Israel Launches Pre-Dawn Airstrikes, Targets Dozens of Nuclear and Military Facilities
Prime Minister Netanyahu: 'Operations Will Continue Until the Iranian Threat Is Eliminated'
Iran Vows Large-Scale Retaliation, Signs of Escalation Toward Full-Scale War

Tensions in the Middle East have erupted into a dramatic escalation after Israel launched a surprise airstrike on Iran’s nuclear and military facilities. What was initially framed by Israel as a preemptive defense measure has swiftly triggered a retaliatory response from Tehran, setting in motion a chain of events that analysts fear could ignite a full-blown regional war. As both sides exchange attacks and threats, the ripple effects are being felt globally—nowhere more visibly than in the energy markets. Crude oil prices have skyrocketed, with fears that a blockade of the Strait of Hormuz or broader military conflict could send prices to unprecedented highs.

Crude Oil Could Hit USD 130 Per Barrel

The financial impact of the conflict was immediate and severe. According to Investing.com, futures for West Texas Intermediate (WTI) crude oil, set for July delivery, surged 8% to USD 73 per barrel by 1 a.m. U.S. Eastern Time on June 13. At its intraday peak, WTI soared nearly 10%, briefly exceeding USD 74 per barrel—the highest in five months. Brent crude, the international benchmark, climbed in tandem to USD 74.60, also reflecting an 8% jump.

These dramatic price spikes are being driven not just by the airstrike itself, but by intensifying fears that the Middle East—responsible for roughly one-third of the world’s oil production—could descend into prolonged warfare. Iran, in particular, is the third-largest producer within the Organization of the Petroleum Exporting Countries (OPEC). Any disruptions in its output, or attacks on regional transport infrastructure, would jolt the already fragile global oil supply chain.

The most immediate threat lies in the potential closure of the Strait of Hormuz. This narrow chokepoint is responsible for transporting around 20% of global oil shipments, one-third of liquefied natural gas (LNG) exports, and one-sixth of the world’s crude supply. Iran has previously warned that it considers the Strait a strategic lever and could blockade or target tankers transiting through it. South Korea and many other energy-importing nations are especially dependent on this route.

Alarmed by these prospects, global investment bank JPMorgan has reiterated its earlier warning: if the Strait of Hormuz were to be shut down or if military clashes engulf the wider Middle East, crude prices could soar beyond USD 130 per barrel—triggering knock-on effects for inflation, transportation costs, and energy-dependent industries around the world.

Israel’s Preemptive Strike and Iran’s Escalating Retaliation

On June 12, Israel shocked the region by launching a coordinated preemptive airstrike on strategic sites across Iran, including nuclear infrastructure. Israeli Defense Minister Israel Katz declared the strike a necessary preemptive action to neutralize what he described as an imminent threat from Iran. A state of special emergency was also declared. Residents near Tehran reported hearing multiple massive explosions, confirming the scale of the Israeli assault.

The operation, named “Nation of Lions,” aimed squarely at dismantling Iran’s ability to produce nuclear weapons and degrade its missile capabilities. According to Israeli officials, the airstrikes killed several senior figures within the Islamic Revolutionary Guard Corps (IRGC), including Commander-in-Chief Hossein Salami. Additionally, key Iranian nuclear scientists—Mohammad Tehranchi and Fereydoon Abbasi—were also killed. The symbolic and strategic nature of these targets has fueled fears that the attack crossed one of Iran’s most well-publicized red lines.

Israeli Prime Minister Benjamin Netanyahu, in a video address released on the day of the strike, stated the operation’s objective clearly: to destroy Iran’s nuclear infrastructure, missile production sites, and military strength. He further warned that the campaign would continue “for as long as necessary” and justified the preemptive strike by claiming Iran was mere days away from producing up to 15 nuclear bombs. He described this as a direct threat to both Israeli and global security.

According to reports from The Wall Street Journal, Netanyahu had spoken with U.S. President Donald Trump on June 9 to inform him of Israel’s intention to carry out the strike. U.S. officials later confirmed that Israel had shared operational details in advance, signaling close coordination with Washington.

In retaliation, Iran acted swiftly. By early June 13, the Iranian military had launched more than 100 drones toward Israeli targets. A spokesperson for the Israel Defense Forces (IDF) confirmed the drone barrage and responded by stating that over 200 Israeli fighter jets had launched counterstrikes, hitting more than 100 strategic locations across Iran and deploying over 330 munitions.

Iranian Leaders Vow Harsh Punishment as Missile Forces Mobilize

The response from Iran’s top leadership was immediate and unequivocal. In a fiery statement carried by the state-run IRNA news agency, Supreme Leader Ayatollah Ali Khamenei condemned Israel’s attack, describing it as the regime’s most “vicious” act to date. He accused Israel of extending its “filthy and bloodstained hands” to strike Iranian residential areas and warned that Israel had “prepared a bitter and painful fate” for itself. “The strong hand of the Iranian military,” he declared, “will not let this crime go unpunished.”

Khamenei also honored the deaths of IRGC leaders and nuclear scientists as acts of martyrdom, affirming that their successors would continue their mission in accordance with divine will. His words served both as a warning to Israel and a rallying cry to Iran’s military and the broader population.

Iran’s military posture appears to support those words. According to a 2025 report from the International Institute for Strategic Studies (IISS), the IRGC controls over 100 launchers for medium-range ballistic missiles (MRBMs), with ranges exceeding 1,000 kilometers. The country has a vast arsenal of solid- and liquid-fueled missiles, many of which are capable of reaching Israeli territory.

However, Iran’s air force is a known weak point. The nation possesses about 265 combat-capable aircraft, most of which date back to the Cold War and are considered obsolete. These jets would require aerial refueling to reach Israeli targets—a capability Iran can only support with its limited fleet of fewer than five aerial refueling tankers.

Despite these limitations, Iran’s missile forces remain a serious threat. Former U.S. national security official Brett McGurk noted that the Iranian military is capable of launching approximately 30 ballistic missiles every five minutes, with a flight time of just 13 minutes to reach Israel. Such capabilities make any sustained conflict between the two nations potentially devastating, not only for them, but for the entire region and the global economy.

Boeing 787-8 Dreamliner Explodes After Plunging One Minute Post-Takeoff
Ongoing Safety Controversies Over the Years Erode Market Trust
New CEO’s Efforts to Rebuild Image Go Up in Smoke

Boeing, the world-renowned American aircraft manufacturer, is once again in crisis. The company finds itself at the center of another aviation tragedy—this time involving one of its most advanced aircraft models. An Air India flight, operated using a Boeing 787-8 Dreamliner, crashed shortly after takeoff from Ahmedabad, India, killing 241 of the 242 people on board. This incident, already heartbreaking in its human toll, is reigniting a long-burning debate about the safety and oversight of Boeing’s aircraft. Despite the company’s ongoing efforts to restore public and investor confidence, the crash marks another devastating chapter in a string of fatal accidents that have plagued Boeing in recent years.

India’s Deadliest Crash in Years: A Dreamliner Goes Down

On June 12, at approximately 1:39 PM local time, tragedy struck near the Ahmedabad Airport in Gujarat, India. An Air India Boeing 787-8 Dreamliner, one of Boeing’s most advanced and widely used medium- to long-haul aircraft, crashed less than a minute after takeoff. The jet reportedly entered a sharp descent moments after becoming airborne and collided with a dormitory building of a state-run medical college in the Meghani Nagar district, located just east of the airport. The impact caused a massive explosion, triggering a secondary disaster for those on the ground.

The plane was carrying a total of 242 people—passengers and crew combined. According to reports, the nationalities included 169 Indian citizens, 53 British nationals, 7 Portuguese, and 1 Canadian. Out of everyone on board, only a single survivor has been confirmed. Rescue operations at the crash site revealed further casualties in the dormitory cafeteria, where the aircraft had struck with brutal force. According to Reuters, citing eyewitnesses and rescue teams, at least 30 to 35 bodies have been recovered from the rubble, and many more are feared trapped beneath the wreckage.

What has shocked many aviation analysts is the model involved: the Boeing 787-8 Dreamliner. Since its debut in 2011, the Dreamliner has been celebrated for its fuel efficiency, modern avionics, and composite design. Over 1,175 of the aircraft have been delivered to more than 70 airlines globally. Until now, it had never been involved in a fatal crash. The specific aircraft in this incident first entered service in 2013 and was officially delivered to Air India in January 2014.

This singular event has shattered the Dreamliner’s spotless safety record and raised grave concerns about whether Boeing’s systemic issues extend even to its flagship models.

Boeing’s Grim Track Record: From MCAS Failures to Structural Failings

While the Dreamliner had previously been considered a symbol of Boeing’s engineering excellence, the broader history of Boeing aircraft over the past decade tells a different story—one defined by recurring failures, defective systems, and mounting death tolls.

The most high-profile among these was the Lion Air crash in October 2018, in which a Boeing 737 Max 8 plunged into the sea just 13 minutes after takeoff from Jakarta, killing all 189 people on board. Merely five months later, another 737 Max 8 operated by Ethiopian Airlines crashed shortly after departing Addis Ababa, claiming 157 more lives. Investigators later discovered a fatal flaw in the Maneuvering Characteristics Augmentation System (MCAS)—a flight stabilization system meant to prevent stalls. The software repeatedly forced the aircraft’s nose down due to erroneous sensor readings, overpowering the pilots’ efforts to regain control.

The fallout from those accidents led to a global grounding of the 737 Max fleet and exposed serious lapses in Boeing’s internal safety culture and regulatory oversight. The issue wasn’t just the MCAS itself—it was how Boeing had minimized its significance in pilot training manuals. It allegedly misled the FAA during certification, but the problems didn’t end there.

In January 2024, an Alaska Airlines 737 Max 9 suffered a terrifying structural failure mid-flight. A window and part of the fuselage detached at an altitude of about 5,000 meters just after takeoff from Portland International Airport. While miraculously no one was injured, the incident caused severe reputational damage to Boeing and was a tipping point that led to the resignation of then-CEO Dave Calhoun. His role was taken over by Robert Kelly Ottburg, an engineer by background, tasked with repairing Boeing’s credibility.

Older Boeing models haven’t fared any better. In January 2021, a 737-500 departing Jakarta crashed into the sea, killing 62 people. In March 2022, a 737-800 went down in Wuzhou, China, claiming 132 lives. And in December 2024, a Jeju Air 737-800 crashed, killing 179 passengers—another devastating blow tied to the same 737 family. What was once considered Boeing’s most trusted aircraft line has now become synonymous with tragedy and systemic failure.

Confidence Falters Again Despite Recovery Efforts

In recent months, Boeing has made visible strides toward recovering its public image and financial standing. Under Ottburg’s leadership, the company focused on stabilizing production lines and securing large-scale orders to shore up confidence. In November 2024, Boeing concluded its first major labor strike in 16 years. By May 2025, it had reached a settlement with the U.S. Department of Justice to avoid criminal prosecution related to the 2018 Lion Air disaster—terms included significant compliance commitments and financial penalties.

These initiatives began to bear fruit: over a three-month stretch, Boeing’s stock surged nearly 45%, signaling a tentative return of investor faith. But that progress has now hit a wall.

Following the Air India crash, Boeing released a statement from Ottburg, stating that the company is “fully prepared to cooperate with the investigation led by India’s Aircraft Accident Investigation Bureau (AAIB).” The CEO reportedly spoke directly with the chairman of Air India, pledging Boeing’s “complete support” and vowing to defer entirely to Indian authorities regarding the findings and public communication. It was a strategic move to show responsibility and transparency—something the company had been previously criticized for lacking.

Still, the market’s response was swift and unforgiving. On June 12, the same day as the crash, Boeing shares dropped 4.79%, closing at USD 203.75 on the New York Stock Exchange. Shares of key suppliers like GE Aerospace and Spirit AeroSystems also took a hit, each declining more than 2%.

The crash has reignited long-standing skepticism among investors and regulators alike. Despite Boeing’s public relations push, the grim reality remains: faith in the company’s quality control, safety protocols, and corporate integrity is eroding—and now with the loss of 241 more lives, the cost is as stark as ever.

U.S. Commerce Secretary: “CHIPS Act Subsidy Rate Should Be Lowered to 4%”
Samsung and SK Hynix Face Risk of Losing Hundreds of Millions in Subsidies
Can the Lee Jae-myung Administration Encourage Domestic Investment by Korean Chipmakers?

The United States is reconsidering its subsidy policy under the CHIPS Act, a key initiative of the Biden administration. The plan involves lowering the subsidy-to-investment ratio, effectively reducing the overall level of support for semiconductor companies.

U.S. Renegotiating Semiconductor Subsidies

According to industry sources, on June 12, the U.S. government is actively pushing to reduce the subsidies provided to semiconductor companies significantly. On June 4 (local time), U.S. Commerce Secretary Howard Lutnick stated before the Senate Appropriations Committee that “a subsidy ratio below 4% of total investment is more appropriate,” adding that “10% is overly generous.” His remarks confirm that renegotiations are now underway, following his earlier comments during his January confirmation hearin,g where he announced plans to review CHIPS Act subsidy agreements signed under the Biden administration.

The CHIPS Act, enacted in 2022 by former President Joe Biden, incentivizes semiconductor firms to invest in the U.S. by providing mainly direct subsidies, loans, and investment tax credits. The current review focuses specifically on direct subsidies—cash payments granted by the U.S. Department of Commerce after evaluating each company's proposal. Originally, major semiconductor firms expected to receive subsidies amounting to about 10–15% of their total investment.

The 4% figure cited by Secretary Lutnick is believed to be based on the example of Taiwan Semiconductor Manufacturing Company (TSMC). TSMC recently expanded its planned U.S. investment from USD 65 billion to USD 165 billion under the second Trump administration. If the U.S. government declines to increase subsidies in proportion to this expansion, the effective subsidy rate for TSMC would drop from 10.3% to 4%.

South Korean Chipmakers in the Crosshairs

If the 4% standard is applied not only to TSMC but to all semiconductor companies, major South Korean players—Samsung Electronics and SK Hynix—stand to lose a substantial portion of their anticipated U.S. subsidies. Both firms finalized subsidy agreements with the U.S. toward the end of President Biden’s term in December 2024.

Samsung is currently investing USD 37 billion to build a semiconductor foundry in Taylor, Texas, with an initial agreement to receive USD 4.745 billion in subsidies from the Department of Commerce. SK Hynix planned a USD 3.87 billion investment to construct an advanced packaging plant for AI memory chips in Indiana, and was slated to receive up to USD 458 million in subsidies.

However, if the revised 4% cap is enforced, Samsung’s subsidy could shrink to USD 1.48 billion and SK Hynix’s to just USD 154.8 million. This drastic cut would erode much of the incentive for continuing large-scale U.S. investments. One industry source remarked, “If the subsidy scale is reduced, there's really no reason to keep building new fabs in the U.S.,” adding that “there’s growing speculation that Samsung and SK Hynix may start seeking cheaper production alternatives in other countries.”

Semiconductor Policy of the New Administration

Some in the industry believe that the reduction of U.S. subsidies may present an opportunity for South Korea to encourage its semiconductor firms to ramp up domestic investment. This outlook is tied to the recently inaugurated administration of President Lee Jae-myung, who has declared support for the semiconductor industry as his “top policy priority.” During his campaign, President Lee repeatedly emphasized that “global economic supremacy depends on who controls semiconductors,” and pledged to make South Korea the world’s leading semiconductor powerhouse through “overwhelming technological dominance and innovation.”

To realize this vision, the Lee administration plans to swiftly enact a Special Semiconductor Act that includes direct subsidies for chipmakers, while offering a production tax credit of up to 10% for domestically manufactured and sold semiconductors. Additional pledges outlined in the policy platform include:

- Supporting next-generation AI semiconductor development and the broader industrial ecosystem;

- Strengthening support for system semiconductors and advanced packaging to build a comprehensive semiconductor ecosystem hub;

- Establishing RE100-compliant semiconductor clusters that meet renewable energy targets.

If the new government’s semiconductor initiatives are successfully implemented and drive increased domestic investment from firms like Samsung Electronics and SK Hynix, the policy could yield wide-ranging benefits, including economic revitalization, job creation, and growth across the manufacturing supply chain.

Experts also stress the need for swift and concrete support measures to foster the domestic semiconductor ecosystem. Kim Yang-paeng, a semiconductor analyst at the Korea Institute for Industrial Economics and Trade (KIET), commented, “The reduction in U.S. subsidies is not unexpected—it’s simply becoming reality now. We must prepare our own mechanisms to support the domestic semiconductor industry.” He added, “Even if the details are revised later, enacting the Special Semiconductor Act quickly is key to ensuring long-term policy continuity.”

Taiwan Prosecutors Indict Four, Including Former Foreign Minister’s Secretary
Leaked Information to China Used in Strategy to Sever Taiwan’s Diplomatic Ties and Isolate It
Over 5,000 Suspected Chinese Spies Believed to Have Infiltrated Taiwan

Amid rising tensions between China and Taiwan, revelations that Chinese spies have deeply infiltrated Taiwan’s political sphere and operated over an extended period have sent shockwaves through Taiwanese society. Those exposed as spies were closely connected to current and former high-ranking officials within the ruling Democratic Progressive Party (DPP) and the government. Prosecutors have confirmed that during President Tsai Ing-wen’s administration, these individuals leaked details of diplomatic meetings between Taiwan’s foreign minister and officials from allied nations to China over several years. The classified documents funneled to Beijing are believed to have been used in China’s strategy to isolate Taiwan diplomatically.

Recruited by Chinese Intelligence in 2003, Operated for Over Two Decades

According to reports by Taiwanese media outlets including Liberty Times and United Daily News on the 11th, the Taipei District Prosecutors’ Office has indicted four individuals—Huang Chiu-lung, Wu Shang-yi, He Jen-chieh, and Chu Su-yuan—on charges of violating the National Security Act and the Classified National Security Information Protection Act. All four were arrested and formally charged. Prosecutors have identified Huang Chiu-lung, a former Democratic Progressive Party (DPP) official, as the central figure in the case and have sought a combined sentence of 30 years and 6 months for charges including leaking state secrets and money laundering.

According to the prosecution, Huang was first recruited in 2003 during a business trip to China by an intelligence officer affiliated with the Central Military Commission of the Chinese Communist Party. Over the course of approximately 22 years, Huang reportedly received funding from Chinese intelligence agencies and operated an espionage network within Taiwan.

Huang, who once served as a special assistant to former New Taipei City Councilor Lee Yu-tien of the DPP, used his political connections to gain access to classified information. In 2017, he arranged for his friend Chu Su-yuan—former vice president of the DPP-affiliated Democracy College—to meet with Chinese intelligence agents in places such as Thailand and Macau. Through Chu, Huang recruited Wu Shang-yi, who served as secretary to then-Vice President Lai Ching-te (Taiwan’s current President), and He Jen-chieh, who was secretary to then-Foreign Minister Joseph Wu (now Secretary-General of the National Security Council).

Prosecutors stated that Huang received approximately USD 200,000, and Chu received around USD 70,000 from Chinese intelligence agencies in exchange for their espionage activities.

Between December 2022 and January 2024, Huang is alleged to have acquired and transferred sensitive information through Wu and He, including transcripts of confidential conversations and meetings between Vice President Lai and officials from allied nations. One of the leaked documents included Lai’s full itinerary during his 2023 visit to Paraguay, which Chinese intelligence reportedly used to assess Taiwan’s strategy in Latin America. Other leaked materials included documents related to the Taiwan–U.S. “21st Century Trade Initiative” and Taiwan’s contingency plans for diplomatic severances with allied nations.

Dubbed the “Presidential Office Espionage Case,” the scandal has shaken Taiwan’s public since being uncovered through a joint investigation by the Prosecutors’ Office and the National Security Bureau in February. After just two months of investigation, the case broke open in April, revealing the depth of Chinese infiltration. Taiwanese media, such as China Times, have noted that the leaked intelligence played a tangible role in shaping China’s strategy to isolate Taiwan diplomatically. Since China ramped up its diplomatic offensive, Taiwan has seen the number of its formal diplomatic allies drop from 22 in 2016 to just 12. Notably, eight of these countries severed ties with Taiwan after 2019, coinciding with the period in which a large volume of diplomatic documents was leaked to China.

Formed a Treasonous Network and Attempted to Overthrow the Government

Beyond the recent Presidential Office espionage case, Taiwan has uncovered a string of other espionage operations believed to be backed by Chinese intelligence agencies. In January of this year, six individuals—including Kao An-kuo, a retired lieutenant general who previously served as deputy commander of Taiwan’s Army 6th Corps and later as chief mobilization officer in the Republic of China Military Government—were indicted for violating the National Security Act.

According to prosecutors, Kao was recruited by the Chinese government in 2018 and received around USD 420,000 in operational funds. A military official noted that this was “the first known case in which a treasonous organization attempted to execute a concrete plan to overthrow the state,” which included targeting government institutions and plotting the assassination of political and military leaders.

Taiwanese media reported that Taiwan’s Investigation Bureau under the Ministry of Justice and the Political Warfare Bureau of the Ministry of National Defense began tracking Kao’s activities following intelligence and reports filed in 2020 and 2022. Prosecutors stated that Kao and his group had planned to launch a coup in the event of a Chinese invasion, aiming to topple Taiwan’s government from within. The group also allegedly tried to recruit active-duty military personnel to obtain classified information about military bases and strategic deployments. Additionally, they used drones to surveil and tail mobile radar units of the Taiwanese military and reported their findings to China.

Since President Tsai Ing-wen, who favors Taiwanese sovereignty, took office in 2016, the number of military personnel arrested on espionage charges has increased. In 2023, a senior Taiwanese army officer was sentenced to 7 years and 6 months in prison after receiving money from China and pledging to defect in the event of war. In March 2024, a former air force major, Su Chun-cheng, and an active-duty air force captain, Hsu Chan-cheng, were arrested for leaking classified military information, including anti-ship missile data related to Taiwan’s fighter jets. Su had been recruited during a business trip to China, where he accepted bribes and funds, and then recruited a junior officer upon his return to Taiwan.

Tensions Rise Across the Strait, Counterintelligence Capabilities Must Be Strengthened

According to China Times and other Taiwanese outlets, it is estimated that more than 5,000 Chinese spies are currently operating in Taiwan. Former National Security Bureau (NSB) directors Sung Hsin-lien and Yin Tsung-wen, who led the bureau in the 1980s and 1990s, have publicly stated that around 5,000 Chinese agents had already infiltrated Taiwan. Lin Chung-bin, former Deputy Minister of Political Warfare during the Chen Shui-bian administration, echoed this estimate in 2023, adding that given current cross-strait dynamics, the number has likely increased.

In an interview with local media, Lin explained, “After witnessing how quickly internal documents from the Presidential Office and Mainland Affairs Council were being leaked, I became convinced that Chinese spies exist across all sectors of Taiwanese society.” His concerns are supported by data. According to an NSB report titled Analysis of Infiltration Methods in Chinese Spy Cases, the number of espionage-related indictments has grown significantly: 3 cases involving 16 individuals in 2021; 5 cases with 16 individuals in 2022; 14 cases with 48 individuals in 2023; and 15 cases with 64 individuals in 2024.

Liu Te-liang, former director of the Military Intelligence Bureau (MIB), underscored the seriousness of the threat. “If these agents were targeting government agencies, political parties, think tanks, and businesses, the level of risk is beyond imagination,” he warned. Liu also pointed out the difficulty in prosecuting such cases, noting that “it typically takes two to three years just to gather evidence because the operations are so well concealed.” Paradoxically, he argued, this level of concealment highlights the strength of Taiwan’s current counterintelligence efforts. Still, Liu urged greater investment, saying that Taiwan must go beyond mere information warfare and urgently expand its surveillance systems, security personnel, and defense budgets to bolster its anti-espionage capacity.

"North Korea Refused to Receive Letter Trump Tried to Send"
White House Does Not Deny NK News Report
Spokesperson LaCivita: "Trump Wants to See Progress Like in His First Term"

Just four months into Donald Trump’s second presidential term, concrete signs have emerged that his administration is trying to resume dialogue with North Korea. Trump appears to be engaging in “letter diplomacy” with North Korean leader Kim Jong-un, raising speculation that the stalled U.S.–North Korea talks may be reignited.

White House: "President Open to Letter Exchanges"

On June 11 (local time), White House spokesperson Caroline Leavitt said, “President Trump wants to see progress with North Korea similar to what was achieved during the first U.S.–North Korea summit in Singapore in 2018.” At a briefing, she stated, “President Trump remains receptive to exchanging letters with Chairman Kim,” though she declined to comment on any specific correspondence, leaving that for the president to address.

Her remarks came in response to a report by NK News, which stated that North Korean diplomats at the UN in New York had refused to accept a personal letter from Trump addressed to Kim. According to the outlet, Trump has written a letter aimed at restarting talks, reminiscent of those held during his first term. Despite repeated attempts, the North Korean side reportedly refused to receive the letter.

Leavitt did not deny the report, effectively confirming Trump’s openness to direct engagement. This suggests that Trump is still interested in a top-down diplomatic approach toward North Korea, relying on personal dialogue with Kim. Back in April, Trump had hinted at renewed contact with North Korea, saying, “At some point, something will happen regarding North Korea.” Axios also reported that the Trump administration had been consulting with internal and external experts about potentially resuming talks.

Resumption of U.S.–North Korea Letter Diplomacy?

During his first term, Trump broke the ice with Kim through an exchange of letters. Between 2018 and 2019, the two reportedly exchanged over 20 personal letters. At the time, foreign media even joked the two leaders “fell in love” through their correspondence. The letters led to the first U.S.–North Korea summit on June 12, 2018, in Singapore, where the two sides agreed on building a peace regime on the Korean Peninsula, working toward complete denuclearization, and repatriating war remains. However, a lack of concrete action plans on denuclearization eventually stalled the process.

The second summit in Hanoi on February 27–28, 2019, ended without agreement due to sharp differences over the scope of denuclearization and sanctions relief. Despite the breakdown, the two continued exchanging letters, including birthday greetings, which set the stage for a third, brief meeting at the Korean Demilitarized Zone in June 2019. Follow-up working-level talks resumed afterward but failed to make meaningful progress.

Trump’s Strategy: Engage with North Korea to Help Resolve the Ukraine War

Diplomatic experts speculate that Trump may be reaching out to Kim as part of a broader strategy to influence the war in Ukraine. North Korea has been supplying arms and personnel to Russia, making it a key ally. By engaging Pyongyang, Trump may be attempting to isolate Moscow. Professor Hwang Il-do of Korea’s National Diplomatic Academy commented, “While North Korea isn’t Trump’s top priority, he may try to separate North Korea from the Ukraine conflict to weaken Russia’s position.” Restoring communication channels early in his term could help counter the Russia–North Korea alliance, he added.

Some analysts believe Trump’s move may also stem from his personal desire for attention. Trump has fondly recalled the intense global spotlight during his summits with Kim, once calling them the most media-covered moments of his life. Other theories suggest Trump might be eyeing long-term goals like checking China’s regional influence or possibly involving U.S. businesses in developing North Korea’s coastal resorts.

While another summit isn’t out of the question, many observers doubt it will lead to significant breakthroughs. NK News reported that North Korean diplomats refused to accept Trump’s letter, likely under Kim’s direct orders—a reflection of Pyongyang's reluctance. Kim remains firmly opposed to Western demands for denuclearization, while Trump’s administration continues to view denuclearization as its central policy on the Korean Peninsula.

North Korea still remembers being pressured in 2019 to dismantle all nuclear facilities, after proposing to only shut down its Yongbyon complex in exchange for sanctions relief. Given the current close ties between Pyongyang and Moscow, North Korea may see little benefit in reopening talks with the U.S. at this time.

Still, experts caution against assuming North Korea will remain unresponsive. Despite deepening ties with Russia and China and accelerating nuclear weapons development, Kim may see strategic value in engaging with Trump—a U.S. president who has acknowledged him as a legitimate counterpart.

Rockbridge Network Emerges as Power Center of Trump’s Second-Term Administration
Founder JD Vance, Now U.S. Vice President, Eyes 2028 Presidential Run
Treasury Secretary Scott Bessent Tipped as Potential Next Fed Chair

The powerful new conservative force in the United States, known as the Rockbridge Network, is tightening its grip on American politics. A complex web of key figures from the Trump administration and investment heavyweights is exerting massive influence across American society. At the center of it all is JD Vance, the U.S. Vice President and founder of Rockbridge, who is reportedly aggressively positioning himself for a presidential bid in the next election.

Rockbridge Played a Key Role in Trump’s Re-election

According to sources in both U.S. and Korean political circles, the political fundraising group Rockbridge is emerging as a central force of power in Washington. Founded in 2019 by Vice President Vance and conservative columnist Christopher Buskirk, Rockbridge aimed to build a political base for a new conservatism to replace the fading traditional Republican establishment.

Membership is exclusive—USD 25,000 grants access to events, while lifetime membership costs USD 1 million. The group spends approximately USD 75 million annually on political activities, including candidate support, shaping public opinion, and voter outreach.

Rockbridge made its name during last year’s U.S. presidential election. In April, Trump’s campaign was cash-strapped and facing a cornered position in the GOP primaries, as traditional donors like the Koch network supported Ron DeSantis and Nikki Haley. That’s when Rockbridge stepped in, injecting large sums of money into Trump’s campaign and recommending Vance as the running mate. Donald Trump Jr., a Rockbridge member, brokered the connection.

Notable Influence of Rockbridge Members

Rockbridge’s ability to exert such influence stems from the heavyweight names within its ranks. At the center is Peter Thiel, founder of Palantir and longtime mentor to Vance, often described as the network’s “puppet master.” Elon Musk, Tesla CEO and head of the Department of Government Efficiency (DOGE) in Trump’s second term, is also a member. Other prominent figures include the Winklevoss twins, who donated USD 1 million worth of Bitcoin to Trump; hedge fund titan Rebekah Mercer; White House Chief of Staff Susie Wiles; Secretary of State Marco Rubio; Treasury Secretary Scott Bessent; Health and Human Services Secretary Robert F. Kennedy Jr.; and Director of National Intelligence Tulsi Gabbard—all current members of Rockbridge and influential figures in the administration.

These figures are leaving their mark across the U.S. political landscape. Trump Jr., although holding no official title in the second Trump administration, has been instrumental behind the scenes, assisting with appointments and lobbying globally to expand Rockbridge’s reach.

Vice President Vance is rapidly solidifying his power. He made headlines in March when he interrupted a meeting between Presidents Trump and Volodymyr Zelenskyy of Ukraine, telling Zelenskyy to “thank America” in a stern tone. The moment symbolized a shift from America’s global policing role to an “America First” stance.

Vance’s ambition clearly points toward the next presidential election. Many believe he intends to inherit Trump’s political mantle and carry forward the “Trumpism” agenda. One foreign policy expert commented, “Rockbridge is a powerful alliance of America’s new economic elite and political power—and Vance stands at its center. If their plans come to fruition, Vance will become the standard-bearer of America’s new conservatism.”

Treasury Secretary Bessent Tipped for Fed Chair

Scott Bessent, Rockbridge member and Treasury Secretary, is a strong contender for the next Chair of the Federal Reserve. According to a June 10 report by Bloomberg, Trump’s advisors are backing Bessent for the role. The Fed Chair is nominated by the President and confirmed by the Senate, with a four-year term. Jerome Powell’s term ends in May next year.

Bessent, a respected figure on Wall Street, is spearheading key initiatives in the Trump administration, including U.S.–China trade negotiations and tariff policies. His expanded role has reportedly won Trump’s deep trust. Even in a power struggle with Elon Musk over the acting IRS commissioner position, Trump sided with Bessent.

Steve Bannon, former Trump strategist, praised Bessent, saying, “He proved during the volatile early months of Trump’s presidency that he could deliver on the promises. He’s not just competent—he’s someone global markets can trust.” Tim Adams, President of the Institute of International Finance (IIF), added, “Given the global financial community’s trust in him, Bessent is undoubtedly a strong dark horse candidate.”

Other potential Fed Chair candidates include former Fed Governor Kevin Warsh, whom Trump recently praised as “highly regarded.” However, Arthur Laffer, former University of Chicago professor and close Trump advisor, commented, “Bessent is excellent, but already has a major role and isn’t primarily a monetary policy expert. I told the President Kevin Warsh would be perfect for this position.” Additional names being floated include Kevin Hassett (former Chair of the White House Council of Economic Advisers), Fed Governor Christopher Waller, and former World Bank President David Malpass.

Meta Seeks to Acquire 49% Stake in Scale AI
Plans to Establish Superintelligent AI Research Lab Using Scale AI Talent
Major Overhaul Underway Following Weak Performance of AI Model 'LLaMA'

Meta, which owns the generative AI model "LLaMA," is planning a massive investment in Scale AI, the leading company in AI training data. Meta aims to establish a new "Superintelligence Lab" based on Scale AI's talent. Superintelligence refers to the next stage in AI development that surpasses human-level artificial general intelligence (AGI). As Meta falls behind Google and OpenAI in large language model (LLM) development, this move is seen as a strategic pivot to reclaim AI leadership.

Meta Seeks 49% Stake in Scale AI, Negotiating to Bring in CEO

According to reports from the Wall Street Journal, CNBC, and other foreign media on June 11 (local time), Meta is finalizing a USD 14 billion investment deal with Scale AI, led by CEO Alexandr Wang. Meta is also negotiating to bring Wang on board to lead AI research. Some forecasts suggest the investment may reach USD 15 billion or more. If completed, this would mark Meta’s largest external investment ever.

Through the deal, Meta will acquire a 49% stake in Scale AI. CEO Wang and key staff are expected to join Meta and lead the company’s new "Superintelligence Lab." Superintelligence refers to AI systems that exceed human cognitive abilities, going beyond AGI, which targets human-level intelligence.

Rather than acquiring Scale AI outright, Meta’s large-scale equity investment mirrors the strategies of Google and Microsoft, which have secured AI startup talent through partnerships or partial acquisitions. A similar example is OpenAI's recent acquisition of AI hardware startup "io," which brought on former Apple design legend Jony Ive.

This new lab is also seen as part of a broader restructuring within Meta’s AI division. The company has faced internal leadership conflicts, staff departures, and product failures. Although Meta launched its AI chatbot based on the LLaMA LLM series, the latest "LLaMA 4" model was delayed and failed to generate significant buzz. The next flagship model, "Behemoth," has also been postponed due to performance concerns. As a result, most of the 14 researchers leading Meta’s core AI efforts have reportedly left the company. Meta hopes that bringing in Wang will help it reassert itself in the AI race.

Data Labeling Becomes Crucial—Scale AI in High Demand

Founded in 2016, Scale AI rapidly grew by specializing in data labeling. The startup was initially backed by Y Combinator, the top Silicon Valley accelerator then led by OpenAI CEO Sam Altman. Scale AI built a business model that paid workers to label data for sale to AI developers. Initially, its major clients were autonomous vehicle companies, but its business surged as OpenAI ramped up LLM development, heavily relying on Scale AI for data labeling.

With the explosion of interest in ChatGPT in 2022, Scale AI saw a significant boost in business. Meta also became a client. Now, most major AI players—including OpenAI, Google, and Microsoft—are Scale AI customers, a testament to its technical edge and market dominance. As demand surges, the company's valuation has risen from USD 14 billion in 2023 to USD 25 billion in 2024, with revenue expected to more than double.

CEO Alexandr Wang became a billionaire as the company grew. In 2021, at age 24, he was named the world’s youngest self-made billionaire. As of April 2025, Forbes estimates his net worth at USD 3.5 billion. Wang is recognized for his extensive network within the AI industry. He once lived with Sam Altman during the COVID-19 pandemic and is well-connected across startups, big tech, and even government circles. He has attended elite gatherings like the Sun Valley Conference and was present at Donald Trump's inauguration in January 2025.

"It’s Not About Models, It’s About Data"—The Coming Data War in AI

Industry analysts say Scale AI’s rising value reflects the growing importance of data across all sectors—from IT to fashion and beauty—as companies incorporate AI into their operations. While technical innovation is crucial, high-quality, well-labeled data is increasingly recognized as the key to building smarter AI.

Data labeling plays a critical role in developing sophisticated AI tools. Often performed by low-wage workers in countries like Kenya and India, this labor-intensive task involves manually categorizing data—like identifying people or vehicles in autonomous driving footage or marking disease areas in medical X-rays. These workers typically earn USD 1.50–2 per hour, leading to criticisms of exploitation, though many in the industry argue that such labor is essential due to the massive volume of data required for training.

Labeling data is both time- and cost-intensive. Market research firm Cognilytica estimates that preparing and processing data accounts for 80% of an AI project’s total time. Other reports say labeling can take up 60–80% of development costs. The need for human oversight stems from AI’s current limitations in interpreting complex visual and audio content. As one tech insider noted, "A human can instantly recognize if a video is violent, but AI still struggles to make that distinction."

With tech giants like Meta turning toward superintelligent AI, the pace of AI evolution is expected to accelerate further. AI is already advancing from narrow AI (ANI), which handles specific tasks like voice recognition, toward AGI, capable of general cognitive functions. The next step is superintelligence—AI with intellectual capabilities surpassing humans.

Prominent experts like Nobel laureates Geoffrey Hinton (Physics) and Demis Hassabis (Chemistry, and CEO of DeepMind) predict that superintelligent AI could emerge within the next 10 years.