The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: July 15.
Japan reverses demand for Naver to sell LINE stake
The Japanese government has retracted its demand for South Korea’s Naver to sell its stake in LINE Yahoo, which arose after a data breach exposed 520,000 personal records. The initial orders in April and May to review Naver’s capital relationship aimed to pressure Naver to relinquish its management rights. However, increasing anti-Japanese sentiment in South Korea led the Kishida administration to prioritize better relations and reverse its stance.
A senior official from the Ministry of Internal Affairs and Communications (MIC) clarified that the sale of Naver shares is outside their jurisdiction and that the measures submitted by LINE Yahoo are sufficient, meaning Naver will not be required to sell its stake. This change in stance has been communicated to LINE Yahoo and Japan’s SoftBank, which, along with Naver, jointly owns A Holdings, the largest shareholder of LINE Yahoo.
Samsung faces engineer exodus to SK Hynix
On July. 14., the Financial Times reported a significant decline in morale among Samsung Electronics employees, with some engineers contemplating a shift to competitor SK Hynix due to dissatisfaction with pay and perceived stagnation. Despite recent leadership changes in Samsung’s semiconductor division, employees describe a persistently gloomy atmosphere, citing the company’s lag behind SK Hynix in high-bandwidth memory (HBM) and its struggle to compete with Taiwan’s TSMC in the foundry sector. The situation is further exacerbated by an unprecedented strike and low worker morale, driven by reduced financial rewards and a perceived lack of strategic direction from management. Analysts caution that this internal unrest could impede Samsung’s efforts to close the HBM gap with competitors, especially given the fierce competition for Korean engineering talent.
U.S. Indo-Pacific Commander opens to South Korea acquiring nuclear submarines
Admiral Samuel Paparo, Commander of the U.S. Indo-Pacific Command, suggested that South Korea might pursue acquiring strategic nuclear submarines (SSBNs) if necessary. In an interview at Hickam Air Force Base in Hawaii, he emphasized the critical role of U.S.-South Korea cooperation in finding the most effective ways to integrate and defend their forces. This uncommon public acknowledgment from a senior U.S. military official coincides with increasing public support in South Korea for developing independent nuclear capabilities, driven by closer North Korea-Russia ties. The South Korean government is attentively observing this development.
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