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Lee Jae-Yong's Four-Year Tenure: Strategies for Future Growth Amid AI Supercycle Lee Jae-Yong, chairman of Samsung Electronics, is accelerating the expansion of future businesses by leveraging the recovery of semiconductor competitiveness. Following a leadership change in the semiconductor division amid struggles in the high-bandwidth memory (HBM) sector, the company has achieved success in mass production of next-generation products and securing foundry contracts. The investment capacity gained from the semiconductor boom will be directed towards nurturing new ventures in robotics, automotive, and HVAC sectors.According to industry sources, Lee will mark his fourth anniversary as chairman on the 27th. It is reported that no official events or public messages are planned for the occasion. Since taking office, he has faced challenges, ceding market leadership in the HBM sector to SK Hynix. However, with the recovery of competitiveness in next-generation products and a boom in AI memory, the semiconductor business is rebounding, allowing for investments in future ventures.The starting point for rebuilding the semiconductor business was the leadership change implemented in 2024. Samsung Electronics, falling behind SK Hynix in the HBM3E competition, reinstated Vice Chairman Jeon Young-Hyun as head of the Device Solutions (DS) division. Jeon has focused on recovering technological competitiveness by overseeing the development of 10-nanometer 6th generation (1c·D1c) DRAM, which is a core foundation for HBM4.As a result, Samsung completed the development of D1c in June last year and received approval for mass production transfer (PRA). In July, the company began ordering equipment to establish production lines. D1c serves as a key DRAM for HBM4, laying the technological groundwork for mass production of next-generation products. In February of this year, Samsung became the first in the world to commence mass production and shipment of HBM4. The strategy of focusing on leadership changes and core technology development has been credited with restoring product competitiveness.In the foundry business, Samsung is also accelerating the acquisition of clients. The company has signed a large-scale semiconductor foundry contract with Tesla and is expanding cooperation with Broadcom in memory and foundry sectors. Notably, Samsung is applying base dies produced using its own 4-nanometer foundry process for HBM4, highlighting its strengths as a comprehensive semiconductor company with capabilities in memory, system LSI, and foundry. The strategy aims to expand the supply of integrated solutions that link advanced processes and packaging in the AI semiconductor market.Lees global network is also supporting business expansion. Since taking office, he has met with prominent CEOs, including Jensen Huang of NVIDIA, Elon Musk of Tesla, Sam Altman of OpenAI, and Lisa Su of AMD, to discuss collaboration on AI semiconductors and future technologies. The focus is on broadening cooperation with global tech giants from memory supply to foundry and AI infrastructure.The investment capacity secured from the semiconductor boom is expected to be directed towards nurturing new ventures. Last year, Samsung acquired the German HVAC company Flakt Group, the audio division of U.S.-based Masimo, and the digital healthcare firm Xealth. The company is also pursuing the acquisition of ZFs advanced driver-assistance systems (ADAS) business through its subsidiary Harman. These investments aim to expand into areas such as AI data center cooling, automotive, and healthcare.In the robotics sector, Samsung has integrated Rainbow Robotics as a subsidiary and established the RX Business Promotion Office under the Device Experience (DX) division in July. In the biotech sector, which Lee has identified as the second semiconductor, Samsung is focusing on expanding its global market presence through Samsung Biologics contract development and manufacturing (CDMO) and Samsung Bioepis biosimilar business.In line with the expansion of future businesses, the groups management structure has also been restructured. Last year, Samsung reorganized its business support task force (TF) into a formal business support office and appointed President Park Hak-Kyu as its head. With Vice Chairman Jung Hyun-Ho stepping back from frontline management after coordinating major management issues for an extended period, a generational shift in management has taken place. Notably, a dedicated organization for mergers and acquisitions (M&A) has been established under the business support office to enhance investment strategy coordination among affiliates and support the discovery of new ventures.The upcoming regular executive appointments expected in November will focus on the restructuring of management in the semiconductor business and strengthening future business organizations. There is speculation that the position of head of the memory division, currently held by Vice Chairman Jeon Young-Hyun, may be separated to concentrate on improving profitability in non-memory sectors such as foundry and system LSI. Given the establishment of the business support office and the major management changes last year, this year is anticipated to emphasize maintaining stability in the existing management system while enhancing the execution capabilities of new ventures in AI and robotics through talent selection and organizational restructuring.* This article has been translated by AI. October 26, 2026 18 -
Epson Targets Advanced Manufacturing Market with Precision Technology Amid Growing Importance of Materials and Components The growth of the artificial intelligence (AI) industry and the acceleration of global energy transition have highlighted the importance of materials, components, and equipment technology as key competitive advantages in advanced manufacturing. Increased investment in AI data centers is supporting demand for high-performance semiconductors and electronic components, while the growth of the renewable energy sector is driving the need for new manufacturing technologies, such as next-generation solar cells.On October 23, Epson announced that it is strengthening its B2B business in advanced manufacturing, focusing on industrial robots and printheads based on precision control and inkjet technology.As manufacturing environments evolve, precision technology that addresses the miniaturization of components and the complexity of processes is becoming increasingly important. The scope of materials and components technology is expanding to enhance productivity and efficiency in manufacturing processes, from automation technologies that accurately transport and assemble tiny parts to techniques that precisely apply functional materials where needed.In this context, Epson is leveraging its long-standing expertise in precision control and inkjet technology to enhance its B2B portfolio with core equipment and components for manufacturing, including industrial robots and printheads.During a press conference in September marking the 30th anniversary of Epson Korea and the visit of its global CEO, the company introduced its long-term vision, Engineered Future 2035, and outlined its strategy to focus on growth areas such as robotics and industrial inkjet and microdevices. Notably, it aims to strengthen its business in Korea, a key market for advanced manufacturing in semiconductors, secondary batteries, and IT.This business expansion is reflected in Epson Koreas performance. For the fiscal year 2025, the company reported sales of 227.6 billion won, an increase of approximately 28% from the previous year. The Precision Innovation segment, which includes inkjet solutions and microdevices, saw a remarkable growth of about 205%, reaching 54.1 billion won. The Industrial and Robotics segment, which encompasses commercial and industrial printing as well as robotics, also grew by approximately 24%, totaling 37 billion won.In recent years, Epson has steadily expanded its B2B business in industrial robots and printheads, increasing its technology collaboration with manufacturing customers in Korea.As the AI industry expands, the importance of semiconductors and electronic components is rising, making it crucial to achieve both production efficiency and precision in related manufacturing processes. The accurate transport and assembly of small components, as well as ensuring precision in repetitive tasks, are key factors that influence manufacturing competitiveness.To meet this demand, Epson is developing its industrial robotics business, focusing on SCARA robots and six-axis robots. SCARA robots are suitable for the transport and assembly of small components due to their fast and precise movements. Six-axis robots can approach workpieces from multiple directions, making them useful for complex assembly processes.The core competitive advantage of Epsons robots lies in their proprietary sensing and control technologies. The companys custom-developed force sensors detect minute forces during operation, allowing the robots to finely adjust the pressure applied to objects. The GyroPlus technology detects and suppresses vibrations that occur during high-speed movements, enhancing accuracy and production efficiency.Another area where the importance of materials and components technology is increasing in advanced manufacturing is in precision material application processes. In the electronics industry, including semiconductors and displays, the ability to supply functional materials in precise amounts to specific locations is critical.Epson is extending its inkjet technology, accumulated from its printer business, into these advanced manufacturing fields. The key is its proprietary PrecisionCore technology, which is based on micro-piezo technology that pushes liquids through fine nozzles without applying heat, allowing for precise dispensing of functional liquids where needed.This technology enables the precise application of not only standard printing inks but also various functional materials. It has potential applications in forming electronic circuit patterns and manufacturing displays, reducing raw material waste by supplying materials only where needed.Recently, Epson has also broadened its technological applications to next-generation energy sectors, exemplified by perovskite solar cells. These lightweight, thin, and flexible solar cells require uniform application of functional materials during manufacturing.Epson is responding to related manufacturing processes with the announcement of its industrial inkjet printhead S3200-S1 for strong solvent applications in 2025. Following its investment in domestic inkjet manufacturing equipment specialist Gosan Tech in 2025, Epson announced additional investment in July 2026.Meanwhile, Epson is also increasing its investments to nurture industrial technology as a long-term growth driver. In line with its long-term vision Engineered Future 2035 and its first medium-term management plan, the company plans to invest a total of ¥280 billion (approximately 2.3653 trillion won) over the next three years in growth and strategic areas such as precision innovation and industrial robotics.Epson aims to raise the share of its industrial domain in total sales from 33% in the fiscal year 2025 to 50% by 2035. The strategy focuses on enhancing the business structure around core industrial technologies and automation solutions while maintaining the competitiveness of its existing core businesses.Epson views Korea not merely as a market for product sales but as a co-creation partner for developing technologies and solutions. The company plans to expand new B2B business opportunities by combining the manufacturing capabilities of domestic companies with strengths in precision technology.* This article has been translated by AI. October 26, 2026 18
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Lee Jae-Yong's Leadership Solidifies Samsung Amid Internal Challenges We have no interest in spinning off the foundry business. We are eager to grow this sector. This was the firm message from Lee Jae-Yong, Chairman of Samsung Electronics, during a trip to the Philippines in October 2024. He clearly expressed his determination to confront the challenges facing the foundry (contract semiconductor manufacturing) business, which had been rumored for a spin-off due to accumulated losses. Since his appointment, he has chosen to tackle challenges head-on rather than evade them, reinforcing his leadership through steadfast investments.Lees commitment to investment was evident from his first day in office. Instead of a formal inauguration ceremony in October 2022, he posted a message on the company bulletin board stating, We must invest in technologies that do not yet exist, as our survival depends on future technologies. Even amid a crisis where the semiconductor division faced annual operating losses of 14 trillion won, he emphasized that even in difficult situations, we must remain unwavering in nurturing talent and investing in future technologies.During times of crisis, he did not shy away from delivering stern messages. At a seminar for executives from all subsidiaries held in March last year, the first in nine years, he remarked, We have lost our Samsung spirit, urging a mindset of life-or-death determination. At that time, over 2,000 executives received crystal plaques inscribed with the phrase, Samsung people are resilient in crises, adept at turning the tide, and fierce in competition. Although this years performance has rebounded, Lee cautioned, Now is not the time to be complacent just because the numbers have improved; this is our last chance to regain competitiveness.In this serious atmosphere, Lees decisive actions paved the way for a counteroffensive. In May 2024, he made a bold move by replacing the head of the semiconductor division, stating, We must invest in the future, even at the expense of immediate profits, and strongly encouraged investments in artificial intelligence (AI) semiconductors. In the first half of this year, the application of advanced processes to the sixth-generation high-bandwidth memory (HBM4) laid the groundwork for a comeback, culminating in the achievement of 100 trillion won in quarterly operating profit, a first for a domestic company.Lee has also prioritized global networking management. He has frequently met with leaders of major tech companies, including Jensen Huang of NVIDIA, Mark Zuckerberg of Meta, and Sam Altman of OpenAI, as he travels between domestic and international locations. The practical collaborations forged through integrated semiconductor solutions have become a powerful AI alliance to navigate through crises.Despite a downturn in the economy leading many major companies to reduce hiring, Lee has maintained a commitment to large-scale youth recruitment. At a youth employment forum, he expressed his intention to actively create jobs, stating, As sales performance improves, we have the capacity to hire more. His management philosophy of talent first is based on the belief that securing future talent is crucial for corporate competitiveness. Since last year, Samsung Electronics has initiated plans to hire 60,000 new employees over the next five years.However, challenges remain, particularly regarding internal conflicts arising from disparities in performance bonuses during the recovery process. The management has promised corrective measures to address compensation imbalances between the Device Experience (DX) and Semiconductor (DS) divisions, but internal tensions are expected to persist for the time being.Establishing a sustainable growth foundation through securing future-oriented hubs is also a pressing task. Samsung is tasked with successfully implementing mega projects focused on advanced industries in the southwestern region, creating large-scale production and research complexes to drive new growth.Through the announcement of three major mega projects, Lee stated, I am confident that we can create an irreplaceable South Korea, emphasizing, We will strive to lead with a significant competitive edge in the global market.* This article has been translated by AI. October 26, 2026 18
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Samsung Electronics Achieves Global Operating Profit Leadership Under Lee Jae-Yong We are in a desperate situation. The reality before us is severe, and the market is harsh. These were the words of Lee Jae-Yong, chairman of Samsung Electronics, upon his inauguration in October 2022. Four years later, Samsung Electronics has achieved the top position in global operating profit. This turnaround follows a significant loss in the semiconductor sector in 2023, prompting a renewed focus on Lees leadership, which has maintained a steady course in technology investment and business strategy despite challenges.As Lee marks his fourth anniversary in office on October 27, he took over during a particularly tough business environment. He effectively assumed control after the sudden incapacitation of former chairman Lee Kun-Hee in 2014, but faced significant challenges, including imprisonment related to the 2017 corruption scandal. The Future Strategy Office, responsible for key decision-making at Samsung, was disbanded that same year. Even after the passing of the former chairman in 2020, legal issues persisted, and on the day of his promotion to chairman in 2022, he attended court instead of a ceremony.During this period, the semiconductor industry faced a crisis. In 2023, the semiconductor division reported an operating loss of 14.88 trillion won, and the leadership in high-bandwidth memory (HBM), crucial for AI semiconductors, shifted to SK Hynix.The external environment was equally challenging. The Trump administration increased tariff pressures on key South Korean exports, including semiconductors and automobiles, while the U.S.-China tech rivalry complicated operations in China.Despite these adverse conditions, Lee focused on restoring memory competitiveness. In May 2024, he appointed Vice Chairman Jeon Young-Hyun to lead the semiconductor division and reorganized the team to integrate HBM design, process, and packaging expertise. In February of this year, Samsung successfully became the first company to mass-produce HBM4 technology, marking a significant technological achievement. Anticipating increased investment in AI infrastructure, proactive investments in DRAM have led to substantial growth.Additionally, efforts to expand investments in the U.S. have helped alleviate tariff pressures, yielding positive results in private diplomacy. Analysts note that these achievements have influenced the domestic export landscape beyond just company performance.One of the pivotal moments in Lees leadership was his decision to dismiss rumors of a foundry spin-off. By adhering to a comprehensive semiconductor strategy, Samsung secured a 22.8 trillion won foundry contract with Tesla and established operational foundations for its Taylor, Texas, facility.Last July, the resolution of legal burdens with a not guilty verdict in the unfair merger and accounting fraud case cleared uncertainties surrounding management. With these challenges behind, Samsung Electronics has set new quarterly operating profit records this year, reaching 57.2 trillion won in the first quarter, 89.4 trillion won in the second quarter, and 107.4 trillion won in the third quarter, totaling 254 trillion won for the first three quarters.This year, analysts project an operating profit consensus of 367 trillion won, positioning Samsung to surpass Nvidia on an annual basis. Under Lees leadership, the company has risen to a solid foundation, with the prospect of becoming the worlds leading company in annual operating profit within four years.* This article has been translated by AI. October 26, 2026 18
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President Lee: Small Business Exports Reach Record High President Lee Jae-myung stated on October 26 that small business exports have achieved the highest performance for the same period in history. He emphasized, The growth of small businesses will boost our economy, leading to growth for all that makes life warmer for everyone.In a post on X (formerly Twitter), President Lee praised small businesses for their new achievements in the global market. He noted that small business exports reached $33.4 billion in the third quarter, with a cumulative total of $96.5 billion from January to September, both marking record highs for the same period.He particularly highlighted the expansion of the cosmetics export market, stating, K-Beauty is broadening its exports beyond North America and Europe into emerging markets like Latin America, enhancing its competitiveness in the global market.President Lee expressed gratitude and encouragement to those in the cosmetics industry who have fostered K-Beautys potential in the global market, as well as to the public officials who have supported them.According to the Ministry of SMEs and Startups, small business exports in the third quarter of 2026 increased by 8.8% compared to the same period last year. The cumulative exports from January to September also rose by 9.5%. The number of exporting small businesses reached 90,765, a 1.6% increase, marking the highest figure on record.In the third quarter, cosmetics exports amounted to $2.79 billion, a 28.6% increase from the previous year. Exports have also risen in the Latin American market, diversifying the market. Semiconductor exports reached $1.39 billion, a 68.8% increase, setting a record for the third quarter.* This article has been translated by AI. October 26, 2026 17
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IPO appetite holds up on battered KOSDAQ, but investors grow choosier SEOUL, October 26 (AJP) — The battered Seoul bourse shows little of its first-half gusto, but investors hunting for undiscovered and up-and-coming ventures in the AI age are feeding a robust IPO pipeline on the junior KOSDAQ. The enthusiasm, however, is uneven. Four companies that completed retail subscriptions this month drew bids for more than 1,000 times the shares available, led by semiconductor equipment maker Melcon. The other six recorded subscription ratios ranging from just 3.55 to 986.99 to one. The divide runs through individual industries. Artificial intelligence video analytics firm Intellivix recorded a retail subscription ratio of 1,410.9 to one and attracted about 4 trillion won ($3 billion) in deposits. Fellow AI company Lablup, which develops computing infrastructure software, managed just 3.55 to one. “Even as the stock market falls sharply, money is still flowing into IPOs because investors are selectively assessing individual companies’ growth potential and their ability to generate profits,” said Kim Dae-jong, a professor of business administration at Sejong University. “Interest remains strong in areas tied to real industrial demand, including AI semiconductors, AI video analytics and data centers,” he added. Five companies, excluding special purpose acquisition companies, made their KOSDAQ debuts between Oct. 1 and Oct. 23, with three more scheduled before the month ends. Cosmetics materials maker Jincostech also transferred from the smaller KONEX market on Oct. 15. The most sought-after offerings have spanned several industries. Melcon led October’s completed retail subscriptions with a ratio of 1,741.48 to one, followed by regenerative medicine company MS Bio at 1,538.51 to one. Industrial equipment maker TNE Korea attracted bids for 1,253.39 times the available shares and 5.75 trillion won in deposits. Yet even the semiconductor supply chain produced sharply different results. While Melcon topped the subscription rankings, semiconductor and display equipment maker EST recorded a ratio of just 28.95 to one. “Even among AI companies, subscription demand can vary widely depending on their technology, business models, revenue growth prospects and IPO pricing,” Kim said. “Investors should be wary of buying into a company simply because it belongs to a popular sector.” Strong subscriptions are also proving an unreliable guide to returns after listing. AI cloud provider Elice Group attracted more than 10 trillion won in subscription deposits but plunged 32 percent on its KOSDAQ debut on Oct. 20. Its shares subsequently recovered above the offering price before falling 18.58 percent on Monday to close at 76,700 won — 15.25 percent below its IPO price of 90,500 won, according to Korea Exchange data. “Elice shows that even a heavily subscribed IPO can suffer a sharp decline if the company’s valuation fails to justify its offering price,” Kim said. The scrutiny extends to the cost of building AI infrastructure and whether the eventual returns will justify the investment. Questions about borrowing and profitability at U.S. AI cloud provider CoreWeave have weighed on sentiment toward similar businesses. Elice, which operates graphics processing unit cloud services and AI education platforms, plans to use its IPO proceeds to expand data center capacity. Intellivix offers a different earnings profile. The AI video surveillance and safety systems provider reported revenue of 46.6 billion won and operating profit of 4.9 billion won last year, marking its 13th consecutive year of operating profits. The company drew institutional bids for about 1,234 times the shares available during bookbuilding and priced its IPO at the top of its proposed range. “Investors are no longer looking at AI’s growth potential alone. They’re also examining actual revenue, operating profits, future cash flow and whether IPO prices are reasonable,” Kim said. “Companies with a track record of operating profits and tangible business results are more likely to attract investors.” The coming weeks will test how far that selective appetite extends. TNE Korea is scheduled to begin trading Thursday, followed by Intellivix and CREATZ on Friday. Youngkwang, Lablup and EST are due to list in early November. Precision optical components maker Optonix, which supplies parts used in defense systems, is also seeking a KOSDAQ listing. Institutional bookbuilding runs through Tuesday, with an indicative price range of 10,000 to 12,000 won per share and a planned offering of 22 billion to 26.4 billion won. Their debuts will show whether enthusiasm at subscription translates into sustained buying once trading begins. “Ultimately, a company’s ability to turn growth into profits and offer shares at a reasonable price will be key to both IPO success and its performance after listing,” Kim said. October 26, 2026 17 -
Korea's SME exports hit record Q3 on beauty, chips SEOUL, October 26 (AJP) — South Korean small and midsized companies posted record third-quarter exports as booming cosmetics and semiconductor shipments outweighed a sharp drop in automobile exports, government data showed Monday. Exports by small and medium-sized enterprises rose 8.8 percent from a year earlier to $33.4 billion in the July-September period, according to the Ministry of SMEs and Startups (MSS). The total was the highest for a third quarter, while exports in the first nine months rose 9.5 percent to a record $96.5 billion. The number of exporting SMEs also increased 1.6 percent to a record 90,765 over the January-September period. “Despite an unstable external environment, SMEs continued to expand exports not only to major markets such as the United States but also to emerging markets including Latin America,” said Shim Jae-yoon, a senior ministry official overseeing global growth policy. Cosmetics exports jumped 28.6 percent to a record $2.79 billion in the third quarter, supported by strong demand in North America, Europe and Latin America. Semiconductor exports surged 68.8 percent to $1.39 billion as global artificial intelligence investment boosted chip demand, while shipments of semiconductor manufacturing equipment rose 38.3 percent to $1.14 billion. Automobile exports, however, plunged 42.4 percent to $1.5 billion amid shipping disruptions linked to the Middle East conflict. Shipments of automobiles to the United Arab Emirates dropped 66.6 percent, while automobile exports for the first nine months fell 26.4 percent to $4.8 billion. The United States became the largest overseas market for Korean SMEs in the third quarter, with exports rising 19.6 percent to $5.73 billion. Exports to China increased 12.9 percent to $5.43 billion, while shipments to the Middle East fell 7.8 percent to $1.46 billion amid geopolitical tensions. October 26, 2026 16 -
Lee congratulates Lula on Brazil reelection victory SEOUL, October 26 (AJP) - South Korean President Lee Jae Myung congratulated Brazilian President Luiz Inacio Lula da Silva on Monday on his election to a historic fourth term, calling him a close friend and comrade as the two countries seek to deepen their recently established strategic partnership. "I am delighted beyond words to congratulate President Lula, my dear friend and comrade, on his election," Lee wrote on the social media platform X, formerly Twitter. Lee expressed confidence that Lula would continue to play an important role in Brazil, building on the trust and expectations of the Brazilian people. "I sincerely hope you will move forward vigorously toward the future you have envisioned for Brazil," Lee said. Recalling their previous meetings, Lee added that he looked forward to seeing Lula again and remembering the conversations and laughter they had shared. His congratulatory message was also published in Portuguese, Brazil's official language. Lula secured a historic fourth presidential term after defeating right-wing Senator Flavio Bolsonaro, the eldest son of former President Jair Bolsonaro, in a runoff election on Sunday. According to Brazil's Superior Electoral Court, Lula won 51.79 percent of valid votes, compared with 48.21 percent for Bolsonaro, extending the leftist leader's political career and keeping Latin America's largest economy under his leadership. Lee and Lula have developed a close personal relationship through their shared experiences of working as child laborers before entering politics. Both leaders have frequently highlighted their similar backgrounds, including hardships during their youth and their subsequent political careers centered on labor rights and social welfare. Their personal rapport has accompanied a significant expansion of diplomatic relations between South Korea and Brazil. During Lula's state visit to Seoul in February, the first by a Brazilian president in 21 years, the two leaders agreed to elevate bilateral relations to a strategic partnership and adopted a four-year action plan covering 2026 through 2029. Lee reciprocated with a state visit to Brazil in July, when the two presidents reaffirmed commitments to deepen cooperation in critical minerals, semiconductors, artificial intelligence, defense, aerospace and renewable energy. They also discussed efforts to resume negotiations on a trade agreement between South Korea and Mercosur, the South American trade bloc that includes Brazil. Economic ties have become an increasingly important component of the relationship. Bilateral trade reached approximately $10.8 billion in 2025, according to Brazilian government figures. Brazil supplies South Korea with commodities including crude oil, iron ore, pulp and agricultural products, while South Korean exports to Brazil include semiconductors, electronics, machinery and automobiles. The two countries established diplomatic relations on Oct. 31, 1959, and are approaching their 67th anniversary, with Brazil serving as one of South Korea's principal economic and diplomatic partners in Latin America. October 26, 2026 16 -
Youth Struggle to Find Stable Jobs Despite Semiconductor Boom Despite economic growth driven by a semiconductor export boom, young people are facing increasing barriers to stable employment. The expansion of artificial intelligence (AI) has further reduced new hiring opportunities, making it difficult for youth to escape unstable jobs even as they lower their expectations.There are growing calls for the introduction of the National Activity Allowance System, which would support income during vocational training and childcare periods as part of the AI transition.Job Opportunities for Youth Decline by 15-20% Amid Semiconductor GrowthAccording to a report released by the Bank of Korea on October 26, the employment rate for young people aged 15 to 29 fell from 46.6% in 2022 to 43.7% in the first nine months of this year. During the same period, the unemployment rate slightly increased from 6.4% to 6.6%.More concerning than the unemployment rate is the deterioration in job quality. Young people are increasingly settling for unstable jobs, such as temporary or part-time positions, rather than waiting for quality employment. The quality index for youth employment calculated by the Bank of Korea averaged below 95 from January 2023 to September 2023, with 100 set as the average since 2010, excluding the COVID-19 period.Compared to the core age group of 30 to 59, the relative entry rate of young people into stable jobs is estimated to have decreased by 15-20% from 2023 to 2026. The proportion of youth moving from the secondary labor market to the primary labor market in companies with over 300 employees dropped from around 8% between 2014 and 2019 to about 5% in 2023 and 2024. Once young people enter unstable jobs, it becomes increasingly difficult for them to transition to better positions.At a public forum held by the National Economic Advisory Council on the same day, experts noted that the link between economic growth and employment has weakened. Jang Ji-yeon, a senior researcher at the Korea Labor Institute, stated that the employment elasticity of economic growth in the first half of this year was 0.10, only one-third of the average from 2000 to 2025. The share of employee compensation in nominal GDP also fell from 47.9% in the second quarter of last year to 41.1% in the second quarter of this year.Jang expressed concern, saying, The extent to which growth translates into employment is less than one-third of the past average, which cannot be explained solely by the declining population growth rate.AI Adoption Threatens Entry-Level Positions, Calls for Income SupportThe backdrop for these observations is the growth centered on high-value, capital-intensive industries like semiconductors and changes in corporate hiring practices. The Bank of Korea noted that while production is led by the information technology (IT) manufacturing sector, the proportion of stable job hiring is higher in non-IT manufacturing and service sectors, making it difficult for economic growth to translate into expanded youth employment.The spread of AI could widen this gap further. Jang highlighted that since November 2022, youth employment in occupations with high exposure to AI has decreased by about 17%. In a survey of 35 occupations conducted by the Labor Institute, it was observed that companies are replacing existing outsourced tasks with AI, leading to a reduction in entry-level work and a decline in pay rates.Concerns have also been raised that companies are reducing new hires instead of laying off existing workers, which could eliminate opportunities for youth to gain job experience and develop skills. In response, the Bank of Korea suggested that industrial policies and labor market structural improvements should be implemented simultaneously to support youth in entering the labor market or transitioning to better jobs. Jang also proposed linking support for small businesses in AI transition (AX) to new youth hiring and increasing opportunities for skill transfer to middle-aged workers.During the forum, proposals were made to address income gaps that arise during transitions. Hong Kyung-jun, a professor of social welfare at Sungkyunkwan University, suggested the need for a system that guarantees income during periods of training and childcare. He proposed the introduction of a virtual national activity account for all citizens aged 18 to 64, where eligible individuals participating in vocational training or childcare would receive payments.The first phase of the Basic National Capability Allowance would provide 60-70% of the median income for up to 12 months during career transitions for current and job-seeking individuals, as well as training periods for youth entering the workforce. The second phase would introduce income-proportional supplementary benefits for childcare support, including those not covered by employment insurance, for a maximum of 24 months.Hong estimated that if the take-up rate for the flat-rate allowance is assumed to be 1%, it would require approximately 3.1 trillion won annually, and if the rate is 3-5%, it would need between 9.4 trillion and 15.7 trillion won. He suggested using future response funds and general accounts for financing, with a pilot operation planned for 2028-2029 and full implementation by 2030. Hong emphasized the need to shift from a reactive approach after job loss to a proactive investment strategy before transitions occur. October 26, 2026 16
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President Lee Emphasizes Need to Pursue CPTPP Despite Criticism President Lee Jae-myung stated on October 26 that despite some criticism, South Korea must pursue membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to advance to the next stage. While reaffirming the decision to delay the membership application until the end of the year to ensure thorough communication with farmers, he emphasized the need to prepare for expanding the economic territory, even if it incurs backlash from the agricultural sector.During a dialogue with farmers at the Blue House, President Lee noted, Even if we apply for membership in the CPTPP, we must obtain individual consent from the 12 member countries, adding, It is highly likely that a final agreement will not be reached during my term.Earlier, on October 8, he instructed not to submit the membership application this year, emphasizing the importance of restoring trust and ensuring adequate communication with farmers. In a meeting with reporters on October 19, he reiterated the necessity of expanding economic territory and promised to address concerns raised by farmers groups. His remarks reflect an acknowledgment that reaching a final agreement within his term may be challenging, yet he remains committed to preparing for membership despite potential criticism.However, he stressed that the process of expanding trade should not impose unilateral sacrifices on the agricultural sector. President Lee highlighted the importance of expanding global export markets as an open trading nation, stating, We cannot survive solely on semiconductors, nor can we survive solely on agriculture. He emphasized the coexistence of agriculture and export industries.He further stated, We should not impose losses and damages simply because a group is small or lacks power. If special sacrifices are made, there must be corresponding special compensation; that is the normal and ideal society.President Lee also addressed the unfulfilled promise of establishing a 1 trillion won fund for rural cooperation. He urged the government to restore trust by fulfilling its obligations to compensate for losses incurred from policy implementations.Responding to concerns from attendees regarding the comprehensive farmland survey, he acknowledged, I understand there are misunderstandings and concerns regarding the farmland survey, regardless of the original intent of government policy.He noted that the governments efforts might differ from the issues farmers experience, promising, Today, I will listen to as many of your comments as possible and ensure they are adequately reflected in our policies.President Lee defined the agricultural and fisheries sectors not just from a comparative advantage perspective but as a strategic matter concerning the survival of South Korea. He acknowledged challenges such as falling product prices, stagnant incomes, climate change, and aging populations, pledging to do his utmost to prevent unexpected damages to those in agriculture and related industries.Regarding the policy decision-making process, he stated that discussions and consultations should be maximized, but ultimately, areas where consensus cannot be reached must be decided by those in authority. He emphasized, Authority must come with responsibility, and expressed his commitment to narrowing differences and finding adequate solutions.Over 110 participants from the agricultural and fisheries sectors attended the meeting, along with Minister of Agriculture, Food and Rural Affairs Song Mi-ryung and Minister of Oceans and Fisheries Hwang Jong-woo. The Blue House noted that this was the first time since 2018 that the president held a direct meeting with a large number of farmers. The event was conducted in three sessions covering farmland surveys, CPTPP, and other agricultural issues. October 26, 2026 16
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Chinese Stock Market Closes Lower; Unitree Surges Over 7% On October 26, the Chinese stock market showed weakness, with technology stocks dragging down the indices. The Shanghai Composite Index closed up 0.19% at 3,697.52, while the Shenzhen Component Index fell 1.19% to 11,534.38, and the ChiNext Index dropped 1.71% to 2,638.23.On the same day, the fifth plenary session of the 20th Central Committee of the Communist Party of China opened in Beijing, running for four days until October 29. However, the opening of the plenary session did not significantly impact the stock market.In the Chinese stock market, sectors related to AI, including computing hardware, optical communication components, optical modules, and semiconductors, all experienced declines. Trading volume also decreased compared to the previous day, indicating weak buying interest. Concerns that major central banks worldwide might signal future tightening, even if they hold rates steady for now, have lowered investors risk appetite.According to Morgan Stanley, the Chinese stock market is under pressure due to concerns over trust-related tax issues, intense competition in the e-commerce sector, weakening macroeconomic conditions, and increased global market volatility. Morgan Stanley noted, How actively state-owned funds engage in buying is also an important point to watch, adding that despite an increase in ETF trading by state-owned funds, the markets downward trend has continued.Among notable stocks, those related to robotics performed well. Companies like Saifutian and Zhengyu Industrial hit their upper limits, while Unitree Technology surged 7.69%. The commercialization of Chinas humanoid robot industry is accelerating. According to the Ministry of Industry and Information Technology, production of humanoid robots in China exceeded 40,000 units in the first half of 2026, with annual production expected to surpass 100,000 units. Humanoid robots are increasingly being deployed in factories, theme parks, and large supermarkets. Tesla has begun mass production of its Optimus robot at its Fremont factory and is working to expand annual production capacity to 1 million units.Food and beverage stocks also saw gains, with companies like Guifaxiang, Qingdao Foods, and Liangpinpuzi reaching their upper limits. A representative from the Ministry of Commerce reported that the consumer market in China has been steadily expanding, with ongoing improvements in consumer structure through the third quarter of this year.Meanwhile, the Peoples Bank of China set the yuans central parity rate against the dollar at 6.7162 yuan, a decrease of 0.0018 yuan from the previous trading day, reflecting a 0.03% increase in the yuans value.* This article has been translated by AI. October 26, 2026 16
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Pyeongtaek Housing Market Sees 40% Price Surge in One Year In the Pyeongtaek housing market, new and nearly new apartments in the Jije and Goduk areas are experiencing a surge in record-high transactions. Some housing types have seen prices rise by over 40% in just one year, with recent sales surpassing previous peak prices even in lower floors.According to an analysis by Aju Economy on October 26, the 64.94㎡ unit at Jije Station The Sharp Central City sold for 845 million won on the 6th of this month. This marks an increase of 245 million won, or 40.8%, compared to the 600 million won price for the same unit type on the 16th floor last November 9.Notably, the recent price range has increased. The highest price for this unit type from 2022 to 2025 was 728 million won, but all nine transactions in September and October this year exceeded that figure. The highest price this month is 19.0% higher than the previous peak of 710 million won in the first half of this year.Price increases are also evident in lower floors. The transaction price for a unit on the 3rd floor rose from 625 million won in May to 770 million won this month, an increase of 145 million won. The price for a 4th-floor unit also increased from 650 million won in the first half of the year to 730 million won last month.A local real estate agent near Jije Station noted, “Until the first half of the year, transactions were led by properties with lowered prices, but recently, sellers of preferred new complexes are raising their asking prices again. Particularly, properties with good access to Jije Station or newer buildings are seeing transactions at higher prices due to waiting demand.”Nearby major complexes have also set new price records. The 59.99㎡ unit at Pyeongtaek Jije Station Xi sold for 680 million won on the 9th, surpassing the previous high of 660 million won. The 84.91㎡ unit at Jeil Pungkyungchae 3rd Centum in Goduk International City sold for 745 million won on the 12th, increasing from 720 million won last month. The 90.31㎡ unit at Hillstate Goduk Sky City also sold for 950 million won on the 12th, rising by 40 million won from the previous high in August.An analysis of 176 complexes and unit types with more than three transactions in the first half and at least two in September and October revealed that 26 combinations in 20 complexes recorded transactions exceeding their previous highs.The price recovery is primarily observed in areas with relatively newer buildings and good access to the Samsung Electronics Pyeongtaek Campus and Jije Station. In the second half of the year, improvements in transportation conditions and continued investments related to semiconductors have been noted. Since October 1, the number of high-speed train stops at Pyeongtaek Jije Station has increased from 70 to 92 per day, and this month, Shinbo announced a contract for electrical work worth approximately 53 billion won at the Pyeongtaek Campus P5.However, the overall price index for the city remains stagnant. According to the Korea Real Estate Agency, as of October 19, the average apartment sale price in Pyeongtaek fell by 0.01% compared to the previous week and has decreased by 2.82% cumulatively this year. It remains to be seen whether the recovery in major complexes in Jije and Goduk will extend to other living areas.Kim Hyo-seon, a senior expert at KB Kookmin Bank, stated, “Pyeongtaek is a market undergoing long-term adjustments compounded by supply burdens. Given the significant differences between the old city and the new town, a selective approach is necessary.” He added, “Even if there are localized benefits from semiconductors, if solid residential demand does not support it, there may be limits to recovery.”* This article has been translated by AI. October 26, 2026 16
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Despite Semiconductor Boom, Employment and Income Lag; Proposal for 'National Activity Allowance' Economic growth driven by artificial intelligence (AI) and the semiconductor industry is not translating into increased employment and labor income, according to recent assessments. In response to the impacts of AI, including reduced youth hiring and a decline in entry-level freelance work, experts have proposed the introduction of a National Activity Allowance to guarantee income during periods of vocational training and caregiving.Employment Elasticity Remains Low Despite Semiconductor Growth; Youth Job Opportunities DeclineAt a public forum titled How to Prepare for the Era of AI Transformation held by the National Economic Advisory Council in Seoul on October 26, Jang Ji-yeon, a senior researcher at the Korea Labor Institute, highlighted a structural issue where economic growth is not leading to increased employment and income.According to Jang, the employment elasticity for the first half of this year was 0.10, which is less than one-third of the average from 2000 to 2025 and lower than the 0.11 recorded during the semiconductor boom in 2018. Employment elasticity measures the rate of job growth relative to economic growth; a lower figure indicates a smaller job creation effect from growth. The share of employee compensation in nominal GDP also fell from 47.9% in the second quarter of last year to 41.1% in the same quarter this year.Jang expressed concern, stating, The extent to which growth translates into employment is less than one-third of the historical average. This cannot be solely explained by the declining population growth rate.Youth employment in occupations with high exposure to AI has decreased by approximately 17% since November 2022. A study by the Korea Labor Institute of 35 job categories found that companies are increasingly using AI to handle tasks previously assigned to freelancers, resulting in a reduction of entry-level work and pay rates.This trend reflects a disconnect between the growth of high-value industries like semiconductors and the limited increase in employment, with wage growth benefits concentrated among a few primary companies. Analysts suggest that companies are holding back on new hires while observing the effects of AI, which may further limit opportunities for youth skill development.Jang noted, Domestic companies are responding by restricting new hires and expanding the responsibilities of existing employees rather than conducting large-scale layoffs. Overall, we are not reaching the level of new hiring and training needed in society.Proposal for National Activity Allowance to Cover Income Gaps During Training and CaregivingTo address the income gaps arising from the AI transition, experts have suggested implementing a National Activity Allowance that would guarantee income during periods of vocational training and career transitions, as well as caregiving. Hong Kyung-jun, a professor of social welfare at Sungkyunkwan University, stated, Existing vocational training and social insurance systems are designed around regular employment and are unable to respond to changes in the labor market. It is necessary for the state to guarantee income during periods when training and caregiving disrupt earnings.The proposed National Activity Allowance would provide all citizens aged 18 to 64 with a virtual National Activity Account and support income during qualifying periods of vocational training and caregiving. The first phase, Basic National Capability Allowance, would provide up to 12 months of income support at 60-70% of the median income for single-person households for career transition training and youth job entry training.In the second phase, the allowance would expand to include parents of children under eight years old, including those not covered by employment insurance, and extend the payment period to a maximum of 24 months. Additional benefits would supplement up to 80% of previous income for those contributing to social insurance.Hong estimated that the annual cost of the fixed allowance would be approximately 3.1 trillion won if utilized at 1%, and between 9.4 trillion and 15.7 trillion won at 3-5% usage rates. He proposed utilizing future response funds and general accounts, with a timeline for establishing the system by 2027, pilot operations in 2028-2029, and full implementation by 2030.Hong emphasized, It is crucial for the state to guarantee income during periods when training and caregiving disrupt earnings. We need to shift from a reactive approach after job loss to a proactive investment strategy before transitions occur.* This article has been translated by AI. October 26, 2026 15
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Woojins ThinkBig Partners with Chosun University of Science and Technology to Enhance Local Youth's Manufacturing AI Skills Woojins ThinkBig announced on October 26 that it will participate in the 2026 Youth Leap Talent Development Bootcamp to provide practical training in manufacturing artificial intelligence (AI) for local youth.The Youth Leap Talent Development Bootcamp is a program organized by the Ministry of Education and the Korea Industrial Technology Promotion Agency (KIAT). It aims to enhance the practical skills of unemployed youth aged 19 to 34 in advanced industries and facilitate employment connections. Chosun University of Science and Technology has been selected this year as a university to implement advanced talent programs, offering specialized training courses that integrate AI with regional strategic industries such as semiconductors and mobility through its Manufacturing AI Factory initiative.Woojins ThinkBig will leverage its experience in planning and operating AI education programs to support foundational and common training in the manufacturing AI sector. The company plans to provide practical, industry-relevant training that reflects market demands and enhance the field application capabilities of participants by utilizing its network of professionals.Looking ahead, Woojins ThinkBig intends to combine Chosun University of Science and Technologys educational infrastructure with its own capabilities in planning and operating educational content to establish a collaborative system for training practical talent tailored to industry needs.A representative from Woojins ThinkBig stated, “Based on our accumulated AI education capabilities, we aim to enhance the employment competitiveness of local youth and contribute to the development of AI talent needed in the industry.”Meanwhile, Woojins ThinkBig has begun improving its flagship learning platform, Woojins Smart All. The company has integrated advanced AI diagnostic algorithms and data analysis features into the Smart All platform, catering to students from kindergarten through middle school.Additionally, Woojins ThinkBig introduced an AI reading growth solution called KRS in September to respond to the declining school-age population and changes in the education market.* This article has been translated by AI. October 26, 2026 15
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Youth Struggle to Secure Stable Jobs Despite Lowered Expectations Young people are finding it increasingly difficult to secure stable jobs, even as they lower their employment expectations. The shift in the industrial structure towards semiconductors and the expansion of artificial intelligence (AI) have contributed to a decline in youth hiring, while the rate of transitioning from unstable to stable jobs has also decreased.According to a report titled Youth Employment Challenges and Policy Tasks released by the Bank of Korea on October 26, the unemployment rate for young people aged 15 to 29 rose from 6.4% in 2022 to 6.6% in the first nine months of this year, while the employment rate fell from 46.6% to 43.7%.However, compared to the youth employment slump from 2014 to 2019, these quantitative indicators are relatively better. The average unemployment rate during that period was 9.4%, while the average since 2023 has been 6.1%. Analysts suggest that while young people previously waited for quality jobs, there is now a stronger tendency to enter unstable jobs with lowered expectations.The quality of employment is a significant concern. The quality index for youth employment, which considers job stability, working hours, and the risk of unemployment, averaged below 95 points from January 2023 to September 2023. This index is based on a scale where the average from January 2010 to September 2023, excluding the COVID-19 period, is set at 100.The proportion of temporary and part-time workers among young employees has increased, and more young people are choosing part-time work involuntarily. While the desire to work for large companies and public institutions has decreased, the preference for small and medium-sized enterprises has risen, indicating a trend of lowering job expectations.The barriers to entering stable jobs have also increased. An analysis comparing the entry rates of young people to those of the core age group (30 to 59 years) revealed that the relative entry rate for young people has decreased by 15% to 20% from 2023 to 2026.It has become more challenging for young people to transition from unstable to stable jobs. An analysis of permanent positions in private companies with over 300 employees classified as the primary labor market showed that the transition rate from the secondary labor market to the primary labor market for young people dropped from around 8% between 2014 and 2019 to about 5% in 2023 and 2024. Conversely, young people who have entered stable jobs are increasingly likely to remain in their current positions.The Bank of Korea identified the restructuring of the industrial structure, centered on information technology (IT) manufacturing, as a key reason for the youth employment challenges. While sectors like semiconductors drive economic growth, permanent job creation is concentrated in non-IT manufacturing and service industries, limiting the employment impact of this growth.Additionally, a rigid labor market structure has contributed to the issue. Companies are adjusting their workforce by reducing new hires instead of maintaining existing employees, placing a heavier burden on young people entering the labor market for the first time. The expansion of AI has also led to a preference for experienced workers, reducing the demand for entry-level and basic tasks previously handled by young employees.The Bank of Korea expressed concern that even if labor demand recovers, young people may remain in unstable jobs for extended periods without developing job skills, potentially prolonging employment challenges. They recommend improving industrial policies and labor market structures to facilitate smoother entry and mobility for young people in the labor market.Jung Sung-yeop, head of the employment trends team at the Bank of Korea, stated, If the labor market is too rigid, the overall demand for labor in the primary labor market will decrease. If the labor market becomes more flexible, there is potential for increased demand in the primary labor market, which could positively impact youth employment.* This article has been translated by AI. October 26, 2026 12