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Despite calling it earlier an ‘act of great stupidity’, Trump signals support of Starmer’s Chagos deal.

United States President Donald Trump appears to have endorsed the deal struck by British Prime Minister Keir Starmer to hand over the sovereignty of the Chagos Islands to Mauritius, weeks after calling it a “great stupidity”.

Trump had last month described the United Kingdom’s decision to cede sovereignty of the Indian Ocean archipelago, which includes a joint US-UK military base on the island of Diego Garcia, as an “act of great stupidity”.

The US president said he held productive talks with Starmer on Thursday and that the UK leader had made the “best deal he could make”.

But he also warned in a post on Truth Social that the US would retain the right to “militarily secure and reinforce” the US presence on the island of Diego Garcia if it were threatened.

The British government said in a statement that “the leaders agreed their governments would continue working closely to guarantee the future operation of the base and speak again soon”, the AFP news agency reported.

Under a deal agreed last May, the governments of the UK and Mauritius jointly announced that full sovereignty of the Chagos, a remote group of more than 60 islands, would again belong to Mauritius in exchange for guarantees that the US military base could continue operating there for the next 99 years.

Last year’s announcement stirred a range of emotions among the Chagossians, who were forced from their island home in the 1960s and 1970s and resettled in Mauritius, the Seychelles and the UK. For decades, they have campaigned to return to their ancestral lands freely, without any restrictions.

The Chagos Islands have been under British control since 1814. In the 1960s and 1970s, Britain forcibly evicted nearly 2,000 locals to make way for the US military base, which played a pivotal role in US military operations in Vietnam, Iraq and Afghanistan. In 2008, the US also acknowledged that the base had been used for covert rendition flights of “terrorism” suspects.

Feb. 5 (UPI) — The number of U.S. non-farm job openings trended downward to 6.5 million in December, while hiring and job separations remained steady, the Bureau of Labor Statistics reported on Thursday.

The number of job openings in December was down by 386,000 in December and 966,000 for the year, while hiring and job separations remained steady at 5.3 million each in December, the bureau reported.

While the number of job openings was down in December, the rate remained steady at 3.9%.

Openings among the professional and business services sector decreased by 257,000, while retail trade jobs decreased by 195,000 and finance and insurance by 120,000.

The rate for new-hires stayed steady in December at 3.3%, as hiring rose by 28,000 in the real estate and rental and leasing sector and by 36,000 in state and local government — but not including education — and decreased by 11,000 in the federal government.

December’s rate of job separations, which the bureau defines as those quits, layoffs, discharges and other separations, also remained steady at 3.3%, while the number and rate of quits were steady at 3.2 million and 2%, respectively.

Within the professional and business services sector, the number of quits decreased by 151,000, while those in the education services sector declined by 19,000.

The number of quits in the retail trade sector rose by 87,000, while information-sector quits increased by 28,000.

Layoffs and discharges in December changed little, at 1.8 million and a rate of 1.1%, while transportation, warehousing and utilities sectors recorded 103,000 layoffs and discharges in December.

Finance and insurance reported 20,000 fewer layoffs and discharges for the month, and other separations stayed unchanged at 285,000.

Among the size of respective job providers, those with between one and nine employees and those with 5,000 or more reported virtually no change in numbers and rates of job openings, hirings and separations, according to the bureau.

The federal agency also adjusted November’s reported job openings down by 218,000 to 6.9 million, while the number of hirings was revised up by 6,000 to 5.1 million.

Total separations in November also were revised, with 64,000 more than initially reported for a total of 5.1 million, including 32,000 more quits, 14,000 more layoffs and discharges, and 17,000 more other separations reported.

The November changes for quits, layoffs and discharges, and other separations increased the month’s totals to 3.2 million, 1.7 million and 249,000, respectively.

The bureau’s report comes a day after the ADP National Employment Report indicated private sector employment reportedly rose by 22,000 in January, which was about half the anticipated number.

Feb. 5 (UPI) — The White House is expected to launch its new prescription drug platform, TrumpRx, on Thursday evening, showcasing the president’s new “most favored nation” drug pricing policy.

President Donald Trump initially announced his plan in September with the launch of the TrumpRx website.

The idea is to sell prescription drugs at lower prices via the website, so that people without insurance can pay less. But users have to pay in cash because the site will not accept insurance.

The White House said at the time in a fact sheet, “foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines Pfizer brings to market.”

At the time, Pfizer was the only company on board. Since then, Eli Lilly, Novo Nordisk, Bristol-Myers Squibb, Merck, Amgen, Gilead, GSK, Sanofi, Roche’s Genentech, Boehringer Ingelheim, AstraZeneca, EMD Serono and Novartis have joined.

White House press secretary Karoline Leavitt announced the event on X.

“TONIGHT AT 7PM: President Trump, Dr. Oz, and National Design Studio Director Joe Gebbia will be officially unveiling TrumpRx — a state of the art website for Americans consumers to purchase low cost prescription drugs. This historic announcement will save millions of Americans money. You won’t want to miss it! Tune in.”

Feb. 5 (UPI) — The FBI on Thursday announced a $50,000 reward for information leading to the return of Tucson, Ariz., resident Nancy Guthrie, 84, as the search for the mother of Today show anchor Savannah Guthrie enters its fifth day.

The reward is also available for information leading to “the arrest and conviction of anyone involved in her disappearance,” the FBI said.

Local law enforcement officials said no suspects have been identified in Nancy Guthrie’s disappearance, which happened in the early hours of Sunday.

“They just hurt. Understandably so,” Pima County Sheriff Chris Nanos said of the missing woman’s family during a Thursday afternoon news conference. “The community is hurting with you. We really just want mom back.”

He said investigators “believe Nancy is still out there” and that local police and the FBI are “working around the clock” to find her.

“We just want her home and to find a way to get to the bottom of all of this,” Nanos said.

A larger regional team of Tucson-area law enforcement has been added to the task force that includes a large team of FBI personnel to investigate her suspicious disappearance.

“We’re sharing every piece of information — all the data that we can — to get this solved,” he said.

He also confirmed that blood found on the porch of Nancy Guthrie’s home is hers.

FBI Phoenix Special Agent in Charge Heigh Janke confirmed that ransom notes have been received, including one seeking an Apple watch and another asking for a floodlight.

He said investigators were limiting the amount of facts released because some people might use them to profit from the case.

Janke said one “imposter” has been arrested, and investigators were working on the ransom note that was shared with media.

No proof of life has been provided, Janke said, but Nanos told reporters that they are investigating based on Nancy Guthrie still being alive until evidence shows that she is not.

One of the ransom notes included “facts associated with a monetary value they were asking for,” Janke said.

Nancy Guthrie was reported missing by her family on Sunday afternoon after they received a call from her church saying that she was not at home.

Before her disappearance, investigators said Nancy Guthrie visited with family members at 5:32 p.m. on Saturday and returned to her home at 9:48 p.m., NBC News reported.

She obtained a ride both ways from the Uber ride-hailing service, and investigators spoke with the driver who took her home.

Investigators said a doorbell camera on her home was disabled at 1:47 a.m. on Sunday, but its software detected movement at 2:12 a.m

Her pacemaker disconnected from her personal device at 2:28 a.m., and her family arrived at the home to check on her several hours later at 11:56 a.m.

They placed a 911 call minutes later at 12:03 p.m., and Pima County Sheriff’s deputies arrived about 10 minutes later.

Treasury Secretary Scott Bessent has faced questions from the United States Senate about President Donald Trump’s ongoing campaign to slash interest rates, despite concerns that such a move could turbo-charge inflation.

Bessent appeared on Thursday before the Senate’s Financial Stability Oversight Council.

There, he received a grilling from Democrats over rising consumer prices and concerns about Trump’s attempts to influence the Federal Reserve, the US central bank.

One of his early clashes came with Senator Elizabeth Warren, who sought answers about a report in The Wall Street Journal that indicated Trump joked about suing his nominee for the Federal Reserve chair, Kevin Warsh, if he failed to comply with presidential demands.

“Mr Secretary, can you commit right here and now that Trump’s Fed nominee Kevin Warsh will not be sued, will not be investigated by the Department of Justice, if he doesn’t cut interest rates exactly the way that Donald Trump wants?” Warren asked.

Bessent evaded making such a commitment. “That is up to the president,” he replied.

Pressure on Federal Reserve members

Last week, Trump announced Warsh would be his pick to replace the current Federal Reserve chair, Jerome Powell, who has faced bitter criticism over his decision to lower interest rates gradually.

By contrast, Trump has repeatedly demanded that interest rates be chopped as low as possible, as soon as possible.

In December, for instance, he told The Wall Street Journal that he would like to see interest rates at “one percent and maybe lower than that”.

“We should have the lowest rate in the world,” he told the newspaper. Currently, the federal interest rate sits around 3.6 percent.

Experts say a sudden drop in that percentage could trigger a short-term market surge, as loans become cheaper and money floods the economy. But that excess cash could drive down the value of the dollar, leading to higher prices in the long term.

Traditionally, the Federal Reserve has served as an independent government agency, on the premise that monetary decisions for the country should be made without political interference or favour.

But Trump, a Republican, has sought to bring the Federal Reserve under his control, and his critics have accused him of using the threat of legal action to pressure Federal Reserve members to comply with his demands.

In August, for instance, he attempted to fire Federal Reserve Governor Lisa Cook based on allegations of mortgage fraud, which she has denied.

Cook had been appointed to the central bank by Trump’s predecessor and rival, Democrat Joe Biden, and she has accused Trump of seeking her dismissal on political grounds. The Supreme Court is currently hearing the case.

Then, in early January, the Department of Justice opened a criminal investigation into Powell, echoing accusations Trump made, alleging that Powell had mismanaged renovations to the Federal Reserve building.

Powell issued a rare statement in response, accusing Trump of seeking to bully Federal Reserve leaders into compliance with his interest rate policy.

“The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell wrote.

Bipartisan scrutiny of Powell probe

Given the string of aggressive actions against Powell and Cook, Trump’s joke about suing Warsh fuelled rumours that the Federal Reserve’s independence could be in peril.

Within hours of making the joke on January 31, Trump himself faced questions about how serious he might have been.

“It’s a roast. It’s a comedy thing,” Trump said of his remarks as he spoke to reporters on Air Force One. “It was all comedy.”

Warren, however, pressed Bessent about Trump’s remarks and chided the Treasury chief for not rejecting them.

“I don’t think the American people are laughing,” Warren told Bessent. “They’re the ones who were struggling with the affordability.”

The prospect of Trump exerting undue influence over the Federal Reserve even earned a measure of bipartisan criticism during Thursday’s council meeting.

Senator Thom Tillis, a Republican from North Carolina, opened his remarks to Bessent with a statement denouncing the probe into Powell, even though he acknowledged he was “disappointed” with the current Fed chair.

Still, Tillis emphasised his belief that Powell committed no crime, and that the investigation would discourage transparency at future Senate hearings.

He imagined future government hearings becoming impeded by legal formalities, for fear of undue prosecution.

“They’re going to be flanked with attorneys, and anytime that they think that they’re in the middle of a perjury trap, they’re probably just going to say, ‘I’ll submit it to the record after consultation with my attorneys,’” Tillis said, sketching out the scenario.

“Is that really the way we want oversight to go in the future?”

For his part, Bessent indicated that he backed the Federal Reserve’s long-term goal to keep interest rates at about 2 percent.

“It is undesirable to completely eliminate inflation,” Bessent said. “What is desirable is to get back to the Fed’s 2 percent target, and for the past three months, we’ve been at 2.1 percent.”

Scrutinising the lawsuit against the IRS

As Thursday’s hearing continued, Bessent was forced to defend the Trump administration on several fronts, ranging from its sweeping tariff policy to its struggle to lower consumer prices.

But another element of Trump’s agenda took centre stage when Democrat Ruben Gallego of Arizona had his turn at the microphone.

Gallego sought to shine a light on the revelation in January that Trump had filed a lawsuit against the Internal Revenue Service (IRS) — part of his own executive branch.

Trump is seeking $10bn in damages for the leak of his tax returns during his first term as president. The IRS itself was not the source of the leak, but rather a former government contractor named Charles Littlejohn, who was sentenced to five years in prison.

Bessent was not named as a defendant in the lawsuit, though he currently serves both as the Treasury secretary and the acting commissioner of the Internal Revenue Service.

Critics have argued that Trump’s lawsuit amounts to self-dealing: He holds significant sway over the Justice Department, which would defend the federal government against such lawsuits, and he could therefore green-light his own settlement package.

In Thursday’s exchange with Gallego, Bessent acknowledged that any damages paid to Trump would come from taxpayer funds.

“ Where would that $10bn come from?” Gallego asked.

“ It would come from Treasury,” Bessent replied. He then underscored that Trump has indicated any money would go to charity and that the Treasury itself would not make the decision to award damages.

Still, Gallego pressed Bessent, pointing out that the Treasury would ultimately have to disburse the funds — and that Bessent would be in charge of that decision.

That circumstance, Gallego argued, creates a conflict of interest, since Bessent is Trump’s political appointee and can be fired by the president.

“Have you recused yourself from any decisions about paying the president on these claims?” Gallego asked.

Bessent sidestepped the question, answering instead, “I will follow the law.”

Russia is exploiting Ukraine’s coldest winter yet since it escalated the war four years ago. As negotiations between Ukraine, Russia and the United States continue to stall, will this winter freeze become Ukraine’s breaking point?

In this episode: 

• Oleksiy Sorokin (@mrsorokaa) Deputy Chief Editor, Kyiv Independent

Episode credits:

This episode was produced by Chloe K. Li, Marcos Bartolomé, and Melanie Marich, with Phillip Lanos, Spencer Cline, Maya Hamadeh, Tuleen Barakat, and our guest host, Kevin Hirten. It was edited by Tamara Khandaker. 

Our sound designer is Alex Roldan. Our video editors are Hisham Abu Salah and Mohannad al-Melhemm. Alexandra Locke is The Take’s executive producer. Ney Alvarez is Al Jazeera’s head of audio. 

Connect with us:

@AJEPodcasts on X, Instagram, Facebook, and YouTube

SEOUL, Feb. 5 (UPI) — South Korean radar solution company bitsensing said Thursday it launched an aftermarket advanced driver assistance system kit that can be installed in existing commercial vehicles.

The company said that the kit, which is composed of radar sensors and cameras, would enhance safety and driving awareness by providing real-time alerts for collision risk and blind-spot hazards.

bitsensing is targeting commercial vehicles such as buses and trucks, which the firm claims are more prone to road accidents due to longer braking distances and larger blind spots compared to passenger cars.

Commercial vehicles account for 14% of all fatal road crashes in the European Union and 9% in the United States, according to data from transportation authorities in those regions.

The Korean company said that it has been conducting pilot tests of the new product since November in partnership with Koreawide Express Group, the country’s bus operator.

Under the collaboration, bitsensing’s driver assistance kits were installed across Koreawide’s fleet of intercity and city buses in real-world road environments, with plans to expand deployment to more than 500 buses.

“Commercial vehicles operate in some of the most demanding road environments, yet many fleets still lack access to modern driver warning systems,” bitsensing CEO Lee Jae-eun said in a statement.

“The ADAS kit was developed to close that gap, delivering a complete, system-level ADAS solution that can be deployed on existing vehicles without redesigning the vehicle platform,” he added.

Observers point out that aftermarket safety systems continue to gain traction as fleet operators seek cost-effective ways to upgrade older vehicles.

“Newer commercial vehicles tend to be equipped with advanced safety features, but many conventional vehicles lack such systems, making them more vulnerable to accidents,” Daelim College automotive professor Kim Pil-soo told UPI.

“To deal with such problems, aftermarket solutions are necessary to help commercial vehicles navigate increasingly complex urban driving environments more safely,” he said.

Kim said he expects an increasing number of ADAS kits to compete in the market, including LiDAR sensor-free solutions, such as bitsensing’s products that can be competitively priced.

Short for Light Detection and Ranging, LiDAR is a costly sensing technology that enables vehicles to perceive their surroundings in three dimensions with very high precision.

Chinese company AutoFlight conducted a public flight demonstration for its 5-tonne-class flying car V5000 Matrix on Thursday. It can carry 10 passengers, and the company says its operating costs are one-tenth of those of traditional helicopters.

Feb. 5 (UPI) — Though still awaiting Senate confirmation, Jennifer Wicks McNamara is preparing to land in Hanoi not with a ceremonial bouquet, but with a tariff ledger in hand instead.

The ambassador-designate steps into a newly minted “comprehensive strategic partnership” now defined less by warship visits and more by a $144 billion trade gap, market-economy disputes and rising economic friction between Washington and one of its most pivotal Asian partners.

Her posting follows the Trump administration’s unusual mass recall of career diplomats, a move that rattled U.S. embassies worldwide and signaled the White House impatience with the slow, methodical pace of traditional diplomacy.

McNamara’s mandate appears blunt: recalibrate a relationship the administration views as fundamentally lopsided. While security cooperation has expanded in response to shared concerns over China’s maritime pressure in the South China Sea, trade has become the gravitational center of U.S.-Vietnam relations — and it is pulling both sides toward confrontation even as they speak of partnership.

At her December confirmation hearing, McNamara adopted a notably hard line. She told the Senate Foreign Relations Committee that the trade relationship is “imbalanced” and pledged to press for “equitable market access” for U.S. goods and services.

The phrasing echoed the administration’s “America First” doctrine, which treats tariffs not as economic distortions, but as instruments of leverage — diplomatic tools by other means.

“In my view, this rhetoric reflects McNamara’s political calculations and a sober recognition that she had better adapt to the administration she is being nominated to serve in order to succeed in her post,” said Hunter Marston, a foreign policy analyst at the Center For Strategic &International Studies Southeast Asia Program.

Marston said he believes this single-minded attention to the trade dispute risks eroding trust upending the extraordinary progress in bilateral relations which brought the United States and Vietnam to the level of a Comprehensive Strategic Partnership under the Biden administration.

That philosophy is already in motion. Since August, most Vietnamese exports have faced a 20% tariff, with a 40% duty imposed on goods deemed to be transshipped from third countries such as China.

U.S. officials describe these measures as necessary to prevent Vietnam from becoming a backdoor for Chinese manufacturing, but in Hanoi, they are widely seen as collective punishment that risks undermining two decades of economic integration.

Yet, the coercive power of tariffs has, so far, produced little correction. Vietnam’s trade surplus with the United States surged to $144.2 billion between January and October 2025, at times rivaling — and even surpassing — China’s surplus in key sectors such as electronics, textiles and consumer goods.

The data suggest that U.S. demand for Vietnamese production remains stubbornly inelastic, a reflection of deeply embedded supply chains that cannot be easily rerouted.

“Vietnam and the U.S. will have to navigate the trade issue to propel the relationship forward,” said Khang Vu, a visiting scholar in the Political Science Department at Boston College.

For McNamara, the test will be whether she can translate tough rhetoric into tangible changes in market access, investment rules and industrial policy, or whether she will preside over a continuing cycle of tariffs, retaliation and rhetorical sparring that leaves the underlying imbalance largely intact.

“Jennifer Wicks is a very senior and respected official within the State Department. U.S. tariff policies have been central to the U.S.-Vietnam relations since President Trump announced tariffs last April, so [she] will likely continue efforts to complete a U.S.-Vietnam trade agreement,” said Ambassador Brian McFeeters, president & CEO of the US-ASEAN Business Council.

At the core of the dispute lies Vietnam’s designation as a “non-market economy” by the U.S. Department of Commerce. That label allows Washington to calculate anti-dumping duties using surrogate prices from third countries — often higher-cost economies, such as Bangladesh or India — that inflates the “fair value” of Vietnamese shrimp, furniture and steel in the American market.

Hanoi has long argued that the classification is outdated and politically motivated. In September 2023, Vietnam formally requested a review of its status, pointing to reforms in pricing, competition policy and state enterprise governance.

But in August 2024, Commerce reaffirmed the non-market economy designation, citing continued “significant government involvement” in the economy despite acknowledging “substantive reforms.”

McNamara steps into an escalating legal and diplomatic standoff. While Hanoi has floated concessions on U.S. autos, medical devices and farm goods, Washington has made clear that limited tariff adjustments are not enough. Commerce Secretary Howard Lutnick has called for broader structural reforms that would steer Vietnam toward a more market-driven system – a demand that challenges the core of its state-led economic model.

For Vietnam, shedding the non-market ecomony label is a matter of prestige and a multibillion-dollar economic imperative.

In practical terms, U.S. officials are expected to press Hanoi on several politically sensitive fronts. Currency policy is emerging as another point of tension. The officials question Vietnam’s management of the dong, citing limited convertibility and opaque reserve practices they say bolster export competitiveness.

Labor policy presents another fault line. A key metric for market economy status is whether wages are determined by free bargaining between independent unions and employers.

While Vietnam has introduced a revised Labor Code that allows more space for worker representation, U.S. officials question whether unions are truly independent from the ruling Communist Party. McNamara will almost certainly raise these concerns, even as Hanoi insists its model is evolving.

Equally contentious is the role of state-owned enterprises, which dominate sectors such as energy, telecommunications and transportation. Washington is likely to demand a faster pace of “equitization” — Vietnam’s term for partial privatization — along with tighter limits on state-backed financing.

U.S. negotiators also argue that government controls over land and energy prices distort production costs, giving Vietnamese manufacturers an unfair advantage. Addressing this would require Hanoi to relinquish a degree of control over core economic inputs — a politically fraught move that could unsettle domestic constituencies and state-linked elites.

Aware of the stakes, Vietnam appears to be preparing its own strategy: concessions rather than confrontation.

Diplomats in Hanoi say officials are preparing limited market-opening steps to ease pressure from Washington without reshaping Vietnam’s state-led economy. The measures could include selective tariff cuts and increased purchases of U.S. goods, offering visible trade concessions, while leaving core political and economic structures intact.

Vietnam is weighing major purchases of U.S. liquefied natural gas as it expands energy capacity to fuel industrial growth. Long-term LNG deals worth billions could help narrow the trade gap with Washington, while tying Hanoi more closely to U.S. energy supplies.

Agriculture could become another friction point. Vietnam enforces strict health standards on U.S. pork, poultry and grain imports, citing food safety concerns. McNamara is expected to press for science-based regulatory changes to expand access for American farm exports – a sensitive issue in a country where small farmers wield political influence.

Aviation is emerging as a highly visible battleground. Vietnam Airlines, VietJet and Bamboo Airways are all in the midst of fleet expansions. U.S. officials are keen for these multibillion-dollar orders to go to Boeing rather than European manufacturers, viewing aircraft sales as a concrete way to offset the trade deficit and demonstrate goodwill.

If Vietnam resists deeper reforms, it risks entrenching itself under punitive U.S. trade barriers that could discourage investment and slow export growth. If it moves too far, too fast, it could destabilize its own state-led development model and alienate domestic power centers that benefit from the current system.

For Hanoi, the challenge is even more delicate: proving it can behave like a market economy while remaining a one-party state — a contradiction that Washington is now probing with far sharper tools than before.

How McNamara navigates this dilemma will not only shape her legacy in Hanoi, but could redefine the future trajectory of U.S.-Vietnam relations in an era in which geopolitics and geo-economics are increasingly inseparable.

The United States has hosted its first critical minerals summit aimed at challenging China’s dominance of the global supply chain for rare earth elements. But political economist Stefan Zylinski warns that Global South countries are likely to bear the greatest cost from any plan conceived by the Global North.

Leonardo is the latest in a series of half a dozen storms to batter the Iberian Peninsula this year.

A man has lost his life in Portugal after floodwaters engulfed his car, and in Spain, a girl has been reported missing after being swept away by a river as Storm Leonardo has battered the Iberian Peninsula with torrential rain and gale-force winds.

Leonardo is the latest in a wave of half a dozen storms to sweep across Portugal and Spain this year, causing several fatalities, destroying infrastructure and leaving thousands of homes without power.

Portuguese authorities confirmed on Wednesday that a 70-year-old man died in the southern region of Alentejo after floodwaters swept his vehicle off a road near a dam.

In southern Spain’s Malaga province, a girl remains missing after she was dragged away by the Turvilla River in Sayalonga while trying to rescue her dog. The animal reportedly managed to reach safety, and emergency teams resumed the search for the girl at first light on Thursday, according to local and national news reports.

“We spent the whole afternoon and night yesterday searching in the river from the place where the girl fell in until the very end of the river. We found the dog, but not her,” Malaga fire chief Manuel Marmolejo said on Spanish television on Thursday.

Spain’s State Meteorological Agency has warned that Storm Marta, the next front in the ongoing “storm train”, is expected to reach the region this weekend.

Portuguese Economy Minister Manuel Castro Almeida stated that reconstruction efforts after Storm Kristin alone may exceed 4 billion euros ($4.7bn).

In Alcacer do Sal in southern Portugal, residents were forced to wade through waist-deep water after the Sado River breached its banks following a series of storms. Restaurant terraces were submerged, and shopkeepers and homeowners used stacked sandbags in an attempt to protect their properties from the rising floodwaters.

“I’ve never seen anything like this. It’s surreal,” resident Maria Cadacha told the Reuters news agency. “There are a lot of people here, very good people, many shopkeepers, homes with damage. I wouldn’t want to be in their shoes.”

Andalusia’s emergency services reported attending to more than a million incidents by midnight on Wednesday.

Antonio Sanz, head of the regional government’s interior department, confirmed that 14 rivers and 10 dams were at “extreme” risk of overflowing due to the severe conditions.

In Portugal, the National Civil Protection authority registered at least 70 incidents by early Thursday as the region continued to monitor the impact of the storm.

The defense ministry has proposed to the United States that South Korea’s military jointly manage parts of the southern half of the heavily fortified Demilitarized Zone (DMZ) separating the two Koreas, a source said Thursday.

The proposal came as the South Korean government aims to secure control of civilian access to the 250-kilometer-long, 4-km-wide stretch of the DMZ. Currently, the U.S.-led U.N. Command (UNC) administers the military buffer zone as the south-side enforcer of the armistice that ended the 1950-53 Korean War.

Amid the UNC’s outright objection to Seoul’s move, the defense ministry proposed a measure under which South Korea’s military oversees entry to parts of areas located south of the barbed-wire fence within the DMZ.

The South’s fence technically runs alongside the southern boundary of the DMZ, or the Southern Limit Line (SLL), located 2 km south of the Military Demarcation Line, the inter-Korean border.

But parts of the fence were installed north of the SLL to overcome geographic limitations for surveillance operations. The size of the area is known to account for roughly 30 percent of the southern half of the DMZ.

In addition to making the request to the UNC, the ministry also seeks to include the issue as an agenda item in bilateral defense talks, such as the Korea-U.S. Integrated Defense Dialogue and the Security Consultative Meeting, the source said.

The issue of DMZ access control has come into the spotlight since Unification Minister Chung Dong-young voiced his support for pending bills seeking to grant the South Korean government control of nonmilitary access to the DMZ.

Chung has also vowed to restore three sectors of the DMZ Peace Trail, which are situated within the DMZ, as part of the Lee Jae Myung government’s push to restore inter-Korean trust.

The UNC has voiced strong opposition against the pending bills, saying they are “completely at odds” with the armistice agreement.

“If the legislation passes, a rational, logical, legal interpretation is that the ROK government has removed itself from the armistice and is no longer bound by it,” a UNC official told reporters last month, referring to South Korea by the acronym of its formal name, the Republic of Korea.

In a rare statement issued in December, the UNC also stressed that it has been the “successful administrator” of the DMZ since 1953 to ensure that “military and civilian movements within the DMZ and other activities uphold the terms and the spirit of the armistice in the interest of stability.”

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Feb. 5 (UPI) — Chinese leader Xi Jinping and U.S. President Donald Trump had a lengthy, far-reaching telephone conversation on Wednesday, in which the Asian leader warned his American counterpart that “the Taiwan question” was the most pressing issue in their countries’ relationship.

The self-governing, democratic island has increasingly become a focal point in U.S.-China relations amid growing concerns about an eventual Beijing invasion that have only been amplified since the Trump administration’s military operation last month in Venezuela that removed its authoritarian leader, Nicolas Madura.

Both Xi and Trump confirmed the Wednesday call, with the U.S. leader describing the conversation in a statement on his Truth Social platform as “excellent” and his relations with the Chinese head as “an extremely good one.”

He said they discussed the military, trade, the situation in Iran and the Russia-Ukraine war as well as Beijing considering buying U.S. agricultural products, including soybeans, which have been a sticking point for American farms. According to Trump, Beijing is considering increasing its U.S. soybean imports to 20 million metric tons.

A readout of the call from China’s foreign ministry made no mention of soybeans, but emphasized its claim to Taiwan in direct terms.

According to the ministry, Xi told Trump “the Taiwan question is the most important issue in China-U.S. relations.”

“Taiwan is China’s territory. China must safeguard its own sovereignty and territorial integrity and will never allow Taiwan to be separated,” Xi said, according to the ministry.

Despite Taiwan never having been part of the People’s Republic of China, which was founded in 1949, Beijing claims sovereignty over the island of some 23 million people under its One China policy. China views Taiwan as a rogue province that it has vowed to take by force if necessary.

The United States formally recognizes China’s claim to Taiwan, but maintains informal relations with Taipei, which has grown deeper over the last few years amid the Chinese threat of invasion.

Washington sells weapons to Taiwan. In December, the U.S. Congress approved a massive $11.1 billion arms deal with Taiwan, the largest ever between their two governments.

A Chinese foreign ministry spokesperson sternly rebuked the arms deal in a statement that announced sanctions against 20 American military-related companies and 10 senior executives who have participated in arming Taiwan while warning that “anyone who attempts to cross the line and make provocations on the Taiwan question will be met with China’s firm response.”

The readout of the Xi-Trump call on Wednesday warned that “the U.S. must handle the issue of arms sales to Taiwan with prudence.”

According to Beijing, Trump told Xi that he understands how China feels about Taiwan.

Taiwan was only mentioned by Trump in a list of the “many important subjects” he discussed with Xi.

Trump is to visit Xi in Beijing in April.

Worries about a potential Chinese move against Taiwan have increased in recent weeks following the U.S. military abduction of Maduro, which some have suggested could be used by Beijing to support its claims to Taiwan.

In an interview with The New York Times last month, Trump, pressed on the issue, disregarded the comparison, stating China isn’t experiencing the same threat from Taiwan that the United States faced from Venezuela.

“It’s a source of pride for him. He considers it to be a part of China, and that’s up to him, what he’s going to be doing. But, you know, I’ve expressed to him that I would be very unhappy if he did that, and I don’t think he’ll do that. I hope he doesn’t,” he said.

Asked if he set a precedent with the military action in Venezuela, Trump replied: “He may do it after we have a different president, but I don’t think he’s going to do it with me as president.”

SEOUL, Feb. 5 (UPI) — South Korea will seek closer cooperation with China to stabilize supplies of rare earth minerals critical to its high-tech industries, the government said Thursday, as Seoul unveiled a strategy to strengthen supply chain security.

The Ministry of Trade, Industry and Resources announced a comprehensive plan calling for expanded cooperation channels with Beijing, including the establishment of a government-to-government hotline and joint consultative body to help prevent supply disruptions.

The initiative comes as South Korea, one of the world’s top high-tech exporters, remains heavily reliant on imported raw materials essential to manufacturing.

“South Korea has developed advanced industries such as semiconductors, electric vehicles and batteries, but as a resource-importing country, we face many challenges in managing supply chains,” Industry Minister Kim Jung-kwan said during a visit to a rare earth magnet manufacturer in Daegu.

“Our national competitiveness depends on industrial resource security, and the government will focus its policy capabilities on building a resilient industrial structure that is not shaken by external changes,” he said.

Rare earth elements — a group of 17 metals used in components such as permanent magnets, electric motors and advanced electronics — are widely considered vital to next-generation manufacturing. China’s dominance of rare earth processing and refining has left global manufacturers vulnerable to export controls and geopolitical tensions.

Under the plan, South Korea will designate all 17 rare earth elements as core strategic minerals and create new customs classification codes to improve monitoring and demand forecasting.

Seoul also aims to expand domestic production and recycling capacity through regulatory reforms and subsidies for new facilities, while creating a dedicated rare earth research and development fund under an existing industrial innovation investment program.

To support overseas supply diversification, the government will increase policy loans for overseas resource development to $46.2 million this year, up from $26.6 million in 2025, while expanding the state financing coverage ratio to 70% from 50%, the ministry said.

Beyond China, South Korea said it will pursue supply partnerships with countries including Vietnam and Laos as part of efforts to diversify procurement channels and reduce reliance on any single supplier.

The announcement comes a day after South Korea was tapped to chair Washington’s Forum on Resource Geostrategic Engagement, or FORGE, a U.S.-led framework aimed at strengthening supply chain resilience among allied economies for critical minerals and emerging technologies.

EXCLUSIVE

Email exchange shows Epstein sought to arrange meeting between top Democrat and US Virgin Islands representative.

An associate of the United States Virgin Islands’ sole representative in the US Congress asked Jeffrey Epstein for help to arrange a meeting between the politician and Senate Minority Leader Chuck Schumer, according to documents released by the US Justice Department.

The outreach to Epstein was made on behalf of Stacey Plaskett, the islands’ delegate to the House of Representatives, as the politician sought to lobby Schumer for relief after two hurricanes ripped through the Caribbean in 2017, according to the documents.

“We have to help Stacey get a meeting with Schumer. Any thoughts?” Erika Kellerhals, a tax lawyer in the US Virgin Islands, wrote to Epstein in an email on January 24, 2018.

“[S]hould not be a problem need to know the reason and subject,” Epstein wrote back a few hours later.

“She has been unable to confirm a meeting with him. He is driving the disaster relief bill and has only been talking about Puerto Rico and not the [Virgin Islands]. She’s concerned we will be ignored,” Kellerhals told Epstein in response.

After his exchange with Kellerhals, Epstein sent an email to Kathy Ruemmler, a former chief counsel to US President Barack Obama, asking for help in setting up a meeting with Schumer.

“schumer is driving the puerto rico . virgin islands relief=bill. the VI congressional rep Stacey plaskett , h=s not been able to get a meeting. confirmed with him. ca= you help?” Epstein wrote to Ruemmler, who is now the chief lawyer to Goldman Sachs.

“I do not have any relations=ip with him, but let me see whether I can get to his COS,” Ruemmler said in response, referring to his chief of staff.

The emails are among some 3.5 million pages of files released last week that relate to US authorities’ investigations into Epstein, who died by suicide in 2019 while awaiting trial on sex trafficking charges.

It is not clear if a meeting between Schumer and Plaskett went ahead, though Congress ultimately approved emergency funds for the US Virgin Islands as part of a two-year budget package passed in February 2018.

There is no public record of Schumer meeting or directly communicating with Epstein.

Schumer, Plaskett and Kellerhals did not respond to requests for comment. Ruemmler could not be reached for comment.

The email exchange with Epstein, which has not been previously reported, is the latest among numerous examples of how the disgraced financier continued to exert influence at the highest levels of politics and business long after his 2008 conviction for soliciting prostitution with a minor.

Plaskett’s ties to Epstein have been a source of controversy for years.

Plaskett narrowly escaped censure by the House of Representatives last year over revelations that Epstein had coached her over text during a Congressional hearing in February 2019.

Shortly after Epstein was arrested for a second time in July 2019, Plaskett announced that she would donate a sum to charity equivalent to several campaign donations she had received from Epstein and his associates.

While Plaskett is a non-voting member of Congress, the Democrat participates in floor debates and sits on several influential committees, including the House Permanent Select Committee on Intelligence.

Plaskett has previously denied enabling Epstein, calling him a “demon” and saying she was “disgusted by his deviant behavior”.

‘There should be no politics in sport,’ Sharif said while referencing to the recent India-Bangladesh cricket crisis.

Prime Minister Shehbaz Sharif has confirmed the decision to boycott the ICC Men’s Twenty20 World Cup match by Pakistan against India, saying the move is a show of solidarity with Bangladesh.

“We have taken this stand after careful deliberation and [decided that] on this matter, we must stand with Bangladesh and support them,” Sharif told his cabinet on Wednesday.

On Sunday, the Pakistani government announced that its men’s cricket team will not take the field in the match against archrivals India on February 15, without stating the reason behind the decision at the time.

However, it was largely believed to be a mark of protest against Bangladesh’s ouster from the tournament for refusing to travel to India for their T20 World Cup fixtures.

Sharif’s statement, made in a televised address, rubber-stamped the motive and confirmed the boycott.

“We have taken a very clear stand that we will not play the match against India,” Sharif told the government officials. “Pakistan believes that this is sport, not politics, and there should be no politics in sport.”

While Sharif did not elaborate on his statement, it points towards the ongoing cricket crisis surrounding the tournament, which began after a Bangladeshi player was expelled from the Indian Premier League on the directives of the Board of Control for Cricket in India (BCCI) last month.

Mustafizur Rahman’s removal was linked to political tensions between Bangladesh and India, as confirmed by BCCI Secretary Devajit Saikia, and led to a chain of events, including the boycott by Pakistan.

India and Pakistan are placed in the same group and were scheduled to meet in a marquee clash in Sri Lanka, which is cohosting the tournament along with India.

Following Pakistan’s announcement, the International Cricket Council (ICC) said in a statement that “selective participation undermines the spirit and sanctity of the competitions”.

“While the ICC respects the roles of governments in matters of national policy, this decision is not in the interest of the global game or the welfare of fans worldwide, including millions in Pakistan,” it said, adding that it awaited official communication from the Pakistan Cricket Board (PCB).

“The ICC hopes that the PCB will consider the significant and long-term implications for cricket in its own country as this is likely to impact the global cricket ecosystem, which it is itself a member and beneficiary of.”

While the boycott by Pakistan could see them forfeit two points, it remains unclear if the PCB will be hit by further sanctions or bans.

The T20 World Cup begins on Saturday.

The world’s most popular cryptocurrency has fallen nearly 20 percent in value since the start of 2026.

Bitcoin has dropped below $71,000, adding to a week of losses that have wiped out all of its gains since United States President Donald Trump’s re-election in 2024.

The world’s most popular cryptocurrency fell more than 7 percent on Thursday, continuing a steep downward slide that began in mid-January.

Bitcoin, which is famed for its wild price swings, was trading at about $70,900 as of 04:30 GMT.

The latest slide takes the value of the digital asset down by nearly 20 percent since the start of the year.

Bitcoin hit $100,000 for the first time in December 2024 and breached that level again in February and May 2025. But the asset has largely been on a downward trajectory since October, when it hit an all-time high of more than $127,000.

Bitcoin and other digital currencies racked up explosive gains after President Trump’s re-election raised expectations of Washington adopting a light touch to regulating digital assets after years of regulatory crackdowns.

Trump had pledged to turn the US into the world’s cryptocurrency capital during his re-election campaign, and launched his own crypto firm, World Liberty Financial, along with his sons, before winning the vote.

Shortly after taking office, Trump announced the establishment of a strategic crypto reserve that would include Bitcoin and four other cryptocurrencies.

But a Trump-backed bill to regulate the trading of cryptocurrency has stalled in the US Senate amid disagreement between banks and cryptocurrency firms, casting doubt over the industry.

US Democratic Party lawmaker Ro Khanna said on Wednesday that he would investigate World Liberty Financial after The Wall Street Journal newspaper reported that representatives of an Abu Dhabi official signed a $500m deal to buy a 49 percent stake in Trump’s fledgling cryptocurrency venture.

Equities and commodities markets also saw losses on Thursday, with silver dropping as much as 16 percent and benchmark stock indexes in Hong Kong and Japan down about 1.3 percent and 0.7 percent, respectively.

Feb. 4 (UPI) — The Equal Employment Opportunity Commission filed a federal lawsuit seeking information regarding allegations of discrimination against athletic shoemaker Nike Inc.

The EEOC has received complaints of systemic race discrimination against white workers via Nike’s diversity, equity and inclusion programs and other mechanisms, the federal agency said in a news release on Wednesday.

The EEOC filed its request for a court order for information on the matter in the U.S. District Court for Eastern Missouri, which is located in St. Louis.

“When there are compelling indications, including corporate admissions in extensive public materials, that an employer’s Diversity, Equity and Inclusion-related programs may violate federal prohibitions against race discrimination or other forms of unlawful discrimination, the EEOC will take all necessary steps — including subpoena enforcement actions — to ensure the opportunity to fully and comprehensively investigate,” said EEOC Chairwoman Andrea Lucas.

“Title VII’s prohibition of race-based employment discrimination is colorblind and requires the EEOC to protect employees of all races from unlawful employment practices,” Lucas said.

The federal agency is investigating claims that accuse Nike of engaging in a “pattern or practice of disparate treatment against white employees, applicants and training program participants in hiring, promotion, demotion or separation decisions,” the EEOC said in a news release.

The alleged discrimination includes selections for layoffs, internship programs and mentoring, leadership development and other career development programs, according to the EEOC.

The agency’s investigation and subsequent subpoena seek information involving allegations dating back to 2018, including the criteria used when choosing which workers would be laid off and the company’s tracking and use of worker race and ethnicity data.

The EEOC wants information on 16 Nike programs that are said to have provided race-restricted mentoring, leadership and career development opportunities.

Agency officials initially sought voluntary cooperation from Nike while undertaking the investigation.

Lacking cooperation, the EEOC filed the legal action seeking a federal court subpoena that compels Nike officials to provide the sought-after information.

Feb. 4 (Asia Today) — Canada’s minister responsible for defense procurement toured major South Korean defense companies this week, praising their technology and production capabilities as Ottawa moves ahead with large-scale land and naval modernization plans.

Stephen Fuhr, Canada’s minister of state for defense procurement, visited facilities operated by HD Hyundai and Hanwha during a three-day trip to South Korea, industry officials said Tuesday.

Canada is preparing to procure new submarines valued at up to 60 trillion won ($44.9 billion) and self-propelled howitzers worth about 8 trillion won ($6.0 billion). Korean firms used the visit to highlight their submarine construction, artificial intelligence applications and plans for local production in Canada.

HD Hyundai said Fuhr and his delegation toured its research and development center in Pangyo, south of Seoul, where they reviewed models of destroyers, frigates and submarines built by its shipbuilding arm, HD Hyundai Heavy Industries. The delegation also examined progress on autonomous ship technologies incorporating AI.

Earlier, Fuhr visited Hanwha Ocean’s Geoje shipyard and boarded the Jang Young-sil, a next-generation Korean submarine proposed for Canada’s Canadian Patrol Submarine Project. The project, with bids due in early March, is expected to reach up to 60 trillion won and has attracted competition from Germany’s TKMS.

Industry officials said Fuhr’s tight schedule, traveling from South Gyeongsang Province to Gyeonggi Province, reflected Ottawa’s intent to closely assess Korea’s special-purpose shipbuilding capacity. Analysts say Korean firms have emerged as strong contenders in the final stage of the bidding.

“It is meaningful that Korea, with less than 50 years of submarine development experience, is competing head-to-head with Germany,” said Jang Won-jun, a professor of advanced defense technology at Jeonbuk National University. He added that Korean submarine construction has reached roughly 90% to 95% of Germany’s technical level, with an edge in price competitiveness.

Industry sources said Fuhr spoke favorably of the technology on display, describing the facilities as “feeling like the future has already arrived,” remarks viewed as an implicit endorsement of Korea’s capabilities.

Beyond submarines, Canada is also advancing its Indirect Fire Modernization program, which emphasizes land-based systems and involves investments of more than $6 billion to acquire new self-propelled howitzers and long-range rocket systems.

Fuhr visited Hanwha Aerospace’s Changwon plant, where he toured production lines for the K9 self-propelled howitzer, K10 ammunition resupply vehicle and Cheonmu multiple rocket launcher, and observed live maneuver demonstrations. The company proposed an integrated firepower and mobility package and pledged to establish manufacturing operations in Canada to support local jobs and technology transfer.

Hanwha Aerospace CEO Son Jae-il said the company aims to become a key partner in Canada’s military modernization based on its track record in delivery and accumulated technological expertise.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260205010001719

Feb. 4 (UPI) — Savannah Guthrie, a Today show co-host, and her two siblings said Wednesday night that they are “willing to talk” to the person who may have taken their 84-year-old mother, as authorities search for a suspect.

In a video posted on Instagram, Savannah, reading a prepared statement flanked by her two siblings, Annie and Camron, said they are aware of a ransom letter sent to media outlets, but they need proof that the person has their mother, Nancy.

“We need to know without a doubt that she is alive and that you have her. We want to hear from you, and we are ready to listen,” she said. “Please reach out to us.”

Savannah thanked the public for its support and prayers, describing her mother as “a kind, faithful, loyal and fiercely loving woman of goodness and light” who has “grandchildren who adore her and cover her in kisses.”

She said her mother’s “health, her heart, is fragile” and she lives in “constant pain,” requiring medicine that she now doesn’t have.

Speaking directly to Nancy, Savannah said that people are looking for her and will not rest until “we are together again.”

“We love you, Mom,” she said.

President Donald Trump, in a statement published after the video from the Guthries went public, said on his Truth Social platform that he spoke with Savannah and told her “I am directing ALL Federal Law Enforcement to be at the family’s, and Local Law Enforcement’s, complete disposal IMMEDIATELY.”

“We are deploying all resources to get her mother home safely,” the president said. “The prayers of our Nation are with her and her family.”

Law enforcement officials in Arizona said earlier Wednesday that they have not identified a suspect as they enter the fourth day of the search for Nancy.

In a statement posted to X, Pima County Sheriff Chris Nanos said investigators also haven’t identified any people of interest in the case. Officials believe Nancy was kidnapped from her Tucson-area home in the early hours of Sunday. She was last seen around 9:45 p.m. MST Saturday and was reported missing after she failed to attend church the next day.

“Detectives continue to speak with anyone who may have had contact with Mrs. Guthrie,” Nanos said in the statement.

“Detectives are working closely with the Guthrie family. While we appreciate the public’s concern, the sharing of unverified accusations or false information is irresponsible and does not assist the investigation.”

NBC News reported that the FBI joined about 100 detectives from the Pima County Sheriff’s Office in the search for Nancy. Trump earlier committed to sending additional federal agents to participate in the investigation.

Federal officials were assisting by analyzing cellphone data and cell towers in the area. Investigators said there was a technical problem with the surveillance cameras at Nancy’s home and they were trying to determine if neighbors had any footage of her abduction on their cameras.

Three media outlets reported they received ransom notes asking for millions of dollars in cryptocurrency for Nancy’s safe return. TMZ said the note it received mentioned a specific item damaged at the woman’s home. KOLD-TV in Tucson said it forwarded the email it received to the sheriff’s office and KGUN-TV, also in Tucson, said the note it received threatened to kill Nancy.

The sheriff’s department said it was aware of the alleged ransom notes and that it’s investigating their validity.

Nanos said that while Nancy does have difficulties with mobility — making it unlikely she wandered off by herself — she does not have any mental or memory issues that may explain her disappearance.

Investigators said Nancy has a pacemaker that last connected to her iPhone around 2 a.m. Sunday. The phone was left behind at her home, CNN reported.

Savannah issued a statement thanking supporters.

“Thank you for lifting your prayers with ours for our beloved mom, our dearest Nancy, a woman of deep conviction, a good and faithful servant,” she said. “Raise your prayers with us and believe with us that she will be lifted by them in this very moment.”

Feb. 4 (Asia Today) — Samsung Electronics’ common shares became the first single stock in South Korea to reach a market capitalization of 1,000 trillion won ($690.7 billion) as the benchmark KOSPI hovered near the 5,300 level.

The milestone came about two weeks after Samsung’s combined common and preferred shares exceeded 1,000 trillion won in market value.

The Korea Exchange said Samsung Electronics closed Wednesday at 169,100 won ($116.80), up 0.96% from the previous session. The shares have gained 31.6% from their closing level on Jan. 2 of 128,500 won.

Samsung opened lower, then turned higher late in the morning. After moving into positive territory in early afternoon trading, the stock set an intraday record of 169,400 won.

Individual investors bought a net 135.1 billion won ($93.3 million) of Samsung shares and institutional investors bought a net 650.2 billion won ($449.1 million), helping push the stock to the 1,000 trillion won threshold.

Analysts have linked the rally to rising memory prices amid expanding global investment in artificial intelligence infrastructure. Samsung posted 20 trillion won ($13.8 billion) in operating profit in the fourth quarter of last year, setting a quarterly record, and brokerages have forecast annual operating profit exceeding 130 trillion won ($89.8 billion) this year.

Samsung Chairman Lee Jae-yong attended a corporate roundtable on youth employment and regional investment expansion at the Blue House on Wednesday. The meeting included leaders from South Korea’s top conglomerates and marked President Lee Jae-myung’s first major gathering this year with business chiefs.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260204010001675

Feb. 4 (Asia Today) — Kakao Bank posted record earnings last year as growth in non-interest income offset pressure on lending revenue caused by tighter household loan regulations, the company said Tuesday.

The internet-only bank said net profit for 2025 reached 480.3 billion won ($348.6 million), up 9.1% from a year earlier. Fourth-quarter net profit rose 24.5% year over year to 105.2 billion won ($76.3 million), marking the first time quarterly earnings topped 100 billion won.

The results exceeded market expectations despite stricter government oversight of household lending in the second half of the year, which forced Kakao Bank to cut its loan growth target by half.

Interest income, still the bank’s largest revenue source, fell under regulatory pressure. Loan interest income declined 2.9% to 1.99 trillion won ($1.45 billion) from 2.05 trillion won ($1.49 billion) in 2024.

By contrast, non-interest income – including fees, platform revenue and fund management gains – jumped 22.5% to 1.08 trillion won ($790.6 million), surpassing 1 trillion won for the first time. Non-interest income accounted for 35.3% of total operating income, up about 5 percentage points from a year earlier.

Fund management performance was a major contributor. Kakao Bank said profits from the segment climbed about 28% to 670.8 billion won ($487.2 million), aided by expanded bond purchases in a high-interest-rate environment and a more diversified investment strategy.

Fee and platform revenue also continued to rise. Despite lower merchant fees for check cards, advertising revenue and loan comparison service income increased 54% and 37%, respectively. Total fee and platform revenue reached 310.5 billion won ($225.5 million), up 2.9% from a year earlier.

Looking ahead, Kakao Bank said it plans to further strengthen non-interest income this year by expanding products and services and by seeking growth opportunities in global and artificial intelligence-related businesses. The bank also signaled interest in mergers and acquisitions involving payment and capital companies to broaden its business scope into areas such as infrastructure and equipment finance.

An industry source said sustaining growth in non-interest income will be critical as lending expansion remains constrained, adding that the success of new business lines will play a key role in shaping future performance.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260205010001717