Latest news with #Korea-specific
AllAfrica
31-07-2025
- Business
- AllAfrica
US tariff deal clears way for Korea's stablecoin dream
TOKYO – As new South Korean President Lee Jae Myung sets out to revamp Asia's fourth-biggest economy, he can cross direct US tariff risks off the list of possible spoilers. Korea's tariff deal with the US removes a gigantic element of uncertainty as Lee gets to work raising Korea's economic game. Though the 15% tax on US-bound goods will hurt, getting the uncertainty factor out of the way will enable Korea Inc to move forward. 'It is a case of the worst avoided, with a pinch of relief removing Korea-specific tariff risks,' says Kathleen Oh, chief Korea economist at Morgan Stanley. 'It puts Korea on level ground with its export competitors in the US, especially for autos.' Eurasia Group analyst Jeremy Chan notes that Korea's agreement hews closely to the deal signed by Japan one week ago and is in line with his view that major US trading partners will be handed around 15% tariff rates. Korea's US$350 billion investment fund mirrors the $550 billion fund announced in Japan's agreement, Chan notes. About 90% of the profits from the fund will reportedly go to the US—the same ratio that Japan received—which Korean officials interpret to mean that 90% of the fund's profits will be re-invested in the US. Like Japan, Chan notes, Korea's fund will be made up almost entirely of loans and guarantees, with direct investment comprising only a very small portion. Korea's commitment to purchase $100 billion in US energy exports will likely include offtake agreements for the Alaska LNG pipeline project that Japan is also exploring. Now Lee will likely have the bandwidth to focus on his newest preoccupation: digital assets. Korean lawmakers are brawling over stablecoins, and the brouhaha couldn't be better for the nation's sudden embrace of the global digital assets boom. The clash is less about whether Korea should become one of the region's crypto-friendly economies in Asia. It's about how to implement the new president's vision for the broad-based issuance of won-backed stablecoins and give digital asset innovation a prominent place globally. Korea joins Hong Kong in efforts to ramp up issuance via legislation. These legislative moves aim to avoid putting the cart before the proverbial horse in a nascent market sure to upend global currency dynamics. Creating trusted and transparent regulatory and licensing regimes will be key to building broader acceptance for the industry. In Seoul's case, Lee's Democratic Party of Korea (DPK) and the opposition People Power Party (PPP) are pushing competing stablecoin bills in the National Assembly. DPK member Ahn Do-gil introduced the Act on the Issuance and Distribution of Value-Stable Digital Assets, while the PPP's Kim Eun-hye proposed the Act on Payment Innovation Using Value-Fixed Digital Assets. Lee's push marks his first real economic pivot from the disgraced Yoon Suk Yeol administration. In early April, the courts removed Yoon from office. This was five months after his reckless martial law declaration in December, for which PPP member Yoon was impeached. When Lee's DPK won election in June, the immediate goal was to make up for lost time to stabilize Asia's fourth-biggest economy. Several months of political wrangling over Yoon's fate were a lost period for moves to raise Korea's competitive game. In the interim, the economy shrank in the first quarter as the Kospi stock market gyrated. That left the Bank of Korea largely in the driver's seat. Yet Lee's stablecoin focus suggests his administration has hit the ground running. Typically, Korean regulators are among the most cautious in Asia. All of which makes the Lee administration's stablecoin gambit all the more unexpected. As DPK lawmaker Min Byung-deok, a member of the National Assembly's Political Affairs Committee, puts it, legislation now under consideration would allow non-financial companies to issue won-denominated stablecoins — and to do so beyond the Bank of Korea. The catch is that digital assets would operate under a clear legal framework. Another catch: the BOK may still require some convincing. It worries Lee's stablecoin vision will increase capital outflow risks. Among legislators, provisions would also facilitate security token offerings (STOs) and pave the way for the creation of, and transacting in, spot market exchange-traded funds (ETFs) backed by virtual assets. 'The STO bill will first go through the standing committee next month,' Min says. Min adds that the presidential office's chief policy aide, Kim Yong-beom, a blockchain expert, is 'largely supportive of the bills.' Korea isn't setting the stage for a crypto free-for-all. It plans to tweak strict foreign currency transaction laws accordingly and strengthen oversight in the crypto market by the BOK and the Ministry of Economy and Finance. The BOK must be empowered to play its role in maintaining financial stability,' says DPK member Ahn. 'If stablecoins are used abroad, they become a form of foreign exchange. That means the finance ministry needs a legal foundation to exercise its authority.' Ahn says the process will also be coordinated by the Financial Services Commission. President Lee's team has ordered up a task force on stablecoin implementation. Lee's timing with these crypto reforms could be particularly favorable, as Korea Exchange is exploring digital ETFs, hoping to allow institutions to begin trading them as early as the third quarter. Korea also joins Hong Kong in enjoying something of a first-mover advantage in one of the hottest areas of global finance, one still arguably in the frontier stages. According to Paul Chan, Hong Kong's financial security, the global market value of stablecoins is estimated at about $240 billion, with trading volume topping $20 trillion in 2024. In Korea's case, voters gravitated to Lee's crypto-friendly platform. As of the end of 2024, Koreans held some $74.5 billion worth of digital assets. On the campaign trail, Lee pledges to legalize and nurture digital ETFs, promote the widespread adoption of Korean won-backed stablecoins, streamline regulations to prevent capital flight and even allow the massive $884 billion National Pension Service to invest in digital assets. Yet Lee must multitask in a hurry. Lee inherited an economy under pressure from global tariffs. Despite the US tariff deal, Trump has yet to reach a deal with China. Even as Seoul takes a breather after notching tis tariff deal, it must brace for the shock waves if China refuses to grant Trump the 'grand bargain' deal he seeks. That could see Trump turning his tariff policies up to 11, slamming Korea's open, trade-reliant economy. Over the last six months, BOK Governor Rhee Chang-yong's rate cuts have been the glue holding a fragile economy together. Yet as the BOK cuts rates, it's been limited by domestic constraints. Further rate cuts might encourage households to up borrowing activity. Korea's household debt-to-gross domestic product ratio of 91.7% was the second highest among major nations at the end of 2024. That's the second highest among 38 Organization for Economic Cooperation and Development nations. Any step lower in BOK rates risks incentivizing households to increase debt, adding to Korea's biggest imbalances. The vacuum Yoon created left BOK's team squarely in the driver's seat. More and more, the central bank took the lead in managing one of the globe's most open and dynamic major economies.
India Gazette
25-05-2025
- Politics
- India Gazette
All-Party Indian delegation in Seoul highlights zero tolerance for terrorism
Seoul (South Korea), May 25 (ANI): Group 3 of India's all-party parliamentary delegation, led by JD(U) MP Sanjay Kumar Jha, held a meeting with Ambassador of India to the Republic of Korea, Amit Kumar, at the Indian Embassy in Seoul. The delegation also includes Trinamool Congress MP Abhishek Banerjee, CPI(M) MP John Brittas, BJP MP Aparajita Sarangi, BJP MP Brij Lal, BJP MP Pradan Baruah, Ambassador Mohan Kumar, and BJP MP Hemang Joshi. The visit marks a continuation of Operation Sindoor, India's diplomatic outreach following the recent terror attacks in Pahalgam. The Embassy of India in Seoul posted on X: 'The All-Party Parliamentary Delegation, led by Hon'ble MP Mr. Sanjay Kumar Jha, began their engagements on Operation Sindoor with a briefing by Ambassador Amit Kumar. He highlighted the Korea-specific approach to scheduled engagements, setting the context for a strong messaging of India's stance of zero tolerance against terrorism.' Arriving in Seoul after completing its visit to Japan, the delegation was welcomed by the Indian Embassy as part of India's ongoing campaign to highlight its unified front against terrorism. Earlier on Saturday, in a post on X, the Embassy stated, 'The All-Party Parliamentary Delegation, led by Hon'ble MP Mr. Sanjay Kumar Jha, arrived in Seoul as part of India's diplomatic outreach on Operation Sindoor. India stands committed to fight terrorism in all its forms and manifestations.' Prior to their arrival in Seoul, the delegation had paid tributes to Mahatma Gandhi and Rash Behari Bose in Tokyo, marking the birth anniversary of the freedom fighter. The Embassy noted, 'Hon'ble Member of Parliament Shri Sanjay Kumar Jha, Head of the All Party Parliamentary delegation paid floral tributes to freedom fighter Rash Behari Bose at Tama Cemetery, Tokyo, on the eve of his birth anniversary. The delegation's visit to Japan began with tributes to Mahatma Gandhi and concluded by paying tributes to Rash Behari Bose. Drawing inspiration from the unwavering courage of our freedom fighters, India today stands united with a resolve to combat terrorism in all its forms. Never Forget Never Forgive.' The Embassy also described interactions between the delegation and Indian diaspora members in Japan, where the delegation discussed the April 22 Pahalgam terror attack, Operation Sindoor, and India's zero tolerance stance on terrorism. According to the Embassy, 'The delegation presented a unified front of India, clearly explained the role of Pakistan in the gruesome terror attacks in Pahalgam on April 22 and how India, through Operation Sindoor, destroyed the terror bases in Pakistan and Pakistan-occupied Kashmir. They emphasized India's zero tolerance to Terrorism and conveyed the message that terror and talks cannot go together; blood and water cannot flow together,' the statement said. (ANI)
Korea Herald
29-04-2025
- Business
- Korea Herald
AmCham seminar explores ways to improve Korea's regulatory landscape
The American Chamber of Commerce in Korea announced that it held a seminar focused on Korea's business regulatory landscape, seeking ways to strengthen business partnerships between Korea and the US and foster closer ties between the two countries. The seminar, titled Shaping the Regulatory Environment for Sustainable Trade, was held at the Conrad Seoul Hotel in Seoul on Tuesday. It aimed to explore strategies to enhance Korea's appeal as an investment destination, according to AmCham. AmCham stated that discussions centered on regulatory innovation, the expansion of sustainable investment, and stronger collaboration between the public and private sectors to improve Korea's global competitiveness. Special attention was given to regulatory hurdles facing key industries such as biopharmaceuticals, the digital economy, energy and chemicals during the seminar. 'As we mark 100 days into President Trump's administration and prepare for Korea's presidential election, the US-Korea economic partnership stands at a critical juncture,' said AmCham Chair James Kim in his opening remarks. 'To sustain and deepen our cooperation, it is more important than ever to address Korea-specific regulatory challenges and create a more sustainable, transparent environment.' The event brought together a broad range of trade-related figures from politics, government, diplomacy and business, including Korean Trade Minister Cheong In-kyo; Rep. Kim Won-i, vice chair of the National Assembly's Trade, Industry and Energy and Small and Medium Venture Business Committee; Joy Sakurai, deputy chief of mission at the US Embassy in Seoul; and Park Il-joon, executive vice chair of the Korea Chamber of Commerce and Industry. While business leaders shared their views on driving innovation in Korea during the seminar, the trade minister pledged to foster a more predictable and sustainable investment environment. 'As the Chair of the Asia-Pacific Economic Cooperation ministers responsible for trade meeting, the Ministry of Trade, Industry and Energy is fully committed to defending a free and fair trade system and enhancing Korea's investment attractiveness through regulatory reform and improvements to the business environment,' said Minister Cheong. 'We will continue to engage closely with AmCham and the global business community to deepen the economic partnership between Korea and the US.'
Korea Herald
25-03-2025
- Climate
- Korea Herald
Not just climate, but local factors contribute to Korea's wildfire crisis
Korean forests' high concentration of pine trees cited as one factor behind ongoing wildfire crisis Following a wave of megafires worldwide, South Korea's ongoing battle against massive forest fires seems to serve as another evidence of wildfire risks linked to climate change. But local experts say that there are Korea-specific issues in addition to global climate factors: the very dry spring weather and high concentration of pine trees in Korean forests. According to the Korea Forest Service, nearly 30 wildfires broke out mostly in southeastern regions of South Korea in the past few days, with a major blaze starting in Sancheong, South Gyeongsang Province, on Friday, followed by additional fires in Uiseong, North Gyeongsang Province and Ulju, Yeongnam. Despite firefighting efforts, the flames area continuing to spread across the mountainous terrain. The government said the fires are being prolonged by unusually dry spring weather, lower-than-average precipitation, high temperatures and strong winds. In Uiseong, average rainfall in January is typically 15.5 millimeters, but this year it received just 7.4 millimeters. February saw an even more drastic decline, with just 4.8 millimeters of precipitation, compared to a historical average of 22.6 millimeters. A dry weather advisory has been in effect for days across both North and South Gyeongsang Provinces. Uiseong recorded unseasonably high temperatures — 25.2 degrees Celsius on Saturday and 26.4 degrees the following day — more typical of early summer than spring. Gusts reaching up to 17.9 meters per second further intensified the spread of the fires. Another contributing factor is the aging and overgrown state of the nation's forests. While past reforestation projects have made mountains lush again, experts say the lack of thinning has left them vulnerable, essentially turning them into tinderboxes. Korean forests are predominantly made up of pine trees, which burn more easily than hardwood. These coniferous trees tend to ignite easily and facilitate crown fires, where flames jump from treetop to treetop. Firebrands — burning embers carried by the wind — also spread more easily in such conditions. Won Myung-soo, head of the state-run National Forest Satellite Information Utilization Center, explained that the resin contained in pine needles can intensify the flames. 'When it comes into contact with flames, it makes the fire more aggressive and stronger,' he told YTN, adding that the forest agency has been working to convert pine tree forests into mixed forests, which are more resistant to wildfires. Experts have called for more aggressive efforts to make Korea's forests, which cover nearly 70 percent of the country's territory, more fire-resistant by planting more broad-leaved trees. Choi Byung-sung, executive director of the Climate Disaster Research Institute, told Kukinews that Japan and China — which share similar climates with Korea — have seen a decline in large-scale wildfires due to long-standing efforts to plant hardwood forests. 'In contrast, Korea's forests are still dominated by highly flammable conifers like pine, which is a key reason for these destructive fires,' Choi said.
Korea Herald
13-03-2025
- Business
- Korea Herald
KT enters Palantir's ecosystem, expanding AI transformation capabilities
Following its strategic partnership with Microsoft in September, KT Corp. is continuing its aggressive global expansion by forging a new alliance with Palantir Technologies, a constituent of the S&P 500 index. The telecom carrier said Thursday it has signed a strategic partnership agreement with artificial intelligence platform company Palantir to accelerate AI transformation, or AX, initiatives. Palantir is a software platform developer specializing in large-scale data integration and analysis that aids government and corporate decision-making. The company provides AI-powered platforms to the US Department of Defense and collaborates with intelligence agencies such as the CIA and FBI. Its solutions are widely applied in security, defense and cybersecurity sectors. As a result of the recent partnership, KT becomes the first Korean company to join Palantir's Worldwide Partner Ecosystem, a global network of business and technology experts. The collaboration will focus on launching joint ventures in Korea's AX market, particularly within the financial sector. By integrating KT's cloud and network infrastructure with Palantir's key AI solutions, the two companies aim to deliver tailored services that enhance security and regulatory compliance in industries where such factors are critical. The two companies will also cooperate on the development of KT's secure public cloud, set for commercialization in the second quarter of this year. KT SPC is a cloud platform designed to facilitate AX by offering a packaged infrastructure and customized AI services. Through the partnership, customers using KT SPC will gain access to Palantir's solutions within a highly secure environment. Palantir's mission to streamline operations through data integration aligns with KT SPC's strategy to implement AX across public, defense and industrial sectors, making the partnership a natural fit. Additionally, the two firms will co-develop a Korea-specific AI platform education program, dubbed AIP Bootcamp, and provide AI and data competency training for KT employees. AIP Bootcamp, which was conducted about 1,300 times in the US last year, will be adapted to the Korean market to enhance customer understanding and use of Palantir solutions. For KT employees, the partnership will provide opportunities for collaborative projects with Palantir's global engineers. The US software company will also train KT workers on its proprietary solutions and services. KT plans to integrate Palantir's software internally to enhance business quality and optimize operational processes. KT's pursuit of global collaboration stems from its urgency to generate tangible results as its AI and ICT enterprise. While Korean telecom companies have declared AI-driven transformations, none have yet realized substantial monetization. By partnering with leading global firms, KT aims to develop competitive solutions that generate revenue. Earlier this month, KT CEO Kim Young-shub reaffirmed this commitment at Mobile World Congress 2025, in Barcelona, Spain, stating, 'We will accelerate efforts to achieve visible outcomes with Microsoft this year.' KT anticipates that the commercialization of its Korean-adapted AI, based on GPT-4o, and KT SPC in the second quarter will mark a critical turning point for monetization. 'By collaborating with Palantir, we will position ourselves as Korea's leading AX accelerator with overwhelming competitive strength in domestic and international markets,' the telecom carrier chief said.
