South Korean president apologises for overseas adoption failures | East Asia Tonight (Oct 2)

Key Concepts

• South Korean government apology for foreign adoption policies
• US forces Korea focus on North Korea and China
• China's tech independence drive and curbs on foreign telecom giants
• Taiwan's aging prison population
• Air Asia's potential acquisition of COMAC jets
• Neighbor's AI integration and global expansion
• Hong Kong's Northern Metropolis project and resident relocation
• Crisis management spending in food, energy, and economic security

South Korea's Apology for Foreign Adoption Programs

• Main Point: South Korean President DJong apologized for the government's role in foreign adoption programs after the Korean War, acknowledging the state's failure to meet its responsibilities.
• Details:
  • The apology was posted on Facebook.
  • It followed the HEG adoption convention taking effect after years of delay.
  • The Truth and Reconciliation Commission found the government responsible for facilitating adoptions with fraud and abuse, including fake birth certificates and falsely reporting missing children as orphans.
  • Around 200,000 Korean children were sent abroad, partly to remove mixed-race children.
  • President DJong pledged to support adoptees in finding their birth parents.
• Recommendations:
  • Formal state apology (fulfilled by President DJong).
  • Full review of adoptees' citizenship status, as many lost their Korean nationality or never had it properly recorded.
  • Adoption agencies to take responsibility and help adoptees trace their roots by opening up documents.
• Adoptee Perspectives:
  • Mixed feelings about the apology, acknowledging government failure.
  • Hope for support in connecting with families and accessing resources.
  • Difficulty in accessing documents held by adoption agencies.
  • Concern that "time is running out" for older adoptees to find their families.

US Forces Korea and Regional Security

• Main Point: US Army Secretary Daniel Driscoll stated that American forces in Korea are focused on both North Korea and China as threats to regional security.
• Details:
  • Remarks made during a visit to the US forces Korea base in Pyong.
  • Discussions held with South Korean defense minister Anguak, agreeing to maintain a combined defense posture on North Korea and expand cooperation in drone research and production.
  • Driscoll emphasized the importance of the US-South Korea alliance.

China's Tech Independence Drive

• Main Point: China is tightening curbs on European telecom giants Nokia and Ericson to reduce reliance on Western tech.
• Details:
  • New security reviews require detailed breakdowns of components and local content.
  • European firms' contracts are subject to "blackbox national security reviews" by Beijing's cyerspace administration.
  • These reviews are opaque, with no information given to the companies on how their gear is being assessed.
  • Nokia and Ericson's combined share of China's mobile telecom network has decreased from 12% in 2020 to around 4% last year.
  • Chinese firms have retained 30-35% of the European mobile infrastructure market.

EU Tariffs on Steel Imports

• Main Point: The European Union is reportedly looking at hiking tariffs on steel imports to 50% to protect the region's struggling steel industry.
• Details:
  • The move will align with the blocks rate with the US which has sought to push back against overcapacity from China.
  • The EU currently has a temporary mechanism to place safeguards on its steel industry which imposes 25% duties on most imports once quotas are exhausted.
  • That mechanism expires next year and the EU has been working to replace it with a more permanent instrument which it plans to unveil next week.
  • The block's steel industry has faced a severe crisis in recent years as it grapples with cheap imports from China and other Asian economies.

Chinese Car Sales in Europe

• Main Point: Chinese car makers captured record sales in Europe's hybrid vehicle market in August after automakers pivoted to sell more hybrids in the block.
• Details:
  • This follows EU tariffs on Chinese EVs which did not include hybrids.
  • Chinese hybrid vehicle sales made up 9.8% in Europe last month, marking the fourth time this year that Chinese brands have reached a new peak for hybrid car share.
  • Separately, Chinese EVs made up 9.6% of Europe's EV market in August, where sales have increased despite the tariffs.
  • Brands such as BYD have been building manufacturing capacity in the region in a bit to sidestep the new duties.
  • Tiang Leap Motor has also made exponential gains as it offers one of the cheapest battery electric vehicles in the market.
  • Leap Motor has also partnered with Peugeot and Salantis for its B05 electric hatchback directly competing with Volkswagen's ID3.

US Soybean Sales to China

• Main Point: US President Trump criticized China for halting US soybean purchases and blamed his predecessor Joe Biden for not enforcing a past trade deal.
• Details:
  • Trump vowed to support farmers with a new aid package funded by tariff money.
  • Contracts for November delivery rose as much as 1.9% before settling to about $10 US per bushel.
  • Soybeans are the single largest American export to China in terms of value.
  • China bought nearly$13 billion of the commodity last year.
  • China's imports of the crop from the US fell nearly 40% in the first half of this year.
  • Beijing has not purchased any American soybeans since May, turning instead to Brazil and Argentina for supply.

Open AI and South Korean Memory Chip Supply

• Main Point: Open AI has enlisted South Korea's biggest tech conglomerates supply memory chips for its Stargate data centers.
• Details:
  • The half a trillion dollar Stargate project unites the biggest players in AI and the involvement of Samsung and SKHenix highlights their role in powering the AI boom.
  • The agreement followed meetings between Open AI CEO Sam Alman and South Korean President EJ Mong as well as the chairman of Samsung Electronics and SKH Highix in Soul.
  • Under the deal, Samsung and SKH Highix target to quickly scale up production of advanced memory chips to 900,000 wafers per month.
  • Open AAI CEOs Sam Alton said that the partnership will help support South Korea's ambitions to become a top three global AI nation.
  • That deal supercharging shares of Samsung and SKH boosting their combined market cap by nearly $40 billion.
  • Samsung shares ending three and a half% higher. Its bigger rival SKH Highix nearly 10% up with the benchmark Cosby gaining 2.7.

Air Asia and COMAC Jets

• Main Point: Air Asia is in advanced talks with Chinese aircraft manufacturer COMAC to acquire smaller narrowbody jets for its fleet.
• Details:
  • Air Asia founder Tony Fernandez confirmed active discussions and the attractiveness of the COMAC product.
  • COMAC planes have General Electric engines, the same as Air Asia's 800 existing planes.
  • China is a big market for Air Asia, with flights to 23 destinations.
  • Fernandez cited proven Chinese technology and faster plane delivery as attractive factors.
  • He has visited the COMAC factory and flown on a COMAC plane.
  • Air Asia is evaluating a slightly smaller aircraft and understanding its order book.
  • The airline is in a restructuring phase after COVID-19 and aims to build a low-cost hub airline in Kala Lumpur and Bangkok.

Neighbor's AI Integration and Global Expansion

• Main Point: Neighbor is infusing AI into its products and expanding globally, focusing on the Middle East and Southeast Asia.
• Details:
  • AI is being incorporated into search, recommendations, e-commerce, and content platforms.
  • Users are experiencing a more personalized AI experience and deeper conversational flows.
  • Neighbor is insulated from global frictions due to being an online software business.
  • The company is focusing on emerging markets after previously focusing on developed markets like North America, Europe, and Japan.
  • Neighbor is infusing its search technology and AI capacity into Poshmark.
  • Poshmark is expanding into new categories beyond fashion, such as K-beauty brands and men's and luxury items.
  • Neighbor's competitive edge lies in understanding the localized context of what users want.

Taiwan's Aging Prison Population

• Main Point: Taiwan's prisons are grappling with a rapidly aging inmate population, forcing facilities to adapt.
• Details:
  • The proportion of inmates aged over 65 has almost tripled in the past decade, now making up nearly 5% of the prison population.
  • Longer sentences and fewer chances of parole have contributed to the aging population.
  • There has been an increase in elderly crimes, including theft, fraud, and violent crimes, tied to family and financial stress.
  • Prisons are adapting by housing elderly inmates on the ground floor and providing lighter workloads.
  • Younger inmates are being trained as caregivers to assist elderly inmates.
  • Challenges include rising healthcare costs, mobility issues, memory loss, and lack of support for elderly inmates after release.
  • Prisons are implementing programs such as animal therapy and workshops for staff to care for elderly inmates.

China-Taiwan UN Resolution Dispute

• Main Point: China and Taiwan are arguing over a UN resolution that Beijing says gives international backing to its claims over the island.
• Details:
  • The 1971 resolution 2758 saw the UN seat for China handed over to Beijing from Taiwan.
  • China claims this resolution confirms its one China principle and that Taiwan is part of its territory.
  • Taipei says Beijing is using a misleading interpretation of the text to create the legal basis for a military attack.

Japan's LDP Election and Sana Takayichi's Policies

• Main Point: Japan's ruling Liberal Democratic Party is gearing up to pick a new leader, with Sana Takayichi emerging as a favorite.
• Details:
  • Takayichi is pushing for "crisis management investment," fiscal spending targeted at sectors vital to national security.
  • Her focus is on boosting Japan's growth potential by directing state support towards food and energy security, artificial intelligence, semiconductors, and defense.
  • She is seen as a nationalist with a hawkish stance on defense and foreign policy.
  • Takayichi has toned down her nationalistic views and pro-Taiwan stance since beginning her latest campaign.
  • She has laid out an agenda centered around a return to economics, calling for monetary easing, increased government spending, and targeted tax relief to boost growth.

Hong Kong's Northern Metropolis Project

• Main Point: Hong Kong is accelerating the development of the Northern Metropolis project, which will force residents to relocate.
• Details:
  • The project aims to fuel economic growth and develop innovation and technology sectors.
  • It will cover about one-third of the total area of Hong Kong.
  • Residents who have lived in the area for decades will be forced to relocate.
  • The government will offer housing for residents to relocate to, but it may not match the size and space they currently enjoy.
  • The project will include dedicated zones for industries such as high-end professional services, logistics hubs, innovation and technology activities, and a new university town.
  • The Northern Metropolis aims to accommodate about 2.5 million residents and provide about 650,000 jobs.

Conclusion

The news bulletin covers a range of significant events in East Asia, from South Korea's apology for past adoption policies and the US's security focus on North Korea and China, to China's efforts to achieve tech independence and Taiwan's challenges with an aging prison population. Business news highlights Air Asia's potential deal with COMAC, Neighbor's AI strategy, and trade dynamics between the US and China. The stories collectively paint a picture of a region undergoing significant political, economic, and social changes, with implications for both domestic populations and international relations.