Editorial

Feb. 27 (Asia Today) — Kim Jong Un declared that North Korea would “permanently exclude” South Korea from the category of fellow countrymen and said there was “absolutely nothing to discuss” with what he called the “most hostile entity.”

In a report delivered at the ruling party congress held on Feb. 20-21, Kim warned that if Seoul “damages our security environment,” Pyongyang could take unspecified actions, including threats implying the “complete collapse” of South Korea through nuclear force. The remarks reaffirmed North Korea’s “two hostile states” doctrine and amounted to one of its most belligerent statements toward the South in recent years.

Kim’s speech appeared to directly rebuff the conciliatory approach pursued by President Lee Jae-myung. Upon taking office, Lee outlined three principles for inter-Korean relations: respect for the North Korean regime, no pursuit of absorption-style unification and the exclusion of hostile acts. At the U.N. General Assembly in New York last September, he proposed the “END Initiative,” aimed at encouraging denuclearization through exchanges and normalization of relations.

Seoul has since halted loudspeaker broadcasts along the Military Demarcation Line, suspended National Intelligence Service broadcasts toward the North, made the Rodong Sinmun more publicly accessible and expressed regret over civilian drone incursions. The administration has also sought to restore the Sept. 19 inter-Korean military agreement, a move that has drawn criticism from some within the military and from U.S. officials.

According to reports, Gen. Xavier Brunson, commander of U.S. Forces Korea, conveyed concerns to the chairman of the Joint Chiefs of Staff that restoring the no-fly zone near the border could “constrain the ROK military’s readiness posture.”

Despite these gestures, Kim dismissed Seoul’s stance as a “clumsy deception and a poor performance.” While rejecting dialogue with the South, he left open the possibility of improved ties with Washington, saying there would be “no reason we cannot get along well” if the United States abandons what Pyongyang calls a hostile policy.

The contrast underscores a long-standing North Korean strategy often described as engaging Washington while sidelining Seoul. The editorial argues that Seoul’s current peace roadmap has effectively stalled, with little progress in efforts to leverage improved ties with Beijing to moderate Pyongyang’s stance.

While peaceful coexistence remains a stated goal, Kim’s latest remarks raise renewed questions about whether continued unilateral conciliatory measures can alter North Korea’s strategic calculus.

— 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=20260226010008101

Jan. 30 (Asia Today) — Despite sluggish domestic demand, South Korea’s stock market is surging, driven largely by a semiconductor supercycle led by SK Hynix and Samsung Electronics.

SK Hynix last year posted record sales exceeding 97 trillion won (about $67.6 billion) and operating profit of 47 trillion won (about $32.8 billion), with both its annual and fourth-quarter results reaching all-time highs. Notably, its fourth-quarter operating margin surpassed that of Taiwan’s leading foundry, underscoring not only for growth but also for profitability. Samsung Electronics also reported sales of 333 trillion won (about $232.2 billion) and operating profit of 43 trillion won (about $30.0 billion), up 11% and 33% year on year. Its semiconductor division alone generated 44 trillion won (about $30.7 billion) in sales and 16 trillion won (about $11.2 billion) in operating profit in the fourth quarter.

These earnings surprises were fueled by higher sales of high-value products such as high-bandwidth memory and rising memory prices. On the back of the two chipmakers, the benchmark KOSPI index climbed past 5,200 on Jan. 29. Industry forecasts suggest the semiconductor supercycle could continue this year, with combined operating profit potentially exceeding 200 trillion won (about $139.4 billion) and, in some projections, approaching 300 trillion won (about $209.2 billion) as memory shortages deepen and dominance in the high-bandwidth memory market strengthens.

What is troubling, however, is the extent to which the broader economy relies on this single engine. Although exports topped $700 billion last year, fourth-quarter growth turned negative and annual growth was limited. The semiconductor-centered IT manufacturing sector accounted for most of the country’s modest GDP expansion, implying that without semiconductors overall growth would have been far weaker.

While the semiconductor boom is expected to last at least through this year, stock markets typically price in conditions about six months ahead. The chip-led rally may therefore run into limits later this year. Beyond that point, risks loom. The automotive sector faces uncertainty from Trump-era tariffs and rapid shifts toward autonomous and next-generation mobility. Steel, petrochemicals and batteries are struggling amid oversupply driven by China-led competition.

The previous administration pledged to foster pharmaceuticals and biotechnology as next-generation core industries, but tangible progress has been limited. Building new growth engines ultimately depends on government policy resolve. A recent report by the Korea Institute for Industrial Economics & Trade noted that major powers such as the United States and China are aggressively promoting strategic industries with a wide range of policy tools, while South Korea remains comparatively passive.

Revitalizing industrial policy will require active restructuring of lagging sectors and stronger coordination across ministries. Leaving everything to private initiative is not enough. To secure sustainable growth beyond semiconductors, the government must mobilize far more policy tools to strengthen domestic production and cultivate new core industries.

— 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=20260129010013700