South Korea

Hankyoreh - E | English | News | Jan. 23, 2026 | North Korea

President Lee Jae Myung condemned the recent incident of a civilian manufacturing and sending a drone into North Korea, calling it "akin to starting a war." During a Cabinet meeting at the Blue House, he emphasized that such actions are unacceptable and likened them to firing a gun towards the North. The individual involved had sent drones on three occasions, prompting Lee to criticize the Ministry of National Defense for inadequate surveillance measures and to demand improved facilities and equipment to prevent hostility and mistrust between the two Koreas. He ordered a thorough investigation into the incident, stating concerns that state agencies might be implicated.

Lee’s comments also aimed to maintain ongoing military efforts to ease tensions on the Korean Peninsula, such as the suspension of loudspeaker and radio broadcasts toward North Korea, signaling his intention to hold those responsible accountable without undermining diplomatic measures.

On energy policy, Lee called for rational, ideology-free discussions regarding the construction of new nuclear power plants and small modular reactors. He acknowledged strong public support for nuclear power as essential to addressing electricity needs and urged efforts to minimize political polarization on the issue. These remarks follow previous government officials’ statements emphasizing the inevitability of expanding nuclear power facilities.

Additionally, Lee addressed the importance of media neutrality concerning court decisions, urging adherence to fairness and the public interest, especially in politically sensitive cases where public broadcasts might criticize prosecutors regardless of verdicts.

SKT 'A.X K1', 옴니모달로 진화…“소버린 AI 마중물 될 것”

ET News | Local Language | News | Jan. 23, 2026 | UndeterminedTech Development/Adoption

SK Telecom's ultra-large AI model, A.Dot X (A.X) K1, is advancing into an omnimodal model as part of the second phase of its independent AI foundation model project. This upgrade will enable the model to understand and process speech in real time alongside text and images, aiming to establish leadership in sovereign AI. The A.X K1, already a model with approximately 500 billion parameters, will sequentially incorporate multimodal functions, including voice and image recognition.

Professor Kim Geon-hee of Seoul National University highlighted the transition from multimodal models, which integrate text, photos, and videos, to omnimodal models that also include speech understanding. He emphasized the technical difficulty of implementing real-time voice conversations due to their bidirectional and simultaneous nature, requiring the model to handle interruptions, brief feedback, and emotional nuances. Past approaches using separate speech-to-text and text-to-speech systems faced delays and lost key information, such as breathing and emotional signals.

To address these challenges, recent developments focus on integrated language models capable of processing voice information directly. The core strategy involves fine-tuning a powerful pretrained language model using diverse data, including voice, to achieve comprehensive omnimodal capabilities. SK Telecom aims to deploy these advancements across various services like A.Dot, T map, and B tv, and expects the technology to play a central role in enhancing AI applications in gaming and mobility through partners Krafton and 42dot.

Professor Kim stressed that the success of sovereign AI depends heavily on effective use of national core data sovereignty, which includes largely unstructured data in multiple formats. An omnimodal model allows for direct training and operation of such data without relying on external platforms, thus reinforcing both digital sovereignty and sovereignty over physical infrastructure.

Joongang Ilbo | English | News | Jan. 23, 2026 | Regulation

Korea’s financial regulators are considering permitting leveraged exchange-traded funds (ETFs) tied to individual stocks like Samsung Electronics and SK hynix to address capital outflows and reduce pressure on the won. This review is focused exclusively on single-stock leveraged ETFs and does not extend to increasing leverage limits on index-based ETFs beyond the current 2x restriction. Currently, regulations prevent single-stock leveraged ETFs by capping the weight of any single stock at 30 percent, meaning domestic launch of such products would be a first if approved.

The move follows concerns raised after 2x leveraged ETFs linked to Samsung Electronics and SK hynix were listed in Hong Kong last year, resulting in significant domestic capital outflows as Korean investors accessed these products overseas. Korean retail holdings of U.S. stocks have surged to $171.9 billion by January 2026, nearly quadrupling since 2022, with substantial investments in leveraged ETFs unavailable in Korea, including 3x leveraged Nasdaq-100 products and 2x leveraged single-stock ETFs like those tracking Tesla.

Critics warn that leveraged ETFs carry high risks due to negative compounding effects, where losses can exceed those of the underlying assets during volatility, posing a danger especially to retail investors who form a significant share of the Korean market. Experts caution that loosening these rules may increase speculation, short-term trading, and market volatility, potentially worsening the "Korea discount," or undervaluation of Korean stocks compared to global peers.

Some economists argue that regulatory intervention aimed at exchange-rate stability through such ETF policy changes provides only short-term relief. They suggest focusing on managing excessive daily volatility and promoting long-term investment incentives rather than facilitating leveraged ETF usage, which could amplify instability in the market.