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• The KOSPI index rose 1.37% to close at 6,717.97 on September 16, ending a four-day decline. • Institutional investors bought a net 1.2 trillion won in shares, offsetting 1.6 trillion won in selling by foreign investors. • The rebound was driven by large-cap semiconductor and power equipment stocks as investors believed U.S. interest rate concerns were already reflected in prices.

• European Central Bank President Christine Lagarde urged Europe to develop its own artificial intelligence models and data centers during a speech in Vienna on the 14th. • Lagarde stated that Europe must secure its own technology to avoid threats from other nations that might cut off access to AI. • This move aims to prevent the United States and China from using AI dominance as leverage in trade and diplomatic negotiations.

Prosecutors sought jail term for chief executive of Evett after insects not approved for consumption were on menuA South Korean court has fined the operator of one of Seoul’s most celebrated restaurants and its chief executive for serving a dessert topped with ants, an insect not approved for consumption under local food safety law.The operator of Evett, a two-Michelin-star restaurant in the affluent Gangnam district, was fined 10m won (£5,400) and its chief executive 15m won, Newsis reported. Continue reading...

• Leading artificial intelligence companies are calling for a slowdown in the development of advanced AI systems. • Critics argue these firms are attempting to reduce operational costs and block new competitors from entering the market. • This push for slower development could protect the market dominance of established firms while hindering the growth of latecomers.

• ITSpace deployed an AI system to monitor electrical currents and temperatures at 20,000 shops across 51 markets in Incheon, South Korea. • The technology identifies abnormal patterns in electricity and heat to block electrical fires before they ignite. • This system reduces the risk of catastrophic property loss and business interruption for thousands of small-scale market vendors.

• Global spending on AI security is projected to grow 68.7% next year as companies like SK Shieldus and AhnLab expand their protection services. • Gartner forecasts that total investment in AI protection will reach $4.78 billion in the coming year. • This surge in spending reflects a corporate race to secure autonomous agents, which are AI systems capable of performing tasks without constant human input.

• U.S. AI startups including OpenAI and Anthropic are facing scrutiny over the methods they use to calculate annualized revenue. • The companies are applying different accounting standards to their revenue claims as they prepare for initial public offerings. • These discrepancies create uncertainty for investors regarding the actual financial health and valuation of AI firms.

• SK Telecom CEO Chung Jae-hun met with GSMA and Malaysian partners on October 9 during the M360 ASEAN forum in Kuala Lumpur. • The meetings focused on expanding cooperation regarding digital trust and the AI full-stack, which refers to the entire range of AI technology from hardware to software. • This collaboration aims to address regional industry challenges including AI sovereignty, where a nation maintains control over its own AI capabilities and data.

• Philippine Defense Secretary Gilberto Teodoro publicly criticized China during the Seoul Defense Dialogue after receiving a note from Chinese officials mid-speech. • Teodoro read the note aloud to the forum, describing the communication regarding South China Sea arbitration as actual coercion and bullying. • This confrontation highlights the escalating diplomatic tension between the two nations over territorial disputes in the South China Sea.

• Samsung Electronics unveiled its next-generation HBM4 high-bandwidth memory on Monday to strengthen its position in the AI accelerator market. • The new memory technology is designed to improve the performance of chips used to power artificial intelligence systems. • This move allows Samsung to compete more aggressively for market share against other memory chip suppliers.

• Samsung Electronics led a 3 billion euro Series D funding round for the French startup Mistral AI. • This investment values the AI company at more than 21 billion euros. • Mistral AI will use the capital to expand its global business and increase computing capacity for frontier AI research and development.

• Samsung Electronics unveiled its next-generation HBM4 memory on Monday to strengthen its position in the AI accelerator market. • The new HBM4 memory is designed to improve the performance of hardware that speeds up artificial intelligence processing. • This move allows Samsung to compete more aggressively for the high-end memory chips required by AI developers.

• Asian stock markets showed mixed results recently, with gains in Tokyo and Seoul driven by increased investment in computer chipmakers. • Hong Kong's Hang Seng index fell 1.1% to 25,377.12, while the Shanghai Composite dropped 0.2% to 3,920.70. • The rally in hardware stocks suggests that investors are prioritizing artificial intelligence growth over concerns about high company valuations.

• Federal Reserve officials Waller and Williams recently made dovish remarks that calmed U.S. Treasury yields. • Futures markets currently place the odds of a September interest rate hike and a hold at approximately 50-50. • The New York Fed president stated that large-scale technology investments in AI and data centers are keeping the U.S. economy strong.

• Chinese AI startup Moonshot AI has filed confidentially for an initial public offering in Hong Kong. • The company aims to raise $3 billion at a valuation of approximately $50 billion. • This fundraising effort allows the startup to accelerate capital buildup as Chinese AI labs compete to close the gap with leading U.S. developers.

• Rebuilding Korea Party leader Shin Jang-sik defended remarks made by Cho Kuk regarding the ongoing election law case involving Lee Jae-myung. • Shin clarified that Cho's comments about a potential guilty verdict were intended as a call to revise flawed laws and properly address indictments that should be withdrawn. • The defense highlights the party's stance on the legal risks facing Lee Jae-myung and their belief that the current legal proceedings may be unjust.

• Planning and Budget Minister Park Hong-keun and Education Minister Choi Kyo-jin held a joint media briefing on August 21, 2026, following the first Fiscal Management Strategy Council meeting in Seoul. • The meeting focused on resolving ongoing disputes between the two ministers regarding proposed reforms to the local education finance grant. • This coordination is critical for aligning national fiscal strategies with educational funding needs to ensure balanced government spending.

• South Korea's net external financial assets dropped to $64 billion in Q2, marking a 12-year low after a decrease of $689.5 billion. • The decline was primarily driven by a soaring KOSPI, which increased the valuation of Korean stocks held by foreign investors. • The Bank of Korea emphasized that the drop is a result of asset valuation rather than a loss of stability, noting that net external debt remains steady.

• KOSME successfully raised $400 million through a social bond issuance, marking its first return to the global bond market in 10 years. • To secure funding, KOSME conducted a phased investor relations strategy, including non-deal roadshows from July 12 to 17 in Hong Kong, Singapore, and Taiwan. • The capital is specifically earmarked to provide critical financial support and funding for small firms and startups.

President Lee Jae Myung has long pushed for stronger homegrown defences, yet Donald Trump’s move has sparked alarm in some quartersAt their first summit, in August last year, South Korean president Lee Jae Myung told Donald Trump: “If you, Mr President, become the peacemaker, then I will assist you as the pacemaker.”The remark at the Oval Office captured the thrust of Lee’s approach to the North: dial down the military posturing and make repeated peace overtures to revive dialogue, even if they have been consistently rejected by Pyongyang largely over Seoul’s insistence on denuclearisation. Continue reading...

• President Donald Trump announced that North Korean leader Kim Jong Un has responded to his diplomatic overtures. • This development follows a strategic decision by the United States to scale back joint military exercises with South Korea in Seoul. • The shift in military posture is seen by experts as a critical gesture of goodwill intended to lower tensions on the peninsula.

• South Korea's Ministry of Trade, Industry and Resources has announced a strategic plan to develop seven "SEEDs" (Strategic Emerging Engines for Disruptive Innovation) to drive future economic growth. • The targeted industries include quantum technology, space and aviation, nuclear fusion, small modular reactors, advanced biotechnology, breakthrough renewable energy, and advanced supply chains. • This initiative comes as the OECD warns that South Korea's potential growth could drop to a record low of 1.52% next year, suggesting that the current semiconductor export boom is insufficient for long-term stability.

• Brokerages are lowering price targets for Samsung Electronics and SK hynix due to concerns that semiconductor earnings may peak earlier than expected. • SK hynix is seeing significant divergence in analyst valuations, with price targets ranging widely from 2.7 million to 4 million won. • In separate corporate moves, Thailand's Minor Group is acquiring the Korean-founded chicken franchise Bonchon, providing an exit for private equity firm VIG Partners.

• China is leveraging its $28 trillion capital markets to fund AI development, highlighted by CXMT raising $9.8 billion through a new listing. • State investors are actively propping up the Chinese market to ensure continued funding for critical technology sectors. • In a separate deal, Thailand's Minor Group is acquiring the Korean-founded chicken franchise Bonchon.

• Former OpenAI researcher Leopold Aschenbrenner is receiving new funding offers from Silicon Valley investors for his hedge fund, Situational Awareness. • The surge in interest comes just one week after the fund narrowly averted bankruptcy, marking a rapid recovery for the researcher previously labeled a "fallen AI genius." • While Silicon Valley is rushing to provide backing, Wall Street remains cynical, viewing the fund's near-collapse as a predictable lesson in the risks of excessive leverage.

• Seoul experienced a surge in inbound tourism for seven consecutive months from January to July 2026, breaking global records and overtaking other South Korean cities. • The growth was primarily driven by the global popularity of K-culture and supportive government policies. • In June 2026 alone, six Southeast Asian markets—Vietnam, the Philippines, Indonesia, Thailand, Malaysia, and Singapore—contributed a combined 230,000 tourists.

• The world's nine largest cloud providers are projected to increase capital spending by 90% to $886.7 billion (approximately 1,260 trillion won) in 2025. • Microsoft is exceeding spending expectations to maintain its AI lead, while competitors like Google and Meta show signs of hesitation. • This surge in investment is triggering increased scrutiny from the U.S. Congress and state attorneys general regarding AI security and regulatory oversight.

• The Bank of England is investigating global investment banks to assess their concentrated exposure to AI-related stocks, specifically focusing on SK hynix and TSMC. • This probe follows significant market volatility, with semiconductor ETF losses approaching 40% and retail leverage losses reaching 56 trillion won. • The move highlights growing concerns over an "AI bubble," as the high concentration of assets in a few semiconductor firms creates systemic risk for the global financial system.