Korea Faces 'Triple-High' Crisis as Experts Warn of Policy Failure

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an 'artificial intelligence (AI)-based customized news recommendation and summary service' developed with support from the Korea Press Foundation. It selects and provides six customized news items for each reader type.

1. 'S·T·O·R·M' Fear Sets In... "Conventional Economic Wisdom Alone Cannot Find Solutions"

- Key Summary: Former economic ministry chiefs and academic experts diagnosed the current macroeconomic situation as a compound crisis difficult to prescribe for with conventional economic wisdom. Former Deputy Prime Minister for Economy Yoo Il-ho pointed out that KOSPI's strong performance is an illusion driven by two semiconductor conglomerates, and that the structure is one in which individual investors fill the gap by taking on debt. He explained that while interest rate policy is the most traditional means of stabilizing the exchange rate, there is a dilemma in that raising rates is also not easy given debt problems and economic conditions. Among experts, a prescription was offered to make monetary policy-centered tightening and fiscal restraint the basic direction, while combining sophisticated fiscal support limited to vulnerable groups.

2. Robots, Autonomous Vehicles, Cloud... Follow 'AI Godfather' Jensen Huang's Path to See the Future

- Key Summary: Nvidia CEO Jensen Huang, who returned to Korea after about seven months, held dinners with SK Group Chairman Tae-won Choi, LG Group Chairman Kwang-mo Koo, and Naver Chairman Lee Hae-jin, signaling the launch of a future AI infrastructure alliance. With SK Group, the partnership is expected to extend beyond joint development of customized memory to an AI factory partnership, while with LG Group, cooperation is expected to be solidified to resolve data center heat and power issues. With Hyundai Motor Group, a roadmap for building a $3 billion AI technology center and a physical AI application center is expected to take shape, with Saemangeum in North Jeolla Province mentioned as the construction site. A business community official expressed expectations that this visit would elevate the status of Korean companies beyond mere component suppliers to become key partners in the global AI ecosystem.

3. Airport Currency Exchange '1 Dollar = 1,600 Won'... Won's Value Fell the Most Among Major Countries

- Key Summary: The won-dollar exchange rate broke through 1,549 won intraday on the 5th, recording its highest level since the 2009 financial crisis, while the cash selling rate at Incheon Airport soared to 1,603 won. Since February 27, just before the outbreak of the Middle East war, the won's value has fallen 6.9%, an overwhelmingly larger decline than the yen (-2.5%), euro (-1.7%), and Indian rupee (-5.1%) over the same period. Hana Investment & Securities analyzed that with Middle East geopolitical risk, expectations of U.S. interest rate hikes, and foreign net selling all working in combination, there is not a single environment favorable to the won. Forecasts suggest that without the prior normalization of the Strait of Hormuz and inflows of foreign capital, fluctuations in the 1,500-1,560 won range will continue in the second half.

4. "Self-Evolving AI May Become Uncontrollable" Anthropic's Warning

- Key Summary: Anthropic said that AI is entering a stage of 'recursive self-improvement (RSI)' in which it designs and develops successor models on its own, and proposed an international agreement that includes the option to control the pace of development and to pause it. Anthropic's Claude advanced from handling four-minute software tasks in March 2024 to solving 12-hour tasks in an instant within two years, and forecasts suggest it will perform weeks-long tasks next year. A Google DeepMind researcher stated that recursive self-improvement is quietly underway at nearly all major AI labs, and that the direction toward full automation is clear. However, with Meta revealing its intention to actively utilize hyperagent research to improve its own AI, industry views surrounding AI control theory remain divided.