Korea JoongAng Daily - Daily News from Korea

Audio report: written by reporters, read by AI

Elon Musk's space company, SpaceX, is set to make its Nasdaq debut on June 12. It's expected to become the largest initial public offering (IPO) in history and potentially reshape global equity markets — and the Korean bourse is no exception.

SpaceX is expected to be valued between $1.75 trillion and $2 trillion, with the offering size projected at $75 billion to $80 billion, according to foreign media reports and industry estimates as of June 1. The estimates are more than double the previous record set by Saudi Arabia's national oil company, Saudi Aramco, which raised $29.4 billion during its IPO.

SpaceX is scheduled to begin an investor road show on June 4, during which it is expected to finalize details such as the size of the offering, the IPO price and valuation.

Investors are closely watching how much capital the listing could draw away from soaring AI-related stocks.

"Investment capital seeking future growth opportunities is currently concentrated in AI-related shares," said Kim Il-hyuk, an analyst at KB Securities. "If SpaceX goes public, some investors may reduce their exposure to existing growth stocks and shift funds into the new listing. Stocks whose valuations have risen sharply on expectations of future growth are likely to be affected first."

Some industry experts see the recent foreign selling of major semiconductor stocks, such as Samsung Electronics and SK hynix, as a partial reflection of portfolio adjustments ahead of SpaceX's listing.

The impact could be amplified in Korea, where retail investors account for a relatively large share of market participation.

"Unlike a typical IPO, SpaceX is expected to allocate 20 to 30 percent of its initial free float to retail investors," said Park Hye-ran, an analyst at Samsung Securities. "Short-term selling pressure is likely to fall on stocks that have already seen substantial gains, as well as Tesla and its aerospace-sector peers."

Another key issue is the timing of when SpaceX will debut on the Nasdaq-100.

Under the Nasdaq's new "fast entry" rule, which took effect on May 1, large IPOs can qualify for index inclusion as little as 15 trading days after listing. That means SpaceX could join the Nasdaq-100 roughly two weeks after its market debut, rather than waiting a year or more.

Despite SpaceX's enormous valuation, analysts expect the initial market impact to be limited because only 3 to 5 percent of its shares will be available for trading after the IPO.

As a result, index-tracking funds would initially need to buy only about $4 billion worth of stock, according to Samsung Securities.

The more significant market impact is expected later when lockup restrictions on existing shareholders, such as founder and owner Elon Musk, begin to expire in stages.

"If the free-float ratio [the percentage of shares available for public trading] exceeds 33 percent between mid-September and October, roughly 120 to 140 days after the IPO, passive inflows from index-tracking funds could increase to as much as $31 billion," said Park Hye-ran, an analyst at Samsung Securities. "At that point, SpaceX could surpass Tesla and become one of the seven largest companies in the Nasdaq-100 by market capitalization."

SpaceX's listing could mark the beginning of an IPO supercycle in the second half of the year, with other major private technology firms such as OpenAI and Anthropic potentially following.

The three companies' combined fundraising target is estimated at around $200 billion, with a combined valuation of roughly $4 trillion.

"The burden on global liquidity from such large-scale offerings could be significant, particularly given interest rate uncertainty and other macroeconomic challenges," said one finance industry source. "Many retail investors are being driven by the fear of missing out, but the biggest risks remain uncertainty surrounding future capital flows and corporate valuations."

This article was originally written in Ko...

This article is by Woo Ji-won and read by an artificial voice.

GANGJIN, South Jeolla — The sea never really leaves you on the Korea Dulle Trail. One moment it emerges beyond dense pine trees, and the next it glimmers past wild tea fields, above temple rooftops and even along roadside paths, always finding its way into view.

The 4,500-kilometer (2,800-mile) trail network connects the coastal edges of the Korean Peninsula, stretching along the east, west and south coasts as well as the borderlands near the DMZ.

For years, the government has worked to stitch together Korea's coastlines alongside nearby villages and regional destinations into one continuous trail, hoping to lure travelers beyond major cities and into quieter, often overlooked corners of the country.

Since the trail's official completion in September 2024, 251 people have completed the entire course, taking many from two to four years, according to the Korea Tourism Organization (KTO). But far more have taken on the four individual trails that make up the larger trail.

The trail's major appeal lies in how naturally it blends walking with travel itself. One stretch may lead to mountain and seaside temples, and another to historic neighborhoods where travelers can dive into the city's local cuisine.

Here are a few sections of the Namparang Trail and Seohaerang Trail in South Jeolla that offer a glimpse into the scale and variety of the Korea Dulle Trail.

Namparang Trail's course 83: Mount Mandeok's Dasan Chodang

In 1801, a man was exiled to Gangjin, a quiet county in South Jeolla on Korea's southern coast, amid the persecution of Catholics. For the last 10 years of his 18-year exile, he lived in a humble chodang, a small thatched cottage, at the foot of Mount Mandeok.

His name is Jeong Yak-yong, better known by his pen name Dasan. He is now remembered as one of the greatest scholars of the Joseon Dynasty (1392-1910).

Today, the site is known as Dasan Chodang. Past hanoks (traditional Korean houses), many now operating as guesthouses known for hearty breakfasts, a narrow forest road in Mount Mandeok leads toward the lonely site of his exile.

At the entrance hangs a small bow tied to a fence with "Namparang Trail" written on it.

Yet exile was not entirely lonely for Dasan. He had a dear friend. About 30 minutes away on foot is Baengnyeonsa temple, where he would meet the Venerable Hyejang, who was also his teacher and student during his banishment.

Down the hill, a concrete road lined with colorful traditional lanterns leads to the temple built in 839. At Buddha halls perched at the top of the temple grounds, views of the sea emerge beyond rows of tiled rooftops.

Final course of the Namparang Trail: Mihwangsa Temple

A king from the Indian Udyana Kingdom was carrying Buddhist scriptures aboard a ship and sailing across seas in search of a destined land, according to a legend, when one mountain radiated an auspicious energy, with 10,000 Buddhas appearing around its peaks.

Believing it to be a sacred site fit to spread the teachings of Buddhism, the king landed there, the legend says. That mountain was Mount Dalma in Haenam, South Jeolla. Still today, it's regarded as a holy site.

The sea off the temple served as a key maritime gateway linking Asia since ancient times. New goods and Buddhist beliefs arrived by sea, and thus Mihwangsa Temple was established on the mountain's slope, serving both as a place to pray for safe voyages and as a base for spreading Buddhism.

Another one of Mount Dalama's famous spots is Dosolam Hermitage perched near Dosolbong Peak. It's where the monk Uijo Hwasang, who is said to have founded Mihwangsa Temple, practiced Buddhism while admiring the sunset.

The hike there is rugged, with sharp rocky ridges, uneven paths and steep hillsides where one wrong step could send a hiker slipping downhill. But the climb is worthwhile upon reaching the hermitage, perched atop stone steps high in the mountains. From there, panoramic views of South S...

Audio report: written by reporters, read by AI

GANGJIN, South Jeolla — The sea never really leaves you on the Korea Dulle Trail. One moment it emerges beyond dense pine trees, and the next it glimmers past wild tea fields, above temple rooftops and even along roadside paths, always finding its way into view.

The 4,500-kilometer (2,800-mile) trail network connects the coastal edges of the Korean Peninsula, stretching along the east, west and south coasts as well as the borderlands near the DMZ.

For years, the government has worked to stitch together Korea's coastlines alongside nearby villages and regional destinations into one continuous trail, hoping to lure travelers beyond major cities and into quieter, often overlooked corners of the country.

Since the trail's official completion in September 2024, 251 people have completed the entire course, taking many from two to four years, according to the Korea Tourism Organization (KTO). But far more have taken on the four individual trails that make up the larger trail.

Some 5,269 people have completed the Haeparang Trail along the East Sea since it first opened in 2016. The Namparang Trail along the South Sea has seen 1,069 traverse its length, while the Seohaerang Trail along the Yellow Sea has seen 564 people complete the route. The final section, the DMZ Peace Trail completed in 2024, has had 683 finishers.

The trail's major appeal lies in how naturally it blends walking with travel itself. One stretch may lead to mountain and seaside temples, and another to historic neighborhoods where travelers can dive into the city's local cuisine.

Here are a few sections of the Namparang Trail and Seohaerang Trail in South Jeolla that offer a glimpse into the scale and variety of the Korea Dulle Trail.

Namparang Trail's course 83: Mount Mandeok's Dasan Chodang

In 1801, a man was exiled to Gangjin, a quiet county in South Jeolla on Korea's southern coast, amid the persecution of Catholics. For the last 10 years of his 18-year exile, he lived in a humble chodang, a small thatched cottage, at the foot of Mount Mandeok.

But exile hardly slowed his passion for building a better country. He wrote nearly 500 books on philosophy, politics and even engineering, including proposals for political reform, at the chodang, all while mentoring 18 disciples.

His name is Jeong Yak-yong, better known by his pen name Dasan. He is now remembered as one of the greatest scholars of the Joseon Dynasty (1392-1910).

Today, the site is known as Dasan Chodang. Past hanoks (traditional Korean houses), many now operating as guesthouses known for hearty breakfasts, a narrow forest road in Mount Mandeok leads toward the lonely site of his exile.

At the entrance hangs a small bow tied to a fence with "Namparang Trail" written on it.

Entering the trail, towering trees and dense pine forests form a tunnellike path and the soft dirt trail feels almost meditative. Soon appears the small cottage where Dasan lived and wrote. Just beside sits the pond he built to raise carp, along with a rock carved with the Chinese character "Jeong," his family name, both reflecting the solitude of his years.

Yet exile was not entirely lonely for Dasan. He had a dear friend. About 30 minutes away on foot is Baengnyeonsa temple, where he would meet the Venerable Hyejang, who was also his teacher and student during his banishment.

The walk to the temple is considered one of the course's highlights. Along the way sits Cheonil Pavilion, where the sea suddenly appears beyond layers of greenery. Dense forests give way to wild tea fields spreading across the hillside, while a camellia forest designated as a Natural Monument is also part of the trail. The month of March, when red camellia blossoms bloom across the path, draws large crowds.

Down the hill, a concrete road lined with colorful traditional lanterns leads to the temple built in 839. At Buddha halls perched at the top of the temple grounds, views of the sea emerge beyond rows of til...

Lee Soo-hwa

The author is a research professor of Big Data Innovation Convergence College at Seoul National University and the head of the AI Center at DLG Law Corporation.

AI's next battleground is not the data center but the living room.

The valuation of Boston Dynamics, a robotics company under Hyundai Motor Group, has reportedly climbed to around 30 trillion won ($19.6 billion). Meanwhile, LG Electronics recently launched Axium, its robotics actuator series, and announced plans to become a vertically integrated robotics company.

"The appliance of the future is a humanoid," Seoul National University Prof. Jang Byung-tak said, capturing a shift that is reshaping investor sentiment. This is not just another technology stock rally. Investors in western Seoul's Yeouido and on Wall Street are placing a premium on the moment when AI, once confined to generating text on screens, enters the physical world through machines equipped with motors and metal frames.

Behind this shift is a new understanding of intelligence. Intelligence is no longer viewed as the product of calculation alone. Humans do not record the world as cameras do; instead, they create meaning through interactions shaped by perception, experience and emotion — a process that cognitive science refers to as embodied cognition.

Industrial robotic arms operate in highly controlled settings, where they repeat predefined tasks. Future humanoids, however, must function in far less predictable environments. A family living room, where children leave their toys scattered across the floor, presents challenges that do not exist on an assembly line.

As a result, the humanoid race involves more than computing power. People constantly create unexpected situations. They can alter the location of furniture and other household items. They can dirty the floor. Even the seemingly simple act of washing dishes could require adaptation. The longstanding AI ambition of categorizing the world and governing it through fixed rules is insufficient for such conditions. Humanoids must learn by interacting with reality rather than relying solely on preprogrammed responses.

Competition has already become global. China's Unitree is pursuing aggressive expansion with relatively affordable humanoid robots. Tesla and major U.S. technology companies have begun deploying robots in their own factories. Korean firms are responding with advanced manufacturing capabilities. The key question is not who possesses the most sophisticated algorithm but who can build machines capable of functioning in imperfect human environments.

The standards used to assess corporate value are also changing. Investors increasingly reward companies that move beyond controlled settings and into everyday life. The premium goes to those capable of recovering after failure and adapting to unexpected variables.

Machines are no longer digital ghosts confined to screens. They are entering daily life in physical form. The future will belong to machines and organizations that can withstand real-world shocks and continue learning from them. A machine that never falls can never learn how to walk.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

Audio report: written by reporters, read by AI

Lee Soo-hwa

The author is a research professor of Big Data Innovation Convergence College at Seoul National University and the head of the AI Center at DLG Law Corporation.

AI's next battleground is not the data center but the living room.

The valuation of Boston Dynamics, a robotics company under Hyundai Motor Group, has reportedly climbed to around 30 trillion won ($19.6 billion). Meanwhile, LG Electronics recently launched Axium, its robotics actuator series, and announced plans to become a vertically integrated robotics company.

"The appliance of the future is a humanoid," Seoul National University Prof. Jang Byung-tak said, capturing a shift that is reshaping investor sentiment. This is not just another technology stock rally. Investors in western Seoul's Yeouido and on Wall Street are placing a premium on the moment when AI, once confined to generating text on screens, enters the physical world through machines equipped with motors and metal frames.

Behind this shift is a new understanding of intelligence. Intelligence is no longer viewed as the product of calculation alone. Humans do not record the world as cameras do; instead, they create meaning through interactions shaped by perception, experience and emotion — a process that cognitive science refers to as embodied cognition.

Industrial robotic arms operate in highly controlled settings, where they repeat predefined tasks. Future humanoids, however, must function in far less predictable environments. A family living room, where children leave their toys scattered across the floor, presents challenges that do not exist on an assembly line.

As a result, the humanoid race involves more than computing power. People constantly create unexpected situations. They can alter the location of furniture and other household items. They can dirty the floor. Even the seemingly simple act of washing dishes could require adaptation. The longstanding AI ambition of categorizing the world and governing it through fixed rules is insufficient for such conditions. Humanoids must learn by interacting with reality rather than relying solely on preprogrammed responses.

Competition has already become global. China's Unitree is pursuing aggressive expansion with relatively affordable humanoid robots. Tesla and major U.S. technology companies have begun deploying robots in their own factories. Korean firms are responding with advanced manufacturing capabilities. The key question is not who possesses the most sophisticated algorithm but who can build machines capable of functioning in imperfect human environments.

The standards used to assess corporate value are also changing. Investors increasingly reward companies that move beyond controlled settings and into everyday life. The premium goes to those capable of recovering after failure and adapting to unexpected variables.

Machines are no longer digital ghosts confined to screens. They are entering daily life in physical form. The future will belong to machines and organizations that can withstand real-world shocks and continue learning from them. A machine that never falls can never learn how to walk.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

The author is the head of the United Nations Memorial Cemetery in Korea and a former ambassador to the Mission of the Republic of Korea to Asean.

Located in the Daeyeon-dong area of Nam District, Busan, the United Nations Memorial Cemetery in Korea was established in January 1951 by the United Nations Command during the height of the 1950-53 Korean War to bury fallen service members. In 1955, after Korea's National Assembly decided to donate the cemetery site, the United Nations General Assembly adopted a resolution placing the cemetery under permanent UN management.

As the UN Memorial Cemetery marks its 75th anniversary and Korea observes its annual month of remembrance and patriotism, it is worth reflecting on what kind of space this unique site should become in the years ahead.

The cemetery is more than a burial ground. It is both a repository of history and a valuable urban green space woven into the daily lives of Busan's 3.24 million residents. Last year, approximately 470,000 people visited the site. Through the end of March this year, visitor numbers had already reached 120,000, a 50 percent increase from the same period a year earlier, putting the cemetery on track to surpass 600,000 visitors by the year's end.

The question is how far such a place should be opened to the public while preserving the solemnity of its mission.

The future of the UN Memorial Cemetery should be guided by three principles.

First, the cemetery must remain, above all else, a place of remembrance. It is the resting place of 2,339 service members from 14 countries who sacrificed their youth and lives in defense of Korea's freedom and peace.

For that reason, management principles should remain consistent with those of major international military cemeteries such as the Arlington National Cemetery in the United States and the Normandy American Cemetery in France. Dignity and solemnity must be preserved. Access to lawns should continue to be primarily for memorial and visitation purposes, while excessive noise and recreational activities should be limited.

The significance of the cemetery has not diminished with time. Since 2015, 37 Korean War veterans who died in their home countries have been reinterred at the cemetery. Just last month, one Dutch veteran and two French veterans returned to rest beside their comrades.

Since 2017, the annual Turn Toward Busan ceremony has been held every Nov. 11. At 11 a.m., people around the world are invited to observe one minute of silence facing Busan, where the cemetery is located, to honor those who fought in the Korean War.

Veterans and bereaved families continue to travel long distances to revisit the cemetery, and some veterans choose it as their final resting place. They do so because the site retains the dignity expected of a memorial space and because Korea's government and citizens continue to remember their sacrifice and service.

At the same time, selected green areas may be used in ways that are more accessible to the public. People can walk quietly through nature, students can participate in educational forest programs and international visitors can experience Busan's identity as a global city committed to peace.

Such activities, however, should be carefully aligned with the character of the site. Rather than functioning as a picnic destination or venue for commercial festivals, the cemetery is better suited to small concerts with commemorative themes, lectures on peace and history and ecological education programs that reinforce its purpose while maintaining its dignity.

Second, it is important to distinguish between different types of events.

Memorial ceremonies should continue to be held near the principal cemetery grounds and symbolic areas where the flags of the United Nations and 24 nations are displayed. Cultural events, by contrast, could be considered in green spaces or near the UN Forces Monument, provided they take forms consistent with remembrance and reflection.

Decisions regardin...

The author is a professor of communications at Seoul National University.

The heated local elections have come to an end. Yet more significant than the outcome itself is the fact that the infrastructure of political participation has shifted rapidly toward YouTube Shorts and large political YouTube channels.

Algorithm-driven media continuously recommend content similar to what users have already watched. Shorts are even more powerful because videos begin playing automatically. Even when televised debates contain substantive policy discussions, a verbal slip or awkward facial expression is often edited with captions and repackaged into a clip lasting only a few seconds. Stripped of context, such content spreads rapidly and can cloud voters' judgment as much as misinformation.

The problem is that these videos have become a major campaign element through a combination of political fandoms, funding structures and platform algorithms.

Korea has relatively strict election reporting rules. Various review bodies monitor election coverage to uphold fairness, balance and political neutrality. Unfortunately, however, the regulatory framework remains focused on established media organizations and has failed to reflect YouTube's growing influence.

Traditional media and political advertisements are subject to extensive regulation, including YouTube channels operated by news organizations and videos produced by online news outlets. Yet the influence of political YouTubers, despite their enormous reach, remains largely outside the system. The current problem cannot be solved by selectively regulating individual creators or publicly criticizing global platform executives.

YouTube has adopted certain transparency measures. During elections, its algorithm prioritizes authoritative news sources in search results. Political advertisements also require disclosure of advertiser identities and spending. Such transparency enables political parties, civic groups and citizens to monitor campaign activities.

In Korea, however, online political advertising is prohibited, leaving these measures largely inapplicable.

Instead of official paid advertising, large-scale political campaigns often take place through political YouTube channels. Super Chat donations, merchandise sales, product placements and bank account information displayed in subtitles all serve as channels for financial support. Cases occasionally emerge that raise suspicions of undisclosed relationships between politicians and channel operators. Across the political spectrum, content that blurs the line between fact and fiction is frequently repackaged into hundreds of short clips and distributed widely.

Political bias in the media is an old problem, but institutional trust differs from identity-based trust. Established media organizations are not perfect, yet they operate through editorial review, verification and oversight systems. Some degree of gatekeeping exists.

Trust in political YouTubers functions differently. It is often based on shared identity, emotional attachment and a sense of solidarity among followers. Political YouTube content typically relies on emotionally charged language centered on concepts such as good and evil, loyalty and betrayal. Communication that appeals to emotion is often more effective at motivating action than communication based on reason.

The longer-term consequences are even more troubling. Rather than strengthening citizenship through participation in elections, this media environment risks making thoughtful citizens increasingly cynical while leaving only political hooligans as active participants.

Some argue that because both sides of the political spectrum have extreme YouTube channels, balance is maintained overall. This is a mistake.

Interestingly, comment sections on highly partisan political YouTube channels are sometimes more polite than those on major portal sites. Portal sites at least bring together people with different views. Political Y...

Audio report: written by reporters, read by AI

Kim Eun-mi

The author is a professor of communications at Seoul National University.

The heated local elections have come to an end. Yet more significant than the outcome itself is the fact that the infrastructure of political participation has shifted rapidly toward YouTube Shorts and large political YouTube channels.

Algorithm-driven media continuously recommend content similar to what users have already watched. Shorts are even more powerful because videos begin playing automatically. Even when televised debates contain substantive policy discussions, a verbal slip or awkward facial expression is often edited with captions and repackaged into a clip lasting only a few seconds. Stripped of context, such content spreads rapidly and can cloud voters' judgment as much as misinformation.

The problem is that these videos have become a major campaign element through a combination of political fandoms, funding structures and platform algorithms.

Korea has relatively strict election reporting rules. Various review bodies monitor election coverage to uphold fairness, balance and political neutrality. Unfortunately, however, the regulatory framework remains focused on established media organizations and has failed to reflect YouTube's growing influence.

Traditional media and political advertisements are subject to extensive regulation, including YouTube channels operated by news organizations and videos produced by online news outlets. Yet the influence of political YouTubers, despite their enormous reach, remains largely outside the system. The current problem cannot be solved by selectively regulating individual creators or publicly criticizing global platform executives.

YouTube has adopted certain transparency measures. During elections, its algorithm prioritizes authoritative news sources in search results. Political advertisements also require disclosure of advertiser identities and spending. Such transparency enables political parties, civic groups and citizens to monitor campaign activities.

In Korea, however, online political advertising is prohibited, leaving these measures largely inapplicable.

Instead of official paid advertising, large-scale political campaigns often take place through political YouTube channels. Super Chat donations, merchandise sales, product placements and bank account information displayed in subtitles all serve as channels for financial support. Cases occasionally emerge that raise suspicions of undisclosed relationships between politicians and channel operators. Across the political spectrum, content that blurs the line between fact and fiction is frequently repackaged into hundreds of short clips and distributed widely.

Political bias in the media is an old problem, but institutional trust differs from identity-based trust. Established media organizations are not perfect, yet they operate through editorial review, verification and oversight systems. Some degree of gatekeeping exists.

Trust in political YouTubers functions differently. It is often based on shared identity, emotional attachment and a sense of solidarity among followers. Political YouTube content typically relies on emotionally charged language centered on concepts such as good and evil, loyalty and betrayal. Communication that appeals to emotion is often more effective at motivating action than communication based on reason.

The longer-term consequences are even more troubling. Rather than strengthening citizenship through participation in elections, this media environment risks making thoughtful citizens increasingly cynical while leaving only political hooligans as active participants.

Some argue that because both sides of the political spectrum have extreme YouTube channels, balance is maintained overall. This is a mistake.

Interestingly, comment sections on highly partisan political YouTube channels are sometimes more polite than those on major portal sites. Portal sites at lea...

The local government leaders elected Wednesday face difficult challenges. The same is true for the central government, which postponed tough decisions until after the vote. Korea faces the "three highs" of inflation, exchange rates and interest rates, while stock market volatility and housing market risks are also growing. None of these issues can be resolved easily.

Inflation remains a major concern. Consumer prices rose 3.1 percent last month, the fastest increase in two years and two months. The government has spent heavily to suppress fuel prices through a petroleum price cap policy. Without that measure, inflation likely would have been even higher.

The policy's side effects are becoming clearer. Overseas package tour prices rose 26.3 percent last month, reflecting broader increases in travel-related costs. This suggests the policy weakened consumers' sensitivity to high oil prices and encouraged greater fuel consumption, a consequence critics had warned about.

The won remains in the 1,500-per-dollar range. A weak currency does not necessarily signal a crisis, but it reflects the broader condition of the economy. It also raises import costs, increasing production expenses for companies that rely on foreign raw materials and adding pressure to domestic prices.

Interest rates present another challenge. The Bank of Korea strongly signaled a policy rate increase in July. The upper end of five-year fixed mortgage rates at commercial banks has already climbed above 7 percent. Higher rates increase debt-servicing burdens and reduce household spending.

The stock market also requires caution. Although the Kospi has approached the 9,000-point level, gains have been concentrated in semiconductor-related shares and volatility has increased.

Housing risks are equally serious. Seoul apartment prices continue to rise and the rental market remains unstable. Policymakers should prepare for the possibility that profits from soaring semiconductor stocks and large performance bonuses could flow into housing.

Recent housing pension data highlight this trend. Between January and April, 927 people terminated their reverse mortgage contracts, up 38 percent from a year earlier. The increase suggests many homeowners expect housing prices to rise further.

The combination of a semiconductor boom, a weak currency and elevated inflation is likely to intensify inflationary pressure.

Candidates who campaigned on cash-based welfare measures such as local currency programs should recognize these realities and abandon policies that could worsen inflation. The central government should also avoid relying on strong tax revenues to expand spending and instead focus on structural reforms and long-term investments that can strengthen Korea's economic fundamentals.

The election is over. The economic concerns are not.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

Audio report: written by reporters, read by AI

The local government leaders elected Wednesday face difficult challenges. The same is true for the central government, which postponed tough decisions until after the vote. Korea faces the "three highs" of inflation, exchange rates and interest rates, while stock market volatility and housing market risks are also growing. None of these issues can be resolved easily.

Inflation remains a major concern. Consumer prices rose 3.1 percent last month, the fastest increase in two years and two months. The government has spent heavily to suppress fuel prices through a petroleum price cap policy. Without that measure, inflation likely would have been even higher.

The policy's side effects are becoming clearer. Overseas package tour prices rose 26.3 percent last month, reflecting broader increases in travel-related costs. This suggests the policy weakened consumers' sensitivity to high oil prices and encouraged greater fuel consumption, a consequence critics had warned about.

The won remains in the 1,500-per-dollar range. A weak currency does not necessarily signal a crisis, but it reflects the broader condition of the economy. It also raises import costs, increasing production expenses for companies that rely on foreign raw materials and adding pressure to domestic prices.

Interest rates present another challenge. The Bank of Korea strongly signaled a policy rate increase in July. The upper end of five-year fixed mortgage rates at commercial banks has already climbed above 7 percent. Higher rates increase debt-servicing burdens and reduce household spending.

The stock market also requires caution. Although the Kospi has approached the 9,000-point level, gains have been concentrated in semiconductor-related shares and volatility has increased.

Housing risks are equally serious. Seoul apartment prices continue to rise and the rental market remains unstable. Policymakers should prepare for the possibility that profits from soaring semiconductor stocks and large performance bonuses could flow into housing.

Recent housing pension data highlight this trend. Between January and April, 927 people terminated their reverse mortgage contracts, up 38 percent from a year earlier. The increase suggests many homeowners expect housing prices to rise further.

The combination of a semiconductor boom, a weak currency and elevated inflation is likely to intensify inflationary pressure.

Candidates who campaigned on cash-based welfare measures such as local currency programs should recognize these realities and abandon policies that could worsen inflation. The central government should also avoid relying on strong tax revenues to expand spending and instead focus on structural reforms and long-term investments that can strengthen Korea's economic fundamentals.

The election is over. The economic concerns are not.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.