LG Group Chairman Kwang-mo Koo has called for aggressive investment in AI, bio, and clean tech businesses, declaring that the company must "dig into levels that others consider impossible" as a technological inflection point approaches.
In his 2026 New Year's address released via video, Koo emphasized the need for intensified focus on what LG calls its "ABC" businesses—AI, bio, and clean tech. The video featured insights from leading academics, with MIT Senior Scientist George Westerman predicting that "generative AI will bring major socioeconomic changes comparable to the spread of electricity or the internet."
Harvard Business School Professor Sunil Gupta echoed the sentiment, stating that companies "can only survive and grow by breaking past frameworks and taking innovative approaches with new thinking."
LG Group is accelerating its portfolio rebalancing through non-core asset sales amid growing business uncertainty from Chinese companies' technological advances and trade barriers under the Trump administration.
Kakao in Talks to Sell Daum to AI Startup Upstage
Kakao is in negotiations to sell its portal service Daum to generative AI startup Upstage, just seven months after spinning off the platform. Kakao acquired Daum 11 years ago.
The company spun off Daum into a separate entity called "AXZ" in May and has since reached a broad agreement with Upstage after months of discussions. The deal is structured as a share swap that would transfer management control to Upstage.
Upstage is seeking to acquire Daum Cafe and email data to train its large language models. The startup has selected KB Securities and Mirae Asset Securities as lead underwriters for an IPO targeted for late next year, with a valuation of at least 2 trillion won ($1.5 billion).
S-1 and Samsung Electronics Partner on Home Security
S-1 (012750.KS) has launched an AI-powered "Samsung AI Door Cam" in partnership with Samsung Electronics (005930.KS), targeting the home security market. The device features dual upper and lower cameras to separately capture visitor faces and packages, with cloud-based AI analysis providing real-time notifications for package arrivals and potential theft.
The domestically manufactured device has passed Samsung Electronics' security standards to minimize hacking and video leak risks, and includes privacy masking features.
Youth Debt Burden Intensifies
Borrowers in their 30s took out an average of 289.92 million won in new mortgage loans per person in the third quarter, 26.8% higher than the overall average of 227.07 million won—both record highs since statistics began.
Those in their 30s accounted for 37.7% of total new mortgage originations, significantly exceeding the 40s age group at 28.8%.
Seoul borrowers averaged 359.91 million won in new mortgages, more than double the 155.39 million won in the Honam region.
"Mortgage loans have been on a structural upward trend reflecting housing market conditions," the Bank of Korea said. "The number of new borrowers has decreased as the slowdown following the June 27 measures takes effect."
Nvidia's $5 Billion Intel Investment Approved
The U.S. Federal Trade Commission has approved Nvidia's $5 billion investment in Intel. Nvidia announced in September it would make an equity investment in the struggling chipmaker to jointly develop PC and data center chips.
Under the arrangement, Intel will manufacture customized x86 central processing units for Nvidia, which will use them in its AI data center systems and AI chips.
Small Business Loan Delinquencies Surge
The average loan amount for individual business owners fell to 178.92 million won last year, declining for the second consecutive year, while the delinquency rate hit a record high of 0.98%.
Non-bank loan delinquencies surged to 2.10%, up 0.72 percentage points year-on-year, indicating deepening financial strain among low-credit borrowers. Businesses with annual sales of 30 million won or less showed the highest delinquency rate at 2.03%, followed by those in operation for three to ten years at 1.31%.
By sector, construction recorded the highest delinquency rate at 1.93% amid continued industry weakness, followed by business support and rental services at 1.31% and agriculture, forestry, and fisheries at 1.29%.
