South Korea

The PanStar Acro, bound for Europe via the Arctic, is testing whether a route opened by melting sea ice can be commercially viable.

A South ‌Korean container ship is sailing to Europe via the Arctic, ⁠in the nation’s first commercial voyage on the route to test its viability as the war in the Middle East rattles global shipping.

The PanStar Acro set sail from Busan New Port on Saturday. “We would like to inform you that the vessel for the Arctic route trial voyage departed” at 9:30pm (12:30 GMT), Seoul’s Ministry of Oceans and Fisheries said in a statement to the AFP news agency.

The PanStar Acro will sail north, the Reuters news agency reported, hugging eastern Russia’s Kamchatka Peninsula, then cross the Bering Sea, and ⁠take the Northern Sea Route, stopping in Felixstowe in the UK, Rotterdam in the Netherlands, and Poland’s Gdansk before returning.

The 2,758 TEU (twenty-foot equivalent unit) container ship operated by South Korea’s PanStar ‌has secured 837 TEU of cargo, including car parts, chemical products and about 100 empty containers on the government-backed voyage.

The journey is expected to take 40 to 45 days, according to the Oceans Ministry.

President Lee Jae Myung has made Arctic shipping ‌a priority for South Korea, with the hope of turning the southeastern ⁠port of Busan into a global maritime hub and position the Arctic as a regular trade route by 2030.

But this new route has been criticised for several different reasons. Environmental groups have warned the route could accelerate polar ice melt, meaning the increase in shipping could worsen global warming.

The project also risks increasing friction with Western allies hoping to keep Russia isolated in its war with Ukraine. Seoul has consulted with Moscow about the journey, Reuters reported, including whether the ship needed ⁠help to tackle any problems, such as ⁠getting stuck in ice.

Last year, 103 transits through the route were made by 88 vessels, up from ⁠97 in 2024 and 43 in 2022, chiefly from nations such as Russia and China, according ⁠to Norway’s Centre for High North Logistics.

But with the Iran war affecting global shipping, governments and shipping firms are scrambling to seek different routes, with the Arctic route increasingly viewed as a viable alternative due to technological advances and environmental degradation.

South Korea’s Vice Oceans Minister Nam Jae-hon said the Arctic route was “bound to become an alternative” to Middle Eastern shipping lanes.

The usual maritime route between Asia and Europe runs through the Suez Canal, but travelling through the Arctic can cut the journey by approximately 7,000 kilometres (4,300 miles) and about 10 days, according to the Korea Institute for International Economic Policy.

However, major carriers including CMA CGM, MSC and Hapag-Lloyd have pledged to avoid Arctic shipping routes due to pressure from environmental groups. The Arctic sea route is believed to be accessible only during the time of year when the ice is melted enough to allow transits without icebreakers.

“The Northern Sea Route has become increasingly viable as the Arctic warms about four times faster than the global average, leading to a sharp decline in sea ice,” South Korean environmental group Paran Ocean Citizen Science Center said in a statement last year. “But making the route commercially viable would require further warming, putting the policy at odds with efforts to combat climate change.”

WASHINGTON — The only remaining U.S. aircraft carrier patrolling the Pacific departed Asia through Singapore last week en route to the Middle East, marking the latest step in a steady drawdown of American military assets across the region.

An armada of naval forces, alongside a constellation of air-defense and missile capabilities, has been removed from a theater the Trump administration said just last year would be the battleground of the coming century.

And now, President Trump’s surprise decision this week to curtail military exercises with South Korea has further fueled anxiety across Asia, where Washington’s closest allies fear violent consequences from a vacuum of American power.

Trump said his decision to withdraw U.S. participation from the annual military drills was de-escalatory, claiming they would needlessly provoke North Korea’s dictator, Kim Jong Un, with whom he has recently been in touch.

But he also blamed Seoul for its decision to not take part in his war with Iran.

“I said, ‘Would you like to give us a little hand?’ ” Trump told reporters. “He said, ‘No thanks,’ and I said, ‘Wait a minute — we have 39,000 soldiers over there, guarding you from Kim Jong Un, your next-door neighbor, and you’re not going to help us.’ ”

“That’s strange,” Trump added. “We can’t go around and protect all of these countries, especially when they’re not there to help us.”

South Korea’s president, Lee Jae Myung, responded to Trump’s last-minute decision to pull back from the drills with a degree of alarm.

“From now on, we must prepare measures with even the worst-case scenario in mind,” Lee said, “on the premise that the Middle East situation may be prolonged.”

It was the latest jolt to South Korea’s confidence in an alliance that has formed a cornerstone of Washington’s defense strategy in Asia since the end of World War II.

The Pentagon has kept its THAAD missile-defense batteries on the Korean peninsula. But in March, it moved some of the system’s radars and forward-positioned interceptors toward the Middle East, as the Iran war strained U.S. missile-defense stocks. Analysts estimate the conflict has consumed more than 40% of the Pentagon’s THAAD interceptor inventory.

The diversion was accompanied by the redeployment of dozens of combat and dry-cargo ships, mine countermeasure vessels, and guided-missile destroyers out of the region, ahead of the departure of the strike group centered on the nuclear-powered USS George Washington, which is now on its way to the Middle East.

Other U.S. allies in the region reacted swiftly to Trump’s pullback from the Korean exercises.

The Australian government said it remained “deeply concerned” with North Korea’s nuclear weapons and ballistic missile programs, while Japan’s defense minister, Shinjiro Koizumi, warned of historic stakes.

“As Japan faces the most severe and complicated security environment in the post-war era, the cooperation among Japan, the United States and South Korea is critical to the peace and stability of the region,” Koizumi said in a statement.

And Beijing has been quick to capitalize on the vacuum.

China’s Foreign Ministry mocked that the United States “has become addicted to quitting groups and scrapping treaties,” while its military began installing permanent infrastructure in Taiwan’s exclusive economic zone within days of the George Washington’s departure.

“The current international landscape has once again proven that only by ensuring the effective operation of the multilateral system can we prevent the spread of the law of the jungle,” said Mao Ning, a spokesman for the Chinese Foreign Ministry, “and keep the international order from being dominated by the logic that ‘might makes right and force represents justice.’”

Speaking with journalists in the Oval Office on Monday, Trump said that his communication with Kim was “making things safer” in the region.

He did not offer details on their conversations.

“Kim Jong Un has always treated me with great respect,” Trump said, confirming that the North Korean leader had replied to his overtures.

“I understand him,” Trump added. “He understands me.”

Yes. The US South Korea relationship has not broken down under Donald Trump, but it has become more transactional, cost focused and strategically uncertain. The latest decision to scale back joint military exercises highlights a broader evolution in which Washington increasingly expects Seoul to shoulder more of the alliance burden while seeking greater flexibility for US forces across the region.

From deterrence to deal making

Trump’s approach to South Korea has been shaped heavily by his personal diplomacy with North Korean leader Kim Jong Un. His first term moved rapidly from threats of “fire and fury” to unprecedented summits with Kim, followed by the suspension or redesign of major US South Korean military exercises.

Although the Hanoi summit collapsed without a denuclearisation agreement, Trump has continued to emphasise his relationship with Kim. His latest instruction to reduce joint exercises therefore carries significance beyond cost savings. It signals that Washington may once again be willing to modify elements of its alliance posture in pursuit of diplomatic space with Pyongyang.

The strategic environment, however, is very different from 2018. North Korea has expanded its nuclear and missile capabilities and strengthened military cooperation with Russia. Reducing exercises therefore creates a more complicated calculation for Seoul: diplomatic engagement with Pyongyang may reduce tensions temporarily, but weaker military preparedness could also increase the risks associated with North Korea’s growing capabilities.

The alliance is becoming more transactional

The clearest transformation under Trump is arguably the growing emphasis on burden sharing.

Trump has repeatedly questioned the cost of maintaining roughly 28,500 US troops in South Korea and has pushed Seoul to contribute more to its own defence. The existing cost sharing agreement requires South Korea to contribute about 1.52 trillion won this year toward the upkeep of US forces.

For Washington, the argument is straightforward: South Korea is wealthy enough to assume a greater share of the financial and military burden. For Seoul, however, the US military presence remains central to deterring North Korea.

This creates a fundamental tension. The alliance is still strategically valuable to both sides, but Trump increasingly approaches it through a cost benefit framework rather than solely through traditional alliance commitments.

Defence cooperation is expanding even as exercises face pressure

The apparent contradiction is important. Trump is seeking to reduce certain military exercises while South Korea itself is increasing defence spending.

President Lee Jae Myung has pledged a larger security role and increased defence spending, while continuing to insist that Washington’s security commitment remains firm. Seoul has also sought greater strategic autonomy, including greater latitude over nuclear fuel technology and faster progress toward transferring wartime operational control.

This suggests that the alliance may be evolving rather than simply weakening.

South Korea appears to be preparing to assume greater responsibility for its own defence, while Washington wants the alliance to become more flexible and potentially address security challenges beyond the Korean Peninsula.

That latter objective is particularly sensitive for Seoul. The United States increasingly views its Asian alliances through the broader strategic competition with China, while South Korea remains primarily focused on the immediate threat from North Korea.

Trade has become inseparable from security

Under Trump, economic relations have also become an increasingly important component of the alliance.

Washington’s tariff pressure has pushed Seoul toward major investment commitments in the United States, including the $350 billion investment pledge associated with tariff relief. South Korean companies have already invested heavily in US semiconductors, batteries, electric vehicles and shipbuilding.

But disagreements over how the investment should be structured have exposed the limits of Trump’s transactional approach. Seoul has warned that demands for large upfront cash commitments could place pressure on its economy.

The detention of hundreds of South Korean workers during an immigration raid at a Hyundai LG battery project in Georgia further demonstrated how economic and political tensions can spill directly into the strategic relationship.

The result is an alliance in which security guarantees, trade concessions, investment and troop costs increasingly form one interconnected negotiation.

The deeper problem is strategic uncertainty

The central challenge for Seoul is not simply whether Trump wants fewer exercises. It is whether Washington’s definition of the alliance is changing.

For decades, the US South Korea alliance rested on a relatively clear bargain: Washington provided extended deterrence and military forces, while Seoul contributed financially and militarily to maintaining the security architecture.

Trump’s approach introduces more conditionality into that bargain.

If military exercises can be reduced because they are considered too expensive or diplomatically inconvenient, Seoul has to consider how predictable the US commitment remains. At the same time, Washington expects South Korea to spend more, invest more and potentially assume greater responsibility.

This could ultimately produce a stronger South Korean military, but it could also create greater uncertainty about the role of the United States.

What this means for China and the Indo Pacific

The evolution of the alliance also has implications far beyond the Korean Peninsula.

Washington wants greater flexibility for US forces stationed in South Korea to respond to regional contingencies, particularly those involving China. Seoul, however, has historically been reluctant to become directly involved in a confrontation over Taiwan.

That creates a structural divergence in strategic priorities.

For Washington, South Korea is increasingly part of a broader Indo Pacific security network. For Seoul, the primary purpose of the alliance remains deterrence against North Korea.

Trump’s transactional approach therefore forces South Korea to navigate between two competing imperatives: maintaining the American security umbrella while avoiding excessive strategic dependence on Washington’s wider confrontation with Beijing.

The alliance has changed, but it has not collapsed

Trump has not dismantled the US South Korea alliance. Instead, he is redefining its terms.

Military exercises are being reconsidered, defence burden sharing remains contentious, trade and investment have become bargaining instruments, and Washington increasingly expects Seoul to assume greater responsibility for regional security.

For South Korea, this creates both a risk and an opportunity. Greater defence spending and military autonomy could make Seoul less dependent on American forces. But if Washington simultaneously reduces visible commitments while demanding greater financial and strategic contributions, Seoul could find itself paying more for an alliance that feels less predictable.

The most important question, therefore, is not whether Trump is weakening the alliance. It is whether he is transforming it from a traditional security partnership into a transactional strategic bargain.

If that transformation continues, the US South Korea alliance could survive Trump, but it may emerge fundamentally different from the alliance Washington and Seoul built over the past seven decades.

With information from Reuters.

Annual military manoeuvres between South Korea and the United States are underway.

But just hours before they were due to start, the US president announced that he had ordered the Pentagon to substantially scale back the exercises.

Donald Trump says they send an inappropriate and hostile signal to North Korea and its leader, with whom he has a ‘good relationship’.

The joint drills have been held for decades.

So, does Trump’s last-minute decision mean he’s seeking talks with Kim Jong Un?

Could dialogue end one of the world’s longest-running conflicts?

Presenter: Anna Burns-Francis

Guests:

In Bum Chun – Retired South Korean Lieutenant General and military and security analyst

Jenny Town – Senior Fellow and Director of 38 North programme at the Stimson Center

Rodger Baker — Geopolitical analyst at RANE, a global centre for geopolitical intelligence and analysis

SEOUL, South Korea — South Korea on Monday expressed hopes for resumption of diplomacy between the U.S. and North Korea to ease animosities on the Korean Peninsula, as President Trump’s order to cut military exercises with South Korea caused concerns it might hurt the allies’ readiness against North Korean threats.

Trump cited his good relationship with North Korean leader Kim Jong Un for the decision, a likely bid to reengage with Kim, who views U.S.-South Korean military exercises as invasion rehearsals. But experts say the North Korean leader, now emboldened by his advancing nuclear arsenal and expanding military cooperation with Russia, won’t likely return to talks unless he is assured of serious U.S. concessions.

The 11-day, summertime Ulchi Freedom Shield exercises began Monday morning as scheduled and it wasn’t known which parts of the training were being downsized. Trump’s announcement baffled many in South Korea, a key U.S. ally in Asia where national security is a top priority due to threats from nuclear-armed North Korea.

Trump orders military to ‘substantially reduce’ drills

Trump said in a social media post that the exercises are not only costly but “send a signal that is totally inappropriate and hostile” to North Korea, which he said “has been unthreatening and respectful” during his time in the White House.

Trump instructed Defense Secretary Pete Hegseth to “substantially reduce” the exercises. He added that he recently asked President Lee Jae Myung if South Korea would join the U.S. in the “denuclearization” of Iran, “and they said, ‘No thanks!’”

Trump’s move is the latest example of the American president appearing to turn against an ally in favor of a leader cast by previous administrations as an adversary. Trump and others in his administration also have railed against NATO allies over a perceived lack of support for his war against Iran, even as they seek to confront an increasingly aggressive Russia in the Baltic region.

The trust many South Koreans have in the U.S. has eroded following a tariff war instigated by Trump’s administration and his transactional approach to security.

South Korea hopes for talks between U.S. and North Korea

The office of South Korea’s president said later Monday that the government hopes “friendly relationship” between Trump and Kim would lead to “meaningful dialogue” between the U.S. and North Korea and start discussions on promoting peace and stability on the Korean Peninsula. It said that South Korea will make necessary diplomatic efforts for that.

South Korea and the U.S. are closely discussing practical and military contributions that can be made to restore freedom of navigation in the Strait of Hormuz, according to South Korea’s presidential office.

Lee is a liberal who espouses improved ties with North Korea. Since taking office last year, his government has taken proactive steps to improve ties with North Korea, including turning off front line loudspeakers that blared K-pop music and world news. On Saturday, Lee offered to hold talks to formally end the 1950-53 Korean War, which ended with an armistice, not a peace treaty.

The conservative People Power Party, the main opposition party, lambasted Lee for allegedly “turning a blind eye on the public’s security concerns” caused by Trump’s announcement and prioritizing hopes for U.S.-North Korea diplomacy.

North Korea has shunned any talks with South Korea and the U.S. and accelerated weapons testing activities since Kim’s high-stakes nuclear diplomacy with Trump broke down in 2019. Kim also has bolstered his diplomatic credentials by aligning with Russia over its war against Ukraine and taking steps to deepen cooperation with China.

In September 2025, Kim suggested he could resume talks with the American president if the U.S. drops “its delusional obsession with denuclearization” of North Korea. Experts say Kim likely aims to use his enlarged nuclear arsenal to win major concessions like extensive sanctions relief.

“Trump’s recent social media posts about Kim Jong Un suggest a willingness to reengage, but North Korea is busy profiting from Russia’s war against Ukraine while modernizing its own military,” said Leif-Eric Easley, a professor at Ewha University in Seoul.

Downsizing the U.S. and South Korean drills “can damage alliance coordination, slow the process of South Korea taking on greater responsibility for its own defense, and weaken deterrence against possible conflicts in Asia,” Easley said.

Duyeon Kim, a senior analyst at Washington’s Center for a New American Security, said “reducing joint drills weakens military readiness over time against another potential North Korean attack.”

Military drills test tactics and anger North Korea

South Korea’s military earlier said the Ulchi Freedom Shield exercises this year would be similar to previous years in scale, with about 18,000 South Korean soldiers taking part.

The U.S. military said the drills would incorporate lessens from recent conflicts such as North Korea’s battlefield experiences in the Russia-Ukraine front, while including a live-fire exercise to test joint precision targeting and maneuver, a wet gap crossing and distribution of prepositioned military equipment.

North Korea’s Foreign Ministry on Friday accused the U.S. and South Korea of plotting more provocative drills this year and vowed to respond with “a new level of a deterrent.” Earlier this month, North Korea fired two ballistic missiles into the sea in a likely protest of the drills.

Duyeon Kim, the analyst, said North Korea uses U.S.-South Korean drills “for domestic propaganda purposes to create a false narrative of a hostile America and justify its nuclear weapons program.”

This is not the first time Trump has sought to suspend the drills. After his first summit with Kim in 2018, Trump unilaterally announced the suspension of the U.S.-South Korean summertime exercises, calling them “very provocative” and “tremendously expensive.”

Kim Dong-yub, a professor at the University of North Korean Studies in Seoul, said North Korea feels less urgency to return to talks with the U.S. and South Korea now than when it entered talks with its rivals in 2018, but is unlikely to completely ignore Trump’s overture.

He predicted North Korea will likely say it has noted Trump’s post but will wait for further action showing the U.S. intends to drop hostilities against North Korea.

Kim writes for the Associated Press.

US president says he’s ‘not happy’ about the drills, citing his ‘very good relationship’ with North Korea’s Kim Jong Un.

US President Donald Trump has ordered the Pentagon to scale back joint military exercises with close ally South Korea, citing his “very good relationship” with North Korean leader Kim Jong Un.

Trump said in a social media post on Sunday that the exercises, due to start on Monday, are costly and “send a signal that is totally inappropriate and hostile” to North Korea, which he said “has been unthreatening and respectful” while Trump has been in the White House.

“Based on my very good relationship with Kim Jong Un, of North Korea, I am not happy with the fact that the United States has, long ago, agreed to participate in Joint Military Exercises with South Korea,” Trump wrote on Truth Social.

He also mentioned Seoul’s stance on the US-Israel war on Iran.

“I recently asked the President of South Korea if they would like to join us in the Denuclearization of the Islamic Republic of Iran, and they said, ‘No thanks!’” he said.

Trump added that it was too late to cancel the drills, so he had ordered Secretary of Defense Pete Hegseth to “substantially reduce” them.

When asked about Trump’s post, South Korea’s Ministry of Defence said the military exercises would “proceed as previously notified and scheduled”.

The annual Ulchi Freedom Shield drills, scheduled to run for 11 days from August 17 to 27, will involve 18,000 South Korean soldiers. They are a regular summer fixture for South Korea’s armed forces and their US allies, designed to prepare them for defence against the nuclear-armed North Korea, which is battle-hardened from its involvement in Russia’s war on Ukraine.

Pyongyang has always been angered by the exercises, saying they are rehearsals for an invasion.

Last week, North Korea denounced the latest drills as a provocation that heightens tensions on the Korean Peninsula.

A spokesperson for North Korea’s Ministry of Foreign Affairs said on Friday that the US-Japan-South Korea military cooperation is turning into a nuclear alliance, and Pyongyang will respond to a new level of threat with a new level of deterrent.

The following day, Trump posted a photo of himself standing next to Kim and wrote that the two leaders got along great, “despite the unfriendly look on this particular picture”.

During his first term, Trump met Kim three times.

This is not the first time that the US president has sought to end the exercises with South Korea. After a historic 2018 summit in Singapore with Kim, he called the military drills “expensive” and “provocative“.

Pyongyang has accused the US of pushing the world ‘to the brink of nuclear war’.

North Korea has denounced major United States-South Korea military drills set to start next week as a provocation that heightens tensions on the Korean Peninsula.

The US-Japan-South Korea military cooperation is turning into a nuclear alliance, and North Korea will respond to a new level of threat with a new level of deterrent, a spokesperson for North Korea’s Foreign Ministry said on Friday, according to Pyongyang’s Korean Central News Agency (KCNA).

Pyongyang routinely denounces military drills in the south as a provocation that heightens tensions.

The drills – named “Ulchi Freedom Shield” – are due to start on August 17 and will last until August 27. They will incorporate exercises to counter drones, GPS disruption, and cyberattacks as the US and its allies adapt to North Korea’s evolving capabilities.

“The US announced that the forthcoming exercises are quite different from the ones of the past five years and intended to master the ability of fighting a war on the basis of the new aspects of modern warfare,” the North Korean Foreign Ministry spokesperson said in the statement.

“It is our consistent principle of ensuring security to respond to a new level of a threat with a new level of a deterrent,” the statement, published by KCNA, added.

Lessons learned in Russia-Ukraine

North Korea sent an estimated 12,000-15,000 soldiers to fight for Russia in its war against Ukraine, and the country is now thought to be preparing the deployment of another 10,000.

Thousands died, but the deal provided North Korea with valuable battlefield experience, as well as payment in arms, energy and direct financial support, according to reports.

Colonel Ryan Donald, spokesperson for the US and South Korean Combined Forces Command, said this week that North Korea’s deployment to the European war had changed the threat his soldiers may face on the Korean Peninsula.

“They’ve taken those lessons they learned there and brought them back to North Korea,” he told reporters. “Our training accounts for that threat.”

Pyongyang’s Foreign Ministry statement said the US-South Korea drills are being staged “at a time when military and political situation is becoming more serious with each passing day in Europe, the Middle East and other parts of the world”.

North Korea also said on Friday that it would further strengthen its nuclear deterrence, accusing the US of lowering its threshold for nuclear weapons usage and pushing the world “to the brink of nuclear war”.

On Wednesday, North Korea fired a ballistic missile towards the sea off the Korean Peninsula’s east coast, just six days after firing another missile.

The Ulchi Freedom Shield drills will include 18,000 South Korean soldiers and counterparts from the 28,500-strong US contingent in the country.

Pyongyang conducts second weapons test in less than a week as Seoul, Washington gear up for annual military exercises.

North Korea has launched a ballistic missile towards the Sea of Japan, according to Seoul and Tokyo, marking the second such test from Pyongyang in less than a week.

The launch on Wednesday came as South Korea and the United States announced plans to hold their annual Ulchi Freedom Shield military drills starting on August 17.

“Our military detected at around 6:00 am [21:00 GMT Tuesday] a ballistic missile launched by North Korea from the Wonsan area towards the East Sea,” South Korea’s Joint Chiefs of Staff said in a message to reporters, referring to a body of water also known as the Sea of Japan.

South Korea’s military said the missile flew more than 700km (435 miles).

It said it has boosted its surveillance posture and that it was closely exchanging information on the launch with Washington and Tokyo.

Japan’s Defence Ministry said on social media that the suspected ballistic missile had “already fallen”, without providing further details.

“North Korea has never simply let a South Korea-US joint military exercise pass without a response,” Lim Eul-chul, a North Korea expert at Kyungnam University, told the AFP news agency.

“This is a message that Pyongyang is closely watching the upcoming drills and could stage a provocation if it deems one necessary.”

US-South Korea drills

The Ulchi Freedom Shield training is to start on Monday and run for 11 days. Its scale will be similar to previous years, with 18,000 South Korean soldiers taking part, according to South Korea’s military.

North Korea has in previous years denounced the exercises as a rehearsal for invasion, and responded to the drills with weapons tests and harsh rhetoric. Seoul and Washington, however, have repeatedly said their training is defensive in nature.

On August 6, South Korea, the US and Japan detected the launch of a short-range ballistic missile from North Korea in what was Pyongyang’s first ballistic weapons testing activity since late June.

North Korea did not confirm the reported launch.

Pyongyang has ratcheted up its criticism of Tokyo’s defence policy, issuing statements at least seven times since July.

On Tuesday, North Korean state media condemned Japan’s latest defence white paper as a “re-invasion-minded” document, saying it “groundlessly described” Pyongyang as ⁠the greatest strategic challenge to “justify its reckless arms buildup”.

North Korea has also been accused of playing a more active role in the Russian invasion of Ukraine.

Ukrainian President Volodymyr Zelenskyy said on Tuesday that Moscow had used a North Korean ballistic missile during an attack that killed seven workers at a Ukrainian steel plant in the southeastern city of Zaporizhzhia.

A record-high heatwave is sweeping through the Korean Peninsula, sending temperatures skyrocketing, reaching 42.5C (108.5F) on Sunday. According to the Korea Disease Control and Prevention ​Agency, at least 14 people have died since mid-May as a result.

Hong Myung-bo’s appointment under scrutiny amid raids with lack of proper interview process previously alleged.

Seoul ‌police have raided the Korea Football Association (KFA) offices ⁠⁠as part of an “obstruction of business” investigation into the appointment of former coach Hong Myung-bo.

Hong returned as national ⁠team coach in 2024 after a previous spell in charge from 2013 to 2014.

His appointment came under scrutiny after the KFA abandoned a months-long search involving foreign candidates ‌and appointed him following a brief meeting.

The issue resurfaced after South Korea’s disappointing FIFA World Cup campaign, which ended in a group-stage exit.

At a parliamentary hearing last month, Hong rejected suggestions by lawmakers that he had received special treatment in his appointment, ⁠while taking responsibility for South Korea’s ⁠failure at the tournament.

South Korea’s Ministry of Culture, Sports and Tourism said in October 2024 that the KFA breached its own rules in the appointments of Hong and former coach Jurgen Klinsmann, finding that the technical director’s ⁠meeting with Hong did not constitute ⁠a proper interview.

However, it found no evidence of illegal conduct and did not order Hong’s contract to be cancelled.

Police had already been ‌investigating complaints alleging improper interference in Hong’s appointment before the World Cup.

No criminal findings have been announced ‌against ‌Hong or KFA officials.

The KFA did not immediately respond to a request by Al Jazeera for comment.

Japan and the United States have confirmed a rare, coordinated yen-buying intervention to halt the Japanese currency’s slide to 40-year lows, with Tokyo signalling it is willing to take further action if needed.

The Japanese Ministry of Finance confirmed the joint intervention after a statement by US President Donald Trump on Sunday announced that Washington was helping to prop up the yen as a sign of friendship and to support the global economy.

“They have a weakening yen, and they wanted a little bit of help. And we’re always there for Japan,” Trump said in response to a reporter’s query about why the US is helping to support the currency.

The yen leapt after the announcement, leaving traders on high alert for further intervention from authorities. The Japanese currency gained as much as 1.4 percent to hit a nearly three-month high of 155.20 per US dollar, compounding a 3.8 percent surge over the previous two sessions. The yen also advanced broadly against other major currencies, including the euro and sterling.

The latest bout of aggressive yen-buying heavily pressured the US dollar. In early Asian trading on Monday, the euro climbed to a 1.5-month high of $1.1559, while sterling hovered near a two-week top at $1.3476.

However, the rapid appreciation of the currency immediately weighed on the equity market. The Nikkei share average tumbled, reversing course from the one-week high it had achieved in the previous session.

Analysts say the intervention underscores both countries’ resolve to prevent global spillovers from a sell-off in the yen and Japanese government bonds, including by adding pressure on already rising US Treasury yields.

Japan has been struggling to curb a relentless drop in its currency that has pushed up import prices and stoked broader inflation, hitting household wallets and Prime Minister Sanae Takaichi’s approval ratings.

In its statement, Japan’s Finance Ministry said Friday’s yen-buying intervention with the US Treasury Department “countered excessive volatility and disorderly movements in the Japanese yen in recent months”.

“The Japanese Ministry of Finance remains attentive and in close communication with our counterparts at the U.S. Treasury,” it added. “We will not hesitate to conduct further joint intervention.”

The joint intervention is the first since a 2011 coordinated action to weaken the yen after the devastating earthquake in eastern Japan.

Tokyo may have sold as much as $58.97bn to buy yen when it intervened in New York markets on Thursday, Bank of Japan data indicated, before Friday’s confirmed joint intervention with Washington.

US Treasury Secretary Scott Bessent also confirmed Friday’s effort, noting on Sunday that Washington “will not hesitate to participate in further joint intervention”.

“We strongly support Japan’s decisive market and monetary steps to correct the substantial undervaluation of the yen,” Bessent said in a separate statement on X, repeating his calls for further interest rate hikes by the Bank of Japan.

In line with Bessent’s repeated calls for higher Japanese interest rates, the Bank of Japan on Friday offered its most explicit signal to date of an early rate hike, even as it kept monetary policy steady.

In a sign of broader policy coordination, South Korea also stepped in to buy its won currency on Thursday.

Japan intervened in April and May, buying yen, but the move triggered only a brief rebound. The Bank of Japan’s June rate hike to a 31-year high of 1 percent also gave the struggling currency little lasting boost.

The Son, as they say, will come out tomorrow.

Bet your bottom dollar that Son Heung-min, LAFC’s $26 million man — the record MLS fee for an incoming player — would peel himself off the mat and clear away the cobwebs and sorrows of the past few weeks and months.

He did it with a sizzling, right-footed goal in the 57th minute of LAFC’s 3-0 victory Friday over the Galaxy in the 27th rendition of El Tráfico and the first this year. Also, the first crosstown showdown of Son’s so-far, so-so tenure in L.A.

His arrival last August from Tottenham Hotspur in England’s Premier League was met with uncommon fanfare. Here came another global soccer icon to Major League Soccer — and to L.A., where the South Korean sensation was welcomed enthusiastically by a Korean diaspora that’s about 250,000 strong.

LAFC forward Son Heung-Min celebrates after scoring a goal against the Galaxy at Dignity Health Sports Park in Carson on Friday.

(Ronaldo Bolanos/Los Angeles Times)

The first Asian player to win the Premier League Golden Boot, Mayor Karen Bass spoke at Son’s introductory news conference. The Dodgers invited him to throw out the first pitch on Shohei Ohtani’s bobblehead night (and turned around this season and produced a bobblehead of Son throwing that pitch).

His first LAFC goal — a free kick over the wall in a 1-1 draw with FC Dallas — was named the MLS’s goal of the year. After notching 173 goals across all competitions with Tottenham Hotspur, he finished with nine goals in his first 10 regular-season appearances for LAFC.

Then the scoring stopped. As if someone turned off the spigot.

Before Friday, Son recorded nine assists but no goals over 13 unlucky matches this season. He went 44 shots without striking a goal. And 237 days between goals, according to The Chosun Daily’s tally.

Yeah, just a bit of what his LAFC teammate Mark Delgado described as “a drought.”

Most painfully, Son also was shut out in South Korea’s disastrously short World Cup stay.

South Korea entered the tournament with the expectation that its “golden generation” – led by Son – would reach the knockout stage. But after it opened Group A with a 2-1 win over Czechia, the Koreans lost 1-0 to Mexico and 1-0 to South Africa and failed to qualify for the round of 32 as one of the eight best third-placed teams.

The uproar in South Korea that followed included the country’s president demanding an investigation.

Mexico’s Julián Quiñones and South Korea’s Son Heung-min vie for the ball during a World Cup match on June 18 in Guadalajara, Mexico.

(Ricardo Mazalan / Ap Photo/ricardo Mazalan)

For his part, a heartbroken Son shared a statement on Instagram: “I don’t dare to convey the disappointment and hurt of the fans with a single word ‘sorry.’ So even saying those words feels insufficient.”

It was impossible not to wonder: What the heck?

Where was the version of Son that everyone was celebrating a year ago?

How did the 34-year-old’s game decline so suddenly?

Was this a classic case of overpromising and underdelivering?

It still might be. LAFC — now 8-5-3 and third in MLS’s Western Conference — is going to face tougher competition in the days ahead than the work-in-progress Galaxy.

But on Friday, the center-forward was aggressive and in control. He took two shots in the first seven minutes, both blocked by defenders. He toyed with the Galaxy just before halftime, lining up to take a penalty before turning it over to Denis Bouanga, who scored to make it 2-0.

Then he and Delgado exchanged passes in the second half to set up Son’s first goal in darn near forever.

LAFC coach Marc Dos Santos gave Son 10 days off after the World Cup, but Son said he was eager to return to L.A., because he so enjoys the camaraderie of this club.

Those good vibes were on display when Son’s shot whizzed between two defenders and the outstretched arms of Galaxy goalkeeper Novak Micovic.

Son put his finger to his lips in the universal “shhh” sign and then did his patented camera celebration — click! — miming a snapshot. Because every goal is precious, and let’s be real, you never know when another will come.

LAFC’s Son Heung-Min celebrates after scoring what could be a breakthough goal against the rival Galaxy at Dignity Health Sports Park in Carson on Friday.

(Ronaldo Bolanos/Los Angeles Times)

Around him, the crowd and his colleagues went wild.

Dos Santos did some vein-popping flexing on the sideline. Mathieu Choinière pumped his fists as though he were operating a handcrank. Jacob Shaffelburg and Ryan Hollingshead flanked him on either side as though posing for a family photo. Son’s hair got tousled and nobody wearing black and gold could stop smiling.

“He deserves it, coming back from an emotional World Cup, and joining us right away,” Dos Santos said.

“He’s a great guy,” Delgado said. “He’s been in a bit of a goal drought, and, you know, we all want him to score. We all, he’s always smiling, and in training, he’s always scoring.

“And we’re like, ‘yeah, we need that, we need that!’ Trying to give him confidence,” Delgado continued. “And in games, he finally is getting that confidence back. So to see him score and put the ball in the net and just see his face light up with a smile is awesome. We all want to see him succeed here. We all want him to lead this club like we know he can.”

Now the goal is to keep the goals coming.

“Scoring the first goal of this season, I think it [will] help me,” Son said. “I think, definitely, going forward through the second part of the season. So, let’s keep going, and hope Wednesday [against Salt Lake] I can score another goal.”

United States President Donald Trump is scheduled to address a defence summit at the US Army War College on Wednesday, where he is expected to laud US investments in its armed forces that he has argued have helped add a new edge to history’s most powerful military.

But his speech comes at a time when the US’s war on Iran has significantly depleted the US military’s weapons stockpile.

The summit, which will be held in Carlisle, Pennsylvania, comes as the US has re-ignited attacks on Iran in the past week, and as Trump has threatened to continue a war that, according to recent US polls, is highly unpopular among Americans facing high costs of living.

The US has expended half of at least four of its most critical munitions since its war on Iran began on February 28, and has racked up billions of dollars in weapons expenses, analysis shows.

Replenishing low stockpiles could take anywhere between several months and several years. Analysts warn that a shrinking arsenal could put the US in a less formidable position in a potential future conflict – particularly against China.

Here’s what we know about the US weapons inventory:

What’s happening with the US-Iran war?

Following an April ceasefire between the US and Iran, and the subsequent signing of a memorandum of understanding in June, the conflict kicked off again after the US Central Command launched heavy waves of attacks on Iran’s military sites last Wednesday, saying it was aiming to degrade Tehran’s military capabilities. Huge, hourlong attacks have continued for four nights since Sunday, including on railway tracks and bridges.

Both sides traded low-intensity attacks throughout the ceasefire period. However, the US escalated air attacks last week after Iran fired on three commercial ships passing through the Strait of Hormuz – because those vessels had used a shipping route not approved by Tehran.

Each blames the other for violating the ceasefire, and at last week’s NATO leaders’ summit, Trump declared the pact with Iran over, although he said American negotiators could continue talks. Washington has also reinstated a naval blockade on Iran-linked ships trying to transit the waterway and has re-imposed sanctions on Iran.

Iran’s Islamic Revolutionary Guard Corps has responded with retaliatory attacks on US military assets in Bahrain, Oman, Qatar and Kuwait.

More than a dozen people have been killed in Iran since the new wave of US attacks, including civilians.

“We’re going to knock out all their power plants. We’re going to knock out all their bridges unless they get to the table and negotiate,” Trump threatened in a Fox News interview that aired on Tuesday.

Attacking civilian infrastructure is a violation of international law.

Does the US have enough weapons to keep attacking Iran?

Washington’s supplies are running low but have not reached a critical level, according to analysis of the US weapons inventory by the Center for Strategic and International Studies (CSIS), a Washington-based think tank.

In the 39 days of conflict between the start of the US-Iran war in February and the ceasefire in April, the US hit more than 13,000 targets, focusing mainly on using seven of its most powerful missiles and air defence systems: Tomahawk missiles, Joint Air-to-Surface Standoff Missiles (JASSM), Precision Strike Missiles (PrSM), Standard Missile-3 (SM-3), Standard Missile-6 (SM-6), Terminal High Altitude Area Defenses (THAAD) and Patriots.

For at least four of the munitions, Washington likely expended more than half of its available stockpiles, although many lower-grade alternatives are still in stock, according to CSIS. Government data on weapons inventory is classified.

Here’s how the munitions were used:

• Tomahawks – The US had about 3,000 of the long-range missiles that are fired from sea at ground targets. It likely used up more than 1,000 in the war on Iran.
• JASSM – About 4,000 of these stealthy, air-launched long-range missiles were in the US inventory before the war. About 1,100 were used in the war on Iran.
• PrSM – Supplies of the newly delivered, ground-launched long-range missiles were already low to start with, with deliveries since 2023 amounting to a total of 90. An estimated 40-70 were used in the war. One US military official claimed that the “entire” inventory had been expended.
• SM- 3 – The most expensive weapon per unit at $28m, these ship-launched ballistic missile interceptors numbered about 410 before the war. The US has used between 130 and 250 of these in the war on Iran.
• SM-6 – Also ship-launched, this missile is mainly used to intercept aircraft and cruise missiles. The US had about 1,160 stockpiled. An estimated 190- 370 have been expended in the Iran war.
• THAAD – The US had about 360 of the costly anti-ballistic missile systems by April, and between 190 and 290 were used in the war. The US has a total of 8 THAAD units or “batteries” consisting of launchers, interceptors, and radar systems.
• Patriot – An estimated 2,330 Patriots were in stock before the war, but between 1,060 and 1,430 have been expended. Some older versions may also likely be available – about 400 of them.

What does this mean?

Analysts from CSIS say that while the US may have enough to continue hitting Iran in the near-term war, it has reduced its stockpiles so significantly that it may not have enough for potential future wars, especially against a formidable rival like China.

Replenishing high-capability and costly weapons like the ones the US has used in Iran will likely take several years.

Trump and senior administration officials have publicly maintained that the US has an “unlimited” supply of weapons as the US-Iran war has raged on.

However, in March, Trump said administration officials met with the heads of US manufacturers, including Lockheed Martin, Boeing, Raytheon, BAE Systems, Honeywell Aerospace, L3Harris Missile Solutions, and Northrop Grumman. He said all promised to “quadruple” production and that increased manufacturing was already under way.

Subsequently, in June, Trump signed the Defense Production Act, an executive order compelling US weapons manufacturers to speed up production, citing existing conditions “which may pose a direct threat to the national defense or its preparedness programs”.

An order compelling private actors to ramp up production likely reflects timeline concerns within the Pentagon, analysts note.

In the short term, Washington is also unlikely to meet demands from its allies, and may not have the capacity to supply the THAADs and Patriots that Ukraine says are crucial in its war against Russia.

Already, supply orders have hit road bumps. Japan’s order of 400 Tomahawks from Raytheon was meant to be delivered between 2025 and 2027, but US Defense Secretary Pete Hegseth said in May that two more years could be added to the schedule.

Meanwhile, Switzerland began negotiations with France, Israel and South Korea in June to buy another missile defence system after its 2022 order from Lockheed Martin and Raytheon continued to face delays.

How long will replenishing weapons take?

Hegseth said in May that it could take “months and years” to replenish the supplies, based on the weapons system.

Analysts reckon it could take the US between one and four years to get its most exquisite munitions stockpiles back to pre-Iran war levels, even as Trump has boasted that new weapons plants are being built around the US and production is being ramped up.

Trump’s administration is set to buy large amounts of advanced munitions in its proposed $1.5 trillion 2027 defence budget – a 44 percent increase from 2026’s defence budget.

According to CSIS, estimated timelines to replenish the seven critical munitions, based on existing production facilities, are:

• Tomahawk: Between 4- 5 years (207 will be delivered in 2026, while 785 have been requested for 2027).
• JASSM: 1 year (821 to be delivered in 2026 and 821 requested for 2027).
• PrSM:  8 months (70 to be delivered in 2026 and 1,134 requested for 2027).
• SM- 3:  3 years ( 52 to be delivered in 2026 and 214 requested for 2027).
• SM-6:  3 years (125 to be delivered in 2026, and 540 requested for 2027).
• THAAD: 3 to 3.5 years (92 to be delivered in 2026, and 857 requested for 2027).
• Patriot: 3 years (172 to be delivered in 2026, and 3202 requested for 2027).

South Korean chipmaker SK hynix, known for its high-bandwidth memory chips, is preparing to raise roughly $28 billion (€24.5bn) on Wall Street, a sum surpassed only by SpaceX’s record flotation last month.

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It is an extraordinary outcome for a firm that once survived on job cuts and asset sales.

Pricing is due on Thursday, with trading expected to begin on Friday under the ticker SKHY.

SK hynix is issuing 17.79 million new shares in the form of American depositary receipts (ADRs), each representing a tenth of a Seoul-listed share, and cornerstone investors including Baillie Gifford and funds run by Coatue Management have signalled interest in up to $7 billion (€6.1bn) worth of stock.

The target was trimmed from an initial $29.6 billion (€25.9bn) after the shares slipped in recent weeks.

ADRs are certificates traded on a US exchange that stand in for shares held abroad, letting American investors buy into a foreign company without dealing in a foreign currency or market.

Unlike a conventional flotation, this is not SK hynix’s stock market debut. Its primary listing remains on Seoul’s Kospi index, and the Nasdaq offering simply opens a second, dollar-denominated avenue for investors to gain exposure.

The listing arrives with the company already worth more than $1 trillion (€876bn), a threshold also crossed by rivals Samsung Electronics and Micron, after a surge of more than 200% this year.

Proceeds will fund new fabrication plants, chiefly a vast cluster in Yongin, plus its first US packaging facility in Indiana.

The move is partly about valuation. Korean-listed chipmakers have long traded at a discount to American peers, and a Nasdaq listing offers a chance to close that gap.

The AI memory boom — and the risks

The AI build-out has transformed the industry’s economics.

As hyperscalers pour hundreds of billions into data centres, memory prices have exploded, with DRAM up 44% and NAND flash up 53% in a single quarter, according to Citi Research, and manufacturers have already sold most of their 2026 production.

SK hynix reported first-quarter revenue above 50 trillion won (€29bn) and operating margins north of 70%, figures unheard of for a chipmaker, and commands about 60% of the high-bandwidth memory (HBM) market, according to Counterpoint Research.

Yet the timing is delicate.

Memory has always been a brutally cyclical business. The AI-driven rally that transformed SK hynix has begun to wobble as chip stocks sold off sharply across Asia last week, and Samsung lost more than $100 billion (€87.5bn) in market value despite posting a record profit.

Investors are increasingly asking whether the vast sums being spent on AI infrastructure will earn a return, a question that the Bank for International Settlements raised in late June when it warned that the boom could seed the next financial crash.

Built, broken and rebuilt

Those concerns are not new for SK hynix.

SK hynix traces its roots to Gukdo Construction, founded in 1949, which moved into electronics in 1983 as Hyundai Electronics, an arm of the Hyundai empire.

The Asian financial crisis of the late 1990s brought disaster. Under an IMF-backed restructuring of the Korean economy, Hyundai absorbed rival LG’s semiconductor business, creating a giant that promptly buckled under its own debts.

Salvation came in stages.

Renamed Hynix Semiconductor in 2001, a contraction of “high” and “electronics”, the firm cut jobs, shed assets and split from Hyundai. Profits returned, but the violent swings of the DRAM market left it perpetually exposed.

Starved of capital, it was rescued in 2012 by the telecoms conglomerate SK Group, becoming SK hynix. The takeover proved decisive. SK Group poured money into high-bandwidth memory, then a costly and unprofitable technology that few believed in.

Today it has become the scarcest commodity in AI computing. And the firm employs nearly 46,900 people.

Additional sources • AFP

One UK city narrowly missed out on the top ranking.

Summer is here, and whilst many people flock to the beach for their holidays there’s just as much joy in a city break. City breaks are buzzing with excitement, and there’s so much to explore – especially if the city is walkable. According to Time Out’s 2026 global survey, Seoul in South Korea has topped the list as the world’s most walkable city.

Despite it being a huge city, Seoul has excellent infrastructure for pedestrians with almost 3,000 kilometres of pavements, wide pedestrian walkways and efficient crosswalk systems. According to Time Out’s survey, 93% of Seoul residents rated its walkability as “good” or “amazing” – the highest in the survey.

The city has some truly amazing walking paths, including the Cheonggyecheon Stream. This is a 10 km restored urban stream lined with a well-maintained walking path that links multiple metro stations and major attractions, making it the perfect place to wander and explore the city.

One visitor described the walk as an “oasis in the city” on Tripadvisor.

They wrote: “You can walk along its banks, which are below the main street, watch the ducks in the water and relax. When you get tired, you can also eat at the cafes.”

Another person said: “A stroll along the stream starting at Gwanghwamun where the stream emerges is a must do activity in Seoul.

“It is particularly vibrant in the early evening when locals take their evening exercise or simply sit alongside the steam, perhaps reading a book or talking with friends accompanied by the sound of moving water. Located below street level, sounds of the city become quickly muted.”

There’s also Seoullo 7017, a 1,074-metre elevated park converted from a former highway, that you can wander above the city. The walkway is best at night when the city lights are on, according to visitors.

One person wrote on Tripadvisor: “A pleasant walk over the hustle of the city. Markets are sometimes held at the weekend. It has a nice view of Seoul station, especially if you want to watch the sunset over the city.

“It’s also nicely lit after dark. Usually, a few people walking about and taking photos, but it never feels too busy.“

Although Seoul took the top spot, another UK city was a very close second on the ranking.

The Scottish capital of Edinburgh was ranked as the second-most walkable city in the world, with the almost same percentage of people rating the city’s walkability as “good” or excellent.

Edinburgh lost the top spot by only 0.08 percentile points.

Despite its hills and cobbled, winding streets, a lot of tourists visit Edinburgh specifically for its walks. Famous walks like Arthur’s Seat or Carlton Hill are popular choices, but the city is equally as enjoyable to walk through and dip into the many pubs and cafes on every corner.

Published on 07/07/2026 – 11:28 GMT+2•Updated
11:34

The South Korean technology giant Samsung said on Tuesday it expects operating profit of about 89.4 trillion won (€51bn) for the April-June quarter, roughly nineteen times the 4.7tr won (€2.7bn) it earned a year earlier and more than it made in the previous three years combined.

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The extraordinary numbers reflect the same force reshaping the memory industry worldwide: the race to build AI data centres has pushed chip prices to record highs.

According to Citi Research, average selling prices for DRAM memory rose 44% quarter on quarter, and NAND flash 53%, as AI demand spilled beyond specialised high-bandwidth memory into the conventional chips that go into phones, servers and PCs, with customers now chasing longer-term supply contracts.

The estimate beat analyst forecasts, but far from celebrating, the market sold.

Samsung shares fell by over 10% before closing nearly 7% lower, dragging rival SK Hynix and the wider Kospi index down with them.

Samsung’s stock has more than doubled this year alone, so a historic quarter was already priced in, and leveraged local ETF products tracking the shares have made them prone to outsized moves.

There was also a blemish in the numbers as revenue of 171tr won (€97.6bn), though up 129% year on year, came in slightly below forecasts.

“We believe the slight revenue miss was largely driven by more moderate DRAM price hikes than expected, which likely spooked investors who are increasingly pricing in structural strength in memory prices,” said Jing Jie Yu, an analyst at Morningstar.

Hanging over everything is durability.

Investors are increasingly asking whether the technology giants bankrolling the AI build-out can sustain their spending without piling up debt against a payoff that remains unproven, the worry behind last week’s chip sell-off across Asia.

Samsung publishes its full results, with a breakdown by division, on 30 July, a report the market will scour for clues about whether the boom is structural or simply another memory cycle nearing its peak.

Additional sources • AP

Published on
06/07/2026 – 11:38 GMT+2

The South Korean government intends to set aside the extra tax income flowing from its record-breaking chip industry in a dedicated “future response fund”, the presidential office said, using the proceeds of the AI boom to bankroll public projects ranging from industrial infrastructure to support for younger generations.

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Behind the windfall sit Samsung Electronics and SK hynix, whose memory chips have become essential to the data centres powering the global AI race.

Their record profits this year have propelled the wider economy, and swollen the government’s tax receipts along the way.

Presidential chief of staff Kang Hoon-sik outlined the plan at a meeting between the government and the ruling party on Sunday, saying the fund would help finance large-scale projects built around AI and semiconductors, while also tackling inequality and helping young people with housing, start-ups and work.

Kang warned that the extra revenue thrown off by the chip boom must not be squandered at what he described as a decisive moment for the country’s future.

No figure was provided for the fund’s size, as the government will consider its use at a fiscal strategy meeting this month before consulting the public.

In an interview with the Dong-A Ilbo newspaper, Kang added that part of the money would go towards the utilities on which chip plants depend, above all power and water.

A boom that keeps giving

The windfall reflects an extraordinary run for Korea’s chipmakers.

Samsung shares surged more than 170% in the first half of the year, and SK hynix shares rose more than 300%, carrying both companies past $1 trillion (€874bn) in market value.

Samsung is due to publish preliminary second-quarter earnings on Tuesday, while SK hynix plans to raise 45 trillion won (€25.7bn) through a listing on the Nasdaq.

Both are also part of an 800 trillion won (€457bn) public-private push, unveiled last week, to build a new chipmaking hub in the country’s southwest.

How the windfall should be spent has become a live political debate.

In May, presidential policy chief Kim Yong-beom floated using it for start-ups, young people, basic income schemes in rural and fishing communities, and support for artists.

The boom has also emboldened workers as Samsung averted a major walkout in May by agreeing to a bonus deal with its largest union.

Additional sources • AFP

South Korean president frames the push as a race against time to secure the country’s domination in AI boom.

South Korea has laid out a sweeping industrial strategy focused on semiconductor chips and artificial intelligence projects as President Lee Jae Myung pledges to cement overwhelming industry leadership with investments of hundreds of billions of dollars over several years.

Flanked by the heads of the world’s two biggest memory chipmakers, Lee cast the initiative on Monday as a “great leap forward” centred on the “triple axis” of semiconductors, physical AI and data centres.

“We must secure the core elements of AI faster than any other country,” the president said in a televised address.

The world’s two largest memory chipmakers, Samsung Electronics and SK Hynix, will invest 800 trillion won ($518bn) with suppliers to build two new chip fabrication sites each in South Korea’s southwest, Industry Minister Kim Jung-kwan said.

Lee said the country’s southwestern city of Gwangju and South Jeolla province will also invest 5 trillion to 20 trillion won ($3.2bn to $13bn) in the projects. Kim said a further 81 trillion won ($52.5bn) is expected to be invested for a chip-packaging cluster in the Chungcheong area near Seoul.

The government also unveiled plans to build AI data centres in the region, backed by 550 trillion won ($356bn) in investments from the SK Group, GS Group and Naver.

“By 2035, an additional 10-gigawatt AI data centre will be built with a total investment exceeding 18.4 gigawatts and 1,000 trillion won,” or $648bn, Science Minister Bae Kyung-hoon announced.

The announcement marks the government’s boldest push yet to align South Korea’s AI and chip ambitions with Lee’s pledge to narrow regional disparities and revive economies beyond the Seoul metropolitan area.

The opposition has criticised the plan, arguing that his government’s decision to locate a second semiconductor cluster in Honam, the traditional electoral stronghold of his liberal Democratic Party, is driven more by regional politics than by industrial logic.

They have accused the government of pressuring memory chipmakers to invest in the region to bolster political support rather than allowing companies to choose the most commercially viable locations.

As part of the overall initiative, the southwest would be the home of new, large chip production clusters, Lee said, in part to use the rich power resources yet untapped there.

The president defended the proposed southwestern chip hub in a series of X posts over the weekend, rejecting criticism that it favours a region where 85 percent of voters backed him in last year’s presidential election.

South Korea’s dismal World Cup first-round exit has prompted fury at home, and calls for a complete overhaul at the top have not been silenced by coach Hong Myung-bo’s resignation.

South Korea, World Cup semifinalists as cohosts in 2002, limped out of the tournament after failing to squeeze into the knockout rounds as one of the top eight third-place finishers.

They had the last 32 within their reach only to suffer a shock 1-0 loss to lower-ranked South Africa.

Their early exit prompted coach Hong to quit on Sunday and cast doubt over the international future of captain Son Heung-min.

It also earned the team a rebuke from the country’s president, Lee Jae Myung, who pointed the finger at “incompetent people” and apologised to the nation.

The president’s comments reflect public anger that has reached a boiling point after years of simmering discontent with South Korean football chiefs.

Former captain Park Ji-sung said, “We may have expected this outcome years ago.

“We have to look back and ask ourselves why things have come to this,” the former Manchester United player said after the team’s elimination was confirmed.

“Even after spending a decade learning how to prepare for the World Cup and develop Korean football, we have forgotten those lessons once again.”

South Korea was expected to emerge from Group A that included cohosts Mexico, South Africa and Czechia.

They started with a 2-1 win over the Czechs but lost 1-0 to Mexico before bowing out against South Africa.

The team were expected to arrive home on Tuesday morning, but local media reported that the Korea Football Association (KFA) were not planning to organise an event to welcome them back.

In 2014, angry fans pelted the team with Korean candies – seen as a deeply offensive insult – when they returned from the World Cup in Brazil, where they went out in the group stage during Hong’s first spell as coach.

‘Message to change’

Hong has been a lightning rod for criticism since he returned to the job in July 2024, five months after his predecessor, German World Cup-winner Jurgen Klinsmann, was axed.

The KFA came under fire for the process that led to Hong’s reappointment, with questions asked over its transparency and fairness.

Hong, who was regularly booed by fans, did himself no favours at the World Cup by dropping star player Son for the South Africa game, in which South Korea needed only a point to progress.

Hong admitted afterwards that he was struggling to understand what had gone wrong, as the nation nervously waited for results in other games to decide their fate.

Lee Chun-soo, a member of the 2002 World Cup team, said he “felt pathetic and frustrated rooting for Uzbekistan” against the Democratic Republic of the Congo in the hope that the result would send South Korea through.

“This is a message to change,” Lee said on his YouTube channel. “Everyone should be ready to step down.”

South Korean fans reserved a sizeable chunk of their anger for KFA President Chung Mong-gyu.

Chung said before the World Cup that he would quit after the tournament, blaming his “lack of virtue” following fierce criticism of his 13-year tenure.

The 65-year-old, who is in his fourth term as KFA president, came under fire for trying to pardon former players who were banned for life for match-fixing.

Chung and Hong might not be the only ones to bow out, with captain Son yet to comment on his future.

The skipper, who turns 34 next month, had previously hinted at retiring from international football.

Former captain Park said South Korea needed to learn from the past.

“It’s unfortunate that this kind of cycle keeps repeating,” he said.

“We must dream of and shape a better future, and move forward step by step so that we don’t repeat these mistakes.”