Seoul

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.