The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: June 16-20.
President Lee makes diplomatic debut at G7 summit
President Lee Jae-myung made his diplomatic debut on the global stage at the Group of Seven (G7) summit. On the first day of his visit, June 16, he held bilateral talks with the presidents of South Africa and Australia. The following day, ahead of and after the G7’s expanded session—which included member states and invited nations—Lee held a series of back-to-back meetings with seven world leaders, including Japan’s prime minister. He also met with leaders and officials from international organizations and regional blocs such as the North Atlantic Treaty Organization (NATO), the United Nations, and the European Union, expressing a firm commitment to international cooperation. A planned summit between South Korea and the United States was scheduled to take place around the expanded session. However, it was canceled after President Donald Trump made an abrupt return to Washington, citing heightened tensions and military conflict between Israel and Iran.
Seoul makes bold bid for global AI leadership with infrastructure, strategy
South Korea is accelerating its push to join the ranks of global artificial intelligence leaders with a strategy likened to wartime mobilization. On June 15, the presidential office appointed Ha Jung-woo, head of the AI Innovation Center at Naver, as the nation’s first senior presidential secretary for AI policy. A dedicated AI policy unit will also be created to support the new role. On the same day, SK Group announced plans to build South Korea’s largest AI data center in Ulsan’s Mipo National Industrial Complex, in partnership with Amazon Web Services (AWS). The two companies will jointly invest several trillion won in the project. By bringing in a top expert to lead national AI efforts and significantly expanding digital infrastructure, South Korea is making a concerted effort to position itself among the world’s top three AI powers. President Lee Jae-myung has consistently underscored the strategic importance of AI, naming a 100 trillion-won ($735 billion) investment plan as one of his key campaign pledges. His platform also included a proposal to develop a “sovereign AI” system tailored to South Korea’s unique cultural and historical identity—a concept strongly championed by Ha, the newly appointed secretary.
South Korea ranks No. 2 in OECD for food and beverage prices
South Korea ranks second among the 38 member states of the Organisation for Economic Co-operation and Development (OECD) in food and non-alcoholic beverage prices, following only Switzerland, highlighting the country’s globally high cost of food. According to recent data, prices for 30 out of 39 commonly consumed food service items—including gimbap and hamburgers—have jumped more than 20 percent over the past five years. The pace of increase for the majority of these dining-out items has outstripped the country’s overall consumer price index, which rose 16.9 percent during the same period. Analysts point to several underlying factors behind the high cost of groceries and dining in South Korea. These include the country’s low food self-sufficiency rate, a complex agricultural distribution system, and continued political uncertainty since late last year—all of which have contributed to inflationary pressures across the food sector.
South Korean government faces scrutiny as rice prices climb
Despite spending taxpayer funds to purchase surplus rice, the South Korean government is now facing mounting criticism as rice prices climb sharply. In response to a supply glut last fall, authorities intervened with large-scale purchases aimed at stabilizing falling prices. However, the move has since led to reduced market availability, fueling a surge in prices. On some e-commerce platforms, a 10-kilogram bag of rice is nearing 40,000 won—equivalent to about 400 won per 100 grams—closely rivaling the cost of CJ CheilJedang’s Hetbahn instant rice. A pack of 48 Hetbahn servings, totaling approximately 10 kilograms, is priced at 44,000 won, or roughly 440 won per 100 grams. The price spike has reignited debate over the government’s market intervention strategy. Critics argue that the Democratic Party’s proposal to revise the Grain Management Act—which would require mandatory state purchases when rice prices fall below a predetermined threshold—risks further distorting the market.
LG Display sues China’s Tianma over LCD, OLED patent infringement
LG Display has filed seven patent infringement lawsuits against Chinese display manufacturer Tianma in the U.S. District Court for the Eastern District of Texas, it was revealed on June 19. The suits, lodged on June 13 local time, mark the first time LG Display has taken legal action against a Chinese firm over alleged violations of its display technology patents. The South Korean panel maker suspects that Tianma has unlawfully used its core technologies related to liquid crystal displays (LCD) and organic light-emitting diodes (OLED). Earlier this year, Samsung Display secured a victory in a similar case, winning an OLED patent infringement lawsuit against Chinese panel maker BOE at the U.S. International Trade Commission (ITC) in March. Industry analysts suggest that LG Display’s legal action may also be aimed, directly or indirectly, at Apple’s growing partnerships with Chinese display suppliers. Apple has come under scrutiny in recent years over allegations that it supported Chinese manufacturers with technical assistance in an effort to pressure Samsung Display and LG Display to lower OLED panel prices.
KOSPI stalls below 3,000 as geopolitical risks rattle markets
The Korea Composite Stock Price Index (KOSPI) has remained above the 2,900 level for six consecutive trading sessions, yet attempts to reclaim the psychologically significant 3,000 mark continue to falter. On June 18, the KOSPI opened at 2,942.71, down 16.67 points, or 0.57%, from the previous close. Although the index briefly rebounded during intraday trading to reach 2,979, it ended the session at 2,972.19. The day prior, on the morning of June 17, the index surged to an intraday high of 2,998.62, raising expectations of a return to the 3,000 range. However, afternoon sell-offs by foreign and institutional investors erased earlier gains, dragging the closing figure back down to the 2,950 level. The index’s steady rise since early June had bolstered hopes of a near-term breakthrough. However, growing geopolitical risks—heightened by Israel’s June 13 airstrike on Tehran—have rattled investor sentiment and injected volatility into the market. The uncertainty, coupled with fatigue following a roughly 30% rally from April’s low near 2,200, has weighed on upward momentum.
North Korea to send 6,000 troops to Russia for reconstruction work
North Korea will deploy 1,000 military engineers and 5,000 construction troops to support reconstruction efforts in Russia’s Kursk region, according to Russian media reports on June 17. The announcement followed a meeting in Pyongyang between North Korean leader Kim Jong-un and Russian Security Council Secretary Sergei Shoigu. Shoigu stated that the North Korean personnel will be assigned to demining operations and infrastructure restoration in Kursk, a southern Russian region that was briefly occupied by Ukrainian forces last August before being retaken by Moscow. This latest dispatch adds to North Korea’s previous contributions to Russia’s war effort, including the deployment of 11,000 combat troops in October and another 4,000 earlier this year. With the upcoming deployment, Pyongyang will have sent over 21,000 personnel to aid Russia in both military operations and post-conflict reconstruction.
One minute, that’s all it takes to know about Korea. Click here ☞ https://page.stibee.com/subscriptions/305897
