This article is by Kang Hye-ran and read by an artificial voice.

Two stone pagodas long recognized as masterpieces of early Goryeo architecture - the Five-story Stone Pagoda at Bowonsa Temple Site, Seosan and the Five-story Stone Pagoda at Gaesimsa Temple Site, Yecheon - are set to be elevated from Treasures to National Treasures, the Korea Heritage Service (KHS) announced Thursday.

Both pagodas were designated as Treasures in 1963. Sixty-two years later, their historical and artistic value has been formally reaffirmed.

The Seosan pagoda, built in the mid-10th century, stands in front of the main hall site on the western grounds of the former Bowon Temple, believed to have been founded in the late Unified Silla (668-935) or early Goryeo period (918-1392). An inscription on the Stele of State Preceptor Beopin at Bowonsa Temple Site records that Goryeo monk Tanmun (900-974) erected a Buddha statue and pagoda for King Gwangjong, providing a clear dating reference for the structure.

The pagoda's two-tier base supports five body sections, each defined by finely carved architectural details. The lower base features lion statues symbolizing guardians of Buddhist law, while the upper base bears reliefs of the Eight Guardian Deities. The roof stones are thin and broad - a stylistic departure from Unified Silla prototypes, showing Goryeo's evolving stone-carving techniques.

According to the KHS, the pagoda's "clearly dated construction and refined workmanship offer valuable insight into royal patronage of Buddhism during early Goryeo, bridging artistic traditions from Unified Silla into a new stylistic era."

Built in 1011 during King Hyeonjong's reign, the Yecheon pagoda provides another chronological anchor for Goryeo-era pagoda studies. Its 190-character inscription details the construction process, donors and the religious climate of the time - an unusually comprehensive record for a stone monument.

The pagoda's double-tiered base features twelve zodiac guardians carved within arched niches, while the upper base holds paired reliefs of the Eight Guardian Deities. The first story of the main structure displays fierce Vajra warriors, creating a vertical iconographic sequence - from the earthly to the divine - unique in Korean Buddhist art.

The KHS praised the pagoda's combination of epigraphic and sculptural detail, noting that it "vividly reflects Buddhist cosmology and offers a rare example of narrative integration in stone architecture."

Archaeological surveys revealed that both temple sites remained active until the late Joseon period - Gaesimsa into the late 16th century and Bowonsa until the 17th or 18th century.

The KHS will collect public opinions over a 30-day notice period before finalizing the National Treasure designations through the Cultural Heritage Committee.

In addition, the agency designated four new Treasures - including the Five Hundred Arhats of Goryeo, paintings depicting the wish for divine protection during national crises - and named Geoje Sujeong Fortress, a Joseon-era mountain fortification built for coastal defense, as a Historic Site.

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 Sarah Chea and read by an artificial voice.

Hyundai Motor shares climbed more than 5 percent on Thursday during the trading session, following news that a 15 percent tariff on auto exports to the United States had been finalized during U.S. President Donald Trump's visit to Korea.

Shares of Hyundai Motor closed at 265,000 won ($185) on Thursday, up 2.7 percent compared to the previous trading session, while Kia closed at 116,200 won, up 0.35 percent.

The tariff agreement was reached on Wednesday, when President Lee Jae Myung and Trump finalized the details of the long-debated trade deal during a summit in Gyeongju, North Gyeongsang.

Hyundai Motor had been subject to a 25 percent tariff since April. Though the United States and Korea had tentatively agreed in July to lower the rate to 15 percent, talks stalled over the specifics of a proposed $350 billion investment package. Lee and Trump's summit confirmed that Korea will proceed with a $200 billion cash investment, capped at an annual limit of $20 billion.

The announcement puts Hyundai on equal footing with competitors in Japan and the European Union, allowing it to compete with Japan's Toyota and Germany's Volkswagen.

The lower tariff will help Hyundai save over 4.4 trillion won every year. Under the previous 25 percent rate, Hyundai was estimated to lose roughly 6 trillion won, and Kia 5 trillion won.

Hyundai on Thursday reported that its third-quarter operating profit fell 29.2 percent from a year earlier to 2.54 trillion won. The U.S. tariff alone had shaved about 1.8 trillion won off its operating income in the third quarter.

In the second quarter, Hyundai and Kia had suffered a combined loss of roughly 1.6 trillion won due to the tariffs.

"The tariff reduction is expected to have an immediate and positive impact on Hyundai's financial structure, as yearly losses [will likely] now be halved to around the 5 trillion won range," said Park Kwang-rae, a research analyst at Shinhan Investment & Securities.

"Beyond the direct savings on tariffs, secondary benefits are also anticipated with reduced cost pressures. Hyundai will have greater room to scale back aggressive incentive programs and gain strategic flexibility to adjust prices more nimbly in response to market conditions."

The automobile industry is one of Korea's leading export sectors to the United States. Last year, shipments of domestically manufactured vehicles to the United States totaled $34.7 billion - accounting for nearly half of the nation's overall automobile exports, which stood at $70.8 billion.

Hyundai Motor's push into the U.S. market is expected to accelerate. The United States is the company's largest market, where its share stands at 10 percent, ranking as the nation's fourth-largest automaker.

Sales momentum has remained strong this year. In the third quarter, Hyundai and Kia sold a combined 481,750 vehicles in the U.S. market, up 12 percent from a year earlier - the highest third-quarter figure in the companies' history.

Hyundai's Georgia factory, which opened in March, will produce both EVs and hybrids, and its capacity will gradually increase to some 1.2 million cars.

"We are grateful for the administration's dedicated efforts throughout this difficult negotiation process," Hyundai said in a written statement released immediately after the deal announcement.

"Hyundai and Kia will continue to pursue various measures to minimize the impact of tariffs while further strengthening product quality, brand competitiveness and technological innovation."

This article is by Kim Young-ju and read by an artificial voice.

Start at Sangam World Cup Stadium, pass through Gwanghwamun's Sejong-daero, cross the Han River three times and then finish at Olympic Park. Then you'll traverse the same route as the 2025 JTBC Seoul Marathon, which is taking place this Sunday beginning at 8 a.m.

While many marathons are already held in Seoul, the JTBC Marathon is the only full 42.195-kilometer (26 mile) course that cuts right through the heart of the capital and traverses three Han River bridges.

The 42.195-kilometer route begins at Sangam World Cup Park and runs through Yanghwa Bridge, Yeouido, Mapo Bridge, Sejong-daero and Jamsil Bridge before finishing in Bangi-dong at Olympic Park. The 10-kilometer course also is city-based, taking runners from Sangam over Yanghwa Bridge to Yeouido Park.

"The scenic course, cutting through downtown Seoul and across the Han River, helped this race quickly grow into the country's largest, drawing between 30,000 and 40,000 amateur runners," said a race organizer.

In the men's elite category, 19 international athletes with world-class records and 65 Korean runners will compete.

Top contenders include Amduork Warelegn Tadesse of Ethiopia, who holds a personal best of 2 hours, 4 minutes and 50 seconds; Berehanu Wendemu Tsegu, also of Ethiopia, who holds a record of 2 hours, 5 minutes and 14 seconds; and Reuben Kiprop Kerio of Kenya, whose best is 2 hours, 7 minutes. Tadesse is aiming to reclaim the title he last won in 2022.

In the Korean men's division, runners include Shim Jung-sub of Korea Electric Power Corporation, with a personal best of 2 hours, 11 minutes and 24 seconds; Kim Hong-rok, also of Korea Electric Power Corporation, with a time of 2 hours, 12 minutes and 29 seconds; and Kim Geon-oh, who clocked 2 hours, 14 minutes and 8 seconds.

In the women's division, a close race is expected between national record-holder Kim Do-yeon of Samsung Electronics, with a best time of 2 hours, 25 minutes and 41 seconds, and Lim Ye-jin of Chungju City Hall, this year's winner in the 10,000-meter race at the National Sports Festival.

The race offers prize money totaling $114,500 in the invited athletes division and 34.4 million won ($24,090) in the Korean athletes division.

The JTBC Marathon is popular among amateur runners for its easy access and attractive route. A total of 34,000 runners will participate, with 17,000 each in the full and 10-kilometer courses.

Registration sold out immediately after opening. Notably, 47 percent of runners were in their thirties as of 2024, showing strong participation from the so-called MZ generation.

"I loved that the course ran across the Han River last year, so we signed up again," said Gong Byungchul, a 42-year-old runner who is running the 10-kilometer race with his son Haneul.

Haneul, the youngest participant in this year's race, said, "This is my first time running the JTBC Marathon. I'll do my best and aim for the half marathon next year."

"This will be my third JTBC Marathon," said So Joon-hee, a 81-year-old runner and the oldest full-course runner. "The gentle course through Seoul makes it a safe race. I want to keep running for as long as my health allows."

So finished last year's race in 5 hours and 11 minutes.

The JTBC Marathon is the only race in Korea where athletes with and without disabilities compete together. Para athletes race in wheelchairs with one front wheel and two rear wheels, powered by hand. Nine athletes from four countries will compete this year.

Traffic will be controlled on major roads in central Seoul. From 6 a.m. to 2:30 p.m., roads along the marathon route will be closed in stages. For the 10-kilometer course, restrictions will run from 6 a.m. to 11 a.m.

Participants are encouraged to use public transportation, such as the Seoul Metro Line 6 to World Cup Stadium Station. The designated assembly time is 7:30 a.m. On race day, temperatures in Seoul are expected to range between seven and 10 degre...

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

The heads of Nvidia, Samsung Electronics, and Hyundai Motor gathered at an unlikely spot - an unassuming and slightly rundown chicken joint in southern Seoul in Thursday evening - ahead of anticipated major deals among the companies during Jensen Huang's visit to Korea for the Asia-Pacific Economic Cooperation (APEC) CEO summit. It is believed the high-profile informal gathering of Huang, Samsung Electronics Executive Chairman Lee Jae-yong and Hyundai Motor Executive Chair Euisun Chung was focused on expanding semiconductor supply chains, AI infrastructure and robotics.

As night fell, more than 1,000 people, including reporters, onlookers and company officials had gathered around the small chicken restaurant, prompting police to arrive, set up barricades and manage the swelling crowd. With the swarm of reporters and cameras crowding the area and spilling onto the roadway, even the most oblivious passersby realized that something was brewing as they found their paths blocked.

The location, the well-known Korean fried chicken franchise Kkanbu Chicken, was reportedly handpicked by Huang who wanted to experience the country's famous chimaek (chicken and beer) culture. The Nvidia chief is known to be keen on trying out different local restaurants during his business trips.

The meeting among the U.S. AI chip giant, Korea's leading chipmaker and automaker is seen as a significant step toward strengthening AI cooperation, coming a day before Nvidia's large-scale AI chip supply deals with four major Korean conglomerates - Samsung, SK, Hyundai Motor and Naver - estimated to be worth a few trillion won.

Samsung Electronics is supplying its fifth-generation high bandwidth memory (HBM3E) chips to Nvidia, which was verified by the chipmaker on a conference call on Thursday. Samples of Samsung's next-generation HBM4 chips are also being shipped its to clients. Nvidia-approved HBM4 chips this year could be a watershed moment for the Korean chipmaker to reclaim the top spot in the global HBM market.

"As competition over GPU (GPU) performance intensifies among our client companies, customers are demanding higher-performance HBM4," Samsung said. "We anticipated this market need from the start of our development, and set our performance targets to exceed customer expectations. The samples currently delivered to customers can achieve over 11 gigabits per second while maintaining low power consumption."

The company said it has already secured customer orders for expanded HBM supply next year, but is reviewing options to further boost production capacity to handle extra demand.

SK hynix, another major chipmaker, said during its Wednesday conference call that all of its 2026 memory chip supply has already been sold out, and that it plans to "significantly" increase memory-related capital spending from this year's level. The company added that it will start delivering HBM4 chips to major clients in the fourth quarter.

Hyundai Motor and Nvidia have announced a partnership in January regarding future mobility, with cooperation spanning across multiple domains including software-defined vehicles, robotics, autonomous driving, digital twins, smart manufacturing and infotainment.

Huang is reported to meet separately with SK Group Chairman Chey Tae-won at Gyeongju on Friday.

Lee and Chung, after meeting Huang in Seoul, will also return to Gyeongju on Friday to attend a dinner scheduled with Chinese President Xi Jinping.

This article is by Jeong Jae-hong and read by an artificial voice.

SK Telecom's operating profit fell 90.9 percent in the third quarter to 48.4 billion won ($34.1 million) from a year earlier, as the fallout from a massive hacking incident earlier this year hit earnings, the mobile carrier said Thursday.

Revenue dropped 12.2 percent year-on-year to 3.98 trillion won, while the company swung to a net loss of 166.7 billion won from a profit a year earlier.

The company said it would not distribute a dividend for the third quarter.

SK Telecom said the steep decline stemmed from revenue losses tied to compensation measures following a large-scale data breach and personal information leak that came to light in April.

In July, the carrier waived contract termination fees, leading to a higher customer churn rate, and in August, it launched a 50 percent mobile fee discount and other compensation programs that further hurt sales.

Since August, the company has also rolled out a "customer appreciation package" valued at about 500 billion won, offering mobile bill discounts, additional data and partner benefits. The 1.35 trillion won fine imposed by the Personal Information Protection Commission further weighed on earnings.

Still, SK Telecom said the telecom business showed signs of recovery compared with the second quarter, when the hacking crisis first came to light. The number of 5G subscribers rose by 240,000 to 17.26 million in the third quarter, while broadband subscribers also returned to growth.

In the artificial intelligence division, sales jumped 35.7 percent from a year earlier. The AI data center business generated 149.8 billion won in revenue thanks to the acquisition of a data center in Pangyo, Gyeonggi, and new graphics processing unit (GPU) rental contracts, while revenue from AI transformation services reached 55.7 billion won.

SK Telecom has also begun construction of a new AI data center in Ulsan in partnership with Amazon Web Services (AWS) and signed an agreement with OpenAI to build a dedicated AI data center in Korea's southwest region.

Kim Yang-seob, SK Telecom's chief financial officer, said the company would focus on regaining customer trust and expanding its AI business.

"We will make restoring customer confidence our top priority and turn the crisis into an opportunity by achieving tangible results in the AI sector," he said.

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 Eo Hwan-hee and read by an artificial voice.

Korean researchers have built a neuromorphic chip that mimics how the human brain learns and processes information, enabling brain-signal analysis up to 20,000 times faster than before and opening new possibilities for next-generation AI and brain-computer interface technology.

The Korea Institute of Science and Technology (KIST) said on Oct. 27 that its research team developed a semiconductor modeled on the neural network of the human brain. The chip, known as a "neuromorphic chip," combines the words neuron and morphic and reproduces how the brain processes and learns data through interconnected neurons.

Unlike conventional GPUs, which focus on computation, a neuromorphic chip emphasizes learning and parallel processing, enabling high efficiency with minimal energy use.

"Because intelligence forms through connections between neurons, the core concept of neuromorphic technology lies in analyzing and implementing that connectivity," said Park Jong-gil, a senior researcher at KIST's Semiconductor Technology Research Group. "Approaching the problem of brain-signal analysis using a neuromorphic method represents a new way of thinking."

The chip could play a key role in advancing brain-computer interface (BCI) systems, which aim to connect the human brain directly to machines.

A major challenge in BCI research lies in interpreting complex signals from thousands of neurons quickly and accurately. Conventional methods rely on storing neural activity data for long periods and conducting post-analysis, but the new chip can analyze data in real time without storage.

Using this technology, researchers can analyze neural connections up to 20,000 times faster than before.

"Beyond BCI systems that allow people to control devices through thought alone, this chip can be applied to fields such as autonomous driving and satellite communications, which require real-time processing of complex sensor signals," Park said.

The research team designed the chip using a principle known as spike-timing-dependent plasticity (STDP), which adjusts synaptic strength based on the precise timing of neural signals. The chip detects timing differences between signals and adjusts the strength of synaptic connections accordingly.

Developed on an on-chip architecture, the device performs all computations and weight adjustments internally, allowing it to learn and adapt like a biological brain.

The research results were published in the latest issue of IEEE Transactions on Neural Systems and Rehabilitation Engineering.

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 Chon Kwon-pil and read by an artificial voice.

James Miller, 55, who lives in Chicago, recently visited Korea with his family. After sightseeing in Seoul, they headed to Sokcho, Gangwon, to hike in Seoraksan National Park.

"I was looking for somewhere to go outside of Seoul and heard that Seoraksan was beautiful and not too difficult to climb," Miller said. "We had a great day hiking and enjoying delicious Korean food afterward."

As the popularity of "K-hiking" continues to rise, the number of foreign visitors to Korea's national parks has surged. According to the Korea National Park Service, 885,282 foreigners visited national parks across the country last year - more than five times the 165,767 recorded in 2022. This year, 582,077 foreign visitors were tallied through September.

"The actual number is likely higher if we include visitors who were not officially counted," said an official from the Korea National Park Service.

So far this year, Gyeongju National Park has attracted the most foreign visitors, with 322,482 people.

"The course visiting Bulguksa Temple and Seokguram Grotto, then heading to Hwangridan-gil, a popular street in Gyeongju, is well known among foreign tourists," said Kim Dang-woo, head of the visitor facilities division at the Gyeongju National Park Office. "We have seen even more visitors recently with the APEC summit approaching."

Seoraksan National Park recorded 111,164 foreign visitors, ranking second. It was followed by Hallasan National Park with 71,959 visitors, Bukhansan National Park with 29,204 and Hallyeohaesang National Park with 17,517.

Foreigners are drawn to Korea's national parks because admission is free and trails are well-maintained, making hiking accessible even for beginners. Packing gimbap for the hike and enjoying makgeolli (Korean rice wine) after descending from Bukhansan National Park - located in the heart of Seoul - has become a must-do experience for many international tourists.

Interest in Korean culture has also contributed to the boom, as many foreigners learn about the parks through social media and online platforms.

"Many say they came after seeing photos of Seoraksan's fall foliage on Instagram or because AI platforms like ChatGPT recommended the park as a must-visit destination in Korea," said Hyun Byung-kwan, head of the Seoraksan National Park Office.

With more foreign visitors, the number of accidents in national parks has also increased. Some hikers stray off designated trails or head out without proper equipment.

Five Russian tourists had to be rescued after attempting a nighttime climb to Seoraksan's Daecheongbong Peak without flashlights or other basic gear on Oct. 17. Earlier this year, a group of foreigners was spotted smoking at the summit of Bukhansan National Park, stirring controversy.

"Some routes suggested by Google Maps or other online platforms are not official trails," the Seoraksan National Park Office said. "We recommend checking the official National Park Service guides and, if possible, hiking with a Korean companion."

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 Lee Jian and read by an artificial voice.

TAIPEI, Taiwan - As Korea's domestic art scene becomes increasingly crowded, more galleries are turning their gaze outward. This year's Art Taipei, which ran from Oct. 24 to 27, featured 15 Korean galleries, including big names such as Gana Art and Gallery Baton. But standing out just as much were smaller galleries - whose names are virtually unheard of in Seoul but whose booths bustled with Taiwanese collectors and visitors.

Unaffiliated with Korea's dominant Galleries Association of Korea, five Seoul galleries at Art Taipei 2025 have never participated in major art fairs in their home country, such as Frieze Seoul or Kiaf. Yet their performance at the Taiwanese event demonstrates how smaller players are cultivating international recognition - and, in some cases, achieving greater success abroad than at home.

Art fairs today serve purposes beyond commercial exchange: they function as crucial platforms for visibility, reputation and cultural prestige, particularly as public engagement continues to grow. In Seoul, two prominent fairs - Kiaf and the Galleries Art Fair - are both organized by the Galleries Association of Korea, and their rosters consist almost entirely of member galleries. Thus, for many collectors and casual visitors alike, the Korean art market can appear synonymous with this small, exclusive network.

At Art Taipei, however, the five Korean galleries stood apart. None were association members, yet together they formed a diverse cohort of independent, almost ragtag exhibitors.

For some, participation in Art Taipei reflected a calculated market strategy; for others, it signified both the allure of the Taiwanese art ecosystem and an aspiration for international exposure. The Korea JoongAng Daily spoke with three of these Korean galleries at Art Taipei 2025.

L Gallery

This year marks L Gallery's seventh appearance at Art Taipei. Yet the Seoul-based gallery has never exhibited at Kiaf, Frieze Seoul or any other Korean art fair.

It instead maintains a consistent presence across Asia, participating in art fairs in Hong Kong, Beijing, Shanghai, Thailand and other parts of Taiwan through Art Taichung and Art Tainan. Its clientele includes high-profile figures such as Taiwanese singer-songwriter and actor Jay Chou and Singaporean musician JJ Lin.

"The atmosphere differs in each market - just because someone is a Korean artist doesn't mean they're popular in Korea," said Lee Baek, CEO of L Gallery. "Each artist has a market that aligns with their philosophy and distinctive character. Since the artists we represent weren't well-known in Korea when we began, our focus naturally shifted overseas - and that's how it has remained."

Kim Kwan-young, for instance, is familiar to collectors in Taiwan, though still lesser-known in Korea. His meditative series "The Memory of the Unconscious," characterized by thick layers of paint and rhythmic linearity, resonated deeply with the Taiwanese audience. Kim held his first solo exhibition in Taiwan in 2021, and according to Lee, his works sold out at this year's fair.

L Gallery's booth also featured works by Suzy Q, James San, Lee Sara, Qwaya and Sono Moon.

Lee recently closed L Gallery's physical space in Seoul, noting, "It's ironic that we're a gallery based in Seoul yet don't actually have a space in the city. But I'm constantly traveling, and no one was left to maintain it. I do hope to reopen it soon."

One of the gallery's current objectives, he added, is to help Korean artists expand internationally and build stronger global networks. "When we first came to Art Taipei, there were only two other Korean galleries here," Lee recalled. "The number has grown substantially as more Korean galleries aim to reach international collectors."

M Contemporary

M Contemporary joined Art Taipei for the first time last year as part of its strategy to expand its network of global collectors. The gallery also participated in Art Centra...

Lee Woo Young

The author is an HCMC distinguished professor at the Korea Institute for Advanced Study.

Readers have long left traces of their thoughts in the margins of books - a practice known as marginalia. Writers and scholars such as Michel de Montaigne, Isaac Newton and Charles Darwin were all fond of this habit. But what might be the most extraordinary marginal note in human history?

In the 17th century, French mathematician Pierre de Fermat (1601 - 1665) filled the margins of Diophantus's ancient work "Arithmetica" with his own comments. After Fermat's death, his son noticed that these annotations seemed unusual and decided to publish the book in 1670, including his father's notes. One of them, later known as "Fermat's Last Theorem," carried an infamous remark: "there was not enough space in the margin to include the proof."

That cryptic message spurred generations of mathematicians to seek the missing proof. For more than three centuries, many wept in frustration, yet their failures gave rise to profound advances in number theory. The theories that emerged from this pursuit profoundly influenced the course of modern civilization. By that measure, Fermat's marginal note may well be the most remarkable ever written.

I once left a few such notes myself while reading Bertrand Russell's "An Essay on the Foundations of Geometry" (1897). Preparing for a recent lecture, I took the old volume off the shelf and found one of my faded notes marked with a question mark. Curious about what had prompted it, I reread the passage. Russell had written, "At first he cut away the flabby shell, and at last his cleverness cut away God himself."

Back when I first read it, I had no idea who "he" referred to. This time, the meaning struck me - the subject was none other than our own self, the restless creator of artificial intelligence. The old note had been waiting for decades to awaken its meaning.

Notes in the margins can reignite old questions, transport us back through memory or, as in Fermat's case, accompany humanity on a long journey of discovery. In the digital age, the faded handwriting in the margins of old paper books feels more intimate than ever - a quiet light lingering between the lines of time.

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.

Kim Kyung-rok

The author is an adviser at Mirae Asset Global Investments

Red, blue and yellow are the three primary colors. In asset management, too, there are countless approaches, yet certain elements must always be observed. Curiously, when one distills complex systems to their essentials, the number three often emerges. Asset management can also be reduced to three core elements: tax, income and price - forming the acronym "TIP." These are the primary colors of asset management. The logic connecting them follows the order of purchasing power, income and tax.

The first and ultimate goal of asset management is not to preserve the nominal principal, but the real principal - that is, the purchasing power of money. The rate of return must at least exceed the inflation rate. Preserving the real principal, however, is not easy. When inflation stands at 3 percent, a deposit of 100 million won ($70,000) earning 3 percent interest over 10 years yields 30 million won in total interest. Yet, after accounting for income tax and inflation, the real loss amounts to about 3.9 million won.

When the real principal is maintained, the dividends generated from it also retain their real value. This is an important feature. If an asset's value rises in line with inflation, its dividends increase proportionally. For instance, if a dividend-paying stock is priced at 10,000 won with a 3 percent yield, the dividend is 300 won. When the stock price rises to 15,000 won - a 50 percent increase - the dividend becomes 450 won. Dividends grow exactly in proportion to the rise in principal. Just as the trunk of a tree thickens and its branches expand, income grows along with the asset base.

Long-term institutional investors, such as pension funds, set their target return above the inflation rate. Achieving that with deposits and bonds alone is difficult. In the case of Korea's National Pension Service, about 60 percent of its portfolio is invested in equities and real estate. Individuals today also find it hard to preserve the real principal through savings or insurance due to prolonged low interest rates. Japan, for instance, saw its households move from deposits and pensions to foreign and dividend-paying assets after entering its zero-interest-rate period in 1995.

Second, individuals must hold income-generating assets. There are assets that produce no income - such as gold, oil, raw materials, redevelopment properties or venture investments - and assets that do, such as stocks, income-producing real estate and bonds. Warren Buffett once likened income assets to "commercial dairy cows." Personal wealth management should center on assets that produce steady income.

Income assets have many advantages. They generate cash flow even if asset prices stagnate, and they allow investors to hold through downturns without selling in distress. There is no need to agonize over when to sell just to cover living expenses. Above all, cash-flow-generating income assets reduce investment risk. A property yielding 4 percent annually will, even if its price does not rise for 20 years, return 120 percent of the initial investment through compounding. Over time, accumulated income mitigates losses. Time becomes an ally. Asset management should focus on owning assets for which time works in one's favor.

Third, income should be sheltered from excessive taxation through tax-efficient accounts. In Korea, when dividend or interest income exceeds 20 million won, it is combined with other income for comprehensive taxation, which means it may be taxed at rates higher than the standard 15.4 percent. After retirement, when public pension and rental income are added to financial income, after-tax income can fall sharply. Because tax reduction is a certain form of profit, it must be pursued diligently.

Governments offer tax incentives to encourage individual asset building. Tax benefits are provided across three stages - contribution, investment and withdrawal. Individual retirement...