※[Global Morning Briefing] summarizes global news delivered by Seoul Economic Daily.
USFK Commander: "OPCON Transfer in Q1 2029"
Gen. Xavier Brunson, commander of the Combined Forces Command and US Forces Korea (USFK), said he aims to meet the conditions for the transfer of wartime operational control (OPCON) before the second quarter of US fiscal year 2029 (the first quarter of 2029 in Korea). Under the timetable Brunson presented, Korea could complete the OPCON transfer within President Lee Jae-myung's term, but the actual transfer remains fluid since it coincides with the inauguration of a new US administration.
At the US House Armed Services Committee on the 22nd (local time), Brunson responded to a question from Chairman Mike Rogers, a Republican, about preparations for the OPCON transfer, saying, "We have submitted a roadmap to the Department of Defense for meeting the conditions."
Brunson explained, "Along with the OPCON transfer, we are exploring ways to provide 'essential but more limited' support for missions related to North Korea and to broaden our view westward." The remarks suggest that USFK could expand its response scope beyond the Korean Peninsula to other security issues in the Taiwan Strait and Indo-Pacific region. It is interpreted as making clear that USFK is pursuing "strategic flexibility."
Brunson said, "The South Korean military is one of the world's top 10 armies, currently ranked fifth," adding, "Given that Korea is continuously increasing its defense investment and plans to raise defense spending by 8.5% over the next three fiscal years, it is in a good position."
However, the first quarter of 2029, when the final transfer is projected, overlaps with the end of President Donald Trump's term and the inauguration of his successor. The actual OPCON transfer is likely to be decided by the next US administration.
Trump Says "No Timetable," Squeezes Iran Hardliners With Economic Pressure
The Trump administration has begun applying economic pressure to weaken hardliners within Iran, saying there is no deadline for a ceasefire while maintaining the blockade of the Strait of Hormuz.
In an interview with Fox News on the 22nd (local time), President Trump said "there is no timetable" for either the ceasefire deadline with Iran or a second round of war-ending negotiations. He denied the previous day's report that "the US has given Iran an additional three to five days."
On Truth Social, Trump claimed that Iran's leadership had accepted his demands, saying, "Iran has halted the execution of eight female protesters." The day before, he had posted that releasing them "would be an excellent starting point for (US-Iran) negotiations." However, Mizan Online, the official media of Iran's judiciary, clarified that "these individuals were not originally charged with offenses punishable by death."
Analysts suggest the Trump administration may be exploiting the divide between negotiation-oriented and hardline factions within Iran's leadership to stoke internal discord. By amplifying opposition to the Iranian regime, the administration is effectively strengthening the hand of the negotiation-oriented faction.
Iran maintains that without lifting the maritime blockade, there will be neither negotiations nor reopening of the Strait of Hormuz. Mohammad Bagher Ghalibaf, speaker of the Iranian parliament and head of the negotiating team, emphasized on X (formerly Twitter), "A ceasefire is only meaningful when the maritime blockade stops."
Musk to Triple Tesla's AI Investment
US electric vehicle maker Tesla is expected to undertake massive investments of $25 billion (about 37 trillion won) this year. The plan is to nearly triple investment from last year to accelerate the company's transformation into an artificial intelligence (AI) and robotics-centered firm. However, concerns are also being raised about deteriorating financial health and cash flow burdens.
Tesla reported first-quarter operating profit of $941 million (about 1.3 trillion won), up 136% year-on-year. Revenue rose 16% from a year earlier to $22.387 billion, while earnings per share (EPS) came in at $0.41. Through cost-cutting effects and other measures, the company also succeeded in generating $1.44 billion in free cash flow.
Tesla said it would expand capital expenditure (CAPEX) this year to $25 billion. This represents a 25% upward revision of the investment outlook just three months after announcing in January that this year's investment would exceed $20 billion. It is nearly triple the level of last year ($8.5 billion).
Through the large-scale investment, Tesla plans to strengthen supply chains in batteries and energy and to invest in a new semiconductor research factory in Austin, Texas.
However, Tesla Chief Financial Officer (CFO) Vaibhav Taneja explained, "Free cash flow this year will turn negative."
"Talent Recruitment as a Spy Channel"... US-China Industrial Espionage Hunt
Amid competition between China and the US for technological supremacy, both countries are raising their response levels against each other's industrial spies.
On the 23rd, China's Ministry of State Security, the country's counterintelligence agency, disclosed recently uncovered cases of technology leaks through its official WeChat account. A vice president of a rare earth company was sentenced to prison for leaking seven pieces of state secrets, including stockpiled items, quantities and prices, after receiving bribes from a foreign non-ferrous metals company. A former engineer at a semiconductor firm was also punished for violating confidentiality obligations after leaving the company and handing over core production information, including process parameters and design drawings, to an overseas organization. The Ministry of State Security stressed, "We must establish a scientific and efficient security management system across hardware, software and personnel."
Industrial espionage activities by Chinese nationals working in the US have also been uncovered. According to the US Department of Justice, Linwei Ding, a former Google engineer, was convicted in January on charges of transferring more than 2,000 pages of confidential AI documents from Google's internal systems to his personal account between May 2022 and April 2023.
"We Need to Help"... Trump's Word Brings Spirit Airlines a 740 Billion Won Bailout
The US government has decided to provide $500 million (about 740 billion won) in emergency liquidity to Spirit Airlines, an ultra-low-cost carrier (ULCC) at risk of bankruptcy due to deteriorating finances, The Wall Street Journal (WSJ) reported on the 22nd (local time).
According to the report, the US government is close to reaching a funding agreement with Spirit Airlines. If the deal is concluded, the US government would receive warrants that could give it a significant stake in Spirit Airlines as a condition of the funding. According to Bloomberg, Spirit Airlines initially proposed to the government that it receive bailout funds in exchange for handing over its shares to the government, similar to the Intel case.
