AGP Executive Report

Cybersecurity: South Korean police opened a formal investigation into the online exposure of passport and other personal details belonging to 168 people, including President Lee Jae Myung and his wife. Crypto Heist: North Korea rejected the FBI’s claim that it was behind the theft of more than $6 billion from Binance. The exchange reported $4.72 billion in net customer withdrawals as it worked to reassure users. Regional Diplomacy: China urged dialogue in talks with Iran and said it would deepen energy and investment ties with Oman, as Beijing stepped up engagement across the Middle East. Security: North Korea tested a strategic cruise missile fitted with a dispersal warhead, adding to concerns over its weapons development. Disaster Preparedness: Japan launched a dedicated disaster management agency and urged residents to keep seven days of food and water on hand. ASEAN: Singapore says it will push for stronger action against transboundary haze when it chairs the bloc in 2027, including better coordination on fires and peatland management.

Philippines-China Tensions: Filipino business, labor and civic groups urged restraint and renewed diplomacy as Beijing accused Manila of delaying China’s invitation to an ASEAN defence meeting. China and Hong Kong account for nearly 30% of Philippine trade, the groups noted. China-Oman Ties: President Xi and Oman’s Sultan agreed to deepen strategic cooperation, with the visit producing 14 agreements and memorandums as Beijing also pressed for dialogue on Middle East tensions. Regional Trade: Malaysia and China are exploring faster approvals for Malaysian food exports, while a Chinese delegation indicated plans for up to US$15 billion in Malaysian investments. Security: South Korea is investigating a leak of passport details belonging to President Lee and 167 others, including security staff. Japan: A new national disaster management agency aims to improve preparedness and response to major earthquakes and other emergencies. Technology: Taiwan lawmakers are considering prison terms of up to 10 years for unauthorized exports of advanced chips and related equipment to China, including shipments routed through third countries.

AI Investment: South Korea’s proposed 2027 budget nearly doubles spending on AI and semiconductors to 21.3 trillion won, as OpenAI chief Sam Altman meets Samsung and SK leaders about chips and data centres. Japan’s Defence Shift: Tokyo is considering nearly 80 trillion yen in defence spending over five years and plans to research underwater drones to detect and attack submarines. Crypto Security: The FBI blames North Korean hackers for stealing $6.3 billion from Binance, the largest crypto heist on record. China-Oman Ties: During the first visit to China by an Omani head of state, Sultan Haitham proposed a preferential trade and investment deal, with both sides eyeing cooperation in energy, AI and logistics. Regional Industry: Southeast Asian auto-parts makers face falling orders as Chinese EV producers rely on imported components and established supplier networks. Japan Tech: Toyota and Waymo plan to launch a small robotaxi service in Japan in 2027, using driverless bZ4X vehicles.

Japan’s Aviation Hub: Narita plans to merge its three terminals into one in the 2030s and expand capacity to 500,000 annual flights, aiming to strengthen its role as an international hub. Regional Crime: Philippine authorities arrested a suspected senior figure in JP Dragon, a Japanese fraud syndicate linked to thefts targeting older people. South Korea’s Trade Boom: Exports jumped 93.7% in October to a record $115.3 billion, led by a surge in semiconductor sales; officials said the holiday calendar also boosted the year-on-year rise. ASEAN Child Safety: Thailand, Brunei and Cambodia want to join Malaysia, Indonesia and Singapore in pressing social media platforms on children’s online safety. Cybersecurity: The FBI blamed North Korea’s TraderTraitor group for the theft of more than $6 billion from Binance, the largest crypto heist on record. China’s Global Ties: An upgraded China-Peru free trade agreement took effect, expanding provisions on services, investment and e-commerce. China and Football: Chinese state TV did not air Real Madrid’s match after Kylian Mbappé apologised for a joke referencing Mao Zedong.

Cybercrime: The FBI blamed North Korea’s TraderTraitor group for the $6.3 billion Binance theft, the largest crypto heist on record. Binance says it has replaced about 90% of the stolen assets, while President Donald Trump said the attribution was still under review. Trade: An upgraded China-Peru free trade agreement took effect, expanding rules on e-commerce, investment and supply chains. Bilateral trade reached $50.4 billion in 2025, up from $6.4 billion in 2009. Security: North Korea says it tested a cluster-munition warhead for tactical missiles and plans to deploy several types by year-end. China’s coast guard also patrolled waters east of Taiwan. Economy: South Korea’s October exports surged 93.7% year on year to $115.3 billion, driven by chip demand; China’s factory activity, meanwhile, slipped into contraction. Space: China outlined a two-launch plan for a crewed lunar landing, targeting the Moon before 2030.

US-China Tech: The FCC voted to bar Chinese labs from testing electronics for the US market from 2028, citing security concerns; Beijing has condemned the move. China’s Space Program: Beijing outlined a two-launch plan to send astronauts to the Moon, aiming for a crewed landing before 2030. North Korea’s Cyber Operations: Investigators suspect North Korean hackers were behind a record $6.3 billion Binance theft, while a separate scheme allegedly uses fake remote workers to funnel salaries to Pyongyang. China’s Economy: Factory activity contracted in October for the third time in four months, with the official manufacturing PMI falling to 49.3 as domestic and export orders weakened. Electric Vehicles: Chinese automakers are gaining ground in South Korea with affordable models, but sales remain muted in Japan, where EV uptake is far lower.

Cybersecurity: The United States is investigating whether North Korean hackers carried out a record $6.3 billion theft from cryptocurrency exchange Binance; President Donald Trump said the inquiry is ongoing. China’s Economy: Manufacturing activity contracted in October as export orders weakened, with the official PMI falling to 49.3. Critical Minerals: A U.S.-owned startup plans to invest $600 million in a Malaysian rare-earth refinery, aiming to build a regional supply chain less reliant on China. Food and Climate: The UN Food and Agriculture Organization and ASEAN partners identified more than $3 billion in potential climate-smart agriculture investments that could benefit at least 2.6 million farmers and fishers. Regional Security: The United States, South Korea and Japan reaffirmed their goal of North Korea’s denuclearization, while Pyongyang called for a stronger drone force. China-Europe Ties: Chinese President Xi Jinping urged closer cooperation with Germany as trade tensions between Beijing and the European Union persist.

China’s Purge: Beijing says it has eliminated “serious hidden dangers” after expelling a record 33 senior party and military figures, including former top general Zhang Youxia. Regional Security: Malaysia received its first South Korean-made FA-50M fighter, part of an 18-jet order. North Korea also launched missiles, prompting security talks among South Korea, the U.S. and Japan. Cybercrime: Investigators linked a record $6.3 billion Binance hack to North Korean hackers; the exchange says it has frozen about half the stolen funds. Supply Chains: Japan’s Murata plans to invest $6.3 billion in AI-related component production, while Sojitz will source rare-earth yttrium from Malaysia to reduce reliance on China. Toyota and Waymo plan to launch robotaxis in Japan in 2027. China’s Economy: Services spending is outpacing goods sales, while regulators signal support for growth and capital markets amid a sharp tech-stock selloff. Taiwan: Taiwanese community leaders in Australia say fear of Chinese retaliation is discouraging public support for Taiwan, an issue raised in a Senate inquiry into foreign interference.

Philippines–China Tensions: Manila says the United States pledged more funding for military modernization and Japan will fast-track a decommissioned warship transfer, as maritime friction with China continues. ASEAN Dispute: Philippine Defense Secretary Gilberto Teodoro rejected Beijing’s claim that Manila obstructed China’s participation in ASEAN defense meetings, saying it was China’s position, not the bloc’s. China’s Military: The Communist Party elevated General Zhang Shengmin to its Politburo as it adopted new discipline and anti-corruption measures following a purge of senior military leaders. Korean Peninsula: North Korea tested ballistic missiles and showcased attack drones, cruise missiles and a large rocket launcher; leader Kim Jong Un called for rapid advances in drone technology. Markets: China’s blue-chip stocks were on track for a 12th straight weekly loss as an AI share selloff deepened. Japan’s central bank held its key rate at 1.25%.

Korean Peninsula: North Korea fired around a dozen ballistic missiles toward the East Sea, prompting an emergency security meeting in Seoul and alerts in Japan. ASEAN Security: The Philippines handed the bloc’s defence-meeting chairmanship to Singapore. Manila also rejected Beijing’s claim it had obstructed China’s participation, as regional officials urged respect for international law and ASEAN unity. Clean Energy: China’s record exports of solar, wind, battery and electric-vehicle technology could avert about 450 million tonnes of carbon emissions a year once deployed, a new report estimates; Southeast Asia is a major destination. Japan Cybersecurity: Tokyo asked telecom firms to block a site posting customer data stolen in an extortion attack on GMO Internet, citing the risk of further privacy breaches. China Demographics: People aged 65 and over now outnumber children under 15, adding to pressure on the workforce, pensions and healthcare.

Korean Peninsula: North Korea fired about a dozen short-range ballistic missiles toward the sea, days after Seoul proposed military talks to ease border tensions. South Korea, the US and Japan stepped up surveillance. ASEAN Security: At a regional defense meeting in Cebu, the Philippines urged members to reject force and uphold international law. The US proposed a new defense cooperation framework, while Japan called for unity amid rising military pressure. China sent a lower-ranking representative than in previous years. Defense Ties: Japan and the Philippines agreed to work toward transferring a decommissioned Abukuma-class warship, with training for Filipino crews. Regional Partnerships: Japan and Bangladesh pledged closer economic and security cooperation, including work on major infrastructure projects. ASEAN energy officials are also pushing for stronger regional links and fuel security amid Middle East supply uncertainty. China: Its population aged 65 and over reached 223.65 million in 2025, and the old-age dependency ratio surpassed the child ratio for the first time.

Regional Security: Japan and the United States agreed at ASEAN defence meetings in Cebu to deepen deterrence along the First Island Chain amid rising Chinese military activity. Malaysia urged ASEAN to make defence cooperation more flexible and address cyberthreats, climate risks and emerging technologies. Japan–Bangladesh Ties: The countries signed six instruments and pledged two loan projects during Prime Minister Tarique Rahman’s visit, including Japanese funding for a patrol vessel to strengthen coastal security. China’s Market Influence: Real Madrid apologised to Chinese fans after Kylian Mbappé’s Mao Zedong remark sparked backlash; Chinese brands dropped the footballer and state television halted broadcasts of the club’s match. Japan–Germany Relations: Leaders pledged closer cooperation on economic security and future technologies, voicing concern over economic coercion and supply-chain vulnerabilities. South Korea: Regulators fined Google and Apple a combined $47.6 million, saying their app-store payment rules disadvantaged local developers. Japan: Former prime minister Yasuo Fukuda has died aged 90; Malaysia’s Anwar Ibrahim praised his role in strengthening ASEAN-Japan ties.

ASEAN Security: The United States says it is working with Southeast Asian nations on a defence cooperation framework, as regional ministers meet in Cebu. Malaysia also urged ASEAN to strengthen joint disaster response. Digital Trade: ASEAN members are linking QR payments and electronic signatures ahead of a digital economy pact expected to be signed next month. Demographics: China’s population aged 65 and over now outnumbers children, as ageing and low birth rates deepen pressure on its workforce. South Korea, meanwhile, recorded a 13% rise in August births, extending a 26-month upward trend. Energy: India’s AM Green agreed to supply Japan’s JERA with about 70,000 tonnes of renewable ammonia annually for five years, starting when its planned facility opens in 2028–29. Markets: South Korean shares surged nearly 6% after SK Hynix reported strong earnings, lifting chipmakers; Chinese and Hong Kong stocks also rebounded.

Regional Security: ASEAN defense ministers meet in the Philippines on Oct. 28, with the US, China, Japan, India and other partners expected to discuss security and military cooperation. North Korea has also positioned self-propelled artillery near the border with South Korea, in a show of force. Economic Outlook: South Korea’s economy grew 1% in the third quarter, beating forecasts as chip exports and investment surged, though analysts warn growth is heavily reliant on semiconductor demand. China’s industrial profits rose 15.5% in the first nine months, driven largely by electronics and raw materials, while several sectors—including autos—struggled. China’s Challenges: China’s population fell by 3.39 million in 2025, its fourth consecutive annual decline, adding to pressure from weak consumer demand and a deepening slump in car sales. Border Watch: India’s army chief reviewed preparedness along the disputed border with China as face-offs continue in Arunachal Pradesh.

South Korea’s Chip-Fuelled Growth: The economy grew 1% in the third quarter, beating forecasts as semiconductor exports and investment surged, though analysts warned growth remains reliant on the chip sector. Japan-Bangladesh Investment: Japan is eyeing up to 1 trillion yen in private investment in Bangladesh over five years, with the potential to create 200,000 jobs as the two countries deepen economic ties. ASEAN Energy Security: The bloc’s secretary-general urged faster approval of a regional petroleum security framework and progress on linking national power grids amid energy uncertainty. China-Vietnam Project: Chinese engineering firm Chalieco won an $833 million contract to build a major alumina plant in Vietnam, with annual capacity of 2.4 million tonnes. Korean Peninsula Tensions: South Korea is monitoring North Korean artillery positioned near the border as both sides trade accusations over a mine blast and reinforce their security posture. Mongolia Wildfire: Japan will send forest-protection experts to help restore a nature reserve devastated by a blaze that burned about 530,000 hectares. The fire was linked to activities by a subsidiary of Japanese telecoms firm KDDI.

Okinawa: Japan has indicted U.S. Marine Devin Jacob Ballard for murder and robbery in the killing of Anna Yagi, reigniting protests and anger over the U.S. military presence on the island. Ballard denies the charges. China’s markets: A selloff has wiped about $480 billion from Chinese AI and chip stocks, with the STAR50 down 40% from its July high. State-backed funds stepped in with their biggest buying since April 2025. China’s politics: Xi Jinping opened a key Communist Party meeting focused on governance and party discipline. Regional tensions: India says Chinese patrols deviated from established routes in Arunachal Pradesh; Beijing calls its border patrols routine. North Korean howitzers have also been spotted near the South Korean border. Japan: Former Prime Minister Yasuo Fukuda, who worked to strengthen ties with China, has died at 90. Tokyo says its embassy officials met a detained Japanese journalist in Russia and found him in good health. Trade: Japanese seafood exports to Malaysia rose about 40% in the first eight months of 2026, reaching roughly ¥5 billion.