South Korea

태양광 업계 "銀 시세 급등 열받네"...원가 29%가 은값

ZD Net Korea | Local Language | News | Jan. 19, 2026 | Supply Chain Issues

Silver prices have surged to over $93 per ounce, marking a more than 300% increase in the past year. This spike has significantly impacted the solar industry, as silver, though used in small quantities in solar panels, now accounts for up to 29% of manufacturing costs, up from 3.4% in 2023 and 14% last year. The rising cost of silver is adding to the financial strain on solar panel manufacturers, many of whom have operated at a loss due to oversupply issues since the early 2010s.

To manage increasing costs, the solar industry is raising panel prices and actively seeking cheaper substitutes for silver. In the Chinese solar market, manufacturers recently increased module prices by 1.4–3.8%, with a 500W panel now estimated to cost about 400 yuan. Analysts predict that continued raw material price increases will likely lead to higher solar module prices. Efforts to decrease silver usage have resulted in a reduction from 11.2 mg per watt in 2024 to 8.96 mg per watt in 2025, with expectations that silver consumption in the solar industry will drop by 800–1,000 tons compared to the prior year.

Some manufacturers, such as Longi Green Energy Technology, JinkoSolar, and Shanghai Aiko Solar Energy, are already experimenting with non-silver substitutes. However, the industry cautions that unverified substitutes could compromise panel performance and warranty reliability, potentially exposing manufacturers to significant compensation liabilities. The solar sector now represents about 17% of total silver demand, more than double its share a decade ago, according to the Silver Institute.

환율 다시 1480원 눈앞…'약발 안 먹히는' 환율 정책, 실물경제 경고등

Newsis | Local Language | News | Jan. 19, 2026 | UndeterminedEconomic Growth

The won-dollar exchange rate is once again nearing the 1,480 won level despite government interventions, signaling diminishing effectiveness of current exchange rate policies. Since late last year, authorities have implemented various stabilization measures such as dollar sales from reserves, loosening financial regulations, strengthening market monitoring, and providing tax incentives to ease foreign currency demand. However, these efforts have not halted the upward trend of the exchange rate, which has rebounded after temporary declines following interventions.

Sustained high exchange rates pose significant risks to the real economy, including increased import costs that lead to higher consumer prices and rising operational expenses for companies heavily reliant on foreign currency payments. This situation is expected to strain ordinary households through increased costs for imports, overseas travel, education, and remittances. Economists suggest the ideal exchange rate to support economic stability lies around 1,300 won, far below current levels.

The government maintains that it is too early to evaluate the full impact of its measures, noting some initiatives are ongoing or phased and emphasizing a cautious, gradual approach. Officials also indicated potential use of macroprudential tools, such as stricter controls on foreign currency transactions by financial institutions, if instability persists. Experts, however, highlight the need for structural reforms that boost growth potential and industrial competitiveness to restore market confidence and achieve sustainable exchange rate stability. Without these medium- to long-term reforms, the won may remain vulnerable to future fluctuations.

Chosun Ilbo | English | News | Jan. 19, 2026 | UndeterminedPolitics and Elections

President Lee Jae-myung's recent visits to Japan and China at the start of 2026 have received warm welcomes, underscoring South Korea's increasing geopolitical importance. His engagements included striking drums with Japanese Prime Minister Takaichi and taking a selfie with Chinese President Xi Jinping at the Great Hall of the People, signaling strengthened diplomatic ties. These visits contrast sharply with those of former President Moon Jae-in, whose travels to China and Japan were marked by cold diplomatic receptions and limited engagement.

During his state visit to China from January 4th to 7th, President Lee was treated with high-level hospitality, including dining with Xi Jinping and Premier Li Qiang, and meeting Zhao Leji, Chairman of the National People’s Congress. This stands in contrast to former President Moon’s visit nine years ago amid the THAAD conflict, which was marred by protocol issues, assaults on journalists, and a low-level official delegation. Moon’s visit was perceived as “humiliating diplomacy” due to these challenges and China's minimal showing of respect.

President Lee’s visit to Japan is also being compared to Moon’s brief 10-hour trip in May 2018. While Moon’s visit was mainly limited to attending a trilateral summit and included no additional engagements, Lee’s visit in 2026 was met with more substantial diplomatic and public interactions. Moon’s reluctance to deepen engagement with Japan, partly due to ongoing tensions following a Supreme Court ruling on forced labor compensation, contrasts with Lee’s proactive diplomacy.

Former Chinese Premier Li Keqiang’s extended visit to Japan in May 2018 is also highlighted as a point of comparison, emphasizing the deeper level of engagement with Japan seen in China’s approach compared to Moon’s brief visit. President Lee’s recent visits are viewed as part of a strategic effort to strengthen South Korea’s position amidst Sino-Japanese tensions, receiving what is described as “strategic hospitality” from both countries.