Korea

• Japanese and South Korean stock markets closed higher on August 26, with the Nikkei 225 rising 0.62% to 66,261.94 and the KOSPI Index gaining 0.97% to 6,808.21. • The rally was driven by overnight gains in US equities, cooling Treasury yields, and strong performances from tech leaders, including SoftBank and Samsung Electronics, the latter of which surged 1.75%. • This recovery occurred despite early trading volatility and investor caution as markets anticipate the upcoming earnings report from Nvidia.

• Tech stocks in Asian markets are expected to rally following Nvidia's positive earnings forecast, which addressed concerns regarding AI spending and circular funding. • Key economic data is due today, including Chinese industrial profits, Australian data, and interest rate decisions in South Korea and the Philippines. • The Philippines is expected to raise interest rates by 25 basis points, moving from 4.75% to 5%, while Thailand's Bank of Thailand recently held rates at 1%.

• The 31st Busan International Film Festival (BIFF) has announced 23 titles for its "Vision" sections, showcasing independent cinema from Korea and across Asia. • Featured films include "1982" by Vietnamese director Nguyen Hoang Diep, "After the Song Ends" by Ryohei Kumamoto, and "Dead End," the feature debut of Hong Kong's Isabella Lam Lok-hin. • These selections highlight diverse narrative themes, ranging from psychological anxiety and family confusion to the search for missing parents and inner emotional scars.

• The Busan International Film Festival (BIFF) 2026 has announced a lineup of 23 independent films for its Vision Korea and Vision Asia sections. • The selection consists of 12 Korean films and 11 Asian films, featuring a mix of emerging and mid-career directors. • This initiative matters as it provides a critical global platform for independent cinema and spotlights diverse storytelling from across the continent.

• South Korea's Ministry of Science and ICT and the National IT Industry Promotion Agency are seeking a consortium to develop a cybersecurity-specialized AI foundation model. • Applications for the project close on August 26, with SK Telecom, Naver Cloud, LG CNS, and Bidraft expected to compete as consortium leaders. • The winning team will be granted access to 256 B200 GPUs for a period of 10 months to facilitate the development process.

• The Busan Film Festival has selected 23 titles for its "Vision Korea" and "Vision Asia" sections for the 2026 edition. • The lineup consists of 12 independent Korean films and 11 works from emerging directors across Asia. • These sections are designed to showcase innovative storytelling and provide a platform for new talent within the regional cinema landscape.

• Democratic Party chair Kim Min-seok has initiated a reconciliation push by calling for frequent, informal talks with People Power Party leader Jang Dong-hyeok. • Simultaneously, Kim is seeking to revive cooperation with the Rebuilding Korea Party, exploring the possibility of a merger to strengthen the liberal alliance. • The Rebuilding Korea Party has responded cautiously, stating that rebuilding trust is a necessary prerequisite after previous merger negotiations collapsed.