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Manufacturing Sector Faces Challenges Despite Record Semiconductor Exports South Koreas exports have reached an all-time high, yet expectations for a recovery in the overall manufacturing sector appear to be weakening. While the semiconductor industry continues to thrive due to increased demand from artificial intelligence (AI), other key manufacturing sectors are struggling with sluggish domestic demand, rising costs, and intensified global competition.According to a report released on October 25 by the Korea Institute for Industrial Economics and Trade, the manufacturing outlook index for November dropped to 102, down 11 points from the previous month’s 113. Although it remains above the baseline of 100, expectations for economic improvement have significantly declined over the past month.The outlook index is derived from a survey of experts across major domestic industries, with a score above 100 indicating a more optimistic view of future conditions compared to the previous month.Key indicators for the manufacturing sector also showed a decline. The domestic outlook index for November fell to 101, down 10 points, while the export outlook dropped to 107, a decrease of 11 points. The production level outlook plummeted from 119 to 102, a drop of 17 points. The profitability outlook, which reflects corporate earnings, fell from 103 to 91, dipping below the baseline.There were notable disparities among different sectors. The semiconductor outlook index rose to 159, an increase of 15 points from the previous month, driven by growing demand for high-bandwidth memory (HBM) due to investments in AI infrastructure by major global tech companies.In contrast, the automotive sector saw a sharp decline, with its outlook index dropping from 123 to 93, a decrease of 30 points. The mobile phone sector fell from 100 to 53, a drop of 47 points. The chemical sector also declined from 106 to 89, while the machinery and materials sectors recorded outlooks of 97 and 95, respectively, both below the baseline.Recent export figures reflect these sectoral disparities. While semiconductor exports surged, the benefits have not been evenly distributed across the manufacturing sector. According to the Korea Customs Service, South Koreas exports reached $121.05 billion last month, surpassing $120 billion for the first time on a monthly basis.Among these, semiconductor exports amounted to $60.53 billion, marking the first time a single item exceeded $60 billion in monthly exports. However, exports of passenger cars (-5.6%), wireless communication devices (-1.5%), and home appliances (-7.6%) all experienced declines.The challenges facing the manufacturing sector are multifaceted. According to the Bank of Koreas September business survey, the manufacturing business sentiment index (CBSI) fell to 99.5, down 4.3 points from the previous month. The primary concerns cited by manufacturers included sluggish domestic demand (21.2%) and rising raw material prices (20.9%).* This article has been translated by AI. October 25, 2026 18 -
International Oil Prices Exceed $110 Amid Middle East Conflict, Government Considers Exit Strategy for Price Cap The recent surge in international oil prices, driven by escalating tensions in the Middle East, has deepened the South Korean governments deliberations on an exit strategy for its oil price cap, which has been in effect for over seven months. While the price cap has successfully restrained domestic fuel prices, the rise in global oil prices above $110 per barrel complicates the timeline for ending the program.According to the Korea National Oil Corporation, the benchmark price for Brent crude oil rose to $116.72 per barrel on October 23, marking a 3.14% increase from the previous trading day and the highest level in about six months since April 29. West Texas Intermediate (WTI) also increased by 3.8% to $103.27.The recent spike in international oil prices is attributed to concerns over supply disruptions due to instability in the Middle East. Attacks on Saudi Arabian energy facilities by Houthi rebels and maritime transport uncertainties in the Strait of Hormuz have heightened fears regarding oil supply. Brent crude prices rose by 6% over the past week, while WTI increased by 2.3%.Despite the rising international oil prices, domestic fuel prices in South Korea remain stable. In the third week of October, the average price for regular gasoline was 1,856.1 won per liter, and diesel was 1,842.5 won per liter, continuing a 23-week streak of declines since the third week of May.The stability in domestic prices is largely due to the governments implementation of the oil price cap. Since introducing the cap on March 13, the government has designated maximum prices 11 times to curb domestic fuel price increases.The Ministry of Trade, Industry and Energy has frozen the 11th oil price cap, which will be in effect for four weeks starting October 17. Based on refinery supply prices, gasoline is set at 1,784 won per liter, diesel at 1,773 won, and kerosene at 1,380 won. These prices have remained unchanged for about four months since a 150 won reduction in the seventh price cap at the end of June.Recent research has confirmed the price stabilization effects of the price cap. A report from the Korea Institute for Industrial Economics and Trade analyzed 1,512 gas stations nationwide and estimated that the relative price of regular gasoline compared to premium gasoline has decreased since the implementation of the price cap.Specifically, during the first price cap period, the price was estimated to be 45.75 won lower per liter, while during the second to sixth periods, it was 165.51 won lower, and after the seventh cap, it was 239.48 won lower. This analysis compared the relative price changes of regular gasoline against premium gasoline, which is not subject to the price cap.The institute suggested that the price cap may have buffered consumer prices against increases due to rising international oil prices or accelerated the reflection of international price declines in domestic selling prices. Bank of Korea Governor Shin Hyun-song also noted during a National Assembly audit on October 23 that the price cap has been measured to reduce inflation by 0.6 percentage points.However, concerns are growing that the prolonged price cap could increase fiscal burdens. The government has allocated a total of 5.6497 trillion won for compensating oil companies for losses, including 4.2 trillion won from this years contingency fund and 1.4497 trillion won from next years budget. The amount included in next years budget is intended to settle losses incurred during the fourth quarter of this year due to the price cap.Nonetheless, the actual compensation amounts to be paid to oil companies have yet to be finalized, as the government is currently verifying the costs and appropriate margins for each company. Particularly, if domestic supply prices are kept at a certain level while international oil product prices rise, the costs to cover the price differences may increase. Conversely, ending the price cap could lead to a rise in domestic fuel prices reflecting previously suppressed international price increases, potentially burdening consumers.The conditions for reviewing the termination of the price cap proposed by the government have not yet been met. The government has outlined key conditions for considering the end of the program, including the cessation of the Middle East conflict, normalization of shipping in the Strait of Hormuz, and stabilization of international oil prices around $90 per barrel. However, as the Middle East conflict continues and shipping uncertainties in the Strait of Hormuz persist, it remains challenging to determine when the price cap might end, especially with international oil prices now exceeding $110 per barrel.Concerns regarding the prolonged price cap were also raised during the recent audit. Governor Shin remarked that while South Koreas fiscal situation is relatively sound, allowing for some continuation, he expressed doubt that it could be a long-term solution.* This article has been translated by AI. October 25, 2026 17
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North Korea and China Strengthen Ties Amid South's Challenges Kim Jong Un, the Chairman of North Korea, visited Dandong in Chinas Liaoning province on October 24, demonstrating a commitment to expanding economic cooperation while reaffirming political trust between North Korea and China. As North Korea accelerates its alignment with China, it has not responded to South Koreas proposal for military talks, raising concerns about the Lee Jae-myung administrations ability to manage the situation on the Korean Peninsula and secure dialogue opportunities. According to government sources on October 25, officials are analyzing the background of Kims visit to China and its potential impact on the future situation on the Korean Peninsula based on official announcements from both North Korea and China. While Kims visit ostensibly focused on commemorating the 76th anniversary of the Chinese Peoples Volunteer Armys participation in the Korean War, analysts suggest it primarily aimed to showcase the expansion of economic cooperation and political closeness between North Korea and China. A government official stated, Given the timing of the anniversary of anti-American aid and the opening of the new Yalu River Bridge, it is highly likely that this visit was intended to highlight improvements in North Korea-China relations. We will closely monitor the direction of North Korea-China closeness and subsequent responses. During his visit, Kim utilized the newly opened Yalu River Bridge, which officially opened on October 15, and inspected a bus factory in Dandong. This is interpreted as an effort by North Korea to expand economic cooperation with China, particularly in public transportation and logistics. In China, there are expectations that Kims visit will strengthen strategic cooperation between the two countries, especially since he met with Wang Huning, the Chairman of the Chinese Peoples Political Consultative Conference and a close aide to President Xi Jinping. The strengthening of economic cooperation and political ties between North Korea and China is expected to significantly impact the South Korean governments facilitator policy. As North Korea expands trade with China and gains economic relief, its incentive to engage in dialogue with South Korea may diminish. In fact, North Korea has recently ignored South Koreas proposals for military talks while deepening its ties with China. A stronger economic foundation could also reinforce North Koreas stance of viewing South Korea as a hostile state. Experts analyze that Kims visit to China has increased the burden on the South Korean government in managing the situation on the Korean Peninsula. This is due to the need to monitor the expansion of North Korea-China trade through the new Yalu River Bridge, subsequent cooperation, and the implementation of sanctions against North Korea, while also encouraging China to help curb North Koreas military provocations. The South Korean government faces the dual challenge of managing North Korea-China closeness without undermining cooperation on sanctions while leveraging Chinas influence to ease tensions. In this context, Professor Lim Eul-chul of Kyungnam Universitys Institute for East Asian Studies stated, Even amid North Korea-China closeness, securing diplomatic space to encourage China to restrain excessive military provocations from North Korea, using the rhetoric of peace and stability on the Korean Peninsula emphasized by China, is a realistic task. October 25, 2026 16
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Defense Acquisition Agency Considers Additional Sanctions Against LIG D&A The Defense Acquisition Agency is considering additional sanctions against LIG Defense & Aerospace (LIG D&A) following allegations of bribery involving its employees. If the designation of LIG D&A as a defense contractor for the small drone countermeasure system is canceled, it could halt the contract for mass production. On October 25, the Defense Acquisition Agency requested the Ministry of Trade, Industry and Energy to review the cancellation of LIG D&As designation as a defense contractor related to the small drone countermeasure system. Previously, the Defense Acquisition Agency imposed a two-year restriction on LIG D&As bidding eligibility due to allegations that its executives provided bribes worth millions of won to agency employees during various weapon development projects. The small drone countermeasure system was included in these projects. However, a bidding restriction alone does not prevent contracts awarded under the defense contractor designation system. This system allows for contracts with designated companies for weapon systems that are difficult to procure through regular market competition. LIG D&A is the designated contractor for the development of the small drone countermeasure system. If its designation is revoked, the company will be unable to enter into contracts for mass production. The small drone countermeasure system aims to neutralize enemy drones using electronic jamming and control devices, with a total project cost of 122.3 billion won. Additionally, the Defense Acquisition Agency is reviewing the cancellation of LIG D&As cost management certification due to cost irregularities. If the certification is revoked, the agency plans to recover an additional 1% of the compensation profit, which is estimated to amount to hundreds of millions of won. The Defense Acquisition Agency stated that it will pursue sanctions in accordance with the law for misconduct while also reviewing and strengthening internal management and oversight to prevent future violations.* This article has been translated by AI. October 25, 2026 14
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HD Hyundai Site Solutions Selected for National Project on Autonomous Excavators HD Hyundai Site Solutions is set to enhance autonomous excavator technology by participating in the development of a virtual environment platform.The company announced on October 25 that it has been selected as the primary contractor for the Ministry of Trade, Industry and Energys national project aimed at developing a high-precision simulation-based digital twin platform for AI autonomous excavators.This national project has a total budget of 6.33 billion won and is scheduled to run until December 2029. It will be conducted in a consortium that includes Simji Co., the Korea Construction Equipment Research Institute, the Korea Institute of Industrial Technology, and the Korea Construction Equipment Industry Association.The core of this project is to replicate the operational methods of construction equipment and the physical interactions between equipment and soil in a virtual space. Based on this, the plan is to establish a digital twin platform capable of designing major equipment such as excavators, wheel loaders, and articulated dump trucks (ADTs), as well as developing and validating AI autonomous technology.Previously, the development of autonomous technology for construction machinery faced challenges in quickly validating it under various site conditions due to equipment and environmental constraints and safety issues. With the establishment of this platform, it is expected that technology can be pre-validated in a virtual space and compared and analyzed with actual equipment operation data, thereby improving development efficiency.HD Hyundai Site Solutions will be responsible for deriving standard specifications for the virtual simulation component database, conducting field validations, and evaluating operational scenarios. By leveraging accumulated field data and practical experience, the company aims to enhance the commercialization potential of the technology and expand its AI and digital transformation initiatives to address the shortage of skilled workers and the demand for improved safety on construction sites.Gwak Seong-kyu, Executive Director of Virtual Technology at HD Hyundai Site Solutions, stated, We are honored to participate in a key project that will lead the AI autonomy in the construction machinery industry. Based on our verified know-how, we will actively contribute to the mass production of autonomous technology, enhancing safety and productivity on future construction sites.In April, HD Hyundai Site Solutions collaborated with AI-based autonomy company Gravis Robotics to supply an autonomous excavator to the Swiss construction site of European construction group KIBAG for the first time. This equipment is a 22-ton medium-sized excavator equipped with the Real-X solution, which combines the technologies of both companies. HD Hyundai Site Solutions is expanding the application of autonomous construction equipment based on this.* This article has been translated by AI. October 25, 2026 14
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KPI Corporation Fined 31 Million Won for Violating Fair Trade Law KPI Corporation, a general holding company, has been found to have violated the Fair Trade Act by holding shares in a financial company for approximately 18 months. Although the company is no longer classified as a holding company, regulatory authorities have decided to impose corrective measures and a fine for past violations.On October 25, the Fair Trade Commission announced that it would impose a corrective order and a fine of 31 million won on KPI Corporation for violating the restrictions on holding company activities under the Fair Trade Act.According to Article 18, Paragraph 2, Item 5 of the Fair Trade Act, general holding companies are prohibited from owning shares in domestic companies engaged in financial and insurance businesses. This regulation aims to prevent the concentration of economic power resulting from industrial capital owning financial capital and to ensure transparency in the holding company system.However, KPI Corporation owned 333,333 shares of SparkLabs Partners, a financial company, from July 5, 2023, to December 31, 2024, while it was classified as a general holding company. This represented a 6.67% stake, held for about 18 months. SparkLabs Partners is categorized under other financial investment businesses in the Korean Standard Industrial Classification, making it a financial company subject to restrictions on stock ownership by holding companies.Founded in 2005, KPI Corporation engages in the import and export of chemical substances and products. It transitioned to a general holding company in December 2013 but is currently not classified as one under the Fair Trade Act. This is because it converted to a holding company before the asset requirement was raised from 100 billion won to 500 billion won in 2017.As of the end of 2024, KPI Corporations total assets were approximately 454.5 billion won, and it could have been granted a grace period until June 2027. However, by the end of 2024, the proportion of subsidiary stock value to total assets fell below 50%, leading to its exclusion from holding company status.The Fair Trade Commission imposed sanctions for the legal violations that occurred during the period when KPI Corporation was classified as a holding company, regardless of its current status. While this does not imply that it currently holds shares in financial companies, the commission issued a prohibition order to prevent similar actions if the company transitions back to holding company status in the future.The Fair Trade Commission stated, It is significant that we held the company accountable for violations that occurred while it was classified as a holding company, even though it has since exited that status. There is a need to maintain transparency in ownership structures through regulations that restrict general holding companies from owning shares in financial and insurance companies.* This article has been translated by AI. October 25, 2026 12
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Australia Targets Renewable Energy Market with Support for Green Companies The government is set to aggressively target the Australian market, which is rapidly expanding its share of renewable energy generation. Plans are underway to connect domestic green companies with local firms to uncover new export opportunities in technologies such as hydrogen production, AI-based energy management, waste heat utilization, and battery material remanufacturing.The Ministry of Climate, Energy, and Environment announced that from October 26 to 31, it will operate the 2026 Australia Green Energy Industry Market Development Group in Melbourne. This initiative is being conducted in collaboration with the Korea Trade-Investment Promotion Agency (KOTRA), the Korea Environmental Industry Association, and POSCO International. Eight domestic green companies will participate, engaging in export consultations with local buyers and exploring opportunities for technological cooperation.The governments focus on Australia as a target for green industry exports is driven by the countrys renewable energy transition policies. Australia aims to generate 82% of its electricity from renewable sources by 2030, leveraging its abundant sunlight and wind resources. The state of Victoria, where the event will take place, is also pursuing a plan to increase its renewable energy generation share to 95% by 2035.As the adoption of renewable energy increases, demand for technologies that enhance power supply stability and energy efficiency is expected to grow. In response, the government plans to support domestic green companies in securing export opportunities in areas such as energy storage, demand management, building energy optimization, reducing power loss, and resource recycling.The All Energy Australia 2026 exhibition will take place at the Melbourne Convention and Exhibition Centre from October 28 for two days, featuring a Korean pavilion. The eight participating domestic companies will showcase their products and technologies to local buyers and engage in one-on-one export consultations.Among the participating companies, Lightbridge will present integrated solutions for hydrogen production and charging, while Nine Watt will showcase interactive building energy analysis services. Cloud & will introduce an energy management platform utilizing AI-based facility optimization technology.World Energy will display heating and cooling systems that utilize waste heat, and ENFOS will present technology aimed at minimizing power loss. Airlane will showcase gas separation membrane technology, and ABR will introduce remanufactured anode and cathode materials. Turbo Win plans to present turbo blowers and compressors that enhance energy efficiency.Wonkwang S&T will participate in the exhibition separately from the Korean pavilion and will receive government support for export consultations, focusing on recycling technologies for solar panel waste and electric vehicle batteries.As Australia increases its share of renewable energy generation, the importance of technologies that efficiently utilize produced electricity and manage supply stability will also rise. Therefore, this market development group will focus on introducing domestic technologies related to hydrogen production, energy efficiency, and battery resource recycling, rather than solely on solar and wind power generation facilities.The government will also host the Korea-Victoria Energy Forum on October 29. The event will involve the Ministry of Climate, the Korean Consulate in Melbourne, the Korea Environmental Industry Association, POSCO International, and the Victorian government. The forum will share insights on local energy market trends, with four domestic companies—Lightbridge, World Energy, Turbo Win, and ABR—presenting their technologies in hydrogen, energy efficiency, and resource recycling.Kim Ji-young, the international cooperation officer at the Ministry of Climate, stated, Australias expansion of renewable energy and energy transition can provide new overseas opportunities for our green companies. We will actively introduce domestic green technologies that meet local market demands and support collaboration with local institutions and companies to facilitate our companies exports and the discovery of new business opportunities.* This article has been translated by AI. October 25, 2026 12
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Public Voting for 'Sishulain Star' Recognizes Corporate Social Contributions The public will soon have the opportunity to vote for outstanding corporate social contribution activities in the Sishulain Star initiative. This effort aims to identify companies that create social value in various areas, including environmental protection, support for vulnerable groups, and community cooperation.The Ministry of Trade, Industry and Energy and the Ministry of Health and Welfare announced on October 25 that the public voting for the 1st Sishulain Star will take place from October 26 to November 8. The term Sishulain Star combines CSR, which stands for corporate social responsibility, with Michelin, the renowned restaurant rating guide. This initiative aims to present exemplary corporate social contribution programs in a friendly manner, akin to a social contribution hot spot, and to involve public participation in the selection process.Previously, the Sishulain Committee, composed of experts from academia, social welfare, and consumer sectors, reviewed 113 submitted social contribution programs and selected 20 finalists. The finalists include 16 programs from large and medium-sized enterprises and 4 from small businesses, covering various initiatives in environmental protection, support for vulnerable groups, community cooperation, and nurturing future generations.Starting October 26, the public can participate in the voting process on the official Sishulain website after verifying their identity. Voters will select three programs they deem outstanding from the 20 finalists.On November 1, an on-site voting event and exhibition showcasing corporate social contributions will be held at Ttukseom Hangang Park in Seoul. A social media support group called Sishulain Friends, consisting of 100 young individuals, will assist in promoting both online and offline participation.The final results will reflect 25% of online votes from the general public, 25% from offline votes, and 50% from a Sishulain voting group of approximately 1,000 members managed by a professional research agency. Following this, the Sishulain Committee will conduct a final review to select a total of 10 exemplary programs, including 8 from large and medium-sized enterprises and 2 from small businesses. An awards ceremony is scheduled for the end of next month.The Ministry of Trade plans to release the results of the K-Social Value Survey conducted in collaboration with the Korea Economic Association at the end of the year. Additionally, a Sishulain Guide featuring exemplary cases from selected companies will be published to promote collaborative models for corporate social contributions.A government official stated, The sustainable growth of companies and their social responsibility activities can shine even brighter through communication with the public. We hope this voting process, where citizens directly discover and support initiatives, will further spread a warm culture of social contribution.* This article has been translated by AI. October 25, 2026 11
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Diverging Opinions on Retirement Age Extension in South Korea and France Opinions on extending the retirement age are diverging between South Korea and France. In France, there is significant backlash against raising the pension eligibility age, while in South Korea, there is growing demand to increase the legal retirement age to 65. The differing levels of income security from pensions and issues of elderly poverty are cited as key factors behind these disparities.According to the Organization for Economic Cooperation and Development (OECD) on October 25, Frances post-tax pension income replacement rate stands at 70.0%, which is 31.0 percentage points higher than South Koreas 39.0%. The pension income replacement rate refers to the proportion of pension benefits relative to pre-retirement income. There is also a notable difference in elderly poverty rates. As of 2023, South Koreas elderly poverty rate is 39.8%, the highest among OECD member countries, while Frances rate is only 6.2%.Many older adults in South Korea continue to participate in the workforce after retirement. The OECDs 2025 Pension Report indicates that in 2024, the employment rate for those aged 65 to 69 in South Korea is projected to be 57%, more than double the OECD average of 26%. This active participation in the labor market is interpreted as a response to insufficient income security in retirement.Support for extending the retirement age is also high in South Korea. A survey conducted by the Korean Confederation of Trade Unions among 1,000 adults aged 20 to 69 found that 88.3% of respondents support gradually raising the legal retirement age to 65.The primary reason for this support, cited by 69.0% of respondents, is economic insecurity due to income gaps before receiving national pension benefits. However, younger respondents in their 20s and 30s expressed concerns that extending the retirement age could reduce job opportunities for young people, highlighting the need for separate employment measures for youth.This concern arises from the potential income gap that could occur between retirement and the start of national pension benefits. Currently, South Koreas legal retirement age is 60, but the eligibility age for national pension benefits is being gradually raised to 65. As a result, retirees could face an income gap of up to five years.In France, a reform to gradually raise the pension eligibility age from 62 to 64 was initiated in 2023 but faced strong opposition from labor unions and civil society. Consequently, the implementation of parts of the reform has been postponed until 2028.Discussions on extending the retirement age continue in South Korea, but significant differences remain between labor and management. Labor representatives are calling for prompt legislation to address income gaps, while business leaders express concerns about rising labor costs and potential impacts on youth employment.* This article has been translated by AI. October 25, 2026 10
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Semiconductor Outlook Bright, Automotive Sector Dims as Manufacturing Sentiment Drops Experts expectations for improvements in South Koreas manufacturing sector have significantly declined over the past month. While the semiconductor industry is projected to continue its positive trend due to increased demand for artificial intelligence (AI), concerns about economic sluggishness have grown in key sectors such as automotive, mobile phones, and chemicals.According to the Industrial Economic Expert Survey Results released by the Korea Institute for Industrial Economics and Trade on October 25, the manufacturing outlook index (PSI) for November dropped to 102, down 11 points from the previous months forecast of 113. The PSI is a measure derived from surveys of industry experts, where a score above 100 indicates expectations of improvement compared to the previous month, while a score below 100 suggests a decline.Although the November forecast slightly exceeds the baseline of 100, the drop is significant. The domestic outlook PSI fell from 111 to 101, a decrease of 10 points, while the export outlook dropped from 118 to 107, down 11 points. The production level outlook also fell from 119 to 102, a decline of 17 points, and the profitability outlook decreased from 103 to 91, falling below the baseline.Sector-specific forecasts varied. The semiconductor outlook PSI rose to 159, up 15 points from the previous months 144, marking the highest among major manufacturing sectors. In contrast, the mobile phone sector saw a dramatic decline, plummeting from 100 to 53, a drop of 47 points, indicating the weakest outlook. The automotive sector also fell from 123 to 93, a decrease of 30 points, while the chemical sector dropped from 106 to 89, down 17 points.By industry type, the information and communication technology (ICT) sector maintained a PSI of 110, above the baseline, while the machinery and materials sectors fell below it, with PSIs of 97 and 95, respectively.Factors contributing to the sector evaluations include strong demand for high-bandwidth memory (HBM) and increased investment in AI servers for the semiconductor industry. Conversely, the mobile phone sector faces rising costs due to increased memory semiconductor prices and concerns over slowing consumer demand. The automotive sector is impacted by the growing market share of Chinese vehicles and sluggish domestic and export performance.Current evaluations of the manufacturing sector have also worsened compared to the previous month. The current manufacturing PSI stands at 102, down 5 points from 107 last month. Although it had exceeded the baseline for three consecutive months, it has now turned downward. The domestic current PSI for October rose by 1 point to 107, while the export PSI fell from 119 to 107, a drop of 12 points. Profitability decreased from 97 to 92, remaining below the baseline.By sector, the semiconductor industry maintained a strong position with a PSI of 147, up 3 points. The steel and shipbuilding sectors also rose to the baseline of 100. However, the mobile phone sector saw a sharp decline of 39 points to 73, and the chemical sector fell by 23 points to 94, both below the baseline. The display and automotive sectors also could not escape the downward trend.This survey was conducted from October 12 to 16 among 127 experts from major domestic industries.* This article has been translated by AI. October 25, 2026 10
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Fair Trade Commission Chair: Coupang is a Major Player, May Face 1% Fine for Investigation Refusal Chairman Joo Byeong-ki of the Fair Trade Commission emphasized that Coupang is no longer a lightweight but a heavyweight representative of South Korea, stating, They must act responsibly according to their stature. He also indicated that a legal amendment is necessary to impose fines of up to 1% of total sales for companies that refuse investigations.During an appearance on KBSs Sunday Diagnosis Live on October 25, Joo addressed Coupangs refusal to cooperate with the investigation, saying, When a heavyweight player exerts market power, it can be a weapon against economically vulnerable small businesses. It is the Fair Trade Commissions duty to monitor such actions, and the starting point of that oversight is the administrative investigation by the Commission.He added, We have sent a report regarding the imposition of fines for the refusal of the administrative investigation, and the review process is currently underway.Joo pointed out that the current Large-Scale Retail Business Act only allows for fines in cases of obstruction or refusal to cooperate with investigations, which he sees as problematic. He noted, In the case of the Fair Trade Act, fines and compliance orders can be imposed, and criminal sanctions are also possible. The Large-Scale Retail Business Act only allows for fines and does not permit criminal sanctions, so legal amendments are urgent.He elaborated, When refusing an investigation, imposing fines should not be lenient; for example, fines could be set at around 1% of total sales to strengthen investigative authority, making law enforcement much more effective.However, Joo took a cautious stance on granting the Fair Trade Commission compulsory investigation powers. He stated, Most businesses cooperate with the Fair Trade Commissions administrative investigations, and currently, there are no significant issues with enforcing the law using only administrative investigation powers. He believes that strengthening sanctions for refusal to cooperate is more efficient than introducing compulsory investigation powers.In response to claims from the U.S. about discrimination against American companies, Joo countered, The Fair Trade Commissions law enforcement does not discriminate against countries. In fact, we enforce the law much more rigorously against domestic companies. He explained that the large fines imposed on foreign companies like Google or Microsoft are due to their enormous related sales figures, adding, When comparing fine rates, domestic companies actually face higher fine rates.Regarding allegations of leaked investigation information related to Hanwha Groups trademark fee transactions, Joo stated that an internal audit is underway. He noted, We recognized some signs of obstruction during the on-site investigation and are conducting an internal audit due to the allegations of information leaks. However, he clarified that the actual occurrence of information leaks has not been confirmed and that necessary actions will be taken based on the audit results.In light of recent criticisms about the high rate of court injunctions against Fair Trade Commission actions, Joo responded, The decision to grant injunctions does not imply that the Fair Trade Commissions actions are illegal. He explained that injunctions are a system designed to prevent irreparable harm, and the legality of the actions will ultimately be determined in the main lawsuit.Joo also emphasized that the current system, where the Fair Trade Commission handles both investigations and adjudications, operates with strict separation between the two to ensure swift law enforcement and victim protection.Regarding investigations into collusion in the livelihood sector, he announced that the first case of the Fair Trade Commissions newly launched focus investigation team, which began on October 1, is nearing completion with an on-site investigation into collusion among food companies. Joo stressed the need to actively address monopoly issues in markets that significantly impact the lives of ordinary citizens.He also indicated plans to increase the level of sanctions for collusion, stating, Even when enormous unjust profits are gained through collusion, the penalties imposed through law enforcement often do not exceed the unjust profits, which is why collusion is repeated. We aim to set fines at a level that sufficiently exceeds the unjust profits.* This article has been translated by AI. October 25, 2026 09
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Kim Jong Un Visits Donggang Bus Assembly Plant, Highlights North Korea-China Cooperation Kim Jong Un, the Chairman of North Korea, visited a bus assembly line in Donggang, Liaoning Province, China, on the 24th, raising expectations for expanded cooperation in the automotive industry between North Korea and China. Given North Koreas significant demand for vehicles for public transportation and freight, Chinese bus manufacturing technology and production capabilities could become a key area for practical collaboration between the two countries.According to Chinas state-run Xinhua News Agency, Kim toured the automotive factory in Donggang alongside Wang Huning, Chairman of the Chinese Peoples Political Consultative Conference, and received explanations about the production facilities.The automotive plant Kim visited is part of Huanghai Automobile, a subsidiary of Shuguang Group, which produces buses and commercial vehicles based in Donggang. The company has been manufacturing buses for urban public transport, commuting, and tourism, and has recently expanded into electric buses. Huanghai Automobile has previously exported electric vehicles to North Korea.From North Koreas perspective, acquiring buses may be necessary for replacing aging vehicles, expanding public transportation, and improving passenger transport between regions. Collaboration utilizing Chinese vehicles, parts, and production equipment could also contribute to enhancing North Koreas transportation infrastructure.During his meeting with Wang Huning, Kim expressed hope for expanding practical cooperation with China to bring tangible benefits to both nations peoples. Wang also stated that the opening of the new Yalu River Bridge would enhance exchanges and economic and trade cooperation between the two countries. October 24, 2026 22
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Kim Jong Un Visits Dandong with Key Officials to Strengthen North Korea-China Relations Kim Jong Uns visit to Dandong, China, included a significant delegation of key North Korean officials, such as Jo Yong-won, Choe Son-hui, Kim Song-nam, Kim Duck-hun, and Kim Yo-jong. The presence of leaders responsible for party organization, foreign diplomacy, and economic policy suggests that this visit aimed to strengthen political ties and explore opportunities for economic cooperation between North Korea and China.According to Chinas state-run Xinhua News Agency, Kim met with Wang Huning, chairman of the Chinese Peoples Political Consultative Conference, and visited the new Yalu River Bridge and a local automobile factory. Kims delegation returned to North Korea on the same day.Jo Yong-won, a prominent figure in the North Korean delegation, serves as the secretary of the Workers Party and a member of the Politburo Standing Committee, as well as the chairman of the Standing Committee of the Supreme Peoples Assembly. He plays a crucial role in overseeing party personnel and organizational operations, supporting internal control and policy implementation under Kim Jong Uns regime.Choe Son-hui, the foreign minister, oversees North Koreas diplomatic policies. As a member of the Politburo and the State Affairs Commission, he has dealt with key diplomatic issues, including relations with the United States. His participation raises interest in potential discussions regarding North Korea-China relations and the situation on the Korean Peninsula.Kim Song-nam, head of the International Department of the Workers Party, is also a member of the Politburo and the State Affairs Commission. He is responsible for managing the party-to-party relationship between the Chinese Communist Party and the Workers Party of Korea, which could facilitate enhanced communication and future exchanges between the two parties.Kim Duck-hun, the first deputy prime minister and a Politburo member, is a senior official in the economic sector who previously served as the prime minister. He is well-positioned to discuss economic cooperation issues, including trade, logistics, and tourism with China. The visits to the Yalu River Bridge and the automobile factory underscore the potential for expanding economic collaboration.Kim Yo-jong, the director of the General Affairs Department of the Workers Party and an alternate member of the Politburo, is a close aide to Kim Jong Un, managing his external schedule and messaging. Her presence highlights the importance of this visit in terms of diplomatic outreach.On the Chinese side, key figures accompanied Wang Huning, including Wang Yi, a member of the Politburo and foreign minister, who oversees Chinas diplomatic policies; Liu Haixing, head of the International Liaison Department of the Chinese Communist Party, responsible for exchanges with foreign parties; Ma Zhaoxu, deputy foreign minister handling diplomatic affairs; and Wang Yajun, the Chinese ambassador to North Korea, managing diplomatic channels in Pyongyang. Their participation signifies a coordinated effort in party-to-party diplomacy and government-level engagement, indicating that this visit was more than a mere display of friendship, addressing both political trust and economic cooperation.* This article has been translated by AI. October 24, 2026 22
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Xi Jinping Sends Wang Huning to Meet Kim Jong Un in Dandong Kim Jong Un, the Chairman of North Koreas State Affairs Commission, made a surprise visit to Dandong, Liaoning Province, on October 24. While it was expected that Li Qiang, the Premier of the State Council of China, would greet Kim, he was actually welcomed by Wang Huning, a member of the Standing Committee of the Political Bureau of the Communist Party of China and Chairman of the Chinese Peoples Political Consultative Conference. The decision by Chinese President Xi Jinping to send Wang to Dandong highlights the significance of this visit.It appears that Xi considered the agenda and diplomatic context of the visit before deciding not to attend personally. There has been speculation about a potential meeting between U.S. President Donald Trump and Kim at the upcoming Asia-Pacific Economic Cooperation (APEC) summit in November, but it remains uncertain whether this will lead to direct contact between the two leaders. If there were no significant agreements or breakthroughs anticipated regarding U.S.-North Korea negotiations, Xi likely saw little need to be directly involved.If Li Qiang had met with Kim in Dandong, the focus might have been on economic cooperation, such as the opening of the new Yalu River Bridge and the expansion of trade. As the second-highest-ranking official in the Communist Party, Li carries considerable political weight, but his role is primarily centered on government administration and economic policy.In contrast, Wang Huning is a figure with a strong political background. He has served in key positions within the Communist Party for over 30 years and is known as a theorist and political strategist. He has played a central role in shaping policies and ideologies under the leadership of Jiang Zemin, Hu Jintao, and Xi Jinping. Unlike Li, who oversees government administration, Wang emphasizes the political direction, ideology, and strategic significance of foreign relations. By utilizing Wang, China appears to be framing Kims visit not just as an economic cooperation event but as an opportunity to reaffirm the historical alliance and political trust between North Korea and China.During their meeting, Wang and Kim laid flowers at the Anti-American Aid Korea Memorial and visited the Anti-American Aid Korea Museum. This commemorative event, honoring Chinas participation in the Korean War, underscored the shared history and alliance between the two nations. Kim expressed gratitude to the Chinese Peoples Volunteer Army soldiers and highlighted that this year marks the 65th anniversary of the North Korea-China Friendship and Mutual Assistance Treaty.The economic cooperation message was also prominent. Wang accompanied Kim on a tour of an automobile factory in Dandong and bid farewell to him at the new Yalu River Bridge. Wang stated that the opening of the bridge would facilitate increased human exchanges and economic and trade cooperation. This indicates a dual focus on emphasizing political solidarity while also seeking to expand practical economic collaboration.Notably, during their discussions, Wang remarked, The two countries should strengthen strategic communication and cooperation to create a peaceful and stable external environment that safeguards our sovereignty, security, and development interests. This statement goes beyond mere trade expansion, suggesting a political message aimed at enhancing communication and cooperation regarding diplomatic and security environments.This visit did not result in a direct meeting between Xi and Kim to announce new strategic agreements. However, it was not merely a technical visit focused on economic cooperation either. Through Wang Huning, the historical continuity of the North Korea-China alliance was emphasized, alongside a focus on economic cooperation and strategic communication. The strategic closeness between North Korea and China continues to strengthen.* This article has been translated by AI. October 24, 2026 21
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Kim Jong-un visits China via newly opened Yalu River bridge SEOUL, October 24 (AJP) — North Korean leader Kim Jong-un visited China on Saturday, arriving in the border city of Dandong via a newly opened bridge in his first trip there in more than a year. South Korea's Ministry of Unification said Kim entered Dandong in China's northeastern Liaoning Province through the New Yalu River Bridge earlier in the day. The bridge connects Dandong with the North Korean border city of Sinuiju across the Yalu River, known as the Amnok River in Korea. Neither North Korea nor China had announced Kim's itinerary or the purpose of the visit as of Saturday afternoon. It was also not immediately clear whether Kim would travel beyond Dandong or meet Chinese President Xi Jinping. The visit comes a day before the 76th anniversary of China's entry into the 1950-53 Korean War, when Beijing sent the Chinese People's Volunteers to fight alongside North Korean forces. Kim last visited China in September 2025, when he attended a military parade in Beijing marking the 80th anniversary of the end of World War II and held talks with Xi. Xi made a state visit to Pyongyang in June this year, his first trip to North Korea in seven years. The two leaders agreed during the June summit to elevate bilateral ties to a strategic level and expand exchanges in areas including trade, agriculture, construction and technology. Kim's latest trip comes just nine days after North Korea and China formally opened the New Yalu River Bridge on Oct. 15, ending a delay of more than a decade. The four-lane bridge was completed in 2014 but remained unused for 12 years as connecting roads, customs facilities and other infrastructure on the North Korean side remained unfinished. The Unification Ministry described the bridge's opening last week as the first tangible implementation of agreements reached at the June summit, saying it would closely watch whether the move leads to further steps to deepen strategic ties. Relations between Pyongyang and Beijing have strengthened since Kim's September 2025 trip after a period of relative strain as North Korea rapidly expanded military cooperation with Russia. High-level exchanges have accelerated this year, including Xi's June visit to Pyongyang and reciprocal visits by senior officials marking the 65th anniversary of the China-North Korea Treaty of Friendship, Cooperation and Mutual Assistance. Xi reaffirmed Beijing's commitment to strengthening relations with Pyongyang in a message released earlier this week, saying the two countries had long supported each other. Kim's visit also comes days after unsubstantiated rumors about his death circulated on overseas social media. South Korea's National Intelligence Service told lawmakers Friday that the claims were false, while North Korean state media reported Saturday that Kim had presided over a two-day meeting of military commanders in Pyongyang on Thursday and Friday. October 24, 2026 16