KOSPI surges 3.7% led by Samsung & SK Hynix Lee Jae-myung declares 7 SEED tech plan; youth employment worsens

With the Aug 17 convention approaching, candidates Kim Min-seok (46.01% cumulative), Jeong Cheong-rae (44.53%), and Song Young-gil competed in a final stretch of regional primaries, while holding a live TV debate on SBS on Aug 12.

The Democratic Party demanded a floor session on Aug 13 to pass 113 livelihood bills including housing supply legislation, while the People Power Party insisted on Aug 20 and protested unilateral passage of key bills.

Four provincial education offices — Gangwon, Gyeonggi, Daegu, and Jeonbuk — plan to designate phone-free pilot schools for 2nd semester, restricting smartphone use even during breaks and lunch. The Ministry of Education also plans to operate the program at 200 voluntary schools nationwide.

Under a government policy initiative, North Gyeongsang (Kyungkook National University, KRW 430.5B project) and South Jeolla (Mokpo-Suncheon University merger) will submit plans to the Ministry of Education by Aug 20. Both aim to open in 2030.

The Ministry of Education's 2026 AI-Integrated Education Conference held Aug 6-7 at BEXCO in Busan drew 13,235 teachers who shared case studies including AI feedback-driven questioning and coding-math fusion lessons.

The Hyundai Motor union voted to resume 4-hour partial strikes on Aug 12-13 after wage negotiations stalled. Stoppages expand to 6 hours on Aug 14 and 18, with cumulative production losses reaching 42,000 vehicles and sales losses exceeding KRW 1.1 trillion.

The July employment data released Aug 12 showed workers aged 15-29 fell by 191,000, declining for the 45th straight month. The youth employment rate dropped to 44.2% for the 27th consecutive month, while the youth unemployment rate rose 1.3 percentage points to 6.8%, the largest increase since January 2021.

Following Cabinet approval of an amendment to the Equal Employment Opportunity Act enforcement decree on Aug 11, employees will be able to take 1-2 week short-term parental leave once per year starting Aug 20. Paternity leave will also be available starting 50 days before the expected delivery date from Sep 18.

KOSPI closed up 3.68% at 6,579.04 on Aug 12. Samsung Electronics rose 6.68% and SK Hynix 5.54%, leading the semiconductor index. Foreign investors net bought KRW 34.251 trillion, with a buy-side sidecar triggered intraday.

The USD/KRW exchange rate closed at 1,415.7 on Aug 12, down 0.3 won from the previous day. It touched 1,418.0 intraday, remaining in the 1,410s for a 4th consecutive session. The won's weakness persisted even with the dollar index below 100.

The balance of household loans at Korea's five major banks reached KRW 778.787 trillion, up KRW 3.826 trillion from end-June, extending a 3-month surge. Rising mortgage loans from expectations of home price gains and credit loans for stocks were cited as main causes.

Seoul's average apartment monthly rent reached KRW 1.59 million in June 2026, the highest since statistics were first compiled in 2011. Incheon also exceeded KRW 1.02 million, with the Greater Seoul area average rent surpassing KRW 1 million.

National apartment prices rose 0.14% in the first week of August, with Seoul up 0.12% and Greater Seoul up 0.16%. The shift from number of homes owned to actual residency and property value under the 2026 tax reform sparked concerns about fraudulent address transfers to minimize taxes.

Seoul apartment jeonse listings fell more than 22% compared to two years ago amid the tax reform's fallout. Non-homeowner newlyweds and single-person households are being pushed toward apartments in outer districts within their loan limits, according to MBC.

Strong AI infrastructure results from CoreWeave and Supermicro drove KRW 2.1 trillion in foreign net buying, pushing KOSPI to an intraday high of 6,633. Samsung Electronics rose 7.83% and SK Hynix 7.09%, triggering the 23rd buy-side sidecar of 2026.

Daechang Solutions announced on Aug 12 plans to list subsidiary Cryo-S on KOSDAQ. An extraordinary shareholder meeting to approve the agenda is scheduled for Sep 7. Cryo-S has supply references for liquefied hydrogen storage tanks at Samsung and SK Hynix semiconductor lines.

Twenty-two startups supported by the Ministry of Culture and KOCCA participated in Ai4 2026 and the US Launchpad events in Las Vegas and LA on Aug 4-7, completing 515 business consultations, 10 MOUs, and approximately KRW 138 billion in export and investment consultation results.

Hyundai Motor Group held an AX performance showcase at its Yangjae headquarters on Aug 12, reporting that 30,000 employees — about 80% of the workforce — are now using its in-house generative AI platform H Chat Pro. Crash safety AI assistant cut case review time by 90%.

The Hyundai Motor union resumed partial strike action on Aug 12, with stoppages planned to expand to 6 hours on Aug 14 and 18. Cumulative production losses reached 42,510 vehicles and estimated sales losses exceeded KRW 1.8 trillion.

According to KAMA data, eco-friendly vehicles (EVs and hybrids) accounted for a record 57.8% of 850,636 new car registrations in Korea in H1 2026. Among imported cars, Chinese-made vehicles topped the list at 41.2%, surpassing German-made cars (30.1%) for the first time.

Foreign investors poured KRW 34.251 trillion in net purchases driven by continued demand for AI data center memory. Samsung Electronics rose 6.68% and SK Hynix 5.54%, lifting KOSPI to 6,579.04, triggering the 23rd buy-side sidecar of the year.

President Lee Jae-myung designated SMR, nuclear fusion, quantum, aerospace, and advanced bio as next-generation growth engines at a Aug 12 Blue House briefing. He called for preparing post-AI-era industries on the foundation built by semiconductors.

OpenAI determined that its next-generation model Astra was approaching levels capable of developing zero-day exploits without human oversight and halted part of development. CEO Sam Altman said additional time is needed for a safe launch.

Microsoft patched 421 CVEs on August Patch Tuesday. A WinSock driver privilege escalation vulnerability had already been actively exploited in the wild, and 2 others were publicly known.

A security researcher published the ShieldBreak exploit on Aug 12, which gains SYSTEM privileges on fully patched Windows 10, 11, and Server 2025 systems. The disclosure came amid a dispute with Microsoft over a bug bounty.

CISA added 3 entries to its Known Exploited Vulnerabilities catalog on Aug 11 — Cisco ASA/FTD, Windows WinSock, and a Metabase SQL injection — and ordered federal agencies to apply patches immediately.

Following the release of the US July CPI at 3.4% year-on-year on Aug 12, Bitcoin slipped to $63,350. The price has remained in a $62,000-$66,000 range for 5 consecutive weeks, with futures trading volume at a 3-year low.

US Bitcoin spot ETFs saw $853.54 million in weekly net inflows as of Aug 7. BlackRock's IBIT alone absorbed $693 million, accounting for 81% of the total, marking the largest weekly inflows since April.

South Korea's Gyeonggi Province began an 8-month pilot program in August utilizing a zero-knowledge proof (ZKP)-based stablecoin developed by ZKrypto. The program tests issuance, circulation, and settlement of stablecoins for local public payments.

The U.S. imposed its 8th round of Iran sanctions this year, relaunching the maximum pressure campaign. With talks stalled, Trump shifted to a strategy of economic pressure to compel Iran to comply.

A total of 62 drugs were newly listed or had expanded reimbursement criteria under Korea's national health insurance in January-July 2026. Projected annual fiscal impact is KRW 749.4 billion, with an estimated 142,495 patients benefiting.

AstraZeneca Korea's triple-combination inhaler Breztri Aerosphere received regulatory approval from the MFDS for maintenance treatment of asthma in patients aged 12 and older. The approval follows FDA authorization.

Korea's MFDS launched a harmonized consultation to add cholestatic, hepatocellular, and mixed liver injury as post-marketing adverse reactions to 21 products including sitagliptin-metformin combination drugs.

A total solar eclipse passed through Greenland, Iceland, and Spain on Aug 12, marking Europe's first since 1999. In Spain, 350 official observation sites were set up for the first mainland totality in 121 years, with the moon fully covering the sun for up to 2 minutes.

The Perseid meteor shower reaches its peak on Aug 13, coinciding with the new moon to provide optimal dark-sky viewing conditions with up to 100 meteors per hour possible. The meteors are produced by debris from Comet Swift-Tuttle entering the atmosphere.

A NASA WB-57 aircraft flew at 50,000 feet to photograph the solar corona during the Aug 12 eclipse. Teams in Iceland and Spain also launched science-instrument balloons along the eclipse path to measure changes in the atmosphere caused by the sudden loss of sunlight.

62% of this year's estimated heat-related deaths have been among those aged 80 and above. Cumulative deaths exceeded 26 and patients surpassed 3,089, with heat illness occurring even indoors, underscoring the urgency of protecting vulnerable groups.

Despite the government's 2040 coal phase-out pledge, coal-fired generation by Korea's five major power companies rose an average of 26% year-on-year in January-May. Surging LNG prices were cited as the main cause, drawing criticism of the phase-out policy's lack of legal backing.

The Lee Jae-myung government was reported to be reviewing plans to partially lift restrictions on the Seoul metropolitan greenbelt. The proposal drew criticism as reducing greenspace during the worst heatwave on record, with experts calling for prioritizing redevelopment of aging housing stock instead.

On Aug 12, the government announced the 7 SEED initiatives targeting light-water SMR commercialization by 2035, non-light-water SMR construction start in the 2030s, and domestic fusion reactor construction by 2035. KRW 10 trillion will be invested in key equipment R&D over 5 years.

The Ministry of Climate and Energy announced that an enforcement decree establishing national upper limits for renewable energy facility setback distances was approved at the Aug 11 Cabinet meeting. Wind turbine setbacks are capped at 1,500m and solar panels at 200m, standardizing previously inconsistent local rules.

The Ministry of Oceans and Fisheries announced on Aug 12 that Busan has been selected as the host city for the 4th UN Oceans Conference in 2028. Korea was confirmed as the host country in December last year; approximately 20,000 participants from 193 UN member states are expected.

Stray Kids released the 'This & That (That Remixes)' digital single on Aug 12, featuring 4 tracks including a Latin-rhythm and EDM version. The original album set a record for most first-day Spotify streams by a 4th-gen group in 2026 at 12.8 million.

HYNN released her new EP 'Yeoeum-gyeol' at 6 PM on Aug 13, featuring dual title tracks '3 Days Later' and 'Not Even as if a Meteor Fell Bringing the End.' A solo concert is also scheduled at Yonsei University Grand Auditorium on Aug 15-16.

Drama director Ahn Pan-seok, known for 'White Tower' (2007) and 'Temptation' (2014), passed away on Aug 12 at the age of 65. He joined MBC as a PD in 1987 and was active for decades, with his latest work 'Romance Doctor' as his final production.

In 5 KBO games on Aug 12, the KIA Tigers routed the Samsung Lions 7-2, while the NC Dinos shutout the KT Wiz 3-0. The SSG Landers defeated the Lotte Giants 9-1.

Britain's Romell Glaive won the men's 100m final at the Birmingham European Athletics Championships in 10.09 seconds. Teammate Jeremiah Azu (10.16) took silver and Germany's Owen Ansah (10.19) bronze, giving Britain a 1-2 finish.

Greece's Miltiadis Tentoglou won the European long jump title with 8.44m for the 4th consecutive time. Hungary's Bence Halasz set a world-best mark of 84.25m to win the men's hammer throw.

As of Aug 12, retail prices for red leaf lettuce (4kg) surged 30% month-on-month to KRW 39,820. Spinach (4kg) rose to KRW 51,820, and Korean beef sirloin (100g) reached KRW 18,836, up 21% year-on-year.

Pulmuone will raise prices on 30 items including dumplings and meal kits by an average 6.7% from Aug 13, and SPC plans to raise prices on over 50 bread items by about 9% from September. The government is countering with discounts of up to 57% on 3,838 items across 10 food companies.

Emart's July rice sales rose 42% year-on-year, the highest monthly increase of the year. Lotte Mart also saw a 20.5% rise, its first 20%-plus increase of 2026. Emart's ultra-low-price private label 5K Price expanded sub-KRW-1,000 items from 14 to 60 SKUs.