively. If Korea cannot match the United States in software capital or China in industrial scale, Seoul is betting that it can compete where AI meets manufacturing. China illustrates the size of the challenge. It installed 295,000 industrial robots in 2024, accounting for 54 percent of all installations worldwide, and operates roughly 2 million robots, according to the IFR. South Korea is therefore trying to combine its semiconductor and automation strengths with a government-financed AI layer. AI colleges will expand from KAIST to all four national science and technology institutes, alongside new industry-linked graduate programs. The science ministry's budget rises 24.5 percent to a record 29.6 trillion won next year. Deputy Prime Minister and Science Minister Bae Kyung-hoon, who oversees 9.4 trillion won of the ministry's budget, has framed physical AI as an export strategy. Korea will "export the Republic of Korea's factories to the world" on a homegrown physical AI platform, he told a fiscal strategy meeting at the presidential compound in June. The budget push sits inside a much larger corporate investment drive unveiled by President Lee Jae Myung that month. Samsung Electronics, SK hynix and suppliers plan about 800 trillion won in new semiconductor investment, including fabrication plants in southwestern Korea, while SK Group, GS Group and Naver are backing an initial 550 trillion won buildout of AI data centers. Those sums are corporate investment rather than direct government expenditure. Seoul is seeking to accelerate them through infrastructure, policy support and public investment. "We must secure the core elements of AI faster than any other country," Lee said in announcing the three mega-project strategy. Nvidia is another part of the buildout. Chief Executive Jensen Huang said his company had agreed to supply 260,000 GPUs to the Korean government and four conglomerates, describing Korea as "the only government that has directly purchased AI chips for national R&D." The supply would push Korea's chip stock above 300,000 units from about 65,000 and feed new computing infrastructure, including a 2.41 trillion won national computing center in Haenam that broke ground in August. The model stands in sharp contrast to the United States. Washington's AI leadership has largely been financed by corporations and venture capital, with federal spending concentrated on research, procurement and strategic programs rather than attempting to replicate hyperscaler investment. Japan has taken a more interventionist approach, setting aside about 1.23 trillion yen ($8 billion) for advanced chips and AI this fiscal year, while India's five-year IndiaAI Mission totals 103.72 billion rupees ($1.09 billion). China offers the closer parallel, having long used government guidance funds and industrial policy to direct capital toward semiconductors, AI and other strategic technologies. Seoul is also extending its strategy beyond chips and robots. The Ministry of Land, Infrastructure and Transport on Wednesday presented a "K-AI City" strategy in Busan that would apply AI to building permits, municipal control rooms and other urban functions. Wonju, Cheonan-Asan, Saemangeum and Gwangju have been selected as pilot areas. Land Minister Kim Yun-duk said the program would be judged by whether it made everyday life safer rather than by the sophistication of the technology itself, promising "a people-centered AI city, where technology is not the goal itself." Money, however, may not remain Korea's biggest constraint. Electricity is emerging as another. The semiconductor factories and AI data centers planned across the country could require an additional 25 to 30 gigawatts of power, roughly equivalent to the output of 20 nuclear reactors, Reuters reported Tuesday, citing government estimates. Nuclear power currently supplies nearly a third of Korea's electricity. The initial AI data-center plan alone calls for about 8.4 GW of capacity, backed by SK, GS and Naver, with another 10 GW envisaged by 2035. Korea may therefore find that financing GPUs and factories is easier than supplying them with enough electricity. There is also a fiscal vulnerability built into Seoul's strategy. National tax revenue is forecast to jump 49.8 percent next year, with the semiconductor upcycle creating much of the fiscal room for the government's spending expansion. The global AI boom is generating extraordinary profits and tax receipts from Korea's memory-chip industry. Seoul is recycling part of that windfall into an attempt to build a broader domestic AI industry. A reversal in the memory cycle would weaken both sides of the equation at once. For now, the government is treating the race as one Korea cannot afford to sit out. Ha Jung-woo, standing vice chair of the Presidential Council on National AI Strategy since Aug. 31, described it Tuesday as "an all-out national contest that decides industry, security and growth." Unlike the United States, where companies are financing most of that contest, Korea is making the government one of its biggest early investors. AJP Takeaways - Korea nearly doubles 2027 spending on AI and three linked mega-projects to 21.3 trillion won. - Private AI investment remains a fraction of U.S. levels despite Korea's strength in patents and notable AI models. - Seoul is betting heavily on physical AI, building on the world's highest industrial robot density. - Electricity demand and reliance on the semiconductor upcycle pose longer-term risks to the state-led strategy. September 9, 2026 1 -
Middle East Conflict Drives Commodity Investments Over Defense Stocks The ongoing conflict between the U.S. and Iran in the Middle East is drawing attention to commodity-related investments. However, rather than expanding, the conflict appears to be stabilizing at a similar scale, limiting the performance of defense stocks.As of September 9, the Korea Exchange reports that key commodity-related products, including crude oil exchange-traded notes (ETNs), are on the rise. The Meritz Securities West Texas Intermediate (WTI) crude oil futures ETN has increased by 27.70% over the past month. Other products, such as the Samsung Bloomberg WTI crude oil futures ETN and the Shinhan WTI crude oil futures ETN, have also risen by 20.44% and 19.86%, respectively.The surge in crude oil ETNs is attributed to the prolonged nature of the U.S.-Iran conflict, which is lasting longer than initially expected. On the same day, U.S. forces attacked an Iranian small oil tanker near the island of Hargh, and the Islamic Revolutionary Guard Corps (IRGC) navy has warned of retaliation.The overall rise in oil prices has also made refining stocks an attractive investment option. The destruction of refining facilities near the Strait of Hormuz has contributed to this trend. Consequently, refining margins—the profit made from processing crude oil into products—have significantly increased. Market expectations for refining margins in the second half of the year are projected to reach $30 per barrel, three times the $10 per barrel seen in the fourth quarter of last year, prior to the conflict.Domestic refining companies have seen their stock prices soar, reflecting strong market optimism. SK Innovation and S-Oil have risen by 41.34% and 32.58%, respectively, compared to a month ago, while GS has increased by 23.58% during the same period. Securities firms are raising their target prices for refining stocks in response to the rising oil prices.As the war continues, agricultural ETNs, including soybeans and corn, are also experiencing upward trends. The Meritz representative agricultural futures have risen by 13.58% compared to a month ago, while Shinhan soybean futures have increased by 11.7%. This is attributed to rising international oil prices, which have drawn attention to bioethanol as a potential substitute. With production expected to decline due to extreme heat in various regions of the Northern Hemisphere, increased demand is also a factor.However, despite the prolonged conflict, the focus on defense stocks remains limited as the frontlines have not expanded. Leading defense companies, such as Hanwha Aerospace and LIG Defense and Aerospace, have seen their stock prices drop by 0.66% and 4.56%, respectively, over the past month. Hyundai Rotem has also fallen by 12.55% during the same period.The demand for commodity-related securities is expected to continue in the near term due to the ongoing war. Samsung Securities stated, There are no clear downward factors for oil prices, and upward pressure from inventory depletion is expected to persist. Saudi Arabia and the UAEs crude oil exports in August have plummeted to levels seen at the beginning of the war in March. Even if the Strait of Hormuz reopens and supply chains normalize, shortages of petroleum products will continue.* This article has been translated by AI. September 9, 2026 1
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South Korea Hosts World Emerging Security Forum, Emphasizing International Cooperation The Ministry of Foreign Affairs announced that the 2026 World Emerging Security Forum (WESF) was held in Seoul on September 9. Launched in 2021 to lead discussions on emerging security threats, this years forum marks its sixth iteration.The forum featured over 20 speakers from government, international organizations, and academia, with an audience of more than 200 attendees. The theme, Emerging Technology: Risks and Opportunities, facilitated in-depth discussions and diverse analyses on how technologies such as AI, drones, and space are rapidly transforming the global security landscape. Jeong Yeon-du, head of the Ministrys Strategic Information Office, emphasized in his opening remarks that international cooperation, norm-setting efforts, and responsible actions by each country are crucial for ensuring that technological innovation strengthens security.In this context, he highlighted the South Korean governments initiatives, including leading the launch of the REAIM high-level meeting on the responsible military use of AI and the adoption of the first UN General Assembly resolution on the implications of military AI for international peace and security. He also expressed the governments commitment to fostering a human-centered and inclusive AI environment that ensures the benefits of technology are accessible to all.Kim Hwi-gang, the Cybersecurity Secretary at the Blue House, stated in his congratulatory remarks that in the modern cyber threat environment, where the speed of attacks is increasing and methods are becoming more sophisticated, rapid detection and recovery from threats are key to cyber defense. Strengthening this resilience will guide the direction of our future cybersecurity policy. He further promised to connect private sector technological innovations with national-level cyber resilience, in line with the governments recently announced policy to nurture innovative companies in AI, drones, cybersecurity, and aerospace.Discussions in various sessions addressed the fundamental changes in warfare due to the proliferation of low-cost drones and the autonomy of weapon systems, the compressed decision-making time and increased risk of misjudgment as AI, cyber, and nuclear capabilities become interconnected, and the simultaneous militarization and commercialization of space leading to congestion and competition. Participants identified the need for human control and accountability over autonomous weapon systems, maintaining human involvement in critical areas such as nuclear command and control, and reflecting the expanded role of the private sector in space security in the formation of international norms. They agreed that close communication and cooperation among the international community are essential to overcome these challenges.* This article has been translated by AI. September 9, 2026 1
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OpenAI Declares 'Universal AI Era' One Year After Entering South Korea OpenAI has announced significant advancements in artificial intelligence (AI) as it marks one year since its entry into the South Korean market. During a press conference on September 9 in Gangnam, Seoul, Kim Kyung-hoon, the country head of OpenAI Korea, emphasized the capabilities of the next-generation frontier model, Astra6.The most important aspect of Astra is whether AI can complete tasks independently. In the past, human intervention was necessary at various stages, but now we can trust AI to handle more complex tasks, Kim stated.He explained that for business-to-business (B2B) transactions, the goal is to increase the usage of ChatGPT among domestic companies, while for business-to-consumer (B2C) transactions, the focus is on driving steady growth in weekly active users.AI adoption among South Korean companies is rapidly increasing. According to OpenAI, since the official launch of its office in Korea, the number of users utilizing ChatGPT Enterprise has surged approximately 28 times over the past year. The usage of Codex also saw a significant increase, growing about 14 times from March to June.Kim noted that the sectors experiencing the most growth include legal, finance, and human resources, with companies such as Samsung Electronics and Seoul National University adopting ChatGPT. Currently, brands like Musinsa, Nexen Tire, LG Uplus, LG Electronics, LG CNS, Toss, and Kakao are also using ChatGPT Enterprise.OpenAI anticipates that the introduction of Astra will further accelerate AI adoption among domestic companies. With the increased token share of work and Codex based on ChatGPT 5.6, the use of AI is quickly transitioning from simple conversations to actual task execution. Kim pointed out that, prior to Astra, 64% of output tokens were used for work and Codex, with the remainder for chat, indicating that Astra will enable companies to undertake more in-depth tasks.As AI takes on the role of operating computers and performing tasks autonomously, safety measures have also been enhanced. OpenAI has implemented guardrails, including improved alignment and privacy protections, as well as restrictions on access to high-risk features. The capabilities of Astra are also being utilized in cybersecurity, with Samsung SDS participating as a pilot partner for the cyber defense program Daybreak, which will expand its application to other Samsung affiliates.Additionally, OpenAI announced growth in its advertising model. The global advertising business reached an annualized revenue of $1 billion within approximately 200 days of its launch. In South Korea, initial testing is currently underway with a limited number of users. Kim mentioned that there were cautious opinions internally regarding the introduction of advertising, stating, We are approaching this conservatively while protecting personal information. He added that initial results will be compiled and shared within the next one to two months.On the same day, OpenAI showcased a demo of Astra performing actual tasks. Astra created a 24-second video implementing a 3D store layout based on an interior order and construction plan, as well as a business plan, completing the task in under 20 minutes. The original files for the space, camera movements, and music remain available for future modifications.* This article has been translated by AI. September 9, 2026 1
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Chip stocks pull KOSPI above 7,000 SEOUL, September 09 (AJP) - South Korean stocks rebounded Wednesday morning, with the KOSPI climbing back above 7,000 as gains in chip heavyweights Samsung Electronics and SK hynix outweighed lingering pressure from higher oil prices and Middle East tensions. The benchmark stood at 7,039.16 as of 10:54 a.m., up 1.22 percent from the previous session. The KOSPI opened 0.26 percent higher at 6,972.87 and briefly slipped to 6,968.06 before turning higher as buying strengthened in semiconductor and other heavyweight shares. The rebound came a day after the index climbed as high as 7,171.52 before reversing sharply to close at 6,954.52, as rising international oil prices and geopolitical concerns in the Middle East erased an earlier chip-led rally. Major U.S. indexes fell for a second straight session overnight as escalating Middle East tensions pushed up oil prices and Treasury yields. The Dow Jones Industrial Average dropped 1.18 percent, the S&P 500 lost 0.58 percent and the Nasdaq Composite fell 0.32 percent. West Texas Intermediate crude rose to $94.20 a barrel as concerns over oil supplies intensified following U.S.-Iran military tensions and attacks on Saudi energy facilities. The U.S. 10-year Treasury yield climbed to 4.79 percent, adding pressure on risk assets. Chip shares, however, bucked the broader decline on Wall Street. The Philadelphia Semiconductor Index gained 1.30 percent as expectations for continued artificial intelligence investment supported the sector. Investors focused on signs that AI demand is broadening beyond accelerators into inference, central processing units and networking equipment. Intel surged 9.05 percent and AMD jumped 5.90 percent, while Nvidia fell 2.01 percent and Micron Technology lost 1.61 percent. In Seoul, Samsung Electronics rose 0.93 percent to 272,000 won and SK hynix gained 2.96 percent to 1,846,000 won. Samsung Electronics preferred shares edged up 0.10 percent to 198,600 won. Other semiconductor-related large caps also advanced. Samsung Electro-Mechanics gained 2.92 percent to 1,410,000 won, while SK Square rose 0.53 percent to 1,137,000 won. Power and defense shares also gained on expectations for overseas orders. Doosan Enerbility climbed 3.24 percent to 92,400 won, extending gains from the previous session amid expectations tied to South Korea's planned nuclear and power investments in the United States. Hanwha Aerospace rose 1.66 percent to 1,044,000 won as expectations persisted for additional overseas defense orders. The company is showcasing its K9A2 self-propelled howitzer at the MSPO 2026 defense exhibition in Poland, running from Sept. 8 to 11, as it pursues a third K9 execution contract with the country. Elsewhere, LG Energy Solution gained 0.72 percent to 351,000 won, Kia rose 0.64 percent to 126,200 won and Samsung Biologics edged up 0.14 percent to 1,442,000 won. Samsung C&T added 0.13 percent to 382,500 won, while Hyundai Motor was unchanged at 385,000 won. Financial shares were weaker. Shinhan Financial Group dropped 2.74 percent to 110,100 won, KB Financial fell 1.04 percent to 171,900 won and Samsung Life declined 0.81 percent to 305,500 won. The KOSPI's rebound was driven largely by local institutions, which bought a net 304.2 billion won ($226 million) as of 10:54 a.m. Retail investors sold a net 638.6 billion won, while foreign investors offloaded 201.3 billion won. Despite the rise in the benchmark, gains were not broad-based. A total of 401 KOSPI-listed stocks advanced, while 465 declined and 44 were unchanged, underscoring that the rebound was concentrated in heavyweight shares. The junior KOSDAQ rose even faster, gaining 1.86 percent, or 15.09 points, to 826.97 as semiconductor equipment and component shares extended early gains. In the currency market, the Korean won strengthened to 1,339.20 per dollar from 1,345.60 a day earlier. AJP Takeaways - South Korea's benchmark KOSPI rose 1.22 percent to 7,039.16 as of 10:54 a.m. on September 9, 2026, reclaiming the 7,000 level as Samsung Electronics and SK hynix led a rebound in heavyweight semiconductor shares. - Samsung Electronics gained 0.93 percent to 272,000 won and SK hynix rose 2.96 percent to 1,846,000 won on September 9, 2026, supported by strength in U.S. semiconductor shares even as higher oil prices and Treasury yields pressured broader global markets. - Institutional investors bought a net 304.2 billion won of KOSPI shares as of 10:54 a.m. on September 9, 2026, while retail and foreign investors were net sellers, with investors also awaiting the U.S. August producer price index on September 10 and consumer price index on September 11. September 9, 2026 1 -
Outgoing defense minister heads to Croatia on final trip for Chunmoo deal SEOUL, September 9 (AJP) - Outgoing Defense Minister Ahn Gyu-back is heading to Croatia this week, the Ministry of National Defense said on Wednesday. Ahn is scheduled to meet Croatian Prime Minister Andrej Plenković on Thursday and attend a signing ceremony for Hanwha Aerospace's export deal for its Chunmoo multiple rocket launcher. The deal covers the supply of an integrated system including 18 Chunmoo launchers and guided missiles under a contract worth about 435.2 million euros (US$506 million). During his stay through Friday, Ahn will highlight South Korea's competitive defense technologies and reaffirm Seoul's commitment to closer partnership with the central European country. The two countries are also expected to sign a memorandum of understanding (MOU) to build a more systematic and strategic framework for defense cooperation. Ahn is also likely to discuss security issues including strategies for peace and stability on the Korean Peninsula. Meanwhile, the trip will be Ahn's last as defense minister, as he is set to be replaced by Kang Shin-chul, former ambassador to Saudi Arabia, who was tapped for the post late last month. AJP Takeaways - Outgoing South Korean Defense Minister Ahn Gyu-back is visiting Croatia on his final overseas trip as defense minister to support the signing of Hanwha Aerospace's Chunmoo export deal. - Hanwha Aerospace's deal is worth about 435.2 million euros (US$506 million) and covers 18 Chunmoo multiple rocket launchers, guided missiles and related equipment. - South Korea and Croatia are also expected to strengthen defense cooperation through a new memorandum of understanding, while Ahn is set to discuss regional security and peace on the Korean Peninsula. September 9, 2026 1 -
Hanwha Ocean picked as preferred bidder for Thai frigate project SEOUL, September 9 (AJP) - Hanwha Ocean has been selected as the preferred bidder for a frigate project for the Royal Thai Navy, after beating defense companies from Spain, Singapore and Turkey, the shipbuilder said on Wednesday. The project, worth 16.73 billion baht (US$509 million), covers the construction of a 4,000-ton-class frigate, along with related equipment and integrated maintenance and logistics support. The selection of Hanwha Ocean as the preferred bidder allows the company to begin detailed negotiations with the Royal Thai Navy over the project including its technical specifications, scope and other contract terms. The final contract will be decided after the negotiations are completed. Hanwha Ocean said its track record and accumulated shipbuilding technology helped secure the latest selection, citing its 2013 order to build the 3,600-ton-class frigate HTMS Bhumibol Adulyadej for the Thai navy and its delivery in 2018. If the latest project proceeds smoothly, it could lead to additional orders as Thailand plans to expand its fleet of high-performance frigates from four ships to eight by 2037. Hanwha Ocean said it aims to use the project to deepen maritime defense cooperation with Thailand and expand its presence in the global shipbuilding market. AJP Takeaways - Hanwha Ocean was selected as the preferred bidder for a 4,000-ton-class frigate project for the Royal Thai Navy, valued at 16.73 billion baht (US$509 million). - Hanwha Ocean will enter detailed negotiations with the Royal Thai Navy on the frigate's technical specifications, project scope and other contract terms before a final contract is signed. - The project could lead to more orders from Thailand, which plans to expand its high-performance frigate fleet from four ships to eight by 2037, while Hanwha Ocean seeks to strengthen its position in the global shipbuilding market. September 9, 2026 1 -
South Korea Considers Deployment to Hormuz Amid Iranian Warnings The South Korean government is moving forward with discussions regarding a potential military deployment to the Hormuz Strait, prompted by U.S. pressure. The government has reiterated its stance on the warnings issued by Iran, stating that communication is ongoing.A senior official from the Blue House stated on September 9 during a press briefing in Paris that the topic of deployment should not be the sole focus of discussions surrounding the upcoming South Korea-France summit. We are currently in the review stage, and nothing has been definitively decided, the official said. They also commented on the Defense Ministrys decision to send an investigation team to the United Arab Emirates, noting that this is part of the review process and that no final decisions have been made.The Defense Ministry announced the previous day that it had dispatched a team to assess the situation in Hormuz. The ministry emphasized that the investigation is aimed at understanding the local security environment and is not a precursor to deployment, countering claims that the U.S. had set a deadline for the deployment of South Korean assets to the Strait.Meanwhile, tensions between the U.S. and Iran have escalated. According to reports from the AP and other outlets, U.S. Central Command (CENTCOM) retaliated against the Islamic Revolutionary Guard Corps (IRGC) after they launched two ballistic missile attacks targeting U.S. Navy ships over the past two days, striking five oil tankers in response.Iran has also issued warnings to South Korea. Esmail Baghaei, spokesperson for the Iranian Foreign Ministry, recently posted a message in Korean on social media, stating that military presence or participation in operations in the Hormuz Strait could be seen as direct support for U.S. aggression, potentially leading to serious consequences. He also included a photo with the phrase, There will be a price for dangerous choices.In response, Foreign Ministry spokesperson Park Doo-soon held a regular briefing in Seoul, stating, We are closely communicating with relevant parties to restore peace and stability in the Middle East and ensure the free passage of all vessels, including ours, through the Hormuz Strait, reiterating previous statements.Additionally, a Foreign Ministry official told reporters that they have not received any official protests from the Iranian Foreign Ministry. Our diplomatic channels remain open, and we are not currently considering summoning the Iranian ambassador to South Korea, the official said, indicating a cautious approach as discussions about deployment continue.Jang Ji-hyang, a senior researcher at the Asan Institute for Policy Studies, suggested in a conversation with Aju Economy that South Korea could communicate to Iran that its vessels are trapped in the Hormuz Strait, which is vital for energy security, and that it seeks to engage in defensive activities in accordance with international norms for its national interests and the public good of the international community. He also mentioned that it might be worthwhile to revisit Irans stance on incidents like the Namooho attack. September 9, 2026 1