Nuriho 4th launch successful… New York stocks strong on AI optimism [Morning Briefing]

◆ Nuriho 4th launch successful…"We will launch at least once a year"

The Korean launch vehicle Nuriho (KSLV-II), the first to be produced under private-sector leadership, was successfully launched on the 27th and placed its payload satellites into their planned orbits, Deputy Prime Minister and Minister of Science and ICT Bae Gyeong-hun announced. At a briefing at the Naro Space Center in Goheung County, Jeollanam-do, Bae said the fourth Nuriho launch, which lifted off at 1:13 a.m., was successful and that "signal reception from the next-generation medium-sized satellite No. 3 was also confirmed at 1:55 a.m." He emphasized that "the success of the fourth Nuriho launch not only once again proves that the Republic of Korea has independent space transportation capabilities, but as the first public-private joint launch carried out with the government, private sector, and national research institutes working as one team, it will be an important turning point in which our country's space industry ecosystem shifts from government-centered to private-centered." For this launch, the private systems integration company (Hanwha Aerospace) took overall charge of the manufacture and assembly of the launch vehicle, and the Korea Aerospace Research Institute (KARI)-led launch operations also involved participation, marking the first time the public and private sectors prepared jointly.

◆ New York stocks end higher, matching Google’s momentum

The three major U.S. stock indexes closed higher. With expectations that Google will reshape the artificial intelligence (AI) industry, rotation into AI and semiconductor-related stocks concentrated buying, enlivening the market. On the 26th (U.S. Eastern Time) at the New York Stock Exchange (NYSE) near market close, the Dow Jones Industrial Average closed at 47,427.12, up 314.67 points (0.67%) from the previous session. The Standard & Poor's (S&P) 500 index rose 46.73 points (0.69%) to 6812.61, and the Nasdaq Composite rose 189.10 points (0.82%) to 23,214.69. Amid ongoing optimism about a December rate cut, AI stocks such as Nvidia, which had fallen sharply, rebounded and led the rally that day. Previously hard-hit AI stocks all rebounded, with Nvidia up 1.37%. As AI stocks recovered, most of the seven major U.S. tech stocks rose except for Alphabet and Meta. By stock, electric vehicle makers also rose across the board, with Tesla up 1.71%.

◆ Final Monetary Policy Board meeting of the year…fourth consecutive rate hold likely

The Bank of Korea's Monetary Policy Board will determine the policy rate (currently 2.50% per annum) at its final monetary policy meeting of the year on the 27th. The market expects a fourth consecutive rate hold following July, August, and October. In principle, from the perspective of the won, which is not a global reserve currency like the dollar, if the policy rate falls far below that of the U.S., foreign investment seeking higher returns may flow out and the won's value could fall. On the 24th in the Seoul foreign exchange market, the week (daytime) closing rate for the won/dollar was 1,477.1 won, the highest in about seven and a half months since April 9 (1,484.1 won) amid rising concerns over U.S. tariff increases. It may be necessary to hold rates for now and allow time to confirm whether measures such as the October 15 measures have noticeably curbed the rise in metropolitan area housing prices or the increase in household loans. In addition, the Bank of Korea will release a new economic outlook that day. Experts generally expect the growth forecasts of 0.9% and 1.6% for this year and next year, respectively, to be revised up to about 1.0% and 1.8–1.9% based on export improvements, domestic demand recovery, and base effects.

◆ Large fire at Hong Kong apartment complex…Authorities: "36 dead, 279 missing"

On the 26th (local time), a large fire at a Hong Kong apartment complex killed at least 36 people. According to AP, Reuters, Hong Kong Sing Tao, and the South China Morning Post (SCMP), the fire broke out at about 2:52 p.m. that day at Wang Fuk Court, a high-rise residential apartment complex in the Tai Po area of northern Hong Kong. Hong Kong Chief Executive John Lee said in the early morning of the 27th that "the fire on site is basically under control" and that "at least 36 people have died due to the fire (including firefighters) and 279 are missing." There are many people whose whereabouts are unknown, and there are residents who could not escape from high-rise buildings, so casualties may increase. Due to the fire, Hong Kong authorities raised the alert level to the highest level 5 at about 6:22 p.m. that day. Level 5 alert is the first time since the 2008 Mong Kok nightclub fire, which caused 4 deaths and 55 injuries. A total of 128 fire trucks and 57 ambulances were dispatched to the scene. The complex where the fire occurred reportedly housed about 2,000 households, roughly 4,800 people.

◆ National Assembly to vote today on arrest consent motion for Choo Kyung-ho on charge of 'engaging in important duties of an insurrection'

The National Assembly will hold a plenary session on the 27th to vote on a request for consent to arrest People Power Party lawmaker Choo Kyung-ho. Choo, who was the party's floor leader at the time of the December 3 emergency martial law, has had an arrest warrant requested by the special prosecutor for the insurrection for allegedly obstructing the National Assembly's vote to lift martial law (engaging in important duties of an insurrection). A motion for consent to arrest a lawmaker is passed if a majority of the total members are present and a majority of those present vote in favor, and since the Democratic Party of Korea, which holds more than a majority of seats, is expected to support handling it, the consent motion is likely to pass. If the motion passes the plenary session, a court hearing for detention before indictment (pre-trial detention review) will be held; if it is rejected, the court will dismiss the warrant without a hearing. Meanwhile, before the plenary session, ruling and opposition party leaders are expected to hold a meeting chaired by Speaker Woo Won-sik to discuss whether to list bills other than the consent motion for a vote and issues such as a parliamentary probe related to the decision to abandon the Daejang-dong appeal.

◆ "People's actor" Lee Soon-jae laid to rest today…funeral and memorial amid tributes

Veteran actor Lee Soon-jae, who showed undying passion for acting across theater, television, and film throughout his life, will be laid to rest on the 27th. Family members and fellow actors will attend the funeral service at 5:30 a.m. at the Asan Medical Center Funeral Hall in Songpa-gu, Seoul, to see him off on his final journey to the heavenly stage. The funeral will be hosted and the obituary read by actor Jeong Bo-seok, and Ha Ji-won and Kim Young-chul will deliver eulogies. A 7-minute memorial video will be shown, and attendees will pay their respects with incense and a final farewell. After the funeral, instead of visiting KBS where a separate memorial space was arranged, the procession will proceed to the burial site at Icheon Eden Paradise. Born in Hoeryong, Hamgyeongbuk-do in 1934, Lee Soon-jae debuted in 1956 with the play 'Beyond the Horizon' and acted continuously for nearly 70 years up to the 2024 drama 'Gaesori' and the play 'Waiting for Godot,' earning him the title of an 'eternal active' actor. The government posthumously awarded him the Gold Crown Order of Cultural Merit on the 25th.

◆ Rain and snow across the country…heavy snow warning possible in Gangwon mountains

On Thursday the 27th, most regions nationwide will see rain, and inland and mountainous areas will also see snow. According to the Korea Meteorological Administration, rain will begin in the morning and mostly stop at night, and there will be snow in eastern Gyeonggi and inland/mountainous areas of Gangwon, northern Chungcheongbuk-do, high mountain areas of southern regions, and Jeju's mountainous areas. Expected precipitation amounts are 5–20 mm for the Seoul metropolitan area, Gangwon inland/mountainous areas, and northern Chungcheongnam-do; 5–10 mm for Daejeon, Sejong, southern Chungcheongnam-do, Chungcheongbuk-do, and Ulleungdo/Dokdo; and around 5 mm for the Gangwon east coast, Busan/Ulsan/Gyeongnam, Daegu/Gyeongbuk, Jeolla provinces, and Jeju. Snow accumulation will be 5–10 cm in the Gangwon mountains, 1–5 cm in the high mountains of eastern Jeollabuk-do, and about 1 cm in Gangwon inland, northeastern Gyeongbuk mountains, and Jeju mountains. A heavy snow warning may be issued for the Gangwon mountains. Temperatures will be similar to or slightly higher than normal (morning -4∼6°C·daytime 7∼14°C). Daytime temperatures are forecast at 7–15°C. Fine dust concentrations will be 'moderate' nationwide, but yellow dust originating from near the Gobi Desert the previous day may affect some southwestern regions.

Cha Eun-ji, Hankyung.com reporter chachacha@hankyung.com