BOK pauses rate hikes as inflation, debt concerns linger

The Bank of Korea held its key interest rate at 3 percent Thursday, pausing after two consecutive hikes as persistent inflation and financial stability risks complicated the policy outlook. The central bank raised rates by 25 basis points in both July and August before opting to stand pat this month. Inflation remains a key concern. Consumer prices rose 2.9 percent on-year in September, easing from 3.1 percent in August but remaining well above the BOK's 2 percent target. Higher oil prices, driv

Oct. 22, 2026

Vice budget minister calls Future Fund 'fiscal innovation' for future growth

South Korea's vice budget minister said Thursday the country's proposed Future Fund, set to launch next year with funding sources including windfall tax revenue from chipmakers, will serve as "fiscal innovation" paving the way for future growth. Vice Budget Minister Cho Yong-beom made the remark during a policy symposium on the Future Fund hosted in Seoul by the state-run Korea Institute of Public Finance, describing the fund as "a platform for strategic investment," according to the Ministry of

Oct. 22, 2026

BOK holds key rate steady at 3% after 2 consecutive rate hikes

The Bank of Korea kept its benchmark interest rate unchanged Thursday following two consecutive rate hikes to tame accelerating inflation amid protracting Middle East tensions and robust exports. In a widely anticipated decision, the BOK's Monetary Policy Board held the key rate steady at 3 percent in its rate-setting meeting. The rate freeze came after the BOK raised the benchmark rate in its July and August meetings, citing "preemptive action" to curb mounting inflationary pressure and ensure

Oct. 22, 2026

Seoul shares open lower amid persistent AI woes

South Korean shares opened lower Thursday, after the previous session's sharp gains as investors weighed concerns over the profitability of artificial intelligence infrastructure investments. After opening 1.14 percent lower, the benchmark Korea Composite Stock Price Index fell 24.68 points, or 0.46 percent, to 5,710.98 as of 9:15 a.m. Overnight, US stocks closed mixed as AI-related shares rebounded following SpaceX's quarterly results. The Dow Jones Industrial Average rose 0.69 percent, while t

Oct. 22, 2026

Alaska LNG project costs could far exceed estimates, report warns

A $44 billion-plus LNG project in Alaska that Washington is pressing South Korea to back could face sharply higher costs, a consulting report warns. The report, submitted to Alaska lawmakers in January, came under renewed scrutiny Wednesday as questions grow about the project’s financial viability and the risks it could pose to potential investors, including South Korea. Energy consultancy GaffneyCline, in a report for the Alaska Senate Resources Committee, found that cost estimates for the Alas

Oct. 21, 2026

Seoul stocks rebound over 3% on eased AI spending woes

South Korean stocks rebounded Wednesday, recovering from the previous session's steep losses as semiconductor shares rallied on easing concerns over artificial intelligence spending. The Korean won strengthened against the US dollar. The benchmark Korea Composite Stock Price Index gained 182.92 points, or 3.29 percent, to close at 5,735.66 after rising as high as 5,816.43. The sharp rally prompted the Korea Exchange to activate a buy-side sidecar shortly before 11 a.m., temporarily suspending pr

Oct. 21, 2026

AmCham hosts US envoy, military chief for security, economic talks

The American Chamber of Commerce in Korea brought together US Ambassador to South Korea Michelle Park Steel and US Forces Korea Commander Gen. Xavier T. Brunson on Wednesday to discuss strengthening the bilateral alliance through defense cooperation and economic security. The luncheon, held at Mondrian Seoul Itaewon to mark the United States' 250th anniversary, drew about 200 representatives from Korean and international businesses. In a discussion moderated by AmCham Chairman and CEO James Kim,

Oct. 21, 2026

China talks up EUV progress, but gap with ASML remains wide

China is touting a breakthrough in one of the semiconductor industry's toughest technologies: extreme ultraviolet lithography. But how close is it really to challenging global chipmaking leaders? Chinese startup Langdao Silex recently unveiled a prototype EUV light source built with what it claims are 90 percent domestically made components, promising commercialization within three to five years. Yet its reported performance falls far short of commercial requirements, and experts doubt China can

Oct. 21, 2026

Were Korean authors' books used to train Claude?

Books by South Korean authors, including Nobel laureate Han Kang and Hwang Sok-yong, were among the works listed as eligible for compensation in a copyright settlement involving Anthropic, the US artificial intelligence company behind the chatbot Claude. The Literature Translation Institute of Korea said it had identified at least 21 English-language editions of books by Korean authors on a list of works eligible for compensation under the settlement. The institute has notified the authors conce

Oct. 21, 2026

Nomura, JPMorgan bullish on Korean chips despite Kospi swings

Despite wild Kospi swings, brokerages are doubling down on Korean chip stocks, betting the AI-driven memory boom has much further to run. The benchmark index has seesawed in recent sessions, with chip heavyweights Samsung Electronics and SK hynix at the center of the turbulence as investors reassess the outlook for AI demand. On Thursday, the Kospi plunged 7.57 percent, triggering a 20-minute marketwide trading halt. But sentiment swung back Wednesday, when Samsung and SK hynix each surged more

Oct. 21, 2026

LIG D&A hit with 2-year bidding ban over bribery case

LIG D&A faces a major setback to its domestic defense business after South Korea's arms procurement agency imposed a two-year bidding ban over alleged bribery, prompting the company to prepare a legal challenge. The Defense Acquisition Program Administration said Tuesday that its contract review committee had approved the maximum two-year suspension from government defense procurement bids under the State Contracts Act. The agency cited what it described as its largest bribery case on record, re

Oct. 21, 2026

Taihan names new CEO to drive US, Europe expansion

Taihan Cable & Solution has appointed Kim Jun-seok as its new CEO, as the Korean cable maker seeks to accelerate global expansion and strengthen its high-voltage direct current and submarine cable businesses. Kim played a key role in Hoban Group's acquisition of Taihan in 2021 and subsequently led corporate strategy and business expansion. Since 2023, he has served as executive vice president and head of the management division, overseeing operations, restructuring and investment. As CEO, Kim wi

Oct. 21, 2026

LG Chem eyes 2029 trials for personalized cancer vaccine

LG Chem said Wednesday it aims to begin clinical development of a personalized mRNA cancer vaccine in 2029, leveraging artificial intelligence to accelerate drug discovery and identify patients most likely to benefit from treatment. The Korean chemical and pharmaceutical company unveiled its strategy Tuesday at the inaugural LG AI Bio Conference in Seoul, co-hosted with LG AI Research and US biotech venture capital firm Flagship Pioneering. LG Chem is developing AI models to identify biomarkers

Oct. 21, 2026

LG CEO touts efficient cooling for AI infrastructure

LG Electronics CEO Lyu Jae-cheol says that more efficient cooling could help AI data centers devote more of their limited electricity supply to computing, as the company expands its cooling infrastructure business. In a Forbes article published Monday, Lyu said increasingly powerful AI chips were putting pressure on data centers' electricity, water and space resources, making conventional measures of energy efficiency insufficient. One widely used measure, power usage effectiveness, compares a d

Oct. 21, 2026

Quantum Aero targets global market with sovereign AI platform

Defense startup Quantum Aero is looking to take its autonomous flight technology beyond the battlefield and into the global market after being selected as a 2026 Hi-Seoul company, a designation for promising small and medium-sized enterprises in Seoul. The Hi-Seoul program, jointly operated by the Seoul Metropolitan Government and the Seoul Business Agency, evaluates companies based on growth potential, profitability, stability, productivity and global capabilities. The program began with 11 com

Oct. 21, 2026