46,822.08TAIEX · Oct. 19 close · down 0.61%

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The central bank issued a press release on the 19th titled “Explanation of the Recent Depreciation of the New Taiwan Dollar.” The Liberty Times reported that the New Taiwan dollar fell last week from 31.895 to 32.338 per U.S. dollar, a decline of 1.37%, which the central bank said mainly reflects turmoil in global stock markets and foreign investors’ net selling of Taiwan shares, with funds remitted out together with dividends received; foreign investors net remitted about US

8 billion in 5 days. Focus Taiwan reported that the central bank said foreign investors net sold US

9.402 billion of Taiwan shares from Oct. 12 to 16, that Taiwan shares fell 5.4% from Oct. 7 to 16, and that the Philadelphia Semiconductor Index fell 15.7% over the same period. CNA reported that on the 19th the New Taiwan dollar touched a low of 32.572 yuan intraday and closed at 32.445 yuan after central-bank intervention late in the session, a heavy drop of 1.07 jiao, on foreign-exchange trading value of US$3.853 billion. The Taipei Times reported that the currency lost 0.33% that day.

After foreign investors sell shares, they convert the proceeds from New Taiwan dollars into U.S. dollars and remit them out; the larger the outflow, the heavier the selling pressure on the New Taiwan dollar. Falling shares then push more money out, so the two pull each other down. By issuing its statement during trading, the central bank explained the reasons for the decline and its stance at the moment of greatest market tension, to keep the “expectation of a fall” from speeding up the fall itself.

People who need to exchange money for trips abroad or to pay U.S.-dollar bills may see the rate differ by more than 1 jiao (0.1 yuan) within a day; converting in installments spreads the risk better than converting everything at once. For those holding U.S.-dollar assets, the book value in New Taiwan dollars rises, but that is not the same as actual profit after selling. Households with foreign-currency mortgages, tuition or overseas card spending will see next month’s bills move with the exchange rate.

The central bank’s position is that the New Taiwan dollar has long been more stable than other major currencies, that this decline mainly comes from market turmoil and foreign investors’ net selling and remittances, and that it will step in as appropriate depending on supply and demand (CNA). This camp sees the decline as a short-term capital flow, not a deterioration in Taiwan’s economic fundamentals.

The Liberty Times reported that even after the central bank’s rare statement during trading, the New Taiwan dollar still logged seven straight losses and sank in the afternoon to 32.572 yuan, an 18-month low; the pressure from foreign investors’ continued remittances did not ease because of the statement. This camp focuses on the fact that the statement did not stop the slide, and the market is still waiting for a sign that foreign selling pressure will ease.

Confirmed: the content of the central bank’s statement, the New Taiwan dollar’s close of 32.445 yuan on the 19th, and foreign investors’ net remittance of about US

8 billion over 5 days. Unconfirmed: the amount the central bank actually intervened, and when foreign selling pressure will end. Today, watch foreign investors’ net buying or selling of Taiwan shares, the direction of U.S. tech shares, and whether the New Taiwan dollar can hold the 32.5 mark.

Central Bank press release (Explanation of the Recent Depreciation of the New Taiwan Dollar, Oct. 19) · CNA (stocks and currency hit together, central bank speaks during trading, New Taiwan dollar close, Oct. 19) · Liberty Times (central bank’s rare three-point statement during trading, New Taiwan dollar seven straight losses, Oct. 19) · Focus Taiwan (central bank statement and foreign investor figures, Oct. 19) · Taipei Times (tech selling pressure hits New Taiwan dollar, Oct. 20)

Finance · CurrencyPress ✓ 5 outlets · actual size of central-bank intervention and when foreign selling pressure will end unconfirmed

In a rare intraday statement, the central bank says the New Taiwan dollar fell 1.37% last week and foreign investors net remitted about US$18 billion in 5 days; it closed at 32.445 yuan on the 19th

The central bank said on the 19th that the New Taiwan dollar’s decline mainly reflects turmoil in global stock markets and foreign investors selling shares and remitting the proceeds out; the currency touched a low of 32.572 yuan that day and closed at 32.445 yuan after central-bank intervention late in the session.

On the 19th the Central Bank issued a press release titled “Explanation of the Recent Depreciation of the New Taiwan Dollar”; the Liberty Times called it a rare statement from the bank issued during trading hours. The Liberty Times reported that the New Taiwan dollar slid last week from 31.895 to 32.338 per U.S. dollar, a decline of 1.37%, which the central bank said mainly reflects turmoil in global stock markets and foreign investors’ net selling of Taiwan shares, with funds remitted out together with dividends received; the bank’s tally shows foreign investors net remitted about US$18 billion in 5 days. Focus Taiwan reported that the central bank said foreign investors net sold US$19.402 billion of Taiwan shares from Oct. 12 to 16, that Taiwan shares fell 5.4% from Oct. 7 to 16, and that the Philadelphia Semiconductor Index fell 15.7% over the same period. CNA reported that the central bank also said the New Taiwan dollar has long been more stable against the U.S. dollar than other major currencies, and that the bank will step in as appropriate depending on foreign-exchange supply and demand.

The New Taiwan dollar kept sliding on the 19th. CNA reported that it broke through the 32.5 mark intraday, touching a low of 32.572 yuan, an 18-month low, and closed at 32.445 yuan after central-bank intervention late in the session, a heavy drop of 1.07 jiao (0.107 yuan); total trading value on the Taipei and Yuantai foreign-exchange markets was US$3.853 billion. The Taipei Times reported that the currency lost 0.33% that day. The Liberty Times reported that the New Taiwan dollar logged seven straight losses, and that even with the bank’s remarks during trading it could not stop the pressure from foreign investors’ continued remittances. CNA had earlier reported that the currency fell a heavy 4.63 jiao (0.463 yuan) last week, its biggest weekly drop in more than a year. Taiwan shares opened low and kept sliding on the 19th, falling as far as 46,170 points intraday, and the New Taiwan dollar weakened in step (CNA, PTS).

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CNA reported that, with the market questioning whether artificial intelligence (AI) investment takes too long to pay back, Taiwan shares opened low and slid on the 19th; the TAIEX at one point lost more than 940 points intraday and fell to 46,170, the OTC index at one point lost more than 3.5%, and electronics shares and the semiconductor index both fell more than 1.5%. The Liberty Times and PTS reported that the Philadelphia Semiconductor Index plunged 3.83% last Friday, its eighth straight decline, that South Korean shares opened down 3.16%, and that the Nikkei opened down 1,493 points. Focus Taiwan reported that the TAIEX closed at 46,822.08, down 289.18 points, or 0.61%, on trading value of 825.10 billion yuan, with TSMC flat at 2,420 yuan and foreign investors net sellers of 76.74 billion yuan.

Taiwan’s market weight is concentrated in semiconductors, so when a large stock like TSMC moves, the index moves with it. When U.S. tech shares plunge, foreign investors first sell Taiwan’s large electronics names and the index opens with a big gap; buying that stepped in during the afternoon shows funds still come in near the lows, but that does not mean the selling pressure is over.

For those who hold Taiwan stock ETFs or invest on a regular schedule, a day that first drops 900 points and then narrows is normal volatility, and there is no need to change an investment plan because of intraday numbers. People using margin financing or leveraged ETFs carry more risk than ordinary investors and should check their maintenance margin ratio in advance.

CNA’s reported view is that doubts over AI investment’s slow payback weighed on the electronics heavyweights and the index kept churning in a range. This camp attributes the decline to selling pressure from U.S. tech shares spilling over into Asia.

Focus Taiwan reported that buying of dips in the afternoon and TSMC’s flat close narrowed the closing loss to 0.61%. This camp stresses that the close held, and that after the intraday low of 46,170 the index rebounded clearly.

Confirmed: the 19th close of 46,822.08, the intraday low of 46,170.00, and foreign net selling of 76.74 billion yuan. Unconfirmed: how long foreign selling pressure and AI-investment doubts will last. Today, watch whether the Philadelphia Semiconductor Index stops falling, foreign investors’ net buying or selling, and whether TSMC can hold 2,420 yuan.

CNA (Taiwan shares drop more than 800 points intraday, Oct. 19) · Liberty Times (The battle to defend 46,000, Oct. 19) · PTS (four major U.S. indexes closed lower last Friday, Oct. 19) · Focus Taiwan (Taiwan stock close, Oct. 19)

Finance · StocksPress ✓ 4 outlets · whether foreign selling pressure and AI-investment doubts persist unconfirmed

Taiwan shares close the 19th at 46,822.08, down 289.18 points, after plunging more than 940 points intraday

Taiwan shares opened low and slid on the 19th. CNA reported that, with the market questioning whether artificial intelligence (AI) investment takes too long to pay back, the TAIEX at one point fell more than 940 points intraday, to 46,170; the OTC index at one point lost more than 3.5%, and electronics shares and the semiconductor index both fell more than 1.5%. The Liberty Times and PTS reported that the Philadelphia Semiconductor Index plunged 3.83% last Friday, its eighth straight decline, and Asian shares followed lower on Monday, with South Korean shares opening down 3.16% and below 5,500 points and Japan’s Nikkei opening down 1,493 points and below 64,000. The Liberty Times, under the headline “The battle to defend 46,000,” reported that TSMC led the declines at the open. Focus Taiwan reported that the TAIEX ended at 46,822.08, down 289.18 points, or 0.61%, with an intraday range between 46,170.00 and 46,844.64 and trading value of 825.10 billion yuan; buying of dips in the afternoon narrowed the loss, TSMC closed flat at 2,420 yuan, and foreign investors were net sellers of 76.74 billion yuan. CNA and the Liberty Times reported the same day that the New Taiwan dollar weakened in step and that the central bank issued a statement during trading.

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CNA reported that Nvidia announced on the 19th an expanded partnership with Siemens, using the Erlangen plant in Germany as a showcase site to push for the world’s first fully AI-driven autonomous manufacturing plants, and plans to take the technology to global markets. The Liberty Times, citing AFP, reported that the German government announced a cooperation partnership with Nvidia the same day, aimed at speeding AI in industrial applications; the cooperation agreement was signed during an investment summit in Berlin.

Factory automation needs computing equipment that analyzes production data in real time; Nvidia supplies chips and simulation tools and Siemens supplies factory software and production-line experience, so the partnership extends demand for AI chips from data centers to the factory floor. The German government joining also signals that Europe wants to tie AI computing power to its home manufacturing.

Taiwan’s electronics contract manufacturers and equipment makers are links in the global smart-factory supply chain, and such partnerships affect the direction of orders for servers, sensors and automation equipment. For ordinary investors, news about Nvidia-related companies also moves Taiwan’s AI-themed stocks.

CNA’s report centers on technology and business goals: use the Erlangen plant as a showcase, then take it to global markets, with the aim of autonomous manufacturing driven entirely by AI. This camp sees the partnership as industrial AI’s next step.

The Liberty Times’ report, citing AFP, centers on the government level: the German government’s statement says the cooperation is meant to speed AI’s industrial applications, and it was signed at an investment summit in Berlin. This camp sees the partnership as national-level industrial policy.

Confirmed: Nvidia and Siemens expanded their cooperation on the 19th, and the German government announced cooperation with Nvidia the same day. Unconfirmed: the investment amount and timeline. Next, watch the factory launch date the two sides announce and whether any Taiwanese suppliers are brought in.

CNA (Nvidia teams with Siemens to build fully AI-driven factory, Oct. 19) · Liberty Times (Germany announces tie-up with Nvidia, Oct. 19)

Nvidia announces expanded cooperation with Siemens, using the Erlangen plant in Germany to build AI-driven autonomous manufacturingCNA reported that the two companies will use the Erlangen plant as a showcase site and plan to take the technology to global markets. The Liberty Times, citing AFP, reported that the German government also announced cooperation with Nvidia to speed AI industrial applications.Tech · ✓ 2 outlets

The Liberty Times, citing Reuters, reported that U.S. President Trump told reporters outside the White House on the 19th that he is willing to take part in three-way talks with Chinese President Xi Jinping and Russian President Putin, possibly focused on denuclearization. The Hill and Bloomberg reported that Trump said such talks would discuss weapons and denuclearization, and that he would do it if Xi wanted to hold them. The Wall Street Journal reported that Putin proposed a three-way summit in a call with Trump earlier this month. Another report said Ukraine’s foreign minister said a summit that excludes Zelensky is unacceptable to Kyiv.

If the three-way talks happen, they would put the U.S.-China-Russia nuclear arms issue and the war in Ukraine at the same table, but Ukraine would not be in the room, so Kyiv’s pushback is the most direct. That Trump framed the agenda as denuclearization rather than Ukraine also blurs the purpose of the talks.

Taiwan readers can watch two things: whether the U.S. and Chinese leaders meet again affects the mood of negotiations over the Taiwan Strait and tariffs; and if the talks are held in China, the emphasis of Taiwan’s media and government statements will concentrate more on U.S.-China relations.

Trump’s position is that he is willing to take part, the subject is weapons and denuclearization, and he would do it if Xi wants to (The Hill, Bloomberg). This camp treats the talks as a channel for dialogue.

Ukraine’s foreign minister’s position is that a summit excluding Zelensky is unacceptable to Kyiv. This camp opposes discussing war-related arrangements in Ukraine’s absence.

Confirmed: Trump said on the 19th he is willing to take part, and Putin proposed it first. Unconfirmed: whether talks are scheduled, and when and where. Today, watch the responses from Beijing and the Kremlin and whether Trump releases a schedule.

Liberty Times (Trump says open to three-way summit with Xi and Putin, Oct. 19) · The Hill (Trump open to Putin, Xi summit, Oct. 19) · Bloomberg (Trump Open to Putin, Xi Summit, Oct. 19) · Wall Street Journal (Putin proposing summit, Oct. 19)

Trump says he is willing to hold three-way talks with Xi Jinping and Putin, possibly focused on denuclearizationSpeaking to reporters outside the White House on the 19th, Trump said he could take part in three-way talks and discuss weapons and denuclearization. Ukraine’s foreign minister said a summit that excludes Zelensky is unacceptable.World · ✓ 4 outlets

The Liberty Times, citing Reuters, reported that Governor Syniehubov of Ukraine’s northeastern Kharkiv Oblast said Russia sent drones on the 19th to strike a park in a village in the region, killing 6 people, including 3 children. ThePrint, republishing Reuters, reported that the attack came at about 4:30 p.m. local time, when the park was crowded. Ukrinform reported that the death toll rose from the initial 3 to 6 and that at least 15 were injured. Prosecutors initially point to a Geran-3 drone and have opened a pre-trial investigation into possible war crimes.

The attack hit a park where civilians had gathered, and the casualties include infants and children, which readily draws international attention to strikes on civilian targets. Prosecutors opening a war-crimes investigation is one step in how Ukraine gathers evidence for later charges before international courts.

For Taiwanese readers, such reports show what drone attacks do to civilian areas, and they are a frequently cited example when Taiwan discusses civil defense and alert systems. A war far away in Europe reaches Taiwan’s prices through energy and food costs.

Ukrainian officials’ position is that this was a Russian attack on civilians and prosecutors have opened a war-crimes case (Ukrinform). This camp stresses that the target was a park and the casualties were mostly civilians.

No Russian explanation of this attack has yet appeared in the reports; other reports note that the number of injured differs between 14 and 15 across outlets. This camp reminds readers that all current figures come from Ukrainian officials and will be updated.

Confirmed: the governor said 6 died including 3 children, the attack came that afternoon, and prosecutors have opened a case. Unconfirmed: Russia’s account and the final casualty count. Next, watch the results Ukrainian prosecutors publish and the international reaction.

Liberty Times (Russian forces strike a park in Kharkiv Oblast, Oct. 19) · ThePrint (Russian attack kills six at park, Oct. 19) · Ukrinform (Three children among six killed, Oct. 19)

Russian drone strike on a park in Kharkiv Oblast kills 6, including 3 childrenGovernor Syniehubov said the attack hit a park in a village, and at least 15 others were injured. Prosecutors initially point to a Geran-3 drone and have opened a war-crimes investigation.World · ✓ 3 outlets

The Liberty Times reported that Taipei Mayor Chiang Wan-an, in an interview on the evening of the 19th on “Jaw Shaw-kong’s War Room,” hosted by former Broadcasting Corporation of China chairman Jaw Shaw-kong, said when asked whether he intends to run for president in 2028 that it is entirely outside his life plans for now, that he is going all out for re-election, and that Taichung Mayor Lu Shiow-yen is a very suitable person worthy of carrying a heavy burden. The China Times and TVBS reported that when Jaw Shaw-kong pressed on whether it would be a “sister-and-brother pairing,” Chiang Wan-an said only that he supports the Kuomintang’s strongest candidate and will do a good job as mayor. Mirror Media reported that although Chiang Wan-an considers Lu Shiow-yen an appropriate person, he did not state whether he supports her seeking the 2028 nomination. The same day Chiang Wan-an announced that Lu Shiow-yen would serve as chair of his campaign headquarters.

The Taipei mayoral race has just entered its second half, and discussion inside the Kuomintang about 2028 candidates has surfaced early. Chiang Wan-an’s answer sidestepped the question of which of himself and Lu Shiow-yen would run, pulling voters’ attention back to the re-election race at hand.

Taipei voters can view municipal pledges and the 2028 question separately: 2028 is a party nomination two years away, different from governing during a mayoral term. Answers in TV interviews can also be cut into short clips, so it is worth watching the full segment before judging.

One view is that Chiang Wan-an’s answer is a disciplined campaign strategy: say nothing on 2028, focus on re-election, and at the same time affirm Lu Shiow-yen, avoiding a split in the party (responses as summarized by TVBS and the China Times).

The other view is that his answer was “shadow-boxing.” The Liberty Times reported that online reaction to his indirect answer was split, with some criticizing the mayor for talking like a stuck record and others praising the answer as sharp. This camp holds that he gave voters no clear answer.

Confirmed: Chiang Wan-an said he has no 2028 plan for now, is going all out for re-election, and called Lu Shiow-yen worthy of carrying a heavy burden. Unconfirmed: whether he supports Lu Shiow-yen running in 2028, and Lu Shiow-yen’s own intentions. Next, watch Lu Shiow-yen’s public response and Taipei mayoral polls.

Liberty Times (Chiang Wan-an: no plan for now, Oct. 19) · China Times (Running in 2028? Chiang Wan-an states his position, Oct. 19) · TVBS News (Jaw Shaw-kong War Room interview, Oct. 19) · Mirror Media (Jaw Shaw-kong presses on 2028, Oct. 19)

Chiang Wan-an on Jaw Shaw-kong’s War Room: no plan for 2028 for now, says Lu Shiow-yen is worthy of the heavy burdenHe said he is going all out for re-election, and pressed by Jaw Shaw-kong said only that he supports the Kuomintang’s strongest candidate. Mirror Media said he did not state whether he supports Lu Shiow-yen seeking the 2028 nomination.Politics · ✓ 4 outlets

The Liberty Times reported that Philippine Senator Erwin Tulfo on the 19th criticized the recent remark by Chinese Ambassador to the Philippines Jing Quan that China “could easily win” if force were used, and said that rather than wait to be declared persona non grata by the Senate, he should leave of his own accord. The Manila Times and PNA reported that Jing Quan said at an event in Quezon City on Oct. 15, “If we wanted to use force, we could easily win,” and that Tulfo filed Senate Resolution No. 739 on the 19th, asking the foreign ministry to recommend declaring Jing Quan persona non grata. BusinessWorld reported that the Philippine foreign ministry protested to the Chinese ambassador and that the Presidential Office said Marcos does not support the call.

Declaring an ambassador persona non grata is one of the strongest diplomatic statements, tantamount to demanding that the person leave the country. A Senate resolution is itself non-binding: the foreign ministry has to recommend and the president decide, so the outcome still depends on the Marcos government’s attitude.

Tension in the South China Sea and the Taiwan Strait both involve Chinese diplomatic rhetoric toward neighboring countries. Taiwanese readers can treat the Philippines’ reaction as an example of how regional countries answer tough Chinese wording, and it also bears on security around the Bashi Channel and on Taiwanese fishermen’s operations.

Tulfo’s position is that the ambassador’s words were a threat and he should be declared persona non grata; the Philippine foreign ministry also said the ambassador’s “poorly chosen words” sounded like an implied threat of force (Manila Times).

The Presidential Office’s position is that Marcos does not support declaring the ambassador persona non grata and hopes for improved relations with China (BusinessWorld, PNA). This camp advocates diplomatic communication rather than raising the level of confrontation.

Confirmed: Jing Quan’s Oct. 15 remark, Tulfo’s filing on the 19th, and the Presidential Office’s non-support. Unconfirmed: whether the Senate will vote. The Senate is due to resume plenary sessions on Nov. 9, and only then could the resolution be dealt with.

Liberty Times (Philippine senator angrily criticizes Chinese ambassador, Oct. 19) · Manila Times (Tulfo seeks to declare Chinese envoy persona non grata, Oct. 20) · Philippine News Agency PNA (Persona non grata resolution looms, Oct. 19) · BusinessWorld (Philippines protests Chinese envoy’s remarks, Oct. 19)

Chinese ambassador to the Philippines says China “could easily win” if force were used; Philippine Senator Tulfo moves to declare him persona non grataTulfo filed Senate Resolution No. 739 on the 19th; the Philippine foreign ministry said the ambassador’s wording was “poorly chosen,” while the Presidential Office said Marcos does not support declaring the ambassador persona non grata.World · ✓ 4 outlets

The Liberty Times reported that on the 19th the High Court summoned Lee Wen-tsung, former chairman of the Zhongwang Foundation, and Lee Wen-chuan, former head of Muke Public Relations, in hearing Ko Wen-je’s Core Pacific City and political donations case. Business Today and Up Media reported that Lee Wen-tsung admitted the breach-of-trust charge, acknowledging that he used about 2.1 million yuan of Zhongwang Foundation funds to pay the salaries of 4 party staffers; the Liberty Times reported that he still denies public-interest embezzlement. United Daily News reported that Lee Wen-chuan pleaded guilty to everything and admitted embezzling 62.34 million yuan in political donations; Mirror News reported that she admitted a link to Ko Wen-je’s political donations. CNA reported that Ko Wen-je still does not plead guilty on appeal. The Liberty Times reported that Ko Wen-je was sentenced to 17 years in prison at first instance.

Once co-defendants plead guilty, the court will have the defendants’ own statements in front of it when it examines Ko Wen-je’s responsibility, and prosecutors can cite them. But a co-defendant’s statement cannot by itself be the sole evidence for finding Ko Wen-je guilty and needs corroborating evidence, so the real effect of the guilty pleas on Ko Wen-je depends on how the court rules.

This case will keep appearing in news during the Taipei mayoral campaign, and readers can keep three things apart: who admitted which charge, how large the sum admitted is, and whether a verdict has been issued. Headlines often turn “partial guilty plea” into “guilty plea,” which can make people think the whole case has a conclusion.

The Liberty Times reported lawyer Huang Ti-ying’s analysis that Lee Wen-tsung’s admission on breach of trust could mean the breach-of-trust part of Ko Wen-je’s case becomes final before the other charges and sends him to prison earlier; this camp holds that Lee Wen-tsung’s guilty plea is bad for Ko Wen-je.

The Liberty Times, under the headline “Lee Wen-tsung admits breach of trust, sighs repeatedly that he had no choice,” also reported that Lee Wen-tsung still denies public-interest embezzlement; Ko Wen-je denies all the charged facts on appeal (CNA). This camp stresses that the guilty plea covers only part of the conduct, no verdict has been issued, and guilt cannot be inferred directly for Ko Wen-je.

Confirmed: Lee Wen-tsung admitted only the breach-of-trust portion of about 2.1 million yuan and denies public-interest embezzlement, Lee Wen-chuan pleaded guilty to everything and admitted embezzling 62.34 million yuan, and Ko Wen-je does not plead guilty. Unconfirmed: how these statements will affect the appeal verdict, and whether Lee Wen-chuan’s application to travel abroad will be granted. Next, watch the next hearing the High Court schedules and the panel’s ruling on Lee Wen-chuan’s application.

Liberty Times (Lee Wen-tsung admits breach of trust, Lee Wen-chuan pleads guilty to all, Oct. 19) · Mirror News (Lee Wen-chuan admits link to political donations, Oct. 19) · Up Media (Lee Wen-tsung misused public funds to pay party staff, Oct. 19) · Business Today (Lee Wen-tsung pleads guilty to about 2.1 million yuan, Oct. 19) · United Daily News (Lee Wen-chuan pleads guilty to all, admits embezzling 62.34 million, Oct. 19) · CNA (Ko Wen-je does not plead guilty on appeal, Oct. 19)

Judiciary · PoliticsPress ✓ 6 outlets · effect on the 17-year first-instance sentence and timing of the appeal ruling unconfirmed

Ko Wen-je appeal trial: Lee Wen-tsung admits breach of trust involving about 2.1 million yuan, Lee Wen-chuan pleads guilty to all charges, Ko Wen-je does not plead guilty

Former Taipei Mayor Ko Wen-je was sentenced to 17 years in prison at first instance in the Core Pacific City and political donations cases and appealed; on the 19th the High Court summoned Lee Wen-tsung, former chairman of the Zhongwang Foundation, and Lee Wen-chuan, former head of Muke Public Relations (Liberty Times). Lee Wen-tsung admitted the breach-of-trust charge, acknowledging that he used about 2.1 million yuan of Zhongwang Foundation funds to pay the salaries of 4 Taiwan People’s Party staffers (Business Today, Up Media); he still denies the charge of public-interest embezzlement, and personally explained why Muke’s profit-and-loss statement was “shredded” (Liberty Times). The Liberty Times also reported that the case involves about 8 million yuan in total paid by the Zhongwang Foundation as salaries for Taiwan People’s Party employees, and that Lee Wen-tsung repeatedly sighed that he had “no choice” as he admitted breach of trust. CNA reported that Ko Wen-je still does not plead guilty on appeal.

Lee Wen-chuan’s attitude differed from the previous hearing. United Daily News reported that on appeal Lee Wen-chuan said she pleads guilty to everything and admitted embezzling 62.34 million yuan in political donations; Mirror News reported that she admitted a link to Ko Wen-je’s political donations. Under the headline “Following in brother Lee Wen-tsung’s footsteps,” the Liberty Times reported that she also asked the judges to allow her to travel abroad to take her 90-year-old mother on a cruise; the judge said the panel would rule after deliberation.

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The Liberty Times reported that on the 19th the High Prosecutors Office indicted 4 people, retired captain Yu Cheng-yu, defendants surnamed Lee and Sen, and a coast guard member surnamed Tsai, under the National Security Act and other charges, and asked for heavier sentences. Prosecutors say that from March to October 2024 Yu used virtual currency wallets in his name to receive virtual currency paid by Chinese parties, sold it to a coin dealer for cash and, as instructed, deposited it into the accounts of the defendants surnamed Lee and Tsai, profiting 430,403 yuan himself. The defendant surnamed Lee received 884,000 yuan, and the defendants surnamed Sen and Tsai together 515,000 yuan; Tsai, the coast guard member, is suspected of providing a bank account to the defendant surnamed Sen. The Taipei Times reported that Yu had earlier been indicted in a separate leak case.

Virtual currency lets money bypass banks and go straight into personal wallets, after which a middleman turns it into cash and hands it out, making the source of the funds harder to trace than an ordinary remittance. By positioning Yu as a financial go-between, prosecutors extend the indictment from those leaking secrets to those who collect and transfer money for them, including a coast guard member who provided an account.

If a stranger asks an ordinary person to collect virtual currency, relay cash or lend out a bank account, that person could be treated as taking part in the money flow even without touching any secrets, so it is important to avoid such requests. Military personnel, civil servants and teachers, and their families, should also watch for approaches from overseas parties offering high pay, side jobs or investments.

Prosecutors’ view is that Yu had already been indicted for leaking secrets, yet still accepted money through another channel and, after the offense, offered excuses and denials, so they ask for a heavier sentence (Liberty Times). This camp stresses that a financial go-between should bear heavy responsibility too.

Reports note that the defendants’ military status and identities are described differently across outlets, and the headlines of the United Daily News and the China Times both mention taking money for leaking military secrets; the court has not yet heard the case, and the defendants’ guilt at the indictment stage awaits a verdict. This camp reminds readers an indictment is not a conviction.

Confirmed: the High Prosecutors Office indicted 4 people on the 19th, Yu profited 430,403 yuan, and the defendants surnamed Lee and Sen were detained. Unconfirmed: the content of the leaked secrets and the defendants’ pleas in court. Next, watch the hearing date after the case is transferred to the court and whether prosecutors indict anyone else involved.

Liberty Times (indicted in spy leak case, money-laundering ring, Oct. 19) · ETtoday (High Prosecutors Office breaks another spy case, Oct. 19) · United Daily News (4 accused of leaking military secrets in spy case, Oct. 19) · China Times (spies infiltrate 4 major units, Oct. 19) · Taipei Times (Four indicted in alleged espionage case, Oct. 20)

National security · JudiciaryPress ✓ 5 outlets · content of the leaked secrets and accounts of the defendants’ military status differ

High Prosecutors Office indicts retired captain Yu Cheng-yu and 3 others, saying he received and sent virtual currency for Chinese parties to pass on payoffs for leaking secrets

On the 19th the High Prosecutors Office indicted retired captain Yu Cheng-yu, defendants surnamed Lee and Sen, and a coast guard member surnamed Tsai, 4 people in all, under the National Security Act and other charges, and asked the court to impose heavier sentences (Liberty Times, ETtoday). The Liberty Times reported that prosecutors say Yu received virtual currency for people from China, converted it to cash and passed it on as payments for leaking secrets to the service members surnamed Lee and Sen, making a profit of more than 430,000 yuan himself; the Taipei Times reported that Yu had earlier been indicted in a separate leak case, and that this one concerns his role as a financial go-between.

The Liberty Times reported what the indictment says: from March to October 2024, Yu used virtual currency wallets in his name to receive virtual currency paid by Chinese parties, then sold it to a coin dealer for cash and, as instructed, deposited it into the accounts of the defendants surnamed Lee and Tsai, profiting 430,403 yuan; the defendant surnamed Lee received 884,000 yuan, and the defendants surnamed Sen and Tsai together 515,000 yuan; Tsai, the coast guard member, is suspected of providing a bank account to the defendant surnamed Sen to help receive the payments. The report says the defendants surnamed Lee and Sen were detained on application and that Tsai and Yu were released on bail of 100,000 yuan and 50,000 yuan respectively pending summons. The papers differ in describing the defendants’ military status; the headlines of the United Daily News and the China Times both mention taking money for leaking military secrets.

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The Liberty Times reported that the Weather Administration’s latest forecast on the 19th again shifts Champi’s track east, with the center passing at some distance from Taiwan and the storm circle brushing land; weather expert Chia Hsin-hsing, analyzing a thousand tracks, put the chance of landfall at about 10%. PTS reported that the Weather Administration expects it to be closest to Taiwan from Friday (the 23rd) to Saturday (the 24th), and that European and U.S. models show the center might make landfall on Taiwan’s east. The Liberty Times reported that a sea typhoon warning could come as early as late Wednesday night, while PTS reported it could come as early as early Thursday morning to the morning, with a land typhoon warning possible from Thursday night to early Friday morning. The United Daily News reported the storm-circle strike probability for Keelung and Yilan at 51%. Focus Taiwan reported the Weather Administration expects an early turn north and the storm to weaken and move away on Sunday (the 25th).

The typhoon moves along the edge of the Pacific high, whose strength decides when it turns in the waters south of the Ryukyus: an early turn means Taiwan mostly feels the outer circulation, while a late turn brings the center toward the northeast corner or even onto land. Differences among the models cluster at this turning point, which is why forecasts within the same day swing east and then back west.

Residents of the north, northeast and east should leave room to reschedule outings, flights and train trips on Friday and Saturday. People going to sea should watch for sea warnings from late Wednesday night. Balconies, drains and where cars are parked can be checked on Tuesday while the weather is good.

The Weather Administration’s position is that a weakening high makes Champi turn north early and keep its center away from Taiwan, but the storm circle could brush it and the north and Yilan will still get heavy or torrential rain (Liberty Times, Focus Taiwan). This camp puts the emphasis on rain as the main impact.

PTS reported that European and U.S. models show the center might make landfall on Taiwan’s east, and whether it makes landfall or passes close offshore, the threat of strong wind and heavy rain on the windward side cannot be taken lightly. This camp warns that forecasts may still be revised.

Confirmed: the Weather Administration expects the closest approach on the 23rd and 24th, and sea warnings as early as late Wednesday night to early Thursday. Unconfirmed: whether after the 22nd it turns north and away or comes closer to Taiwan. From today to Wednesday, watch changes in the Pacific high, whether the models converge, and whether the Weather Administration updates the track.

PTS (Champi closest on Friday and Saturday, Oct. 19) · Liberty Times (Weather Administration track shifts east again, sea warning as early as late Wednesday, Oct. 19) · United Daily News (Keelung and Yilan storm-circle strike probability 51%, Oct. 19) · Focus Taiwan (Typhoon Champi to turn away from Taiwan, Oct. 19) · Taipei Times (Typhoon Champi to turn away from Taiwan, Oct. 20)

Weather · TyphoonPress ✓ 5 outlets · landfall or northward-turn track and timing of warnings undetermined

Champi’s track shifts east again; Weather Administration expects it to come closest to Taiwan Friday and Saturday, with heavy rain in the north and Yilan

Typhoon Champi kept strengthening on the 19th and the Weather Administration updated its forecast. The Liberty Times reported that the latest track has again shifted east, with the center passing at some distance from Taiwan and the storm circle brushing land; weather expert Chia Hsin-hsing, after analyzing a thousand tracks, estimated the chance of landfall at about 10%. PTS reported that the Weather Administration expects the storm to be closest to Taiwan from Friday (the 23rd) to Saturday (the 24th), and that the path after its northward turn is still uncertain. The Liberty Times also reported that Champi moves on Thursday (the 22nd) to waters south of Japan’s Ryukyus, with its track affected by the strength of the Pacific high. Focus Taiwan reported that the Weather Administration expects the typhoon to turn north early, at around Japan’s Ishigaki Island, and to weaken and move away on Sunday (the 25th).

Warning times and the track still diverge. The Liberty Times reported that a sea typhoon warning could be issued as early as late Wednesday night; PTS reported that the sea warning could come as early as early Thursday morning to the morning, and a land typhoon warning could be issued between Thursday night and early Friday morning. PTS also reported that from Wednesday the northeast monsoon strengthens, with brief rain north of Hsinchu and in Yilan, and that on Friday and Saturday the north, the northeast and central mountain areas should watch for heavy or torrential rain. The Liberty Times reported that the tracks from weather agencies in various countries fall into three camps: landfall in Taiwan, brushing the northeast corner, or heading north off the eastern coast; PTS reported that European and U.S. models show a possibility of the center making landfall on Taiwan’s east. The United Daily News reported that the storm-circle strike probability for Keelung and Yilan is 51%, with 4 other counties and cities above 40%.

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In brief

M1A2T joins Lianyong drill for the first timeThe Army’s Sixth Corps Armored 584th Brigade moves into the Pingtung tri-service joint training base from November for the “Lianyong drill,” with M1A2T tanks taking part for the first time and one-year conscripts training alongside (CNA).
Wang Wei-hao indicted over alleged draft evasionSinger Wang Wei-hao has been indicted on suspicion of evading military service (Taipei Times, citing CNA).
Japanese license may show “Taiwan”A Taiwanese doctor practicing in Japan says the nationality field on the license no longer has to be covered up and can read “Taiwan” (Taipei Times).
Australia to arm Ghost Shark with minesAustralia’s Defense Ministry said on the 19th that its “Ghost Shark” autonomous submarines will be fitted with aerial drone swarms and mines, and can carry 12 mines (Liberty Times).
Lee Jae-myung on wartime commandSouth Korean President Lee Jae-myung said South Korea would be fully capable if it took back wartime operational control, and handover talks with Washington continue to advance (Liberty Times, citing Reuters).
Pingtung man bought fake degree to teachA man surnamed Chiang in Pingtung paid 30,000 yuan for a fake degree certificate, taught in Pingtung, Tainan and Kaohsiung for nearly 6 years from Year 109 (Republic of China calendar), and was sentenced to 2 years for forgery (Liberty Times).
Tank treads crush cat’s-eye studsDuring the Army brigade-level exercise “Land Victory 2,” running the 14th to 23rd, tank treads reportedly crushed cat’s-eye studs on a road in Hsinchu, and the Army Training and Doctrine Command said it would inspect and handle the matter on the 20th (Liberty Times).
Zhongli group assault caseFootage of a suspected group assault in front of Wuhe Temple in Zhongli, Taoyuan, drew attention from more than 40,000 people before being taken down; netizens called for a gathering at the temple on the evening of the 19th, and police arrived (Liberty Times).

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Unverified — what we could not confirm

The central bank has given up defending the currency, which is why it let the New Taiwan dollar break below 32.5. CNA reported that the New Taiwan dollar touched a low of 32.572 yuan intraday on the 19th and closed at 32.445 yuan after central-bank intervention late in the session, and the central bank said it will step in as appropriate depending on foreign-exchange supply and demand; the Liberty Times reported the currency’s seven straight losses. There is no public figure for how much the central bank actually intervened.

Champi will definitely hit Taiwan, and a typhoon day off is certain after the 22nd. The Liberty Times reported that the Weather Administration’s latest track has again shifted east, with the center passing at some distance from Taiwan; Focus Taiwan reported that the Weather Administration expects an early turn north; PTS reported that European and U.S. models show the center might make landfall on the east. The Weather Administration has not yet issued a sea or land warning, and work and school closures await announcements by each county and city.

Lee Wen-tsung’s guilty plea means Ko Wen-je’s case is already final. CNA reported that Ko Wen-je still does not plead guilty on appeal; the Liberty Times reported that Lee Wen-tsung pleaded guilty only to the breach-of-trust portion of about 2.1 million yuan and still denies public-interest embezzlement. The appeal has not been decided, and how a co-defendant’s testimony affects Ko Wen-je is for the court to determine.

Influencer watch

趙少康 自家節目《少康戰情室》 · 10/19On his own program 'Shaokang War Room', Jaw Shaw-kong pressed Taipei Mayor Chiang Wan-an on a 2028 presidential run; Chiang said he has no plan (per Liberty Times).
江宏恩 Facebook · 10/18Actor Jiang Hong-en publicly backed DPP Taipei mayoral candidate Puma Shen in a video, saying he is not afraid because he makes Taiwanese dramas (per Liberty Times Entertainment).
Elon Musk X · 10/19Elon Musk said on X he plans to gift one SpaceX share to every child in the U.S. next year (per CBS News).
趙長鵬（CZ，幣安創辦人） X · 10/19Binance founder Changpeng 'CZ' Zhao replied on X that Peter Schiff will be right on Bitcoin, but only after changing his mind (per BigGo Finance).

Statements as posted, not fact-checked.

What to watch today

Today, Tue 10/20Champi keeps strengthening, so watch the track updated by the Weather Administration; the Army Training and Doctrine Command said it would inspect the tank-crushed cat’s-eye studs in Hsinchu on the 20th; the Taichung city government said Lu Shiow-yen leads a delegation to Okinawa on the 20th.This weekFrom late Wednesday night (the 21st) to early Thursday morning (the 22nd), the Weather Administration could issue a sea typhoon warning at the earliest; a land warning could come between the evening of the 22nd and early morning of the 23rd; the 23rd and 24th (Friday and Saturday) are when the north and Yilan will be most affected.LaterThe Philippine Senate resumes plenary sessions on Nov. 9, when Tulfo’s resolution could be voted on; according to reports, the High Court has scheduled Shen Ching-ching and Ying Hsiao-wei to be summoned on Nov. 9 and Ko Wen-je on Nov. 16; the APEC leaders’ meeting takes place Nov. 18 to 19 in Shenzhen.For readersGo by the Weather Administration, the central bank and the Taiwan Stock Exchange for typhoon warnings, exchange rates and share prices; a “partial guilty plea” or an indictment in these cases is not a verdict.

Glossary · dotted words — economics, law, security and science terms explained in the context of the story. The list grows every day.

INSIDEIn a rare intraday statement, the central bank says the New Taiwan dollar fell 1.37% last week and foreign investors net remitted about US$18 billion in 5 days; it closed at 32.445 yuan on the 19thFinance · CurrencyTaiwan shares close the 19th at 46,822.08, down 289.18 points, after plunging more than 940 points intradayFinance · StocksKo Wen-je appeal trial: Lee Wen-tsung admits breach of trust involving about 2.1 million yuan, Lee Wen-chuan pleads guilty to all charges, Ko Wen-je does not plead guiltyJudiciary · PoliticsHigh Prosecutors Office indicts retired captain Yu Cheng-yu and 3 others, saying he received and sent virtual currency for Chinese parties to pass on payoffs for leaking secretsNational security · JudiciaryChampi’s track shifts east again; Weather Administration expects it to come closest to Taiwan Friday and Saturday, with heavy rain in the north and YilanWeather · Typhoon