Korea JoongAng Daily - Daily News from Korea

Lee Kwang-hyung

The author is the president of KAIST.

"Knowledge is power."

The phrase, attributed to English empiricist Francis Bacon (1561-1626), has long guided and shaped modern civilization. Yet in the age of artificial intelligence, that maxim is steadily losing its force. AI is diminishing the value of knowledge and memorization skills that humans have traditionally prized. Within the next decade, we are likely to enter an era of technological singularity, in which AI broadly surpasses human intelligence. For now, knowledge and memory still matter, but their importance will decline sharply over time.

Professions that heavily rely on specialized expertise have been the first to feel the pressure. Patent attorneys, lawyers, doctors, tax accountants and translators are often cited as examples. The decrease in entry-level positions across these fields clearly signals that a shift is already underway.

AI is now moving beyond the realm of knowledge into areas once considered uniquely human. It writes literary works, composes music and creates visual art, mimicking human creativity through increasingly novel attempts.

Scientific research is no exception. Last year's Nobel Prize in Chemistry was awarded to researchers who developed AI capable of predicting protein structures. Tasks that once took humans months or years can now be completed in minutes. In August, the Chinese Academy of Sciences unveiled an AI research platform - known in Chinese as "Panshi," meaning "bedrock," and in English as "ScienceOne" - designed to support research across mathematics, physics, chemistry, biology, geoscience and astronomy. Once humans define a research question, the model can review literature and even advise on research design and hypothesis testing.

AI-driven robots that conduct biological and chemical experiments and process data are also being developed, greatly reducing the time needed for manual laboratory work. Labs that still rely entirely on human hands may eventually be seen as outdated and avoided.

Even U.S. President Donald Trump has made significant decisions regarding AI. Late last month, he launched a major initiative dubbed the "Genesis Mission," likening it to a second Manhattan Project. The executive order directed the government to build the infrastructure necessary to integrate AI into scientific research.

In computer programming, AI's progress has been equally striking. Although AI itself is a program, it now writes programs on its own. As a result, global tech companies such as Google have significantly reduced the number of coding positions. In September, Google's AI model Gemini achieved gold medal-level results at an international coding competition. It solved 10 of 12 problems at the International Collegiate Programming Contest, ranking second overall among all human teams.

As AI's role expands, the role of humans must inevitably change. For the children being educated today, who will live through the 2040s and 2050s, human work will look very different. Broadly speaking, three core roles are likely to define humanity's future.

The first is defining problems. AI will increasingly excel at solving problems. Humans, by contrast, will identify inefficiencies and areas for improvement in everyday life, define them as problems and then have AI address them.

Some may argue that AI will eventually outperform humans even at identifying and defining problems. But humans ultimately use technology, and judgment remains a human prerogative. Humans best understand the shortcomings and inconveniences of current technologies. Dissatisfied with the status quo, people constantly seek something better. Identifying what needs improvement and defining the problem will become humanity's most important task that shapes the trajectory of civilization itself.

The second role is building and using AI effectively. AI is ultimately a human creation. Decisions about how it is designed and deployed remain human choices, making this role ...

It has emerged that the Joint Chiefs of Staff (JCS) issued guidance last September, instructing frontline units to base their response to North Korean incursions on the more southern line when discrepancies arise between the military demarcation line (MDL) marked on South Korean military maps and that used by the United Nations Command (UNC). The MDL is the armistice line established under the Korean War Armistice Agreement signed by the UNC, North Korea and China. At the time, 1,292 markers were installed to delineate the boundary between North and South Korea. Over the decades, more than 1,000 of those markers have been damaged, and changes in terrain due to flooding and erosion have made the original MDL unclear in some areas.

On Monday, the JCS said that in areas where markers are not identifiable, it is "taking measures based on a comprehensive assessment of the connections between the MDL on South Korean military maps and that of the UNC." In practice, however, the new guidance means that when the MDL drawn on a 2015 South Korean military map differs from the UNC's MDL, troops are to treat whichever line lies farther south as the armistice line. In some locations, the gap reportedly amounts to several dozen meters. The military says the aim is to prevent confusion in areas where boundaries are unclear and to reduce the risk of accidental clashes.

This follows earlier guidance instructing troops to refrain from firing even when North Korean soldiers cross the MDL. Taken together, the measures make it difficult to avoid criticism that South Korea is effectively yielding ground along the armistice line. The military has also ordered that warning shots be fired only when North Korean troops crossing the MDL are deemed to have hostile intent. In situations that can escalate in an instant, prioritizing assessments of intent risks missing the critical window for response. It is difficult to judge hostile intent without directly confronting intruders who have already crossed the line. While the stated goal is to prevent incidents from spiraling out of control, excessive caution could erode the integrity of frontline defense.

Reducing military tension and fostering a peaceful atmosphere on the Korean Peninsula are urgent tasks. That does not mean, however, that vigilance should be relaxed or readiness weakened at frontline positions where MDL violations are clearly occurring. Paradoxically, the more that dialogue is pursued, the more that military readiness must be maintained. It was not so long ago that South and North Korean naval forces clashed in the Yellow Sea even as Mount Kumgang tours were operating in the East Sea.

Avoiding unnecessary provocation of North Korea for the sake of dialogue is one thing. Conceding boundary lines is another matter entirely. The military authorities should first reconcile discrepancies between UNC and South Korean military maps and then establish clear operational guidelines based on that unified standard. There is an old saying that what is taken can be reclaimed, but what is given away cannot. It is a warning that the military would do well to remember.

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.

This article is by Yoon Seung-jin and read by an artificial voice.

The Seoul Scholarship Foundation has opened applications for next year's Seoul Tech Scholarship, which will select 30 international students set to pursue graduate studies and provide them with grants of up to 20 million won ($13,500) per year.

The application period runs from Monday through March 6 next year. The scholarship will cover admission fees, living stipends and insurance of the successful candidates who will begin their studies in the second semester of 2026.

Previously limited to applicants from Official Development Assistance recipient countries, the scholarship has removed nationality restrictions. The new change now allows students of any nationality to apply, provided that both they and their parents are non-Korean nationals.

However, applicants must be 40 years old or younger and meet eligibility requirements such as holding or expecting to obtain a bachelor's degree, maintaining an undergraduate academic record of at least 80 percent - equivalent to the cumulative GPA of 2.91 out of 4.5 - and satisfying the language proficiency requirements of their intended graduate school.

Applicants must also be scheduled to enroll in one of the nine designated graduate schools in Seoul in the fall of 2026: Kyung Hee University, Konkuk University, Korea University, Seoul National University, Seoul National University of Science and Technology, University of Seoul, Sogang University, Sungkyunkwan University and Soongsil University.

Preference will be given to applicants holding a Topik certificate. Further advantages will be granted to applicants who are from nations that took part in the Korean War or have earned a degree from a university located in a partner city of Seoul, or whose legal residence is based in such a city.

Additional preference will be given to applicants conducting research related to Seoul's six strategic industries: artificial intelligence, biotechnology, fintech, quantum technology and robotics, as well as the city's major creative industries, including gaming, webtoons, animation character creation, individual content creation, film, video and extended reality.

Applications must be submitted online, while supporting documents must be sent by mail. More information is available on the Seoul Scholarship Foundation's website.

The selection process will include document screening, reviews by the foundation's secretariat and participating graduate schools and a final deliberation, with successful candidates to be announced between late June and early July 2026.

Scholarship recipients will also participate in social integration programs, including Korean language and culture courses, and will have opportunities to engage in networking with Korean scholars, collaborative research projects and volunteer activities.

Personalized counseling will also be provided for recipients interested in employment or entrepreneurship.

Since 2024, the foundation has provided approximately 300 million won in scholarships and networking programs to support the settlement of 33 international students.

"The Seoul Tech Scholarship is a strategic investment that goes beyond financial support, encouraging outstanding global talent to choose Seoul as a city of learning and opportunity," Seoul Scholarship Foundation's chairman Nam Sung-wook said.

"We will continue to expand comprehensive support across education, research and daily life to ensure that globally competitive talent can settle and grow in Seoul."

The author is an architect and a former president of the Korea National University of Arts.

Among European countries, Germany stands out for the scale and vitality of its Christmas markets, temporary fairs that open only during the Advent and Christmas season. Across the country, some 2,500 markets, large and small, heighten the festive mood. Among them, Nuremberg's Christmas market is especially renowned for its long history and size, having flourished in the 17th century.

In the central market square, in front of the Church of Our Lady, an unusual brick Gothic structure, more than 200 small stalls line the plaza, brightly decorated in red and white. For four weeks from Advent to Christmas, this "small village made of wood and cloth" draws some two million visitors. Crowds sample local specialties such as lebkuchen gingerbread and bratwurst sausages while browsing ornaments and finely crafted goods.

The market's character is closely tied to the Protestant Reformation. Martin Luther promoted the celebration of Jesus' birth as a Protestant festival, countering Catholic feasts centered on saints' days. In Nuremberg, Christmas gifts were distributed as part of outreach to children, who soon became the focus of the city's festivities. The market's theme invites visitors to return to childhood, if only for a day.

At the center of this tradition is the Christkind, or Christ Child, the young Jesus who brings gifts. Represented as a youthful angel wearing a crown and golden wings, the Christkind has become the enduring symbol of Nuremberg's Christmas market. Every two years, a local teenage girl is selected to serve as the Christkind, acting as an ambassador for the festival. The figure was deliberately created as a Protestant counterpart to Saint Nicholas, the Catholic model for Santa Claus.

Nearby Hans Sachs Square hosts a children's village, offering toys, games and small rides designed for younger visitors. At City Hall Square, a sister cities market is held at the same time, with participation from more than 50 foreign cities, including Prague, Nice and Antalya, expanding the event into an international festival.

Walking through the market's three main squares leads visitors to an artisans' quarter, where craftspeople demonstrate and sell medieval-style handicrafts. These spaces are enclosed by old city walls, with a hilltop castle overlooking the scene, providing a fitting historical backdrop.

For Luther, Christmas was a season of mission and charity. In modern Nuremberg, it has evolved into a celebration of solidarity, memory and shared warmth.

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 CEO of EnableFusion and a former president and CEO of POSCO ICT.

Seoul, 2040. One scenario is a nightmare. Power shortages force Samsung and SK hynix to relocate AI semiconductor fabs to Southeast Asia. Across the industry, a bitter phrase circulates: "World-class technology, but no electricity to run it." Data center permits have languished for years. Korea has slipped out of the global AI race. Young people lament that a semiconductor powerhouse has been reduced to an energy-weak state. Korea's "lost decade" is unfolding.

The alternative future looks entirely different. An AI megacluster operates around the clock, sustained by a stable power supply. Countries around the world benchmark Korea. The nation becomes "the TSMC of energy," exporting precision energy systems globally. Korean youth dream of standing at the center of a global energy revolution.

What separates these two futures is not luck or technology - it is choice. In 2025, which path will Korea take?

Sam Altman has warned that AI models beyond GPT-5 will require gigawatt-scale power. This is no exaggeration. By 2030, AI data centers are projected to consume nearly 10 percent of global electricity. Technology giants such as Microsoft, Google and Amazon are already competing fiercely for power access. In the United States, data center approvals are backlogged for years. In parts of Europe, permitting has been suspended altogether. Power has become synonymous with AI competitiveness, and industrial survival is at stake.

Energy security itself is being redefined. In the past, it meant stable access to oil and gas. Today, it means large-scale, carbon-free electricity. In the future, energy sovereignty will be inseparable from technological sovereignty and national competitiveness. Korea's dilemma is stark. The country leads the world in semiconductors and AI technology, yet depends on imports for 94 percent of its energy. In the AI era, nations without secure energy supplies inevitably fall behind.

Existing solutions fall short. Renewable energy suffers from intermittency, high storage costs and land constraints. Fossil fuels clash with carbon-neutrality goals. Nuclear fission raises persistent concerns over safety, radioactive waste and fuel import dependence. Incremental fixes are no longer enough. An entirely new energy paradigm is required.

Fusion offers a combination unmatched by any other energy source. Its energy density is overwhelming: one liter of seawater can yield energy equivalent to roughly 300 liters of oil. Because its fuel is derived from seawater, fusion enables true energy independence. It produces no carbon emissions and generates only minimal radioactive waste. Crucially, runaway reactions are physically impossible, eliminating the risk of catastrophic explosions.

Fusion is no longer a distant dream. In 2022, the National Ignition Facility at Lawrence Livermore National Laboratory achieved net energy gain for the first time. ITER aims to begin operations in the mid-2030s. Korea's KSTAR set a 100-second superconducting fusion record in 2024, while China's EAST continues to break operational benchmarks. Scientific feasibility is no longer in doubt.

Capital markets confirm this shift. In 2025, private investment in fusion surpassed $15 billion. Companies such as Commonwealth Fusion Systems, TAE Technologies and Helion Energy are racing toward commercialization. High-profile investors, including Bill Gates, Sam Altman and Jeff Bezos, have committed substantial capital. When investment moves at this scale, commercialization is no longer theoretical.

The tipping point has been crossed. Fusion was once dismissed as "always 30 years away." Today, industry consensus points to commercialization in the 2030s. The central question has shifted from "Is it possible?" to "Who will get there first?" Although initial investment requirements are large, the long-term benefits are decisive: near-zero fuel costs, high operational stability and a ...

Lee Ha-kyung

The author is a senior columnist at the JoongAng Ilbo.

U.S. President Donald Trump once described himself as a "very stable genius." Whether that claim holds true is debatable. Judith Herman of Harvard University and other psychiatrists have publicly assessed Trump as exhibiting traits of narcissistic personality disorder, describing him as self-centered and dismissive of others. During his first term, many government workers resigned in protest against what they viewed as reckless policymaking. Those who challenged him - including John Bolton, the former national security adviser; James Comey, the former FBI director; and John Brennan, the former CIA director - remain targets of retaliatory investigations linked to the Russia probe.

So Trump's response to recent criticism has defied expectations. Susie Wiles, the chief of staff who is often described as unflappable and disciplined, gave an interview to Vanity Fair, in which she revealed that there had been intense internal disagreement before Trump announced the reciprocal tariffs and claimed that she and Vice President JD Vance had tried to slow the process. Regarding the prosecution of Trump's political rivals, she said there was loose agreement to end retaliatory actions against them within 90 days of inauguration. She also criticized Trump's governing style, comparing it to that of an alcoholic who believes nothing is beyond his capability. Despite this, Trump publicly praised Wiles for doing an excellent job and reaffirmed his trust in her.

There have also been cases this year in which Trump backed down after opposition from aides. He retreated from efforts to oust Jerome Powell as the Federal Reserve chair after Treasury Secretary Scott Bessent argued that central bank independence must be preserved. Trump also abandoned plans to charge a Democratic senator for treason after the Republican chair of the U.S. Senate Committee on Armed Services objected. Harvard economist Kenneth Rogoff, who has warned that Trump's tariffs could become a breeding ground for corruption, nevertheless credits Trump with a certain pragmatism. He notes that Trump often reverses course quickly when policies prove unworkable rather than clinging to ideology. Shikha Dalmia, an editor at The UnPopulist, has argued that Trump's lack of ideological rigidity and transactional governing style are essential to holding together otherwise incompatible factions within the "Make America Great Again" movement.

In Korea, President Lee Jae Myung has faced controversy after his remarks during livestreamed ministerial briefings drew public attention. In an exchange with the head of the Incheon International Airport Corporation, Lee sharply criticized what he called a "petty thief's mindset" over a proposal for a comprehensive inspection of books that may contain smuggled cash. He also asked the head of the Northeast Asian History Foundation if "Hwandangogi," widely regarded by mainstream scholars as a fabricated text, could be considered a historical document. These comments targeted agency heads appointed under the previous administration, but no senior aides intervened.

At the same time, the ruling Democratic Party is pushing for sweeping judicial reforms, including proposals for a four-tier court system, a special tribunal for insurrection cases, an increase in Supreme Court justices, the creation of a law distortion crime and the dismantling of the prosecution service. Critics warn that such measures threaten the separation of powers, a pillar of democracy. Plans to appoint a special inspector to oversee allegations involving the president's family and close associates have stalled. Allegations that nonelected figures influence personnel decisions in the new administration have been met with silence. This contrasts with the Trump administration, in which aides repeatedly voiced their dissent to a boss known to despise criticism. Remaining silent before a levelheaded president, critics argu...

From the end of this year, Korea will enter a renewed era of Cheong Wa Dae, traditionally known in English as the Blue House. The presidential office has begun moving back from Yongsan, and President Lee Jae Myung is expected to relocate his office before the year's end. With this, the Yongsan presidential office era will close after three years and seven months.

Public sentiment toward the return is mixed. The Blue House symbolizes the Republic of Korea's authority and continuity, yet it also carries a long and uneasy history marked by privilege and isolation. Past presidents entered office pledging openness and communication, only to grow increasingly detached over time, constrained by the compound's closed physical and symbolic structure and drifting toward an imperial style of leadership.

When former President Yoon Suk Yeol decided to relocate the presidential office to Yongsan, the move initially received public support. Many hoped it would break free from the political and spatial limitations associated with the Blue House. That expectation was ultimately shattered by Yoon's declaration of illegal martial law. More than 100 billion won spent on the relocation and subsequent return has become a burden borne entirely by the public.

The move back to the Blue House must represent more than a change of address. It should be an opportunity for healing and recovery, restoring confidence in politics that has too often left citizens disillusioned. In that sense, efforts by the presidential office to overcome both the shortcomings of the Yongsan period and the negative legacy of the Blue House deserve recognition.

President Lee's decision to place his office in Yeomin Hall, where senior aides work, and to share the building with the chief of staff, the policy chief and the national security chief marks a notable departure from past practice. The main building will be used primarily for summits and meetings with foreign leaders.

Still, the increased physical distance between the press and the president raises concerns. During the Yongsan period, the press center and the president's office were located in the same building. At the Blue House, Chunchugwan, where press briefings are held, lies roughly 200 to 300 meters from Yeomin Hall. This arrangement risks clashing with the Lee administration's emphasis on transparent communication, including live broadcasts of ministerial briefings. While the presidential office has pledged to expand digital engagement, bold and effective measures are needed to compensate for reduced face-to-face access.

The Blue House must also become closer to the public. During its three years and two months of opening, more than 8.5 million visitors passed through its grounds, reflecting sustained public interest. The U.S. White House offers a reference, with large areas open to visitors aside from the West Wing. Plans to forgo security checks at five access points further raise expectations of a more welcoming Blue House.

President Lee has often said the president should be the nation's head servant. The reopened Blue House should be a place where a servant of communication works, not an isolated ruler.

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.

This article is by Moon So-young and read by an artificial voice.

That space is Jean-Michel Basquiat's "Signs: Connecting Past and Future," where the all-too-brief life of the legendary American artist, who died at 27 in 1988, is being reenacted in the heart of Seoul.

The moment you step into the exhibition, you are first overwhelmed by the sheer weight of the numbers. The total insured value of the works on view is an astonishing 1.4 trillion won (nearly $950 million). Lee Ji-yoon, CEO of the International Contemporary Art Curating Office Suum Project and curator of the exhibition, said the show is "the most expensive exhibition ever held in Korea." More than 70 authenticated works have gathered here, arriving from eight countries via 10 Korean Air cargo routes.

One standout piece is the monumental "Flesh & Spirit" - a work measuring roughly 3.7 meters (12.1 feet) by 3.7 meters. On loan from the Parker Foundation in San Francisco, the piece cost more than 150 million won to transport alone.The multi-panel painting sold for $30.7 million at Sotheby's auction house in May 2018. A practical detail underscores the scale: it had to be shipped in two separate crates.

Between the collage technique - paper layered onto canvas - and the rough, aggressive brushwork, the shapes of pelvic bones and femurs emerge with startling clarity. "Gray's Anatomy," which Basquiat read in a hospital bed after a childhood car accident left him needing his spleen removed, became a lifelong obsession. He anatomized the Black body, exposed to the social violence of racism, pouring onto the canvas the conflict between a finite human body and an eternal soul. This is immense energy you can never truly register in a catalog or on a screen - it becomes a spiritual experience only when you stand before the work itself.

Basquiat translated his critical view of racism and capitalism into a language all his own. This exhibition digs deep into his artistic world through the recurring motifs in his work - the crown, the skull and the copyright symbol. Among the works on view, the piece that most sharply showcases his satirical edge is "Museum Security" (1983). Across the canvas, words and signs collide in a jumble: oil company ESSO, five cents, the FBI and phrases like "priceless art."

At the center is a face reminiscent of an African mask, and beneath it, written in red and green, are the words "Museum Security ©." It is a sardonic critique of the grim reality of the time: In a white-dominated mainstream art world, the only place a Black person could claim was often reduced to "security guard." At the same time, Basquiat inserts his own distinctive crown symbol, revealing a defiant confidence - a declaration that he himself is the new king of the art world. Sold for about 17.2 billion won at auction in 2013, the work mirrors the complicated emotions Basquiat felt as he moved between fame and discrimination.

Once you understand why Basquiat is revered as a "saint" in contemporary popular culture - especially in the hip-hop scene - the exhibition gains yet another layer of depth. Jay-Z declared, "I'm the new Jean-Michel," boasting that, just as Basquiat shook up a white-centered art world, he too had taken control of the capitalist marketplace.

Kanye West embraced Basquiat's process of layering and erasing as part of his own musical philosophy. Basquiat's method - mixing anatomy, history and cartoons without restraint - meets hip-hop's sampling practice of recombining existing tracks. His narrative, rising from the street tag "SAMO" to the pinnacle of the mainstream, became an early visual role model for hip-hop artists: proof that someone from the streets could become the best in the world. The crown motif you encounter in the galleries becomes, in that sense, the crown of success they themselves fought to win.

Basquiat has also been a powerful visual influence on K-pop bands. V, otherwise known as Kim Tae-hyung, a member of the band BTS, and "T.O.P." Cho...

This article is by Lee Jae-lim and read by an artificial voice.

[NEWS ANALYSIS]

Sentiment toward Korea's top chipmakers is decisively turning bullish, as Samsung Electronics and SK hynix are widely expected to post unprecedented operating profits nearing 100 trillion won ($68 billion) each next year. A sustained semiconductor upcycle, coupled with Micron's record-high results, is fueling confidence that the rally still has significant room to run.

Analysts are predicting fourth-quarter operating profits of the two chipmakers to each exceed at least 15 trillion won from robust memory chip demand, as well as price hikes from conventional dynamic random-access memory (DRAM) and NAND flash chips. The figure is a record high for SK hynix and Samsung's first comparable performance in three years, after the company posted 15.8 trillion won during the chip upcycle in the third quarter of 2021.

Annually, Daishin Securities and Kiwoom Securities forecast Samsung Electronics' operating profit in 2026 at 110 trillion won and 107.6 trillion won, respectively. Over the same period, iM Securities and Mirae Asset Securities each project SK hynix's operating profit to reach 93.8 trillion won and 91.1 trillion won.

Micron earnings quell AI bubble fears

Micron's December earnings serve as an early benchmark for the semiconductor cycle in the year ahead. Strong sales and an assured outlook from CEO Sanjay Mehrotra helped soothe AI bubble fears that had been stoked by weaker forecasts from Broadcom and Oracle.

Micron's consolidated earnings for the fiscal year of 2026, from September to November, saw revenue surge by 56 percent to $13.6 billion, above the market consensus of $13 billion. Adjusted earnings per share also came in at $4.78, beating the consensus estimate of $3.95. Revenue posted double-digit growth across all business segments, including cloud memory and data centers.

Micron said memory demand far outpaces supply as Big Techs ramp up investment in AI data centers. The company has already finalized pricing and volume agreements for next year's high bandwidth memory (HBM), including HBM4, effectively selling out its 2026 output and leaving it unable to fully satisfy surging demand.

Mehrotra projects the global HBM market size to reach $100 billion in 2028 from 2025's $35 billion, noting that the $100 billion milestone is now expected to be reached two years earlier than previously forecast.

"In the medium term, we are only able to meet about 50 percent to two-thirds of our demand from several key customers," Mehrotra said at the online conference call. "In this environment, the gap between the demand and supply for all of DRAM, including HBM, is really the highest that we have ever seen."

AI chip demand is further rising as Big Tech companies such as Google, Amazon and Microsoft begin to develop custom-designed chips, known as application-specific integrated circuits (ASIC), to counter Nvidia's processors. Against this backdrop, KB Securities said that orders for HBM3E from ASIC developers are surging, adding that Samsung is expected to be one of the biggest beneficiaries of rising HBM and DRAM prices.

"HBM4 demand is forecast to rapidly absorb HBM3E demand from the third quarter of next year," analyst Kim Dong-won said. "Samsung and SK hynix will supply more than 90 percent of global HBM4 demand, cementing the view that the long-term upcycle in the memory market is only just beginning."

Forecasts from foreign securities firms are even more optimistic. Morgan Stanley projects Samsung's operating profit next year at 116.4 trillion won, while Nomura Securities estimates SK hynix's operating profit at 99 trillion won.

Concern persists over a burst

Still, enthusiasm over the current upcycle is clouded by investor unease about the uncertain payoff timeline for costly AI investments. Those concerns have been sharpened by recent earnings-related disappointments at major AI infrastructure beneficiaries, including Oracle and Broadcom, wh...

This article is by Kim Ki-hwan and read by an artificial voice.

With the so-called Yellow Envelope Act - amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act - set to take effect in March next year, disputes over "subcontractor bonuses" are heating up.

A recent announcement by Hanwha Ocean to match the bonus rates of its subcontractor employees to those of its own staff has triggered renewed attention, signaling a potential shift in the traditional bargaining structure between principal contractors and subcontractors.

Last Friday, Hanwha Ocean announced that it would align the bonus rates for employees of its in-house subcontractors with those of the company's own employees.

For example, last year, Hanwha Ocean employees received bonuses equivalent to 150 percent of their base salary, while subcontractor employees received around half that amount - roughly 75 percent. The new policy means that some 15,000 subcontractor employees will now receive bonuses at the same rate as their counterparts at Hanwha Ocean.

This move, in which the principal contractor directly guarantees the bonus level of subcontracted workers, could be interpreted as strengthening the principal's role as a de facto employer.

Typically, large conglomerates have supported subcontractor welfare indirectly - for instance, through contributions to co-prosperity funds. Direct involvement in wages and bonuses, however, raises questions about the principal's legal status as an employer of subcontracted labor.

"Since the bonus announcement, we've seen a flood of questions at worksites over eligibility, exclusions and whether years of service will affect the amounts," the Hanwha Ocean Subcontractor Chapter of the shipbuilding workers' union said in a statement issued on Monday. "These matters should be settled through collective bargaining."

The union also submitted a request for dispute mediation to the National Labor Relations Commission on Wednesday.

President Lee Jae Myung praised the move in a recent Ministry of Employment and Labor policy briefing, calling it "desirable."

That endorsement may set a kind of guideline for labor-management relations - particularly in the manufacturing sector, where principal-subcontractor structures are common in industries such as shipbuilding, automotive and steelmaking.

Last Friday, the nonregular workers' union chapter at Hyundai Motor held a rally in front of the company's Ulsan plant, demanding that "the real boss, Hyundai Motor, step up and raise our bonuses."

These subcontracted workers are not directly employed by Hyundai Motor but work at its plants in cleaning, security and food services. They are reportedly demanding bonuses at a similar rate to Hyundai Motor's full-time employees, who are set to receive bonuses worth 450 percent of their base pay. Their demand is directed at Hyundai Motor, not their immediate subcontractor employers.

"Starting with Hyundai, we're likely to see more subcontractors demand negotiations with the 'real boss' after March next year," said a senior executive at a steel company.

With local elections scheduled for June, more such demands may emerge from subcontracted workers in key industrial regions.

Kim Jong-hoon, mayor of Dong District in Ulsan, where HD Hyundai Heavy Industries is located, urged the company to "follow Hanwha Ocean's lead and give subcontractor employees the same bonuses as full-time workers."

The issue is that under the Yellow Envelope Act, large corporations could be forced into a corner when subcontractor unions demand higher bonuses. If a subcontractor union successfully argues that the principal contractor is a legal employer, then that principal could be required to sit at the bargaining table.

"They may initially raise issues like industrial safety - where employer responsibility is more easily recognized - and then use that as a lever to demand bonus increases in negotiations," said a labor affairs executive at a major company.

...