1. Korea-U.S. Relations and Foreign Policy: • Policy Shift: President Lee Jae-myung announced a departure from past "pro-China" policies, committing to strengthening the Korea-U.S. alliance. • North Korea: President Trump expressed willingness to meet Kim Jong-un, potentially resuming US-North Korea dialogue, and welcomed President Yoon's (referred to as Lee Jae-myung in some sources) three-step approach ('freeze→reduction→elimination'). • Economic Cooperation & Investment: ◦ Korean companies plan a total of $150 billion (approx. 209 trillion won) investment in the U.S.. ◦ Hyundai Motor Group will invest an additional $5 billion in robotics, totaling $26 billion in the U.S.. ◦ Korean Air will purchase 103 Boeing aircraft for $36.2 billion (approx. 70 trillion won total U.S. investment). ◦ Samsung Electronics plans $37 billion for a foundry plant and R&D facilities in Texas. ◦ Korea Gas Corporation agreed to import 3.3 million tons of U.S. LNG annually starting in 2028, a 26 trillion won deal. ◦ An MOU was signed for the 'MASGA Project' to cooperate in the shipbuilding industry, involving HD Hyundai and Samsung Heavy Industries. ◦ Doosan Enerbility is collaborating with the U.S. on Small Modular Reactor (SMR) development with Amazon Web Services (AWS). • Diplomatic Exchanges: Presidents Lee and Trump exchanged gifts, including a custom-made golf putter and a metallic turtle ship from Lee, creating a positive atmosphere. • Challenges: Sensitive issues such as tariff adjustments, the role of U.S. troops in South Korea, and the establishment of Sino-Korean relations remain. The U.S. may continue to demand opening agricultural markets. • Political Reactions: The Democratic Party praised the summit as "120 out of 100," while the People Power Party criticized it as "the worst diplomatic disaster". 2. Domestic Politics (South Korea): • People Power Party Leadership: Jang Dong-hyuk (56) was elected as the new leader, pledging to unite the right-wing to "bring down the Lee Jae-myung regime". He aims to reorganize the party and win upcoming local elections. • Kim Geon-hee Indictment: Kim Geon-hee is scheduled to be indicted on August 29 for alleged violations of the Capital Market Act, Political Fund Act, and bribery mediation, marking the first time a First Lady faces such charges. • Minister of Education Nominee Controversy: Choi Kyo-jin is facing controversy over past derogatory social media remarks, sharing Cheonan sinking conspiracy theories, a 2003 drunk driving record, and plagiarism allegations in his master's thesis. • Prosecutorial Reform: Justice Minister Jeong Seong-ho emphasized caution in prosecutorial reform, pushing for separation of investigation and prosecution but advising against hasty changes. 3. Economy & Industry: • R&D Investment: The 2025 R&D budget is set at 35.3 trillion won, a 19% increase, focusing on AI, semiconductors, and biotechnology. • Electric Vehicle Subsidy: The subsidy for electric vehicles is expected to increase from 3 million won to approximately 4 million won per vehicle starting in 2024. • Yellow Envelope Law Impact: The law's passage led to a surge in robot-related stocks (up 10%) as companies are expected to increase robot deployment instead of new hires due to expanded union powers. • SK Hynix: Credit rating outlook upgraded to 'Positive' by S&P and Fitch due to strong financial performance and HBM diversification. • Samsung Smart Factory: Samsung Electronics' support helped Naturgreen automate pickled radish production, increasing daily output by 39%. • Korea Zinc: Signed a germanium supply contract with Lockheed Martin, becoming the first domestic producer and diversifying strategic mineral supply chains away from China. • LG Innotek: Held 'Inno Connect' in Chicago to recruit overseas AI, autonomous driving, and robotics talent. • Doosan Enerbility: Partnered with Amazon Web Services (AWS) for SMR business and plans to participate in an AI campus project in Texas. • GS Construction: First Korean construction company to adopt OpenAI's 'ChatGPT Enterprise' for high-level tasks and safety detection. • Rico (Upbox): Waste management service 'Upbox' secured 58.5 billion won Series C investment, including from IKEA's parent company. • Seoul Semiconductor: Won a Supreme Court lawsuit against Taiwan's Everlight for LED technology infringement, emphasizing strong determination against technology theft. • Hanseom: Expanding into French department stores Samaritaine and Galeries Lafayette with "Time Paris" and "System Homme" brands. • Geunwoo: Electrical equipment specialist with patented Safety Replaceable Distribution Board (SRDP), aiming for 500 billion won sales by 2030 and KOSDAQ listing. • iM Securities: Achieved 52.5 billion won net profit in the first half of the year, ending a two-year loss streak through restructuring. • Pangen: Acquired by Huons, expects growth in biosimilars and CDMO services, with EPO product exports up 80%. • iFamilySC: Cosmetics company reported 18% revenue increase in Q2 due to expansion into Western markets (America up 76%, Europe up 49%). • SK Gas: Plans to raise at least 300 billion won by selling approx. 30% stake in Ulsan GPS, a dual-fuel combined cycle power plant. • Duksin EPC: Expanding into the U.S. building materials market with integrated deck plates. • Petrochemical Industry: Faces a 2.5 trillion won refinancing burden by year-end and government calls for structural reforms. • Short Selling: The domestic stock market is in a 'boxed market' with short selling balance exceeding 10 trillion KRW for two consecutive months, indicating investor expectation of further stock price declines. • Overseas Financial Accounts: Reporting of overseas financial accounts surged by over 45% compared to last year, totaling 94.5 trillion won, driven by rising values of overseas stocks and virtual assets. • Card Companies: Facing declining profitability, card companies are boosting auto financing products, with a total handling amount of 2.6472 trillion won in H1 2023, up 8.2% YoY. 4. Policy & Urban Development: • Small Business Support: Government launched a 30 billion won free 'Cooperative Insurance' program for small businesses. Rent reductions for small business tenants of shared property are expanded to include economic crises, allowing reductions of up to 80%. • Seoul's 3D Parks: Seoul will implement a 3D park system utilizing spaces above buildings to accelerate housing supply, referencing Tokyo's Miyashita Park. • Apartment Supply: Next month will see the largest apartment supply in two years with 39,000 units nationwide, including 11,852 units in metropolitan areas. • Youth Assurance Housing: Seoul will advance funds to households suffering deposit losses in social housing and revoke registration for non-compliant operators. • Eviction Loans: Financial authorities and banks are in a blame-shifting scenario regarding the unavailability of eviction loans, causing hardship for tenants. • Gyeonggi Province US Military Base Development: Gyeonggi Province established a 300 billion won fund for developing returned U.S. military bases, aiming to create new economic growth drivers. 5. Technology & Innovation: • AI Music: Artists like Kim Chang-yeol and DJ Shin-cheol are preparing new songs using AI, highlighting opportunities and copyright concerns in the emerging AI music genre. • Nvidia Robotics: Nvidia unveiled 'Jetson AGX Thor', a new robotics chip module ($3,499) to serve as the 'brain' for industrial robots, based on the Blackwell GPU architecture. • LG Uplus AI for IPTV: LG Uplus implemented an AI system to proactively monitor and resolve IPTV failures, reducing customer complaints by 10% in trials and aiming for a fully autonomous management system by 2026. • Jang Young-sil Award: Recognized H.L. Bio for the world's first urine-derived stem cell treatment for chronic kidney disease and E.Y.C. & C. for thermal paint technology reducing energy consumption. 6. Social & Cultural Issues: • Fraud Victimization: Last year, fraud victims increased by 48.8% to 665,924, with total property loss reaching 27.76 trillion won (up 50%), driven by organized digital crimes. • Driving License Renewal: As of September 1st, expired driving licenses cannot be used for identity verification services to prevent identity theft and financial crimes. • Venice Film Festival 2025: Park Chan-wook's "There's Nothing We Can Do" starring Lee Byung-hun is in competition, alongside other novel adaptations and Netflix original films. • "The Last Queen" Opera: Premieres November 19-20, telling the story of Joseon's last crown princess Lee Bang-ja, commemorating 60 years of Korea-Japan diplomatic normalization. • Uber Taxi: Launched 'Uber One' subscription service for 4,900 KRW/month, offering up to 10% back on taxi fares and priority dispatch. • Purplelicity: Introduced 'Comet Plus' subscription service, allocating 80% of fees to news outlets for content use, addressing AI-media copyright tensions. 7. Global Developments: • Federal Reserve Pressure: President Trump dismissed Federal Reserve Board member Lisa Cook, intensifying pressure on the Fed and raising concerns about its independence, potentially leading to more pro-Trump figures influencing monetary policy. • Japan's US Investment: Japan agreed to document a substantial $550 billion investment in the U.S. to establish supply chains for semiconductors, antibiotics, and rare earth elements, and will seek reciprocal tariff exemptions. • Middle East Shift: The Israel-Iran war (June 2023) led to a decisive Israeli victory, weakening Iran's Shia coalition and ushering in a new Sunni-led order. The U.S. played a mediating role, while China remained largely a bystander.
