KOSPI Drops 1.79% Ahead of Jackson Hole Unprecedented Constitutional Crisis Over Supreme Court Resubmission

Anthropic won its first court victory challenging the Department of Defense's supply chain risk (SCRM) designation. The court ruled that the Pentagon failed to give Anthropic notice or a chance to rebut the classification before applying the label.

Korea's Ministry of the Interior and Safety held a competition calling on private-sector teams to build AI analytical models that solve public-sector challenges. Winning models using public data will be considered for deployment in actual administrative operations.

KOSPI fell 123.49 points (1.79%) to close at 6,788.88. Foreign investors sold a net 1.7564 trillion won in a single session, with Samsung Electronics off ~3% and SK hynix off ~4%. Jackson Hole jitters and US tariff policy concerns compounded the pressure.

The Blue House demanded resubmission of a Supreme Court justice, an unprecedented move in Korean constitutional history. Constitutional scholars said there is no precedent for such a request and warned of a threat to the constitutional order.

President Lee Jae-myung's approval rating fell to 42%, the lowest since inauguration. Disapproval reached 52%, exceeding approval by 10 percentage points.

King Harald V of Norway has died following 35 years on the throne since his 1991 accession. Crown Prince Haakon will assume the throne in accordance with Norway's constitutional procedures.

The government published implementation guidelines for the Yellow Envelope Act (amended Trade Union Act). The guidelines cover the scope of limits on strike-related damage claims and the criteria for recognizing subcontractor unions' right to bargain with prime contractors.

The search for nine Koreans missing after glacial floods in Nepal's Rasuwa district continued. A joint government rapid-response team is working with Nepali authorities on-site, while ten previously stranded Koreans have been transported to Kathmandu.

Two additional heat-related deaths were reported in a single day, raising South Korea's cumulative heat-wave death toll to 28. Health authorities again urged the public to avoid outdoor activity in peak heat and minimize alcohol consumption.

The 27th International Symposium on Cybercrime Response (ISCR 2026), held August 27–28 in Seoul, concluded. Participants including the FBI, OpenAI, and Google adopted a joint statement calling for enhanced international cooperation on AI-driven cybercrime.

Korean health authorities warned that confirmed Campylobacter food poisoning cases doubled in a single week. They urged extra care with refrigeration and kitchen hygiene as summer heat and humidity accelerate bacterial growth.

Korea's Ministry of Health and Welfare announced it will begin releasing its 770,000-person integrated bio big-data in an AI-accessible format in the second half of 2026. Medical data vouchers for AI startups and SMEs will expand from 8 to 40 projects in 2026.

The International Space Summit 2026 opened in Daejeon, South Korea, bringing together leaders from space agencies and private space companies worldwide. Topics included space exploration, launch vehicles, satellite technology, and international cooperation frameworks.

BLACKPINK's Jennie released her solo EP Fallen Angel on August 28, featuring three tracks: FALLEN ANGEL, HEAVEN, and Less Than a Lover. The title music video unfolds a dark fantasy narrative about human greed. It is her first release since her 2025 solo album Ruby.

Boy group WEi members Kim Dong-han and Yoo Yong-ha have parted ways with their agency We Entertainment upon contract expiration. The group will continue activities with its remaining members.

All five scheduled KBO League regular-season games on August 28 were cancelled due to rain and field conditions. No standings changes resulted from the cancellations; makeup game schedules will be announced at a later date.

Kia's union ratified the 2026 wage agreement with a 64.1% approval vote. Key terms include a 100,000 won base pay raise and a 300% performance bonus plus 12.7 million won. Following Hyundai Motor's deal, Kia also closed negotiations without a walkout.

Investment in Korean startups concentrated on AI semiconductors, robotics, and biotech in August 2026. The government's 16.8 trillion won startup budget and expanded venture fund commitments are driving deep-tech investment momentum.

Seoul apartment prices recorded their largest monthly gain since 2021. Official assessed prices for apartments in the Gangnam, Seocho, and Songpa districts rose an average 24.7%, while Seoul's overall assessed price increase hit 18.67% — the steepest in five years.

The national average apartment sale price stood at roughly 650 million won in 2026 against Seoul's approximately 1.2 billion won. Experts warned that the widening gap between the capital region and the provinces risks prolonging stagnation in regional housing markets.

The Ministry of Climate, Energy and Environment announced a target to expand renewable energy capacity to 220 GW by 2040, equivalent to output from approximately 45 nuclear reactors. Achieving 100 GW by 2030 serves as the intermediate milestone.

Korea's Ministry of Climate, Energy and Environment said it will release a plan for new nuclear reactor construction as part of its energy mix roadmap in September. The plan is expected to outline how nuclear and renewables will be balanced going forward.

Korea's Ministry of Education convened a capacity-building workshop for AI subject textbook authors on August 28–29 in Daegu. The event aims to enhance authoring capabilities ahead of the classroom rollout of AI curriculum textbooks under the 2025 revised national curriculum.

Waymo, Alphabet's autonomous driving subsidiary, completed registration of its Korean entity 'Waymo Korea.' The company has not yet applied for a domestic temporary driving permit, so immediate road operations remain unlikely, but the move signals preparations for future Korean market entry.

Korea's government expanded its autonomous vehicle highway trial program to 44 routes. The expansion is part of the government's stated goal of providing Level 4 self-driving services by 2027.

The 27th International Symposium on Cybercrime Response (ISCR 2026), held August 27–28 in Seoul, concluded. Participants including the FBI, Homeland Security Investigations, OpenAI, and Google discussed frameworks for international cooperation on AI-era cybercrime.

The Korea Internet & Security Agency (KISA) signed a memorandum of understanding with the Korea Transportation Safety Authority (TS) to strengthen automotive cybersecurity. The agreement covers building a joint cyber-threat response framework for connected and autonomous vehicles.

The Korea-Japan Security Workshop 2026 Summer, organized by the 6G Security Research Group of the Korea Institute of Information Security and Cryptology, was held in Jeju on August 28. Korean and Japanese security researchers discussed 6G security and AI-based threat detection.

Hana Financial Group agreed to acquire a 6.55% stake in Dunamu, operator of Korea's largest crypto exchange Upbit. The deal strengthens Hana's relationship with the domestic crypto market.

The Korean government issued new guidelines permitting listed corporations and professional investors to trade cryptocurrencies, in line with its 2026 Economic Growth Strategy. Stablecoin legislation and spot cryptocurrency ETF licensing are also planned for 2026.

Online channels accounted for 60.3% of total domestic distribution revenue in the first half of 2026. Large-format discount stores contracted 7.3% year-on-year while online retailers grew 8.1%, accelerating a channel shift in Korean retail.

Korea's retail market is forecast to grow only 0.6% in 2026, the lowest rate in five years. Analysts cited a combination of weakened consumer sentiment, elevated prices, and household debt burdens.

POSCO's union and management failed to reach an agreement in Korea Labor Relations Commission mediation. The union, now holding legal strike authorization, warned it will launch a 48-hour partial strike if management does not present a meaningful offer by September 9.

Kia's union ratified the 2026 wage agreement with 64.1% approval and a 91% turnout. The deal includes a 100,000 won base salary increase and a combined 300% bonus plus 12.7 million won, closing negotiations without a strike for the sixth straight year.

HD Hyundai Heavy Industries' union convened its Central Strike Countermeasures Committee on August 28 to decide whether to launch a strike and set a specific schedule. The union had already secured legal strike authorization after 95.93% of voters approved the action on August 27.