Japan

Asahi Shimbun - E | English | News | Dec. 12, 2025 | Regulation

South Korea will mandate advertisers to clearly label AI-generated advertisements starting in early 2026 to combat deceptive promotions featuring fabricated experts and deepfaked celebrities, particularly in food and pharmaceutical products on social media. The government will enforce stricter screening, removal of problematic ads, and impose fines, with platform operators responsible for ensuring compliance. This move addresses growing consumer risks, especially for older populations who find it difficult to identify AI-made content.

The government plans to revise the telecommunications act and related laws to enforce these labeling requirements, introduce faster review and takedown procedures for harmful ads, and increase penalties, including fines up to five times the damages caused. The Food and Drug Safety Ministry reported a surge in illegal online ads, with over 96,700 identified in 2024, reflecting challenges for regulators in sectors such as education, cosmetics, and illegal gambling. AI also enables other criminal activities, including sexual abuse, highlighted by a recent Seoul court life sentence for a man convicted of running an online blackmail ring exploiting deepfakes.

In parallel, South Korea is advancing its AI ambitions by boosting research and development in AI-specific semiconductor chips, aiming to expand chip manufacturing beyond the Seoul metropolitan area. The government will also require wireless carriers to upgrade to 5G standalone networks to support advanced AI applications. These initiatives reflect a broader strategy to embrace the AI era while minimizing its negative societal impacts.

The Mainichi | English | News | Dec. 12, 2025 | UndeterminedEconomic Growth

Japanese Prime Minister Sanae Takaichi emphasized the importance of economic growth over rising long-term interest rates during a parliamentary session on October 21, 2025. She warned that failing to expand the economy would be "dangerous" and stressed the need for Japan to demonstrate resilience against risks. Takaichi responded to concerns about the government’s large draft extra budget and its impact on confidence in fiscal policy by highlighting her administration's commitment to fostering growth.

Since taking office in October under the banner of "responsible and proactive public finances," Takaichi has pledged to boost investment in key sectors such as semiconductors and shipbuilding. Her remarks come amid an increase in the benchmark 10-year government bond yield to the upper 1 percent range, reaching its highest level since 2006, and while Japan's fiscal health remains the weakest among the Group of Seven economies.

The yen has faced renewed selling pressure following her Cabinet's approval of an 18.3 trillion yen ($117 billion) supplementary budget last month to fund a large-scale economic package for the current fiscal year. More than 60 percent of this package will be financed through new government bond issuances, raising concerns over trust in both Japan's currency and government debt. Takaichi also indicated that her government would take "appropriate measures" to address excessive and disorderly movements in the yen, including those caused by speculative activity.

Nippon | English | News | Dec. 12, 2025 | Shifting Geopolitical Alliances

U.S. President Donald Trump's administration is prioritizing practical economic interests in its policy toward China, particularly concerning semiconductor exports, while de-emphasizing relations with Japan, a key U.S. ally. Trump announced that the U.S. will permit exports of Nvidia's H200 artificial intelligence chips to China, citing a positive response from Chinese President Xi Jinping.

This move marks a shift from previous administrations, including Trump’s first term and Joe Biden’s presidency, which had imposed strict restrictions on chip exports to China over national security concerns related to potential military use of the technology. The U.S. has also urged allies such as Japan and the Netherlands to strengthen their export controls on chip manufacturing equipment. However, Trump’s current policy allows chip exports to China with the stipulation that 25 percent of sales revenues are paid to the U.S. government.