Korea

Aug. 4 (Asia Today) — More than half of the unresolved cases at South Korea’s anti-corruption agency have been pending for more than three months, raising concerns that chronic understaffing is undermining its ability to investigate alleged crimes involving senior government officials.

Data submitted by the Corruption Investigation Office for High-ranking Officials to People Power Party lawmaker Shin Dong-wook showed that 646 of its 1,243 unresolved cases had been pending for more than three months as of July 22.

The figure represented 52% of the agency’s unresolved caseload. The agency generally classifies cases pending for more than three months as long-running investigations.

The data showed that 597 cases had been pending for three months or less. An additional 252 cases had been pending for more than three months but less than six months, while 248 had been unresolved for six months to less than a year.

Another 146 cases had remained unresolved for at least one year.

The agency attributed the backlog primarily to a continuing increase in criminal complaints and accusations, along with a chronic shortage of personnel.

Under the law establishing the agency, it may employ 25 prosecutors, including its chief and deputy chief. It currently has 23 prosecutors, meaning it has not filled even its legally authorized staffing level.

The agency operates four investigative divisions, but only 18 prosecutors, including four division chiefs, are assigned directly to investigative work. Based on the total backlog, that is equivalent to more than 300 unresolved cases for each division.

The agency was launched in 2021 under the administration of former President Moon Jae-in to investigate alleged abuse of authority, bribery, violations of political funding laws and other crimes involving senior public officials and their family members.

Its creation was intended to strengthen oversight of powerful officials and root out corruption in government. Staffing shortages, however, have repeatedly been cited as a major limitation on the agency’s operations.

Legal experts said a prolonged backlog could damage public confidence not only in the agency’s investigative capabilities but also in the institution itself.

Cases involving high-ranking officials frequently involve complex facts, extensive questioning of witnesses and time-consuming efforts to obtain evidence. Excessive delays, however, can weaken the effectiveness of an investigation.

Concerns about South Korea’s overall ability to process criminal cases are also likely to increase as prosecutors face a growing number of unresolved investigations while long-pending cases accumulate at the anti-corruption agency.

“The number of long-running cases has increased because of the continuing rise in criminal complaints and accusations and the chronic shortage of personnel,” an agency official said.

“All members of the agency are making every effort to process cases promptly,” the official said.

— 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=20260803010000486

Michelle Park Steel, the new U.S. ambassador to South Korea, met with Foreign Minister Cho Hyun on Tuesday, as she began her official duties by submitting a copy of her credentials.

Steel visited Seoul’s foreign ministry to hand the copy to the ministry’s chief of protocol before paying a courtesy call on Minister Cho, according to officials.

Under diplomatic protocol, newly arrived ambassadors assume their posts upon submitting a copy of their letters of credence to the foreign ministry, which serves as a preliminary step before the formal presentation ceremony with the head of state.

Accompanied by her husband, Shawn Steel, she did not respond to reporters’ questions before entering the ministry building.

The foreign ministry said Cho and Steel would discuss measures to strengthen bilateral relations.

Steel landed in South Korea on Thursday, becoming the second Korean American ambassador to serve as U.S. ambassador to the country.

Her arrival ended an 18-month vacancy in the post, following the departure of former Ambassador Philip Goldberg, who served from July 2022 to January 2025.

The new U.S. ambassador took up the role at a pivotal moment for Seoul-Washington relations, with several issues pending, including tensions over South Korea’s regulatory action against U.S.-listed Coupang over a massive data breach, Seoul’s investment pledges in the U.S. and the South’s push to build nuclear-powered submarines.

“The ambassador is expected to draw on her understanding of the South Korea-U.S. alliance and bilateral relations to help strengthen ties and friendship between the two countries,” Park Doo-soon, the ministry’s spokesperson, said in a regular briefing.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

Aug. 2 (Asia Today) — Chung Cheong-rae rebounded in the South Korean ruling Democratic Party’s leadership race Sunday, defeating Kim Min-seok in the southeastern region after narrowly losing the opening contest in central South Korea.

Chung and Kim have each won one of the first two regional rounds ahead of the party’s Aug. 17 national convention, leaving the race for party leader virtually even.

Chung received 25,189 votes, or 46.65%, from eligible party members in Busan, Ulsan and South Gyeongsang Province.

Kim finished second with 23,675 votes, or 43.84%, leaving Chung ahead by 1,514 votes, or 2.81 percentage points.

Former party leader Song Young-gil received 5,129 votes, or 9.49%. The officially reported percentages were rounded to 46.65% for Chung, 43.85% for Kim and 9.5% for Song.

Kim had narrowly won Saturday’s opening round in the Chungcheong region, which includes Daejeon, Sejong and North and South Chungcheong provinces.

Kim received 45.05%, compared with Chung’s 44.61%, a margin of 303 votes, or 0.44 percentage points. Song received 10.34%.

After the first two rounds, Chung held a narrow cumulative lead with about 45.5%, compared with Kim’s 44.5%.

The results announced during the regional contests represent only the first-choice votes of eligible party members. Delegate votes and the results of a public opinion survey will be announced at the national convention in Daejeon.

One-person, one-vote system raises importance of members

The Democratic Party finalized an electoral roll last week containing 17,667 delegates and more than 1.52 million dues-paying party members.

The leadership election is the first to apply a one-person, one-vote principle equally to delegates and eligible members, replacing a system in which individual delegate votes carried substantially more weight.

Combined votes from delegates and eligible party members will account for 70% of the final result, while a public opinion survey will make up the remaining 30%.

The large number of party members means their preferences are expected to play a decisive role.

The Chungcheong and southeastern electorates together represent less than 20% of the total party electorate, however, making it too early to predict the final outcome.

Chung told reporters after Sunday’s results that he had regained the lead.

“I have come from behind,” Chung said.

He compared his campaign with former President Roh Moo-hyun’s victory over Lee In-je during the 2002 presidential nomination race.

Chung said Roh defeated an opponent supported by an established political organization and numerous lawmakers despite having little comparable institutional backing.

“Just as Roh Moo-hyun defeated Lee In-je, who lined up organizations and lawmakers behind him, Chung Cheong-rae will defeat Kim Min-seok,” he said.

Chung also told party members during a speech at the BEXCO convention center in Busan that “organization cannot defeat a political wind.”

Candidates exchange accusations of factional betrayal

The close race has intensified a broader conflict over factions within the ruling party.

During a joint campaign speech in Ulsan, Kim called for an end to what he described as a damaging confrontation between factions aligned with President Lee Jae-myung and Chung.

“We must end the vicious cycle of the Lee-Chung conflict,” Kim said.

He said he would refer people responsible for improper factional activity during the campaign to the party’s ethics committee.

Chung responded by invoking Kim’s conduct during the 2002 presidential election.

Kim left Roh’s then-ruling party after joining lawmakers who pushed for Roh to form a unified presidential ticket with independent candidate Chung Mong-joon.

The group was widely criticized by Roh’s supporters as having abandoned the party’s presidential nominee.

“A person who betrays once will betray again,” Chung said, directing the remark at Kim.

The renewed dispute over the episode reflects the extent to which events from the 2002 presidential campaign continue to influence relationships and perceptions inside South Korea’s progressive political camp.

Song also criticized Chung’s attempt to return as party leader.

“The Democratic Party does not permit consecutive terms,” Song said. “Is there really a need to seek another term?”

Ranked-choice votes could determine winner

The Democratic Party is using a preferential voting system in the three-candidate leadership contest.

Voters rank the candidates by preference. Should no candidate receive a majority of first-choice votes, the candidate finishing last will be eliminated and that candidate’s second-choice votes will be redistributed to the remaining two contenders.

The redistribution process will continue until one candidate secures a majority.

The regional percentages released so far include only first-choice votes and do not show how Song’s supporters ranked Chung and Kim as their second choices.

With Chung and Kim each receiving less than 50%, Song’s redistributed votes could determine the winner if the close three-way pattern continues through the remaining regional contests.

The regional campaign will continue Saturday in Jeju and Incheon, followed by Gangwon Province, Daegu and North Gyeongsang Province on Aug. 9.

Voting in the Honam region, covering Gwangju and North and South Jeolla provinces, is scheduled for Aug. 15. The final regional events will take place in Gyeonggi Province and Seoul on Aug. 16.

A 5% strategic-region bonus will apply in the traditionally conservative Yeongnam and Gangwon regions.

The party leader candidates are also scheduled to participate in televised debates on KBS on Wednesday and SBS on Aug. 12.

The final result will be announced at the Democratic Party’s national convention in Daejeon on Aug. 17.

— 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=20260802010000251

July 31 (Asia Today) — People Power Party floor leader Chung Jeom-sik on Friday accused South Korea’s governing party of seeking to abolish prosecutors’ supplementary investigative authority to help President Lee Jae-myung avoid his criminal trials.

Chung called the proposed revision to the Criminal Procedure Act “an unprecedentedly harmful law” that would remain a disgrace in the country’s constitutional history.

He also demanded the withdrawal of a separate bill that would shorten the review period for legislation designated for fast-track consideration, calling it a measure that would turn the National Assembly into a rubber stamp.

“In a few hours, the filibuster will be forcibly ended through collusion by the broader governing bloc and this unprecedentedly harmful law will pass,” Chung said at a People Power Party floor strategy meeting.

He claimed that more than half of the public opposed eliminating prosecutors’ supplementary investigative authority but that the Democratic Party was disregarding public opinion.

The bill would bar prosecutors from conducting additional investigations after police transfer a case to them. Prosecutors would instead be able to request that police conduct further investigative work.

Supporters say the measure would complete the separation of investigative and prosecutorial authority and strengthen defendants’ rights. Opponents say it could delay investigations and weaken protections for crime victims.

Chung focused particularly on a provision governing when courts may dismiss criminal indictments.

He accused the Democratic Party of quietly adding language during a meeting of the National Assembly’s Legislation and Judiciary Committee that could make it easier to terminate the president’s pending trials.

“Is the ‘working National Assembly’ advocated by the Democratic Party merely a legislature creating an escape route to erase President Lee Jae-myung’s trials?” Chung said.

The claim that the provision was designed to end Lee’s cases represents the opposition party’s interpretation of the legislation.

Chung said ordinary citizens could suffer from inadequate or delayed investigations if prosecutors lost their supplementary investigative authority while powerful figures could escape legal scrutiny.

He described the bill as “the end of the rule of law.”

Opposition plans second filibuster

Chung also criticized a revision to the National Assembly Act scheduled to follow the criminal procedure bill.

The legislation would reduce the maximum review period for fast-track bills from 330 days to 90 days.

“This is an authoritarian law intended to turn the National Assembly more quickly into a machine that raises its hand and follows orders,” Chung said.

The fast-track system was introduced to prevent legislation from being blocked indefinitely while preserving time for negotiations among political parties.

Chung said the Democratic Party’s proposal would destroy that balance and encourage the hasty passage of legislation.

“There is a saying that trying to arrive 10 minutes earlier can send you 10 years too soon,” he said. “If legislation is rushed, the country could suffer lasting consequences.”

He called the proposal a “rubber-stamp National Assembly law” and said it should be withdrawn.

The People Power Party planned to begin a second filibuster immediately after debate ended on the Criminal Procedure Act revision.

Choi Eun-seok, the party’s senior floor spokesperson, said the filibuster against the National Assembly Act revision was expected to begin at about 5 p.m.

Chung also rejected a demand from Democratic Party members of the Science, ICT, Broadcasting and Communications Committee that People Power Party lawmaker Lee Jin-sook be removed from the committee.

He called the demand an improper attempt to interfere with the opposition party’s committee assignments.

“The Democratic Party must abandon its authoritarian belief that the National Assembly is its property or its plaything,” Chung said.

Election commission investigation

The People Power Party said it would move quickly to establish a recommendation committee for a special counsel investigation of the National Election Commission.

The National Assembly approved the investigation bill Thursday through an agreement between the governing and opposition parties.

The investigation is expected to examine a ballot shortage during the June 3 local elections and other allegations involving the election commission.

Choi said the party was reviewing potential candidates from several perspectives.

“We will work to establish the recommendation committee and launch the investigation as quickly as possible,” he said.

— 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=20260731010011674

July 31 (Asia Today) — South Korea’s National Assembly passed legislation Friday eliminating prosecutors’ authority to conduct direct and supplementary investigations, advancing a major restructuring of the country’s criminal justice system.

Han Byung-do, acting leader and floor leader of the governing Democratic Party, said before the vote that the revision to the Criminal Procedure Act would mark the beginning of a new system rather than the end of prosecution reform.

“Today’s revision of the Criminal Procedure Act is not the end of prosecution reform but the beginning of a new criminal justice system,” Han said during a party Supreme Council meeting.

He said the government and governing party must prevent investigative gaps and ensure that crime victims and other citizens remain protected during the transition.

The legislation passed later Friday after lawmakers ended a filibuster by the opposition People Power Party.

Under the revised law, prosecutors will no longer be allowed to conduct their own investigations, including additional investigative work after receiving cases from police.

Prosecutors will instead be permitted to request supplementary investigations from judicial police officers.

Police generally must complete the requested work within one month and report the results to prosecutors. The period may be extended for up to one additional month when necessary.

The legislation also requires investigative information to be recorded in South Korea’s criminal justice information system.

Han said the Democratic Party would take responsibility for completing the regulations and institutional arrangements needed to launch the Public Prosecution Office and the Serious Crimes Investigation Agency on Oct. 2.

The new Public Prosecution Office will be responsible primarily for indictments and maintaining prosecutions in court. The Serious Crimes Investigation Agency will investigate major offenses formerly handled directly by prosecutors.

“We will take responsibility until the end so that the two agencies can begin operating in a stable manner,” Han said.

Opposition lawmakers and some legal professionals have warned that eliminating prosecutors’ supplementary investigative authority could create delays, weaken oversight of police investigations and leave victims with fewer avenues for redress.

The Democratic Party says the legislation includes safeguards intended to prevent cases from being ignored or delayed and to preserve the rights of victims and complainants.

Governing party promises further legislation

Han said the governing party would continue pursuing legislation dealing with public welfare and political reform.

“We will respond to people’s livelihoods with speed and to reform with results,” he said.

Han cited legislation authorizing a special counsel investigation of the National Election Commission and a proposal to shorten the review period for bills designated for fast-track consideration.

The fast-track proposal would reduce the maximum review period from 330 days to 90 days, including 60 days for consideration by the relevant standing committee and 30 days for review by the Legislation and Judiciary Committee.

The People Power Party opposes the change, saying it would weaken opportunities for negotiation and allow the parliamentary majority to rush controversial bills through the legislature.

Han said the Democratic Party would work to create a more productive National Assembly in which legislation affecting people’s livelihoods is reviewed and passed without unnecessary delays.

“We will not avoid the responsibility entrusted to us by the public,” he said.

Party vows to address stock market volatility

Han also said the Democratic Party and the government would work together to reduce uncertainty in South Korea’s capital markets.

The comments followed heightened volatility linked in part to leveraged investment products tied to individual stocks.

Han said officials would examine whether adequate investor protections were in place when the products were introduced.

“We recognize the current market conditions and investors’ concerns with the utmost seriousness,” he said. “We will calmly and transparently review the introduction process and whether investor protection measures were sufficient.”

Han urged the People Power Party not to use investors’ concerns as political ammunition.

“Using investor anxiety for political attacks and increasing market uncertainty through unverified claims can undermine confidence in the South Korean stock market and cause serious harm to investors,” he said.

He said lawmakers should instead identify the causes of instability and develop effective measures to address them.

The Democratic Party’s special committee on South Korea’s capital markets will communicate with financial regulators and industry officials to evaluate policy measures and market reactions, Han said.

The party will also continue efforts to improve corporate value and governance at publicly traded companies, he said.

— 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=20260731010011686

July 31 (Asia Today) — South Korea’s arms procurement agency signed a contract with Hanwha Ocean on Friday for the detailed design and construction of the first KDDX next-generation destroyer.

The agreement moves the long-delayed naval program into its full design and construction stage after nearly three years of disputes over the selection of a shipbuilder.

The lead ship is scheduled to be delivered to the South Korean Navy by the end of 2032.

The Defense Acquisition Program Administration said KDDX will be South Korea’s first large destroyer built with a domestically developed hull, combat management system, multifunction radar and other core weapons systems.

Although the vessel is sometimes described in South Korea as a Korean-style Aegis destroyer or a mini-Aegis ship, it is not expected to use the U.S.-developed Aegis Combat System.

Instead, the destroyer will combine a South Korean integrated combat system with an indigenous phased-array radar to detect, track and engage aircraft, missiles, ships and other threats.

The contract for the detailed design and lead ship is valued at about 882.1 billion won, or about $617 million.

The entire program, including five additional destroyers, is expected to cost about 7.8 trillion won, or $5.46 billion.

The government has not determined which companies will build the five follow-on ships or how those contracts will be awarded.

Contract ends prolonged shipbuilder dispute

Hanwha Ocean, formerly Daewoo Shipbuilding and Marine Engineering, completed the KDDX conceptual design.

HD Hyundai Heavy Industries later conducted the basic design, leading to expectations that it would receive a negotiated contract for the detailed design and lead ship.

Hanwha Ocean instead called for a competitive bidding process, citing a military-secrets case involving HD Hyundai Heavy Industries employees.

The acquisition agency accepted that request and held a competition.

Hanwha Ocean and HD Hyundai Heavy Industries were reportedly separated by less than 0.6 point in the final evaluation.

A 1.2-point security penalty imposed on HD Hyundai Heavy Industries was considered decisive.

Employees of the company had been convicted of photographing or improperly handling military secrets related to the KDDX program.

Hanwha Ocean was selected as the preferred bidder June 11. The company’s selection had previously been reported as part of a six-ship program valued at approximately 7.8 trillion won or $5.46 billion.

HD Hyundai Heavy Industries challenged the evaluation but its objection was rejected in early July. Negotiations between the acquisition agency and Hanwha Ocean then led to Friday’s final agreement.

The contract was signed before all cost data were finalized. The final value may therefore be adjusted to reflect verified construction expenses.

South Korean systems to replace foreign equipment

The KDDX is expected to displace about 7,000 tons when lightly loaded and will be larger than South Korea’s Chungmugong Yi Sun-sin-class destroyers.

It will be smaller than the Navy’s Sejong the Great and Jeongjo the Great-class destroyers equipped with the American Aegis system.

The ship will feature a low-observable design and an integrated mast intended to reduce its radar signature.

Planned armament includes a 5-inch naval gun and South Korean vertical launch systems capable of carrying surface-to-air, anti-ship, land-attack and anti-submarine weapons.

The exact number of vertical launch cells has not been officially confirmed.

The acquisition agency said major systems, including the combat management system, sonar, multifunction phased-array radar and ship-launched surface-to-air missiles, will be developed domestically.

South Korea plans to apply technologies developed since the basic design was completed, including digital-twin construction, layered counter-drone defenses and a communications environment using 5G and integrated wired and wireless networks.

A digital twin is a computerized replica of the ship that can be used to test design changes, construction procedures and equipment performance before work is carried out on the physical vessel.

The Navy is also considering integrated electric propulsion to reduce noise and improve anti-submarine survivability.

Automation is expected to reduce the number of sailors required to operate the ship compared with older destroyer classes.

Schedule remains a challenge

The KDDX basic design was completed in December 2023 and the detailed design and lead ship construction were originally expected to begin soon afterward.

Disputes between Hanwha Ocean and HD Hyundai Heavy Industries delayed the program by about two years.

The acquisition agency and Hanwha Ocean will now need to shorten portions of the development and construction schedule to meet the 2032 delivery target.

Jung Jae-jun, head of the acquisition agency’s force resources division, described KDDX as a national project bringing together South Korea’s shipbuilding and defense capabilities.

Jung said the government would examine several options for the construction of the follow-on vessels while seeking to deploy the new destroyers on schedule.

He said the program could also strengthen the international competitiveness of South Korean naval vessels.

Hanwha Ocean previously said it felt a significant responsibility after being selected as the preferred bidder and would work with the government to normalize the delayed program.

Competition between Hanwha Ocean and HD Hyundai Heavy Industries is expected to continue as the government determines how to award contracts for the five remaining destroyers.

— 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=20260731010011621

July 31 (Asia Today) — South Korea will launch a strategic investment fund worth more than 20 trillion won, or about $13.6 billion, next year to provide long-term capital to artificial intelligence, semiconductor and other industries considered vital to national security and economic growth.

The government said Friday that it would establish a separate strategic investment account within the Korea Investment Corporation rather than create an independent sovereign wealth fund.

Deputy Prime Minister and Finance and Economy Minister Koo Yun-cheol announced the plan during an emergency economic meeting and a meeting of economic ministers at the Government Complex Seoul.

The new account will use KIC’s international investment network and asset-management expertise while expanding the corporation’s mandate beyond its traditional role of investing public foreign-exchange assets overseas.

The government plans to submit a revision to the Korea Investment Corporation Act to the National Assembly in August and complete the legislation before the end of the year.

The fund is expected to begin operating in 2027.

Government shares to provide initial capital

The fund will begin with more than 20 trillion won in assets.

The government plans to contribute more than 16 trillion won, or about $10.9 billion, in shares it holds in public financial institutions, including the Korea Development Bank and the Export-Import Bank of Korea.

It will also contribute about 4 trillion won, or $2.7 billion, in private-company shares received as payment for inheritance and gift taxes.

The government is considering accepting private donations intended to increase national wealth as another source of capital.

The fund will target artificial intelligence, semiconductors and other advanced strategic industries as well as data centers, critical infrastructure and overseas companies important to South Korea’s supply chains.

Unlike conventional policy financing, which often relies on loans, guarantees or subsidized credit, the fund will primarily make direct equity investments.

The government said the approach would allow it to remain invested in promising companies for longer periods and share in their growth.

The fund will also be able to exercise shareholder voting rights to promote corporate value, protect critical technologies and help companies defend themselves against hostile takeovers.

Fund to serve as an anchor investor

The government wants the strategic account to serve as an anchor investor capable of attracting global institutional investors to South Korean projects.

By committing public capital first, the fund could reduce perceived risk and encourage foreign sovereign funds, pension funds and private investors to participate.

The government also plans to connect the new account with existing policy funds.

Venture and growth funds usually must sell their holdings and return capital to investors within four to eight years.

Under a proposed relay-investment system, the strategic fund could purchase stakes in promising companies when those shorter-term policy funds reach maturity or begin liquidation.

The arrangement is intended to prevent companies with long development cycles from losing financial support before they become commercially established.

The model could be particularly important for semiconductor fabrication, artificial intelligence infrastructure, biotechnology and other sectors requiring large investments over many years.

Separate governance structure planned

The government said it would create governance safeguards intended to protect the fund’s investment independence.

KIC’s board structure would be divided between its existing foreign-reserve investment account and the new strategic account.

A dedicated investment committee and advisory committee would be established for strategic investments.

An operating committee would set broad policy and investment priorities but would not intervene in individual investment decisions, the government said.

The separation is intended to prevent short-term political considerations from determining which companies receive investments.

The plan also represents a change from an earlier proposal to establish a completely separate sovereign wealth fund.

The government instead decided to expand KIC’s mandate and use its existing personnel, investment systems and global relationships.

Long-term capital for industrial strategy

South Korea has introduced several public financing programs to support advanced industries, including funds targeting chips, artificial intelligence, batteries and biotechnology.

The new strategic account differs because it is designed to hold equity investments for extended periods rather than provide loans or exit investments according to fixed fund schedules.

The government expects the fund to support major national projects involving semiconductors, physical artificial intelligence and data centers while helping South Korean companies secure critical overseas supply chains.

It also hopes investment returns will gradually expand the fund’s assets and reduce its dependence on additional government contributions.

The success of the plan will depend on whether the government can maintain commercial investment discipline while pursuing broader industrial and national-security objectives.

It will also require clear rules governing voting rights, corporate intervention, investment losses and potential conflicts between financial returns and government policy.

— 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=20260731010011712

South Korea, the United States, Japan and eight other countries on Friday issued a joint alert about North Korean information technology (IT) workers accused of generating revenue to help fund Pyongyang’s weapons of mass destruction programs.

The relevant authorities of the 11 countries released the alert, urging all countries, companies and other entities to deepen their understanding of North Korean IT worker schemes, implement measures to deal with them and strengthen countermeasures, such as enhancing identity verification procedures.

“North Korea relies upon a network of skilled Information Technology workers, deployed within and outside of North Korea, to obtain false identities and remotely earn income to fund North Korea’s unlawful nuclear weapons and ballistic missile programs,” they said in the alert released by the U.S. State Department.

They pointed out that North Korean IT workers impersonate nationals of other countries to obtain work and income through online platforms operated by private companies for employment, procurement and contracting of services.

“These workers seek out contracts with the intent of remitting their salaries to their parent North Korean agencies. They also pose an insider threat to companies and are involved in data exfiltration, cryptocurrency theft, and theft of sensitive information,” they said.

“North Korean IT workers employ increasingly sophisticated methods, including the integration of AI, to obfuscate their identities and expand their activities globally.”

All U.N. member states must repatriate to North Korea all North Korean nationals earning income in that member state’s jurisdiction, subject to limited exceptions, they stressed, citing a U.N. Security Council resolution on the reclusive regime.

“Additionally, contracting with North Korean IT workers and paying them for services rendered may also violate the domestic laws of many countries, including Japan, the United States, and the Republic of Korea, and may result in legal consequences or financial penalties,” they said.

The countries that issued the joint alert included Britain, Australia, Canada, France, Germany, Italy, the Netherlands and New Zealand.

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

July 30 (Asia Today) — South Korea’s state-run housing guarantor failed to properly investigate debtors and recover claims after paying about 15 trillion won, or $10.3 billion, under defaulted guarantees over the past five years, a government audit found Thursday.

The Housing and Urban Guarantee Corporation, commonly known as HUG, has yet to recover about 12 trillion won, or $8.2 billion, of that amount.

The Board of Audit and Inspection released the findings of its regular audit of the corporation, identifying problems in guarantee issuance, project financing reviews, debt collection and customer refunds.

HUG provides guarantees intended to protect tenants if landlords fail to return jeonse deposits.

Jeonse is a housing rental arrangement widely used in South Korea in which a tenant provides a large refundable deposit instead of paying, or in exchange for paying less, monthly rent.

Corporation undercharged guarantee fees

Auditors found that HUG undercharged a corporate rental business by about 2.77 billion won, or $1.9 million, when issuing guarantees covering 12,752 homes.

HUG’s rules required it to calculate the fee using the company’s credit rating on the date the guarantee was issued. Employees instead used an earlier, more favorable credit rating from the application date.

The audit board called for disciplinary action against the employees involved and instructed HUG to review ways of collecting the unpaid fees.

HUG has reported financial losses since 2022 as rental deposit guarantee defaults increased, including cases involving large-scale jeonse fraud.

Its operating loss grew from 242.9 billion won, or about $166 million, in 2022 to 2.19 trillion won, or about $1.5 billion, in 2024.

Weak reviews led to $261 million in PF guarantees

The audit also found deficiencies in HUG’s reviews of housing project financing guarantees.

Such guarantees rely largely on a developer’s projected income from future home sales, making an accurate assessment of expected cash flow essential.

Auditors found that HUG accepted financial data in which developers had arbitrarily delayed construction payments, improving the projects’ apparent debt-service capacity.

As a result, HUG approved a combined 382 billion won, or about $261 million, in guarantees for three projects that should have been rejected under its own standards.

HUG also incorrectly graded two other projects and collected about 1.64 billion won, or $1.1 million, less in guarantee fees than it should have.

Thousands of debtors were not investigated

The audit board also found major gaps in HUG’s efforts to identify assets belonging to debtors after paying claims on their behalf.

An examination of seven regional management centers found no record of an asset investigation for 2,915 of 9,003 debtors, or 32.3%.

The rate varied widely among regional offices. The Seoul Northern Center investigated the assets of only 21.6% of the debtors assigned to it, compared with 99.8% at the Seoul Western Center.

HUG’s headquarters failed to adequately monitor or address those differences, auditors said.

Tenants missed refunds

HUG also failed to refund fees to some tenants who had been enrolled in both a landlord rental deposit guarantee and a tenant jeonse deposit return guarantee.

The audit identified 1,699 cases involving about 173 million won, or approximately $118,000, in unreturned fees.

It also found 454 guarantee-default cases in which money owed to tenants had not been properly returned.

The audit board instructed HUG to analyze the causes of the problems and develop improvements in its core operations, including guarantee reviews, issuance procedures and debt recovery.

It also called for disciplinary or corrective action against employees responsible for improper decisions.

— 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=20260730010011338

July 30 (Asia Today) — South Korea’s military began inspecting front-line Army units Thursday after a corps changed its guard procedures and stopped loading live ammunition into heavy weapons deployed near the border with North Korea.

The review follows concerns that the change could weaken the military’s ability to respond quickly during an emergency.

The Joint Chiefs of Staff said the Army Ground Operations Command began an on-site inspection of the 1st Corps on Thursday and plans to examine other front-line corps under its command.

Military officials will consider additional measures after completing the inspections.

The Ground Operations Command oversees five regional corps – the Capital, 1st, 2nd, 3rd and 5th corps – as well as the 7th Maneuver Corps. The inspections will cover front-line units in some of the five regional corps.

The 1st Corps, which is responsible for the western section of the inter-Korean border, reportedly changed its procedures during the first half of this year.

Under the revised procedures, soldiers at guard posts and general outposts did not load live ammunition into crew-served weapons, including K6 heavy machine guns and K4 automatic grenade launchers.

The ammunition was instead stored in ammunition boxes near the weapons.

South Korean front-line units are generally required to keep live ammunition loaded in weapons used for guard operations. The 1st Corps reportedly made an exception under the authority of its commander, Lt. Gen. Han Ki-sung.

The measure was reportedly intended to prevent accidental discharges, but critics said it could delay the military’s response to a North Korean attack or other emergency in the heavily fortified border area.

Questions have also been raised about whether Han’s decision was influenced by an accidental discharge that occurred while he commanded the Army’s 25th Infantry Division last year.

During that incident, a K6 machine gun round was accidentally fired toward North Korea while soldiers at a general outpost were inspecting the weapon.

A military official said inspectors would examine whether it was appropriate for a commander to change ammunition-loading procedures at his discretion, along with other operational issues.

“The use of firearms at front-line guard posts and general outposts is based on the principle that live ammunition must be loaded,” the Joint Chiefs of Staff said.

The military said it would take necessary action after examining units operating under exceptions to that rule.

Detailed information cannot be disclosed because of operational security, it said.

— 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=20260730010011169

New U.S. Ambassador to South Korea Michelle Steel is set to arrive in Seoul on Thursday, becoming the first U.S. envoy to assume the post since President Donald Trump returned to office, sources said.

Steel is expected to arrive at Incheon International Airport, west of Seoul, at around 3:20 p.m. from Los Angeles, according to the sources. She was nominated by Trump in April and confirmed by the U.S. Senate last month.

The ambassadorial post has been vacant since Philip Goldberg left South Korea in January last year.

The submission of copies of her credentials is expected to take place as early as next week, as Foreign Minister Cho Hyun and the foreign ministry’s chief of protocol are currently accompanying President Lee Jae Myung on his trip to South America and are scheduled to return early next week, the sources added.

Before formally beginning their duties, newly appointed foreign ambassadors are required to present copies of their credentials to the chief of protocol at the foreign ministry. U.S. ambassadors also traditionally pay a courtesy call on the foreign minister on that occasion.

A Korean American Republican politician, Steel was born in Seoul in 1955 and immigrated to the United States in the mid-1970s. She served two terms in the U.S. House of Representatives representing California from 2020 to 2024.

Steel is the second Korean American to serve as the top U.S. envoy to South Korea, following Sung Kim, who served in Seoul from 2011 to 2014.

Responding to a question from Yonhap News Agency in Washington last week, Steel described strengthening the South Korea-U.S. alliance as her “top priority.”

Her arrival comes as Seoul and Washington face a series of pending security and economic issues, including South Korean investment in the U.S., civilian nuclear cooperation, Seoul’s push to build nuclear-powered submarines and ongoing efforts to modernize the decades-old alliance.

Steel’s nomination had drawn criticism from some progressive civic groups here, which view her as a conservative figure.

South Korean government officials, however, said she has a firm understanding of the importance of the South Korea-U.S. alliance and is committed to cooperating with the Seoul government.

“South Korea and the U.S. have a wide range of issues to work on together amid the rapidly evolving security and economic landscape,” a foreign ministry official said. “We welcome Ambassador Steel’s arrival and hope it will help advance discussions on those issues.”

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.

July 27 (Asia Today) — A South Korean court sentenced former President Yoon Suk Yeol on Monday to 18 months in prison, suspended for three years, after finding him guilty of making false statements during his successful 2022 presidential campaign.

The Seoul Central District Court said Yoon’s statements concerned his relationship with Jeon Seong-bae, a shaman also known as Geonjin, and his alleged introduction of a lawyer to former tax official Yoon Woo-jin.

“The impact of a candidate publicly making false statements during a debate or other campaign event on an election is extremely significant,” the court said. It added that the seriousness of Yoon’s conduct should not be regarded as minor.

Yoon’s attorneys said the court misunderstood the facts and relevant law and accepted only the special counsel’s arguments. They said they would appeal.

If the ruling is upheld by the Supreme Court, the main opposition People Power Party could be required to return about 39.7 billion won, or $27.1 million, in campaign expenses reimbursed by the government following Yoon’s election.

It would be the largest repayment of election expenses by a political party in South Korean history.

Yoon was charged over comments he made while running for president.

During an interview at the launch of a Buddhist leaders’ forum on Jan. 17, 2022, Yoon said a party official had introduced him to Jeon and that he and his wife, former first lady Kim Keon Hee, had never met Jeon together.

Prosecutors argued that Yoon had repeatedly received advice from Jeon and falsely portrayed their relationship as a chance introduction during the campaign.

Yoon was also charged over remarks at a Kwanhun Club debate on Dec. 14, 2021. He denied introducing a former senior prosecution official as an attorney for Yoon Woo-jin, a former district tax office chief who had faced a bribery investigation.

The court said Yoon’s statement contradicted the nature of his relationship with the former tax official.

Under South Korean election law, candidates who receive at least 15% of the vote can receive full government reimbursement of eligible campaign expenses. Candidates who receive between 10% and 15% can recover half of their expenses.

A political party must return reimbursed campaign expenses and the candidate’s deposit if its presidential nominee receives a final conviction carrying a fine of at least 1 million won, or about $680, for an election-law offense. The repayment must generally be made within 30 days.

The ruling adds to Yoon’s mounting legal problems following his removal from office over his brief declaration of martial law in December 2024.

The Supreme Court this month upheld a seven-year prison sentence against Yoon for offenses that included obstructing authorities attempting to detain him and violating legal procedures surrounding the martial law declaration.

Yoon was separately sentenced to life imprisonment in February after a lower court convicted him of leading an insurrection through the martial law declaration. His appeal is pending before the Seoul High Court.

In June, a lower court sentenced him to 30 years in prison for ordering military drone flights into North Korea in an alleged attempt to escalate tensions and create a justification for martial law. Yoon has appealed that ruling.

— 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=20260727010009828

Lee Kang-In makes the switch to Atletico after helping Paris Saint-Germain to consecutive Champions League titles.

South Korea midfielder Lee Kang-In has agreed to join Atletico Madrid from Paris Saint-Germain, the Spanish club.

Atletico said on Saturday the player would sign a contract through June 2031. The transfer fee was undisclosed, but it is reportedly between 35 and 40 million euros ($39.8m and $45.5m).

The 25-year-old Lee played all three group-stage games at the World Cup, where South Korea failed to advance after losing twice.

Born in Incheon, Lee moved to Spain when he was 10 to join Valencia’s training academy and ended up playing 62 games for the club. After a stint with Mallorca, he joined PSG in 2023, scoring 16 goals in 124 appearances.

He will now play for an Atletico side that finished La Liga in fourth place and reached the Copa del Rey final last season. Lee will help fill the creative void left by Antoine Griezmann, who has left for the MLS as Atletico’s all-time top scorer.

July 23 (Asia Today) — South Korea and the United States have opened a shipbuilding cooperation center in Washington, moving their partnership beyond government declarations and preliminary agreements toward developing and implementing commercial projects.

The Korea-U.S. Shipbuilding Partnership Center will serve as a base for $150 billion in planned shipbuilding investment, U.S. shipyard modernization, workforce development and joint research.

The center’s opening was accompanied by 15 agreements involving South Korea’s three largest shipbuilders, U.S. shipyards, technology companies, universities and research institutions.

The agreements give the Make American Shipbuilding Great Again initiative, known as MASGA, a more detailed framework. Its success, however, will depend on how quickly the center can generate ship orders, maintenance contracts and actual investments.

South Korea’s Ministry of Trade, Industry and Resources and the U.S. Department of Commerce jointly held the opening ceremony Thursday at the Mayflower Hotel in Washington.

About 130 government, congressional, corporate and industry officials from the two countries attended, including South Korean Trade, Industry and Resources Minister Kim Jung-kwan and U.S. Commerce Secretary Howard Lutnick.

Acting Navy Secretary Hung Cao and U.S. Ambassador to South Korea Michelle Steel also attended.

The center was established as a follow-up to the Korea-U.S. Shipbuilding Partnership Initiative signed May 8. Operations began about two months after the two governments reached the agreement.

“KUSPC is an unprecedented cooperation platform in the global shipbuilding industry and a symbol of South Korea’s firm commitment to helping rebuild the U.S. shipbuilding industry,” Kim said.

Kim said the center would help South Korean shipbuilding technology take root across U.S. coastal industrial regions.

He also said the planned $150 billion shipbuilding investment would be implemented promptly and called on the United States to provide continuing ship orders, investment incentives and regulatory relief.

‘Team Korea’ formed for U.S. market

The center will connect South Korean shipbuilders with U.S. shipyards, technology companies and research institutions.

Its work will include improving shipyard productivity, training skilled workers, developing equipment supply chains, supporting joint technology projects and identifying direct investment opportunities.

Center President Lee Jong-geon said the organization would link the two governments with shipyards, universities, research institutions and investors.

He said the center would support workforce training, productivity consulting and joint technology development to help restore the fundamental competitiveness of the U.S. shipbuilding industry.

The 15 agreements announced at the ceremony cover four areas: the creation of Team Korea, supply chain cooperation, workforce development and joint technology research.

HD Hyundai Heavy Industries, Hanwha Ocean and Samsung Heavy Industries joined the Korea Offshore & Shipbuilding Association, the Korea Research Institute of Ships and Ocean Engineering and the new center to form Team Korea for coordinated expansion in the U.S. market.

The three shipbuilders will focus on shipyard modernization and the development of equipment supply chains. The research institute will handle studies and demonstrations of future maritime technology while the center will provide local market information and business networks.

HD Korea Shipbuilding & Offshore Engineering agreed to work with Siemens Digital Industries Software on digital systems for next-generation ship design and production.

The company also plans to provide Fraser Industries with shipyard productivity assessments and support for the introduction of automation technology.

Hanwha Ocean will work with the Chamber of Commerce for Greater Philadelphia to help local manufacturers enter the shipbuilding supply chain.

South Korean marine equipment company JJ & Companies will provide equipment and vessel repair technology to Nichols Brothers Boat Builders and Everett Ship Repair to strengthen local maintenance, repair and overhaul capacity.

HD Hyundai Samho also signed a contract to supply four port cranes to Washington United Terminals at the Port of Tacoma, extending the partnership beyond shipyards to port modernization.

Workforce programs target labor shortage

The center will also support programs designed to address the shortage of skilled shipbuilding workers in the United States.

Hanwha Philly Shipyard will provide welding, painting and other technical training at Delaware County Community College in Pennsylvania. The program will connect classroom instruction with internships and employment at the shipyard.

Samsung Heavy Industries and Vigor Marine Group plan to establish a workforce training center equipped with virtual reality and augmented reality welding systems.

The Korean research institute, shipbuilding association and partnership center will also work with the American Bureau of Shipping to develop technical certification, safety training and qualification programs.

The South Korean government plans to dispatch retired engineers and production specialists to U.S. shipyards to advise on process efficiency, yard operations, quality control and environmental management.

U.S. shipyard managers and engineers will also be offered one- to two-month training placements at South Korean shipyards.

Joint research to combine Korean production and U.S. technology

South Korea plans to invest 120 billion won, or about $80.4 million, over five years in joint shipbuilding research with the United States.

Seven South Korean companies and institutions and nine U.S. organizations will carry out eight projects combining South Korean shipbuilding and production capabilities with U.S. artificial intelligence and robotics technology.

The projects include AI-based ship design optimization, 3D printing of marine components measuring up to 16 feet, autonomous welding of aluminum naval vessel panels and automated painting of large ship sections.

Other projects include autonomous transporters for large ship blocks, fully automated pipe-spool production, AI-based virtual reality training and autonomous navigation and engine controls for software-defined unmanned vessels.

HD Hyundai Heavy Industries will work with U.S. defense technology company Anduril Industries to develop and test autonomous navigation and engine automation platforms for unmanned vessels.

Samsung Heavy Industries will collaborate with Saronic Technologies on unmanned surface vessels and the application of automation systems at U.S. shipyards.

Hanwha Ocean will jointly design a global fast sealift vessel with Leidos subsidiary Gibbs & Cox.

HD Korea Shipbuilding & Offshore Engineering will also work with ABSG Consulting to develop and verify an operating platform for next-generation autonomous vessels.

The center will begin operations with 6.6 billion won, or about $4.4 million, in government funding this year.

Its initial operating period runs from 2026 through 2028 with a budget of 19.93 billion won, or about $13.4 million. It will operate as a nonprofit organization from the Korea International Trade Association’s Washington office.

The government also plans to link the center with a bilateral shipbuilding investment council established in June.

South Korea’s strategic investment corporation and state-run financial institutions, including the Export-Import Bank of Korea, Korea Development Bank and Korea Trade Insurance Corp., will provide financing for investments in U.S. shipyards and vessel construction projects.

Orders and long-term contracts remain key test

South Korean shipbuilders said the center represents a shift from government-level pledges to the development of specific commercial projects.

They said South Korean strengths in ship design, production management and smart shipyard technology could support U.S. shipyard modernization while creating opportunities in workforce training and equipment supply.

U.S. requests for information on combat vessels and military support ships have also raised expectations for future cooperation.

Industry officials cautioned, however, that the number of agreements signed will be less important than the volume of actual orders and investments they produce.

South Korean shipbuilders have begun entering the U.S. Navy maintenance, repair and overhaul market. Stable profitability will require the companies to move beyond individual repair assignments toward multiyear contracts and bundled service agreements.

The pace of shipyard investment will also depend on how the $150 billion financing package is structured and what conditions are attached to it.

Other unresolved questions include how much work can be awarded to South Korean shipbuilders, how investment responsibilities will be divided between companies and state financial institutions and whether U.S. regulations and domestic-content requirements will be eased.

Industry officials said the center must become more than a liaison office and establish itself as a business development organization connecting the U.S. government, Congress, ship purchasers and local shipyards.

They said MASGA’s performance will ultimately be judged by commercial and naval vessel orders, long-term maintenance contracts and completed shipyard investments.

— 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=20260723010008621

July 22 (Asia Today) — South Korea’s ruling Democratic Party leadership race has descended into an increasingly bitter dispute over allegations that members of a controversial religious group may be attempting to influence the party’s Aug. 17 national convention.

The dispute began after former Prime Minister Kim Min-seok, a candidate for party leader, raised the possibility that the Shincheonji Church of Jesus was intervening in the election.

Shincheonji is a South Korean religious movement whose alleged political activities have become the subject of a national investigation. The church has denied allegations that it directed members to join political parties or interfere in elections.

Kim’s claims have revived questions about why proposed legislation authorizing a special counsel investigation into Shincheonji was abandoned while rival candidate Jung Chung-rae was serving as Democratic Party leader.

The controversy has escalated beyond the original allegations. Jung has denied wrongdoing and threatened legal action, while his allies have demanded that Kim produce evidence, apologize or withdraw from the race.

Party members have warned that the dispute could deepen factional divisions and make it difficult to reunify the party after the convention.

The conflict is increasingly being viewed as a proxy battle between supporters of President Lee Jae Myung and those aligned with Jung.

Kim is generally associated with the party faction loyal to Lee. Jung, a former party leader, has developed his own base among rank-and-file members, and several senior party figures have publicly rallied behind him.

“The essence of this convention is to defeat an alliance of anti-Lee forces, divisive elements and Shincheonji,” Kim said Tuesday. “We must also examine, one by one, why the Shincheonji special counsel investigation did not proceed.”

Kim did not identify Jung by name. His remarks, however, were widely interpreted as criticism of Jung because proposed special counsel investigations into Shincheonji and the Family Federation for World Peace and Unification were abandoned during Jung’s tenure as party leader.

Rep. Lee Geon-tae, an ally of President Lee, reinforced Kim’s allegation in a social media post.

“It appears difficult to dismiss Shincheonji’s alleged intervention in the party convention as mere speculation,” Lee said. “We need to determine why the special counsel legislation was halted.”

Jung denied the allegations and said he would take legal action against the dissemination of false information.

Rep. Moon Jeong-bok, a Supreme Council member aligned with Jung, challenged Kim during a party leadership meeting Wednesday.

“What evidence supports the claim of a secret alliance with Shincheonji, and why is this allegation being used to place the party in danger?” Moon said. “He said he has evidence, so he must disclose it and accept responsibility.”

Reps. Choi Min-hee, Lee Sung-yoon and Han Min-soo, who are running for seats on the party’s Supreme Council and are considered Jung allies, issued a similar demand at a news conference.

They said Kim should apologize and withdraw his candidacy if he could not substantiate the allegation.

“He is portraying the Democratic Party as though it were violating the constitutional separation of religion and politics to gain an advantage in the election,” they said.

Some party officials said Kim’s accusation could backfire because Jung’s supporters may interpret it as an attempt to associate all of them with Shincheonji.

“It could be understood as linking every party member who supports Jung to Shincheonji,” a Democratic Party official said. “That could provoke voters and create even greater barriers between groups of supporters.”

Party members said the larger concern was that the fight could undermine unity long after the leadership election ends.

The repeated allegations, threats of lawsuits and demands for candidates to withdraw have pushed debate over party policies and future priorities into the background, they said.

“A certain level of conflict was expected before the convention, but the candidates are now crossing lines that should not be crossed,” another Democratic Party official said.

“The candidates and party leadership must prevent further division so these wounds do not remain after the primary is over.”

— 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=20260723010008191

July 19 (Asia Today) — North Korea is intensifying engagement with China and Russia as South Korea, the United States and Japan broaden their cooperation to include the overseas deployment of small modular reactors.

The diplomatic activity follows events marking the 65th anniversary of the North Korea-China Treaty of Friendship, Cooperation and Mutual Assistance.

North Korea received a senior Chinese delegation for the anniversary and dispatched Foreign Minister Choe Son Hui to Russia, signaling efforts to manage relations with both of its principal partners.

The moves are widely viewed as an attempt to strengthen alignment among North Korea, China and Russia as Seoul, Washington and Tokyo expand their security and economic cooperation.

The three allies recently signed a memorandum aimed at encouraging cooperation among their civilian nuclear industries and supporting the deployment of small modular reactors in third countries.

The Korean Central News Agency said Choe left Pyongyang aboard a government aircraft Saturday at the invitation of Russian Foreign Minister Sergei Lavrov.

Russia’s Foreign Ministry also said Choe was making an official visit to the country.

It was Choe’s first visit to Russia in about nine months and the first major high-level exchange between the countries since the April opening of a memorial in North Korea honoring troops sent to support Russia.

Because the trip was not tied to a major anniversary or previously announced diplomatic event, analysts said Choe could be preparing for a possible visit to Russia by North Korean leader Kim Jong Un.

Russian President Vladimir Putin reportedly invited Kim to visit Russia during their June 2024 summit and again when the leaders attended events in China marking the anniversary of the end of World War II in Asia.

Possible subjects for Choe’s talks include a visit by Kim, recent developments in North Korea-China relations and coordination involving the Tumen River region, where the three countries share geographic and economic interests.

Park Won-gon, a professor of North Korean studies at Ewha Womans University in Seoul, said military and diplomatic accomplishments are easier for Pyongyang to demonstrate than economic achievements.

“If Chinese President Xi Jinping visits North Korea and Kim Jong Un subsequently visits Russia, North Korea could present those events as major diplomatic accomplishments,” Park said.

“Practical trilateral cooperation among North Korea, China and Russia has not progressed smoothly, but the Tumen River project could become a vehicle for cooperation among the three countries.”

China ties show signs of recovery

Relations between North Korea and China also appear to be recovering rapidly around the treaty anniversary.

Kim and Xi exchanged messages, a North Korean delegation traveled to China and Wang Huning, chairman of the Chinese People’s Political Consultative Conference, led a Chinese party and government delegation to North Korea.

The exchanges could expand cooperation in economic affairs, science and technology, public health and culture.

Wang’s visit to the Wonsan Kalma Coastal Tourist Area was particularly notable because the resort is one of Kim’s priority development projects.

Analysts have questioned whether Russian tourists alone can generate enough demand to make the resort financially sustainable.

Wang’s visit has therefore raised the possibility that the two countries discussed bringing larger numbers of Chinese tourists to the site.

Tourism is considered an area in which China may be able to support North Korea without directly violating the main restrictions imposed by U.N. Security Council sanctions.

Oh Gyeong-seop, a senior research fellow at the Korea Institute for National Unification, said attracting Chinese visitors is crucial to the resort’s prospects.

“Bringing in Chinese tourists is an issue that can avoid U.N. Security Council sanctions and is therefore critically important for North Korea,” Oh said.

“Large numbers of Chinese tourists are necessary to revitalize the Wonsan Kalma Coastal Tourist Area, so related discussions are likely to have continued.”

North Korea’s renewed engagement with China and Russia does not necessarily indicate that the three countries have established a formal trilateral alliance.

Their interests frequently differ, and analysts say much of their coordination remains bilateral.

The latest exchanges, however, demonstrate Pyongyang’s effort to strengthen diplomatic, economic and strategic ties with Beijing and Moscow while South Korea, the United States and Japan deepen their own cooperation.

— 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=20260720010006651

July 17 (Asia Today) — A senior U.S. lawmaker proposed building as much as 80% of some American naval vessels in South Korea while reserving sensitive technology and final assembly for the United States.

Rep. Ami Bera of California, the top Democrat on the House Foreign Affairs subcommittee overseeing East Asia and the Pacific, said Thursday that relying exclusively on domestic shipyards was unrealistic because the United States lacks sufficient workers and production capacity.

Bera spoke at a South Korea-U.S. shipbuilding and maritime innovation forum hosted by the Korea Foundation and the RAND research organization in Arlington, Va.

“To say we are going to build everything in the United States is wrong,” Bera said, urging Washington to make greater use of allied manufacturing capacity.

He suggested that South Korean shipyards could produce hulls and other components accounting for 75% to 80% of a vessel, while highly sensitive systems could be manufactured and installed in the United States.

Bera also proposed a distributed construction model under which components would be produced at different locations before being brought to the United States for final assembly.

“If we do not have the workers or construction capacity in the United States, we have to build where ships can be built,” he said.

Bera said combining the capabilities of the United States and its allies would strengthen deterrence and help prevent a military conflict with China.

Technology controls and visas remain obstacles

Bera said President Donald Trump had discussed nuclear-powered submarine construction with South Korea.

Such cooperation would require the two countries to address technology sharing and export control restrictions, he said.

Bera cited the security partnership among the United States, Britain and Australia as a possible model for resolving issues related to joint naval construction.

The partnership, commonly known as AUKUS, includes plans for Australia to acquire nuclear-powered submarines with American and British assistance.

Bera also called on the United States to facilitate the entry of South Korean engineers and technicians needed to support investments by Korean shipbuilding companies.

He described the detention of more than 300 South Korean workers in Georgia in September as an “embarrassing fiasco” and said the visa problem must be resolved.

The United States has encouraged South Korean companies to invest in American manufacturing while immigration restrictions have complicated the deployment of specialized Korean personnel to construction sites and shipyards.

Expert says U.S. rebuilding could take decades

Shin Jong-gye, a professor emeritus of naval architecture and ocean engineering at Seoul National University, said China’s overall shipbuilding capacity by gross tonnage was more than 230 times that of the United States.

He said China had more than 50 dry docks large enough to accommodate aircraft carriers.

Newport News Shipbuilding in Virginia is the only U.S. shipyard capable of designing and building nuclear-powered aircraft carriers.

Shin said the United States must expand both its physical shipyard capacity and its ability to build vessels quickly and efficiently.

South Korea, Japan and China benefit from building commercial and naval vessels within the same industrial ecosystems, allowing them to share technology, workers and supply chains, he said.

The United States lacks a comparable commercial shipbuilding base and therefore cannot obtain the same economies of scale, Shin said.

South Korea, Japan and China together account for more than 95% of global commercial shipbuilding.

Shin said rebuilding an industry requires accumulated experience, technology and repeated construction cycles.

He estimated that rebuilding the U.S. shipbuilding sector independently could take 20 to 30 years, while cooperation with South Korea could significantly shorten the process.

Shin proposed initially building complete ships in South Korea while developing supply chains in the United States. American production could then be expanded gradually.

He said protecting South Korean intellectual property, providing appropriate compensation and resolving visa restrictions for Korean specialists would be essential.

Hanwha, HD Hyundai respond to Navy request

Michael Coulter, president and chief executive officer of Hanwha Defense USA, said protectionism was one of the largest obstacles to industrial cooperation.

He said South Korea and the United States often viewed each other primarily as export markets rather than partners sharing a common industrial base.

Coulter said the U.S. Navy had issued a request for information after consulting the South Korean government and Korean shipbuilders.

The request examined the possible use of a vessel construction manager who would help finalize a ship’s design before construction begins.

South Korean shipyards generally complete designs before starting construction, while U.S. Navy projects often undergo design changes after work has begun, increasing costs and delaying delivery, Coulter said.

The U.S. government has asked Hanwha about options ranging from building combat vessels and supplying motors to constructing hulls in South Korea before installing American technology, he said.

Coulter said, however, that the administration and Congress had not reached a unified position.

He called on the two countries to integrate portions of their industrial bases rather than treat each investment or contract as a conventional export transaction.

Hong Suk-hwan, president and chief executive officer of HD Hyundai USA, proposed a two-track strategy involving investment in U.S. shipyards and partnerships with existing American companies.

Hong said HD Hyundai had built about 5,000 vessels during the past 50 years and could apply its skilled workforce, manufacturing experience and supply network to the United States.

He also proposed a “bridge strategy” in which American workers would train at South Korean shipyards for about three years while ships were being constructed there.

The trained workers could then return to the United States as supervisors and production managers at American shipyards.

U.S. law limits overseas warship construction

Brittany Clayton, a senior operations researcher at RAND, said complicated U.S. defense procurement procedures, unpredictable orders and design changes during construction remained major barriers to cooperation.

The Navy, Defense Department and Congress all play roles in funding and policy decisions, making rapid action difficult, she said.

Clayton said companies needed consistent and predictable demand from the U.S. government before making long-term investments.

She also cited proposed legislation restricting the overseas construction of American combat vessels.

Rep. Jared Golden of Maine, whose district includes the Bath Iron Works shipyard, introduced an amendment to the fiscal 2027 defense authorization bill that would restrict foreign construction of combat ships.

Clayton said distributed construction could provide an alternative, with components built at multiple locations before being integrated and tested in the United States.

She also suggested beginning cooperation with strategic sealift vessels, which contain fewer sensitive military technologies than combat ships.

The Senate Armed Services Committee included language in its fiscal 2027 defense authorization legislation that would permit the acquisition of up to two noncombat vessels from allied shipyards, including bulk fuel carriers and strategic sealift ships.

Trump said Wednesday that his administration was examining shipbuilders in South Korea and other countries and could purchase some vessels built outside the United States.

Kristin Gunness of San Diego State University said the university had signed an agreement with Samsung Heavy Industries to establish a marine engineering and shipbuilding center.

She said the university was also developing exchange programs with Seoul National University and other South Korean institutions.

Shin proposed short-term educational programs involving retired South Korean professors and American universities to train ship designers and production managers.

— 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=20260717010006342

July 17 (Asia Today) — South Korean President Lee Jae Myung said Friday that the government will designate Dec. 3 as People’s Sovereignty Day to commemorate citizens who resisted the 2024 martial law declaration and preserve the country’s democratic values.

Lee made the announcement during a citizen event marking the launch of the presidential Light Committee at Cheong Wa Dae on Constitution Day.

“The government of popular sovereignty will firmly uphold the most basic and fundamental principle that the people are the owners of the country,” Lee said.

He said South Korea must ensure that democracy and popular sovereignty are never threatened again.

“No one should attempt to stand above the Constitution,” Lee said.

The presidential Light Committee was established in March to promote projects preserving the spirit of citizens who opposed the Dec. 3, 2024, martial law declaration. The committee officially launched Monday.

Park Mi-kyung, chairwoman of the Gwangju Federation for Environmental Movement, was appointed to lead the committee.

Lee recalled the citizens who rushed to the National Assembly after martial law was declared, remained outside the legislature for several nights over concerns that martial law could be imposed again and participated in outdoor demonstrations calling for the president’s impeachment during the winter.

“The great people of our country chose solidarity over division, peace over violence and action over silence,” Lee said.

“They clearly demonstrated that South Korean democracy may be shaken, but it will never collapse.”

Lee said the committee will preserve and document what his administration calls the “Revolution of Light,” referring to the public movement opposing martial law.

“Through the Light Committee launched Monday, we will remember and record this great history for generations,” Lee said.

He said the government will designate Dec. 3 as People’s Sovereignty Day so citizens can remember the events together each year.

“This will allow the values of democracy to be fully passed down to future generations forever,” Lee said.

The president also announced plans to systematically collect and preserve records related to the public opposition to martial law.

The government will develop a digital archive to document citizen participation and promote South Korea’s democratic experience internationally, he said.

Lee described the country’s model of citizen-led democracy as “K-democracy.”

“I hope the brilliant lights of many colors that our citizens raised in the streets and public squares will become a bright beacon illuminating democracy around the world, beyond South Korea,” Lee said.

— 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=20260717010006351

July 16 (Asia Today) — The South Korean government is considering lowering the maximum age for exemption from criminal punishment from 14 to 13 for juveniles who commit violent, serious or repeated offenses.

The debate intensified after President Lee Jae-myung ordered officials Tuesday to reconsider an initial proposal that would lower the age by only one year and apply the change to limited categories of crimes.

Lee questioned whether the proposed change was substantial enough during a Cabinet meeting.

Under South Korean law, children younger than 14 cannot be held criminally responsible. Those ages 10 through 13 who commit offenses may instead receive protective measures under the Juvenile Act.

The Ministry of Gender Equality and Family presented the Cabinet with the results of a public consultation on the issue. It proposed making some 13-year-old offenders eligible for criminal punishment when they commit particularly serious or repeated crimes.

Cabinet members, however, raised concerns that applying different ages of criminal responsibility depending on the type of offense could create legal problems.

The minimum age of criminal responsibility has remained unchanged since South Korea enacted its Criminal Act in 1953.

A deliberative survey of 212 citizens showed that 46.7% supported lowering the age only for violent, serious or repeated offenses while 30.2% favored lowering it for all offenses.

Among participants who supported a reduction, 55.8% favored lowering the threshold by one year.

The government is expected to conduct a second public consultation to determine whether the change should apply only to specified offenses or to all crimes. The process also will consider whether the current threshold should be lowered from younger than 14 to younger than 13 or younger than 12.

The Ministry of Justice is expected to lead the second consultation because the proposal requires a detailed legal review.

Officials will need to determine which offenses qualify as violent or serious and whether applying different criminal responsibility standards according to the offense would conflict with the purpose of the juvenile justice system.

The second consultation could begin this month and conclude within one or two months.

The government said it would gather additional public input before reaching a final decision.

The Ministry of Gender Equality and Family also plans to pursue revisions to the Criminal Act and Juvenile Act while considering the creation of an interagency committee focused on preventing juvenile delinquency.

Officials said the government would strengthen post-offense management and rehabilitation programs designed to reduce repeat offenses regardless of whether the age threshold is lowered.

— 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=20260716010006327

South Korea will further boost its airborne electronic warfare capabilities, buying another two platforms based on the Bombardier Global 6500 bizjet. These will eventually complement the four Global 6500-based airborne early warning and control (AEW&C) aircraft that Seoul has already ordered, and which you can read about here.

Canada’s Bombardier Defense announced today that its Global 6500 had been selected for a second South Korean special mission aircraft program. The aircraft have been acquired by Korean Air, which will modify them for the electronic warfare role. Specifically, these will be standoff jammer (SOJ) aircraft, intended to disrupt enemy electromagnetic signals from a safe distance.

“The Global 6500 aircraft is in demand around the world because of its performance and versatility, and we’re extremely proud that it was chosen for two very advanced, yet different defense missions in South Korea,” said Michael Anckner, vice-president of worldwide sales at Bombardier Defense. “This aircraft is trusted because of its proven military track record, yet it remains highly adaptable as defense needs evolve.”

The Global 6000 series is already a popular choice for military special missions adaptations. Outside of South Korea, prominent examples include the Saab GlobalEye AEW&C aircraft, as well as the German Luftwaffe’s PEGASUS signals intelligence (SIGINT) aircraft. Meanwhile, the U.S. Air Force opted for a Global 6000-based solution for its E-11A Battlefield Airborne Communications Node (BACN) program, and the U.S. Army ordered a Global 6500-based solution for its ME-11B High Accuracy Detection and Exploitation System (HADES), which will be the service’s next-generation intelligence-gathering aircraft. 

All these applications are aided by the Global’s relatively high-altitude flight profile, which provides a significant standoff capability, increasing line of sight for the sensors, and helping keep the jet and its onboard operators further away from enemy air defense systems. In general, bizjet platforms are also becoming increasingly cost-effective, helped by steady improvements in jet engine technology.

Both Korea Aerospace Industries (KAI) and Korean Air had presented offerings for the SOJ to the Defense Acquisition Program Administration (DAPA), which serves as the central administrative agency of the South Korean Ministry of National Defense.

DAPA had approved the plan for the development of the so-called Block I Electronic Warfare System Development Project in April 2025, with around $1.2 billion earmarked for the program by 2034.

As of September last year, KAI was teamed with Hanwha Systems and was pitching a design based on the Global 6500 airframe. Meanwhile, Korean Air was partnered with LIG Nex1 and, according to some reports, was proposing a platform based on the Gulfstream G550. Other reports suggested that both teams favored the Bombardier bizjet, which provides commonality with the new South Korean AEW&C aircraft.

KAI had argued that it was the best fit for the requirement based on its previous involvement in the Peace Eye program, which provided South Korea with a version of the E-7A Wedgetail AEW&C aircraft, as well as the forthcoming Baekdu II intelligence, surveillance, and reconnaissance (ISR) platform. KAI is also an established airframer, building the T-50/TA-50/FA-50 series as well as the KF-21 fighter and various helicopters.

Meanwhile, Korean Air is involved in heavy aircraft maintenance, military aircraft upgrades, and the development of drones, while LIG Nex1 developed advanced electronic warfare systems for the KF-21, as well as for warships, submarines, and reconnaissance aircraft.

From relatively early on, there had been indications that the Korean Air bid was favored. Reports in the South Korean media said that the proposal “scored higher” in the bid evaluation process by DAPA, which had been “evaluating each company’s electronic warfare equipment technology and airframe integration capability, among other factors.” 

In the past, DAPA had said that the Republic of Korea Air Force (ROKAF) required four aircraft capable of “paralyzing enemy air-defense networks and wireless command and communication systems in times of crisis.” While Bombardier has said it is providing two Global 6500s for the program, it remains possible that more might be added. We have approached the company for clarification.

South Korea becomes the latest nation to invest in an SOJ platform, reflecting the growing interest in these capabilities, especially as higher-end and longer-range air defense systems proliferate.

The U.S. Air Force has introduced the EA-37B Compass Call as a standoff electronic attack platform, while earlier this year we looked in detail at Turkey’s HAVA SOJ, based on the Global 6000 airframe and intended to undertake a similar kind of mission.

Typically, SOJ platforms are intended to support air operations by suppressing enemy air defense radars, disrupting command-and-control networks, and interfering with communications through long-range deception and noise jamming, all while remaining outside hostile airspace. By degrading an adversary’s sensing and coordination capabilities, they enable friendly aircraft to penetrate defended airspace through safer access corridors. In modern warfare, the effective use of SOJ platforms has become a critical capability, serving as a force multiplier and delivering significant asymmetric operational advantages.

In addition to jamming systems, the SOJ aircraft generally also have a surveillance capability, with passive electronic support measures (ESM) equipment, while some might include an onboard radar or other sensors. ESM, which is a passive system, can geolocate threats and communications nodes, and that data can be shared in real time with tactical aircraft and missile units to prosecute strikes.

In its rendering of the aircraft, Korean Air presented a platform with prominent fairings alongside the fuselage sides as well as a canoe-type fairing below the fuselage. The fuselage fairings likely contain conformal antennas, which may well be associated with active electronically scanned array (AESA) technology.

AESAs can be used to send out highly focused beams of electromagnetic energy to jam hostile radars and other radio-frequency sensors and emitters in the air, on land, and at sea. This is a capability we have talked about before in relation to the U.S. Air Force’s EA-37B. Potentially, these same AESA antennas could be used to trigger cyber attacks, a capability you can read more about here.

According to South Korean outlet Chosun, the aircraft should have a jamming range of “at least 200 kilometers [124 miles] to cover the entire Korean peninsula.” Additionally, “high-performance transmit-and-receive antenna technology is required to secure enemy electronic signals while disrupting the enemy by emitting powerful radio waves.”

While designed to work from outside hostile airspace, there have been increasing questions about the ability of specialized aircraft like these to survive against more capable air defenses, with the threat of long-range anti-air missile systems only set to grow. However, this kind of platform makes unique sense for South Korea, which has a very specific threat to counter: North Korean air defenses are becoming more capable, and hardened borders mean the geographic area that the new SOJ is expected to cover is clearly established. Criticism of aircraft survivability and range is less of an issue in this case.

At the same time, although South Korea has long relied heavily on the United States for defense, Seoul has increasingly emphasized greater strategic autonomy. This includes developing sovereign electronic warfare and AEW&C capabilities, reducing its reliance on U.S. military assets and American-provided equipment for these critical missions.

As well as the new SOJ and AEW&C platforms, the ROKAF is also set to receive four Baekdu II ISR aircraft. KAI is developing these in partnership with LIG Nex1 under a $675-million contract, with the mission equipment to be installed on the Dassault Falcon 2000LXS bizjet airframe.

The contract is due to be completed by the end of 2026, and the new ISR jets will replace the four Hawker 800XP Peace Pioneer signals intelligence (SIGINT) aircraft that first entered service with the ROKAF in 2001. These are known locally as the RC-800B Baekdu and are operated alongside a similar number of RC-800G Geumgang imagery intelligence (IMINT) aircraft provided under the Peace Krypton program.

Photos show the RC-800B Baekdu SIGINT aircraft:

A photo shows the RC-800G Geumgang IMINT aircraft:

Meanwhile, the ROKAF also operates two modified Dassault Falcon 2000S bizjets in a SIGINT role. These RC-2000s were also procured under the Baekdu project between 2011 and 2018 and incorporate a greater proportion of Korean-built electronics than the RC-800Bs. These aircraft are also specially equipped to detect North Korean missile launches.

A photo shows the RC-2000 SIGINT aircraft:

Then there is the AEW&C fleet, currently comprising four Boeing E-737s, and set to be bolstered by four new aircraft based on the Global 6500 airframe, valued at roughly $2.2 billion. As we have discussed in the past, these will be outfitted by L3Harris and will include the EL/W-2085 AESA radar from Israel’s Elta. This series of radars is already used in AEW&C aircraft operated by Israel, Italy, and Singapore. The new radar planes are due to be introduced by 2032.

Returning to the new SOJ aircraft, the fact that North Korea possesses dense, layered air defenses concentrated near the Demilitarized Zone (DMZ) makes an electronic attack platform like this a key enabler for military operations. This is only becoming more important as North Korean defenses continue to mature.

Beyond enhancing operational effectiveness, the SOJ program strengthens South Korea’s defense industrial base, which is fast becoming a true global player.

Contact the author: thomas@thewarzone.com

The South Korean government on Tuesday revised up its economic growth projection for 2026 to 3 percent, up 1 percentage point from its previous outlook, citing a semiconductor supercycle and easing uncertainties surrounding the Middle East.

The Ministry of Finance and Economy released its economic policy plan for the second half of 2026, presenting a forecast above the 2.6 percent estimates issued by the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD) and the Asian Development Bank (ADB).

“This is the first year in which the Lee Jae Myung administration is taking full responsibility for the country’s economic management,” First Vice Finance Minister Lee Hyoung-il said during a press conference held in the central city of Sejong.

“On the back of the government’s prompt response to the Middle East war and robust export performance, the economy is maintaining a stable growth trend,” the first vice finance minister said, adding that the revised 3 percent growth forecast reflects those developments.

Lee said the revised growth forecast, which is significantly higher than those presented by major international institutions, remains achievable because it reflects the latest data.

“I think the outlooks from other organizations were based on data from March and April,” Lee said. “We made our assessment based on the latest data, with the major changes including stronger exports driven by the semiconductor boom. Tensions in the Middle East have eased further since then.”

“We believe such developments will exert downward pressure on consumer prices and inflation, positively affecting both exports and consumption,” he added.

In the report, the finance ministry said the policy vision for the remainder of 2026 is to mark the first year of a major economic leap toward establishing an “irreplaceable Republic of Korea,” referring to South Korea’s official name.

Seoul also unveiled the so-called 3-4-5 vision, under which the country will seek to achieve a potential growth rate of 3 percent, become one of the world’s top four exporters, and raise gross national income (GNI) per capita to US$50,000. The GNI per capita came to US$36,850 in 2025.

The finance ministry said the growth momentum, which began to expand in the second half of 2025, is expected to further accelerate this year on the back of the continuing semiconductor boom, along with policy measures, including an extra budget aimed at shielding the country from the impact of the Middle East war.

The country will also seek to successfully implement three mega projects aimed at fostering the semiconductor, AI data center and physical AI industries, the report said.

South Korea will additionally focus on maintaining an unwavering supply chain based on lessons learned from the Middle East war, including offering tax benefits for the domestic production of strategically important items.

On exports, the finance ministry said South Korea’s outbound shipments are expected to jump a whopping 40 percent on-year in 2026 on the back of the global artificial intelligence (AI) boom.

Non-IT products, such as ships, biohealth and secondary batteries, are also expected to remain robust, it added.

South Korea’s monthly exports reached a record $102.25 billion in June, surpassing the $100 billion mark for the first time after jumping 70.9 percent on-year.

The current account for 2026 was expected to reach a $290 billion surplus, marking a record high, buoyed by the surge in overseas demand and an increase in the number of foreign tourists.

In 2027, however, the current account surplus was expected to narrow to $245 billion following a rise in imports on the back of increasing domestic consumption.

Facility investment for 2026 could expand 5 percent on-year due to the robust performance of semiconductor manufacturing equipment, although growth will be limited by sluggish machinery and petrochemical sectors.

The policy report also projected inflation of 2.6 percent in 2026, up from the previous 2.1 percent estimate, citing the lingering impact of the Middle East war, which led to higher petroleum prices.

Core inflation, which excludes volatile food and energy prices, is expected to remain at around 2 percent.

“In the second half of 2026, as tensions surrounding the Middle East war ease and global crude oil prices decline, consumer price growth is expected to slow,” the ministry said.

“However, uncertainties also linger amid the progress of Middle East war negotiations and weather conditions, which could lead to volatility in energy and agricultural product prices,” it added.

Looking ahead to 2027, the ministry projected annual inflation to reach 2.2 percent despite lower global crude oil prices due to demand-led inflationary pressure.

The government said it will continue to focus on rolling out a post-Middle East war strategy by pursuing stable macroeconomic policies while maintaining a stable supply chain.

“In response to the changing economic environment, we plan to establish a comprehensive response system to maintain market stability across the macroeconomy, financial markets, the foreign exchange market and the real estate market,” the first vice finance minister said. “Based on favorable tax revenue conditions, we will continue active fiscal management.”

Copyright (c) Yonhap News Agency prohibits its content from being redistributed or reprinted without consent, and forbids the content from being learned and used by artificial intelligence systems.