President Lee Jae Myung said Wednesday that the government will pursue sustained efforts to engage North Korea and replace the Korean War armistice with a peace regime. Lee made the remarks in a meeting of the Peaceful Unification Advisory Council, a presidential advisory body on unification of the two Koreas.
Lee Calls for Peace Regime on Korean Peninsula
“At least to open a ‘Korea premium’ era for the future Korean Peninsula that is drawing global attention, we must replace the armistice with a peace regime,” Lee said. However difficult it may be, the government should continue to “knock on North Korea’s closed door,” the president said. “Difficult does not mean impossible ... If we keep knocking, it will eventually open.”
North Korea has remained unresponsive to the Lee administration’s repeated dialogue overtures, instead hardening its hostile stance toward Seoul. Since the 1950-53 Korean War ended in an armistice, not a peace treaty, the two Koreas remain technically at war.
President Pledges Nonaggression and Respect for North Korea
“Now is the time to resume action toward peace,” Lee declared, pledging to find a way for the two Koreas to peacefully coexist while respecting each other’s political systems and sovereignty. “We will never give up (the effort), however slow (the process) may be,” he said.
The president also reaffirmed this administration’s commitment to nonaggression toward Pyongyang, saying Seoul will respect the North Korean system, will not pursue unification through absorption and will not engage in hostile actions. “I will keep these promises without fail,” he pledged.
South Korean Stocks Fall Over 2% on Tech Losses Amid Iran Deal Uncertainty
South Korean stocks ended by more than 2 percent lower Wednesday as investors locked in gains following recent artificial intelligence-fueled rallies in semiconductor shares, amid uncertainty over fragile US-Iran peace talks. The Korean won weakened against the US dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 173.07 points, or 2.04 percent, to close at 8,303.41. Overnight, US stocks closed higher on a continued chip rally, while investors closely watched developments regarding peace talks between Washington and Tehran. Iran on Tuesday said it would not meet with top US envoys who had flown to the region following recent hostilities near the Strait of Hormuz, even as indirect talks continued through mediators in Qatar.
Chip Heavyweights Weigh on Market Despite Record Exports
Chip heavyweights weighed on the broader market despite robust export data released earlier in the day. South Korea’s exports reached a record high in June, surpassing the US$100 billion mark for the first time on the back of record semiconductor shipments.
Trade volume was heavy at 396.59 million shares worth 67.84 trillion won ($43.59 billion), with winners outnumbering losers 699 to 191. Foreigners and institutions sold a net 1.7 trillion won and 70.48 billion won, respectively, while individuals bought a net 1.73 trillion won. “Foreigners extended their net selling after heavy selling in June, continuing to take profits from the recent rally in semiconductor stocks,” Han Ji-young, an analyst at Kiwoom Securities, said.
Tech Stocks Decline, Power Equipment Shares Gain
Tech heavyweights weighed on the market. Market bellwether Samsung Electronics fell 5.84 percent to 314,500 won, while chip giant SK hynix declined 3.4 percent to 1.56 million won. Power equipment shares gained on expectations of increased infrastructure investment for semiconductor clusters and artificial intelligence data centers under the government’s latest investment plan. LS Electric jumped 10.71 percent to 263,500 won, while HD Hyundai Electric rose 4.12 percent to 1.01 million won.
The Korean won was quoted at 1,554.9 won per US dollar as of 3:30pm, down 5.5 won from the previous session. Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 8.8 basis points to 3.791 percent, and the return on the benchmark five-year government bonds rose 10.3 basis points to 4.028 percent.
