Journalist
Candice Kim김혜준
candicekim1121@ajupress.com
ReporterSamsung Electronics, SK hynix, LG Electronics, Olive Young, Musinsa & Semiconductor, K-Beauty
Candice Kim is a dedicated business and technology reporter specializing in the intersection of high-tech innovation and fast-paced consumer trends. Her core beats span the semiconductor, IT, cosmetics, and retail sectors, where she provides in-depth coverage of industry titans including Samsung Electronics, SK hynix, and LG Electronics, alongside leading consumer brands like Olive Young and Musinsa. Whether analyzing complex silicon supply chains or tracking the latest shifts in beauty and fashion retail, Candice is committed to delivering sharp, accurate reporting that keeps readers informed on the forces shaping today's most dynamic markets.
"Connecting the dots from silicon chips to consumer shifts."
Latest by Candice Kim
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AI boom turns chip industry into one of Korea's hottest job markets SEOUL, July 20 (AJP) -The AI chip boom is transforming one of South Korea's most selective industries into one of its hottest job markets, as Samsung Electronics and SK hynix sharply expand hiring for new graduates to support an unprecedented wave of semiconductor investment. After years of favoring experienced engineers, the country's semiconductor industry is opening its doors wider to first-time job seekers as the AI race fuels construction of new fabrication plants and an aggressive expansion of advanced memory production. According to data released Monday by HR technology platform JobKorea, entry-level positions accounted for 12.2 percent of all semiconductor job postings in the first half of 2026, up from 9.8 percent a year earlier. The share, which rose roughly 24 percent year on year, marks the highest level in five years and signals a notable shift in an industry traditionally known for recruiting seasoned talent. Hiring has accelerated across the sector. Total semiconductor job postings, including both entry-level and experienced positions, increased about 20 percent from a year earlier, comfortably outpacing the 14 percent growth recorded across all industries. The rebound is being led by South Korea's two memory giants as they ramp up capacity to meet surging global demand for AI chips. Last month, SK hynix began rolling recruitment for entry-level positions and notably removed academic background requirements, reflecting a broader effort to widen its talent pool. Samsung Electronics recently launched recruitment across 82 positions within its semiconductor division. The hiring spree coincides with one of the largest investment cycles in the industry's history. President Lee Jae Myung's administration has designated semiconductors as a national strategic industry, backing massive investments in fabrication plants and supporting infrastructure as countries compete for AI leadership. At the same time, Samsung Electronics and SK hynix are expanding production of high-bandwidth memory (HBM), the premium memory chips that have become indispensable for Nvidia's AI accelerators and hyperscale data centers. "While hiring is naturally influenced by the semiconductor cycle, we generally recruit personnel in line with the completion of fabrication facilities," an SK hynix official said. "There are also many fabs scheduled to be built in the coming years." The recruitment drive reflects the industry's remarkable turnaround. Samsung Electronics and SK hynix have become two of the biggest beneficiaries of the global AI investment boom, together supplying roughly 80 percent of the world's HBM chips. Record earnings from soaring demand for advanced memory have translated into generous employee bonuses and strengthened the appeal of semiconductor engineering as a career. For many of South Korea's top science and engineering students, chipmakers are increasingly rivaling medicine and other traditionally prestigious professions as employers of choice. Samsung Electronics declined to comment on its specific hiring plans. "We do not separately disclose our hiring figures, and the JobKorea data likely includes not only semiconductor manufacturers but also companies across the broader semiconductor supply chain," a Samsung official said. The momentum extends beyond domestic champions. Global chipmakers with operations in South Korea, including Nvidia and Micron, have already posted more vacancies in the first half of this year than they did during all of 2025, representing roughly a 50 percent increase in recruitment activity. The industry's growing appeal is also evident among job seekers. Searches for SK hynix on the JobKorea platform surged 180 percent from a year earlier, while registrations for recruitment alerts at major semiconductor companies also climbed sharply as graduates sought opportunities in one of the country's fastest-growing industries. "The recruitment drives by major semiconductor companies during the first half of the year are leading the recovery in hiring across the broader semiconductor sector," a JobKorea official said. The hiring rebound stands out against a broader manufacturing sector that has struggled to generate meaningful employment gains despite a strengthening economy. While many traditional industries continue to grapple with weak demand and restructuring, the AI semiconductor boom is emerging as one of the few bright spots creating substantial opportunities for young engineers entering South Korea's job market. 2026-07-20 15:10:00 -
Son Heung-min scores first MLS goal of season in LAFC return SEOUL, July 18 (AJP) - South Korean captain Son Heung-min scored his first Major League Soccer goal of the season on Saturday in his first game back with Los Angeles FC following the 2026 World Cup. Son started against city rivals LA Galaxy at Dignity Health Sports Park in Carson, California, and found the net in the 57th minute to put LAFC 3-0 ahead. The 34-year-old forward collected a pass from Mark Delgado before firing a right-footed shot into the net for his first goal against the Galaxy since joining LAFC last summer. The goal also ended Son's scoring drought in MLS this season. He had recorded nine assists in league play without scoring, while netting twice in the CONCACAF Champions Cup. Son returned to club duty after captaining South Korea at the 2026 World Cup. 2026-07-18 17:49:24 -
North Korean foreign minister Choe Son Hui arrives in Moscow for official visit SEOUL, July 18 (AJP) - North Korean Foreign Minister Choe Son Hui arrived in Moscow on Saturday for an official visit at the invitation of Russian Foreign Minister Sergei Lavrov, Russian state media reported. Russia's Foreign Ministry said Choe was visiting Moscow at Lavrov's invitation, according to RIA Novosti. Details of the purpose of the trip and her schedule have not been disclosed. The visit comes as Pyongyang and Moscow deepen political and military ties under a comprehensive strategic partnership treaty signed in 2024. North Korea has also sent troops to support Russia's war effort in Ukraine, including operations in Russia's Kursk region, further strengthening security cooperation between the two countries. Russia and North Korea have continued to publicly emphasize their close strategic alignment. 2026-07-18 15:35:14 -
Hanwha's Philly Shipyard wins U.S. missile test vessel contract tied to Golden Dome SEOUL, July 18 (AJP) - Hanwha Philly Shipyard has been selected to build two next-generation missile range instrumentation vessels (MRIVs) for the U.S. Missile Defense Agency (MDA), marking a major defense contract that will support the Trump administration's planned Golden Dome missile defense system. The U.S. shipbuilder, acquired by South Korea's Hanwha Group last year, said on Saturday it had been selected alongside U.S.-based TOTE Services for the program. Under the agreement, Hanwha Philly Shipyard will construct the vessels, while TOTE Services will oversee shipbuilding management. The new ships, to be named Golden Defender, will replace the aging Pacific Tracker and Pacific Collector, which entered service in 1965 and 1970, respectively. The vessels are designed to track missile speed, altitude and flight trajectories during missile tests while collecting telemetry data for the MDA. Delivery of the first vessel is scheduled for 2030. Russell Vought, director of the White House Office of Management and Budget, said the vessels would help restore U.S. maritime dominance while supporting President Donald Trump's proposed Golden Dome missile defense initiative. According to the shipyard, Vought said the program is valued at about $2 billion. "The MRIV program is central to the Trump administration's Golden Dome initiative and will strengthen U.S. national security," David Kim, chief executive of Hanwha Philly Shipyard, said in a statement. "We are proud to help build America's next generation of defense capabilities." Michael Coulter, chief executive of Hanwha Defense USA, said the company was pleased to support a critical U.S. defense mission and would continue advancing the shipyard's capabilities. The contract was announced during the naming ceremony for the Lone Star State, the fourth National Security Multi-Mission Vessel (NSMV) built at Hanwha Philly Shipyard. The shipyard and TOTE Services are building five NSMVs for the U.S. Maritime Administration, with three vessels already delivered. The Lone Star State is expected to be delivered later this year, while the fifth and final vessel is scheduled for delivery in mid-2027. 2026-07-18 14:57:23 -
Samsung's rebate drive sparks estimated $2.9 bln sales, doubles voucher payout SEOUL, July 18 (AJP) - Samsung Electronics' nationwide rebate campaign, launched as part of its pledge to share the benefits of its semiconductor windfall with the public, generated an estimated 4 trillion won ($2.9 billion) in sales, industry estimates showed Friday, prompting the company to more than double the value of vouchers it plans to distribute. Samsung is expected to issue more than 800 billion won ($580 million) worth of digital Onnuri gift certificates under the campaign, up from its original budget of 400 billion won, according to industry estimates. As customers received vouchers worth 20 percent of their purchases, the payout implies total sales of around 4 trillion won during the promotion. The "Samsung Electronics Appreciation Festival" ran from June 8 to July 5 across more than 1,000 online and offline retail channels, including Samsung stores, electronics retailers, hypermarkets and e-commerce platforms. Customers who purchased eligible Samsung products received digital Onnuri gift certificates worth 20 percent of their spending, while military personnel, police officers, firefighters and correctional officers were offered benefits equivalent to 30 percent. Rather than offering direct discounts, Samsung chose to provide Onnuri gift certificates — which can be used at traditional markets and small local businesses — in an effort to extend the economic benefits beyond consumers to regional merchants. The campaign forms part of Samsung's commitment to invest 5 trillion won over the next five years in social contribution initiatives following last month's wage agreement with its labor unions. The company said the fund would support shared growth, a healthier industrial ecosystem and talent development. The stronger-than-expected response has also created supply bottlenecks. Some unlocked Galaxy S26 Ultra models are reportedly facing delivery waits of about one month due to inventory shortages, while shipments of certain televisions and personal computers have also been delayed. Samsung said it is increasing production of the Galaxy S26 series and prioritizing deliveries to ensure customers receive eligible products by Sept. 5, the deadline for qualifying for the rebate program. Applications for the digital Onnuri gift certificates can be submitted through Samsung's website until Sept. 30 after customers receive or install their purchases. Samsung did not disclose official sales figures for the campaign but said it would continue to fulfill its responsibilities as a company that grows together with society through initiatives that meet public expectations. 2026-07-18 09:43:40 -
Samsung's internal divide mirrors Korea's widening chip boom gap SEOUL, July 16 (AJP) - "This is not an issue of money," shouted Koo Jung-hwan, secretary-general of Samsung Electronics' Donghaeng union, before more than 5,000 employees gathered outside the company's Suwon campus Thursday, exposing a widening divide that increasingly mirrors South Korea itself, where the AI-driven semiconductor boom is creating winners and losers even within the country's biggest company. The demonstration, one of Samsung's largest labor rallies in recent years, underscored a growing internal rift as workers in its Device eXperience (DX) division protested what they described as unprecedented discrimination in this year's wage agreement. The dispute has become a symbol of how the AI chip boom is reshaping not only global technology markets but also corporate hierarchies, compensation and morale inside companies that once shared success more evenly across businesses. Dressed in black union vests and carrying placards reading "Same company, same rights," employees packed the road outside Samsung Digital City, the company's sprawling Suwon headquarters where its Galaxy smartphones, televisions and home appliances are developed and produced. Organizers abandoned plans for a march after the crowd grew so large it stretched toward the entrance of the campus. Police estimated attendance at about 5,000, while the union claimed around 7,000 workers had joined the protest. "Do you think we came here just for a few shares?" one union official shouted from the stage. "We are here because the value of DX workers' blood and sweat has been ignored." For many workers, Thursday's rally was about far more than the size of this year's bonuses. They argue that Samsung's consumer electronics businesses spent decades acting as the company's shock absorber whenever the notoriously cyclical memory chip business fell into downturns. While smartphones, televisions and home appliances generated steadier earnings through repeated boom-and-bust cycles in semiconductors, they say the latest compensation package overwhelmingly rewards today's AI-driven chip windfall while overlooking the divisions that helped sustain Samsung through leaner years. "DX employees have been left asking themselves whether they are really Samsung Electronics workers at all," another speaker told the crowd. The frustration stems from this year's wage settlement, which introduced a special management performance bonus for employees in Samsung's Device Solutions (DS) semiconductor division. Workers in the highly profitable memory business are expected to receive payouts estimated at as much as 600 million won ($430,000), according to union officials and industry estimates, reflecting Samsung's record semiconductor earnings driven by soaring demand for AI memory chips. DX employees, meanwhile, received 22.65 Samsung Electronics shares, worth about 6 million won, as part of the agreement. The disparity has become a symbol of what many employees describe as a two-tier Samsung — one powered by AI memory chips and another struggling for recognition despite helping build Samsung into one of the world's best-known consumer technology brands. "The company's remarkable achievements today were built on the blood, sweat and dedication of DX employees as well," Donghaeng said in a statement. "Instead, management created extreme discrimination in compensation between business divisions, leaving DX workers with a profound sense of exclusion and relative deprivation." A Samsung Electronics official told AJP the company had earmarked roughly 17 trillion won for performance-related bonuses tied to its latest business results. Instead of easing tensions, however, the scale of the payout has only deepened resentment among employees outside the semiconductor division. "We are not against our colleagues in DS," Donghaeng policy chief Baek Soon-hwan said. "Our problem is with management, which designed a wage agreement that excluded DX." The emotional tone of the protest reflected years of accumulated frustration. One veteran employee, identifying himself only as a member of Samsung's 1990 hiring class, drew loud applause after describing how the latest negotiations had shaken his confidence in the company. "Watching this unfair wage agreement, I felt as though my 37 years at Samsung had been erased," he said. "I have never experienced the company treating its employees with such indifference — beyond indifference, almost with ridicule." At one point, thousands of workers raised their fists and chanted, "Chairman Lee Kun-hee, we miss you," invoking Samsung's late patriarch as a symbol of what many said was a corporate culture that valued contributions across the company rather than concentrating rewards in a single business. The protest also reflected rapidly shifting labor politics inside Samsung. Donghaeng, formed mainly by DX employees in late 2025, has grown from roughly 2,000 members at its launch to about 28,500, according to the union, although the figure could not be independently verified. Many members joined after leaving Samsung's previously dominant super-enterprise union following dissatisfaction with this year's wage negotiations. Donghaeng is demanding compensation equivalent to 1,000 Samsung Electronics shares for every DX employee, the establishment of a separate company-wide compensation pool ahead of the 2027 wage negotiations and the cancellation of this year's wage agreement. Meeting the first demand alone would require roughly 49.35 million Samsung Electronics shares, worth nearly 13.7 trillion won based on the company's July 8 closing price. Industry officials, however, say the demands are unlikely to gain traction because Donghaeng itself participated in the joint bargaining committee until negotiations concluded in May. They also warn that a payout of such magnitude could provoke shareholder opposition at a time when Samsung is trying to revive the competitiveness of its smartphone, television and home appliance businesses while maintaining leadership in AI memory chips. Ironically, the semiconductor division receiving the richest rewards is far from unified itself. Separately on Thursday, Samsung's largest labor organization, the super-enterprise union, released a survey suggesting morale remains fragile in struggling parts of the DS division despite generous bonus payouts. Among 8,297 union members surveyed, 81.5 percent of foundry employees said they were highly likely or very likely to leave the company within the next two years. The figure stood at 75.4 percent in the System LSI division and 60.6 percent at Samsung's semiconductor research institute. By contrast, only 32.7 percent of employees in the memory division — expected to receive the largest bonuses this year — expressed a strong intention to leave, the second-lowest level after Samsung's AI Center. "The survey reflects the sense of crisis felt by employees on the ground," said Choi Seung-ho, head of the super-enterprise union. "The company must take these findings seriously and quickly introduce effective measures to prevent further talent outflow." The union said it would establish a policy committee representing each semiconductor business unit to prepare a broad package of demands for the 2027 wage negotiations, including measures covering housing, working conditions, industrial safety and retention of key talent. As darkness fell over Samsung Digital City, workers slowly dispersed toward nearby bus stops after nearly three hours of speeches and chants. Before leaving, an organizer posed one final question from the stage. "Where do we go next?" "Seocho!" thousands shouted back in unison, referring to Samsung Electronics' headquarters in southern Seoul. Donghaeng said it was preparing another rally outside Samsung's Seocho headquarters unless management responded to its demands, suggesting that what began as a dispute over bonuses is becoming a defining test of how Samsung shares the rewards of the AI era — and a reflection of the widening disparities emerging across South Korea's chip-led economy. 2026-07-16 22:46:21 -
LG launches AI-enabled water purifier with voice controls SEOUL, July 16 (AJP) - LG Electronics on Thursday launched a new AI-powered water purifier featuring voice controls and personalized dispensing functions, expanding its lineup of connected home appliances as the company integrates artificial intelligence into everyday household products. The LG PuriCare AI Ice Water Purifier allows users to dispense purified water, cold water and ice using natural voice commands, while also serving as a smart home hub capable of controlling compatible LG appliances through the company's ThinQ platform. The product can also provide information such as weather updates, news and household appliance status. The purifier analyzes a user's water consumption over time to recommend frequently used temperature and volume settings through an AI-based personalized dispensing feature. It also includes preset modes for beverages and cooking tasks, automatically dispensing the appropriate amount and temperature of water for items such as coffee, tea, instant noodles and baby formula. LG said the product retains its existing hygiene features, including automatic sterilization of internal water lines and UV sterilization for the water and ice outlets. It also incorporates a cup-detection sensor to prevent accidental dispensing when no container is placed beneath the outlet and features a larger 6.8-inch display for appliance information and home monitoring. The launch comes as major home appliance makers increasingly embed generative AI and voice-based interfaces into connected devices, seeking to expand the role of household appliances beyond their core functions into broader smart home ecosystems. 2026-07-16 12:53:46 -
Inside South Korea's making of a chip republic This is the first installment of AJP's Chip Republic series, examining how South Korea is reshaping its industrial landscape around semiconductors and artificial intelligence. SEOUL, July 15 (AJP) - South Korea has rarely drawn as much scrutiny as it does now, as it emerges as the epicenter of the memory chips fueling the AI industrial revolution. Two companies — Samsung Electronics and SK hynix — account for roughly 40 percent of the country's record exports and main stock market, and are helping drive what could be South Korea's fastest nominal economic growth in three decades. They are also behind eight out of 10 core chips fueling the AI wave. That windfall is now financing an unprecedented national push to expand the so-called "chip republic." Samsung and SK hynix were already ramping up capacity before this year's AI-driven surge in demand. Now both are planning trillions of dollars in additional investment across their home turf, extending the country's semiconductor heartland well beyond its traditional production base as they aspire to maintain global supremacy over the brain behind AI power. The astronomical scale of the buildout, nevertheless, raises hard questions about infrastructure, financing, and most of all, whether global demand will stay strong long enough to fill the factories being built for it. South Korea's semiconductor belt — long concentrated in an industrial corridor south of Seoul — is expanding into a nationwide network of fabrication plants, packaging facilities, suppliers, and new urban infrastructure, as the country makes its biggest-ever bet on artificial intelligence. From Samsung's existing operations in Giheung, Hwaseong, and Pyeongtaek to new production planned in Yongin, Cheongju, and the industrially-neglected southwest, the expansion is redrawing the geography of South Korea's most important export industry. The mega-projects On June 29, the government unveiled three national "mega-projects" spanning semiconductors, physical AI, and AI data centers, pledging faster approvals and infrastructure support to secure South Korea's position in what officials describe as the next industrial cycle. "We must secure the core elements of AI faster than any other country," President Lee Jae Myung said at the announcement. The semiconductor portion alone calls for Samsung and SK hynix to build four large fabrication plants in the southwest called Honam — two each — at a combined projected cost of 800 trillion won ($518 billion). The government said it would partner with the companies from land acquisition and approvals through construction, while building out a surrounding ecosystem of suppliers and skilled labor. A further 81 trillion won is earmarked for the central Chungcheong region, including new high-bandwidth memory (HBM) production in Cheonan and Onyang and HBM packaging capacity in Cheongju. The southeast and Daegu-Gyeongbuk regions are meant to develop as hubs for materials, parts, and equipment supporting the broader expansion. Taken together, the plans amount to an attempt to push semiconductor manufacturing beyond the Seoul metropolitan area and establish a second major production base in the southwest. A decade-long bet, not a single check The numbers are difficult to compare with a conventional corporate capital budget. Samsung has outlined 2,450 trillion won ($1.6 trillion) in South Korean investment through 2040, including 2,100 trillion won across its Pyeongtaek and Yongin clusters, 400 trillion won for fabs in Gwangju, and 56 trillion won for HBM facilities in Cheonan and Onyang. SK hynix has laid out a separate 1,100 trillion won framework: 600 trillion won for Yongin, 100 trillion won for Cheongju, and 400 trillion won for the southwest. SK hynix envisions four new fabs and Samsung six, with completion pulled forward to 2033 from an original 2045 target; SK hynix's first new fab could open as early as next year. Each plant is estimated to cost roughly $30 billion. These figures shouldn't be read as money being spent immediately or all at once. The programs run across different timeframes, include projects at very different stages of maturity, and remain contingent on future board approvals, chip demand, and infrastructure readiness. "Our roadmap is contingent on market conditions and other factors," SK hynix Chairman Chey Tae-won said at a joint press conference with President Lee and Samsung Electronics Chairman Jay Y. Lee. The scale of the announced spending has itself become a source of concern: investors worry the market may not be large enough to absorb all the new capacity by the time it comes online, and KOSPI chip stocks have slid in recent weeks on glut fears. The investment blueprints, taken as a whole, describe an industrial buildout stretching well over a decade — not a single committed round of spending. From a chip corridor to a nationwide network Samsung's domestic manufacturing footprint already spans several cities in Gyeonggi Province. Its 2025 business report lists Suwon, Gumi, Gwangju, Giheung, Hwaseong, and Pyeongtaek among its principal domestic sites. Its Device Solutions division produces DRAM and NAND flash memory, mobile application processors, and other chips, while its foundry business manufactures designs for outside customers across three main lines: memory, System LSI, and foundry. Giheung has long served as Samsung's semiconductor base and now also hosts a next-generation R&D complex. Hwaseong houses memory, System LSI, and foundry operations together, while Pyeongtaek has become the company's largest production site. Yongin is meant to become another major manufacturing hub as Samsung accelerates construction of its first fab there. Semiconductors are already Samsung Electronics' core earnings engine: the Device Solutions division generated 130.13 trillion won in sales in 2025, up 17.2 percent year-on-year, with operating profit rising 64.7 percent to 24.86 trillion won — 57 percent of Samsung's total operating profit across all divisions before intersegment adjustments. Those results rest on a string of technology milestones: mass production of sixth-generation 10-nanometer-class DRAM began in 2025, following the industry's first ninth-generation V-NAND in 2024 and the world's first 3-nanometer gate-all-around foundry chips in 2022. The new factories aren't chiefly about adding commodity volume — they're built to meet growing demand for HBM and other high-value memory used alongside AI accelerators, as well as advanced foundry and packaging capacity. SK hynix's network follows a related but distinct path. Its established operations are based in Icheon and Cheongju, while its new Yongin cluster is planned as a four-fab complex, with the fourth fab targeted for completion by 2033 — though timing and scale remain subject to market and board decisions. SK hynix has become central to the AI boom through its position in HBM, the stacked memory used with GPUs and AI accelerators. CEO Kwak Noh-jung said this month that memory demand could outstrip supply beyond 2030, with the shortage potentially most acute in 2027 — despite aggressive expansion across the industry. That outlook captures the logic behind the government's strategy: even the fabs already under construction may not be enough if AI infrastructure spending keeps pace. An AI boom becomes industrial policy For South Korea, this investment drive is not simply a matter of corporate capacity planning — it has become national economic strategy. Semiconductors have grown increasingly central to the country's exports and growth as global AI-server spending lifts memory demand. According to preliminary Korea Customs Service data, semiconductor exports surged 188.4 percent year-on-year in the first 20 days of June, accounting for 41.2 percent of total exports. On July 14, the government raised its 2026 growth forecast to 3.0 percent from 2.0 percent, citing stronger semiconductor exports and AI-related demand, and framed the three mega-projects as part of a broader push to lift the economy's potential growth rate. The boom has also strengthened both chipmakers' balance sheets. Samsung's DS division added nearly 9.8 trillion won in operating profit year-on-year in its 2025 report, reflecting a sharp recovery in its semiconductor business. At the June 29 briefing, Samsung Chairman Lee framed the expansion as a partnership between industry and the state: "I am confident that if companies, the government and local governments join forces, we can build an irreplaceable South Korea." SK Group Chairman Chey struck a similarly bold note: "The future of AI will be built in South Korea." The ambition here goes beyond simply defending South Korea's position as the world's leading memory producer. The goal is to link semiconductor manufacturing with AI data centers, robotics, advanced packaging, and materials and equipment supply chains across multiple regions — and that scale is also the project's central risk. Today's cash flow, export growth, and factory utilization are being carried by an exceptional AI-driven memory cycle. The new plants, however, will operate across several future cycles, in which today's shortages can turn into tomorrow's oversupply, and high prices can fall just as sharply as they rose. That tension — between the urgency to build and the danger of building too much — will decide whether South Korea's semiconductor empire becomes the backbone of the global AI economy, or another costly monument to the industry's volatility. The infrastructure behind the fabs Before a single wafer can move through a new production line, an entire industrial system has to be built around it. Semiconductor plants require enormous, continuous supplies of electricity and ultrapure water, along with roads, transmission networks, wastewater treatment, industrial gas supply, and housing for tens of thousands of workers and contractors — making the government's chip strategy as much an infrastructure project as a technology policy. At a follow-up meeting on July 6, President Lee and government and corporate officials reviewed land, power, and water requirements for the new southwestern cluster and ways to speed up investment in Yongin. The presidential office said it would set up a dedicated coordinating body and hold monthly public-private reviews to clear delays across ministries and local governments. Presidential Chief of Staff Kang Hoon-sik said regulatory approvals should move fast enough that companies experience the process as "super fast," warning that strategic investments could not afford to get buried in paperwork. That urgency reflects a basic constraint: a chipmaker can design a fab and order equipment, but it can't build national-scale infrastructure on its own. In Yongin, where Samsung and SK hynix are each pursuing separate mega-clusters, the challenge is already visible. SK hynix's Wonsam complex is designed for four fabrication plants; the first phase of its industrial water system is meant to deliver 265,000 tonnes a day through a 36.8-kilometer pipeline linking the site to the Han River system, according to the Yongin city government. Power infrastructure, including new substations, is being built on a parallel timeline. Yongin Mayor Lee Sang-il said in January that water and power facilities for the SK hynix complex should be finished in the second half of 2026, with part of the first fab's clean room ready for equipment installation in the first half of 2027. Those schedules matter because clean rooms need tightly controlled temperature, humidity, vibration, and particle levels — they can't simply be installed in an unfinished shell — while power disruptions can damage work in progress and force lengthy recalibration. For the national strategy to work, infrastructure has to move alongside, and in some cases ahead of, the factories themselves. The government has pledged to support the southwestern base from site acquisition through construction, and plans to build out the southeast and Daegu-Gyeongbuk as materials and equipment hubs, and Chungcheong as a packaging center through the planned 81 trillion won investment. The intent is to prevent the expansion from becoming a scatter of isolated plants: a modern semiconductor cluster needs equipment makers, chemical suppliers, maintenance contractors, and research labs operating near the major fabs, and delays anywhere in that network can ripple into production schedules at facilities costing tens of billions of dollars apiece. The state is also trying to correct the industry's geographic concentration. The existing heartland runs largely through Gyeonggi Province — Samsung's Giheung, Hwaseong, and Pyeongtaek sites, SK hynix's Icheon operations, and the emerging Yongin clusters. The new southwestern complex is meant to become a genuine second manufacturing base, with regional packages covering financing, regulatory exemptions, technology, taxation, labor, and infrastructure. There's an economic logic to that beyond regional balance: clustering multiple fabs in one area attracts suppliers, builds specialized labor markets, and shortens delivery times for equipment and materials. But replicating that ecosystem in a new region is expensive and slow, particularly while most experienced engineers and suppliers remain concentrated around existing campuses. The factories may well rise faster than the communities needed to run them. A nation built around two chipmakers Korea's semiconductor strategy hinges on Samsung and SK hynix — both its greatest strength and its clearest vulnerability. Between them, the two companies dominate global memory production and hold the financial capacity, technical expertise, and customer relationships needed to build at the scale the government envisions. That concentration cuts both ways. New fabs take years to plan, build, and equip — waiting until a shortage becomes acute risks bringing new supply online only after the strongest part of the cycle has passed. But building ahead of demand carries the opposite risk. Memory chips have long been among tech's most cyclical products: tight supply and high prices spur expansion, only for the new capacity to arrive as demand cools, dragging down prices, profits, and capital spending across the industry. The current round of investment dwarfs previous expansion cycles — and that scale is the real story behind the headline numbers. These figures represent the outer edge of a long-term industrial blueprint, not capital already committed to construction contracts; individual fabs still require company-level approval, and equipment orders will depend on demand projections as each line nears completion. The government's preferred timetable may also not match the companies': for policymakers, moving fast secures regional investment and strengthens South Korea's place in the AI supply chain; for the chipmakers, preserving the option to slow or redirect spending is essential in an industry where a single shift in customer orders can erase billions in expected revenue. "We're readying the firepower, but nobody knows how long this boom will last, and what the future beholds," said a Samsung Electronics official, underscoring the inner anxiety as the company takes unprecedented steps. Underinvestment carries its own risks — HBM and advanced DRAM are more complex to produce and consume more capacity than conventional memory, and supply could stay constrained even as spending rises if AI data-center demand keeps growing at its current pace. But the further the forecasts stretch beyond 2030, the wider the range of plausible outcomes becomes. Samsung and SK face different tests Although Samsung Electronics and SK hynix are investing under the same national strategy, they face different commercial challenges. SK hynix enters the expansion from a position of strength after establishing a dominant position in high-bandwidth memory, the AI-focused chips that have fueled record profits and enabled the company to raise $26.5 billion through its U.S. share offering. Its challenge will be financing and executing one of the industry's largest long-term investment programs without overextending itself if market conditions change. Samsung faces a different test. As the broader semiconductor company, spanning memory, foundry and logic chips, it has more opportunities to benefit from AI demand but also greater competitive pressures. Its massive domestic investment will ultimately depend not only on overall memory demand but also on whether it can regain momentum in advanced HBM and translate new manufacturing capacity into profitable production. Korea's semiconductor strategy is no longer simply about building more chip factories. It is an attempt to redesign an industrial economy around artificial intelligence by linking memory production, advanced packaging, AI data centers, robotics and regional manufacturing into a single national strategy. That ambition also represents the project's greatest risk. The extraordinary cash flow now funding the expansion is being generated by an exceptional AI-driven memory boom, while the factories being planned today will operate across multiple market cycles over the next two decades. Whether Korea's "Chip Republic" becomes the backbone of the global AI economy—or another reminder of the semiconductor industry's boom-and-bust nature—will depend less on how many fabs are built than on whether global AI demand remains strong enough to keep them competitive long after today's surge has faded. The government has framed the expansion as a way to spread the benefits of advanced industry more evenly across the country. President Lee has said the gains from semiconductors and AI should reach people nationwide, and the presidential office has described the mega-projects as a shift away from growth concentrated in the capital region. But semiconductor clusters don't automatically produce balanced development. Large fabs generate construction demand, raise local tax revenue, and draw suppliers into surrounding industrial zones; they also lift housing demand and create business for restaurants, transport operators, and retailers. The higher-value parts of the ecosystem, though, tend to stay concentrated among major corporations, specialized contractors, and highly trained engineers — smaller local businesses may see more foot traffic without gaining real access to the core technology and procurement networks that generate the largest returns. Whether the new southwestern project can reproduce those benefits at scale will depend on the quality of jobs created, how many suppliers actually relocate, and whether local governments can build schools, housing, and transport ahead of population growth rather than scrambling to catch up. It will also depend on whether the factories stay fully utilized once built: a fab running near capacity can anchor a regional economy for decades, while one that's delayed, scaled back, or run under capacity has a very different impact — regardless of how large its original investment announcement was. The geographic expansion is also likely to intensify competition for skilled labor. Samsung and SK hynix already recruit from the same pool of semiconductor engineers, equipment specialists, and graduates; adding fabs in Yongin, Cheongju, and the southwest will only increase demand across production, maintenance, process engineering, and facility management. Training programs can expand quickly — experienced personnel can't be produced on the same timetable as buildings. That leaves the government's regional strategy facing a circular problem: companies want to invest where infrastructure and talent already exist, but new regions can't build those ecosystems without first attracting large corporate investment. That makes the first wave of fabs especially consequential — their construction and early operation will determine whether suppliers and workers come to see the new regions as durable industrial centers, or simply as extensions of clusters still anchored elsewhere. Samsung and SK face different tests Though both companies are investing under the same national strategy, their commercial positions diverge sharply. SK hynix enters this buildout from a position of real strength in HBM. Its early bet on stacked memory paid off as AI accelerator demand surged, turning what was once a niche product into one of the most valuable components in the semiconductor market — driving record profits, a soaring market value, and easier access to capital. Its risk lies in the sheer scale now expected of it: 600 trillion won for Yongin, 100 trillion won for Cheongju, and 400 trillion won for the southwest. Even after the U.S. offering, that program may require additional financing structures, including partnerships or joint ventures. Samsung faces a different set of questions. As the broader company — spanning DRAM, NAND, logic-chip design, and foundry — it has more ways to capture AI-driven demand, but also has to allocate capital across businesses with very different competitive positions. It's been working to regain ground in advanced HBM while improving yields and customer traction in foundry, so the payoff from its large-scale domestic investment will hinge not just on overall memory demand but on whether it can convert new capacity into competitively priced, qualified products. Accelerating construction could help Samsung close a capacity gap — but it also raises execution risk if infrastructure, equipment installation, and customer qualification don't advance in step. The national strategy ultimately rests on two distinct corporate bets: that SK hynix can scale its AI-memory lead without overstretching its finances, and that Samsung can turn its manufacturing scale into renewed competitiveness across advanced memory and foundry. South Korea's semiconductor strategy is no longer about individual factories. It's an attempt to redesign an industrial nation around artificial intelligence — and whether that ambition succeeds will depend not on how many factories get built, but on whether they stay competitive long after today's AI boom has faded. 2026-07-16 05:57:33 -
Samsung unveils Flex Titanium technology after Fold 8 leak sparks buzz SEOUL, July 15 (AJP) - Samsung Electronics on Wednesday unveiled a new foldable display technology designed to improve durability while significantly reducing screen creases, days after an online video purportedly showing its next-generation Galaxy Fold smartphone drew widespread attention for its nearly invisible fold line. The company said its new Flex Titanium technology combines advanced display engineering, new materials and precision mechanical design to produce its thinnest foldable display yet while enhancing structural durability and minimizing the crease that has long been viewed as one of the biggest drawbacks of foldable smartphones. The technology will debut in Samsung's next-generation Galaxy foldable devices, which are scheduled to be unveiled at the Galaxy Unpacked event in London on July 22. Samsung said it replaced conventional plastic film with a titanium alloy film and paired it with an upgraded titanium plate in a proprietary dual-layer structure. The titanium alloy film, positioned beneath the OLED panel, offers roughly 20 times greater rigidity than conventional polymer film, helping improve durability while reducing visible creases. The redesigned titanium plate also features finer perforations that better support the display when unfolded while maintaining flexibility during repeated folding. The company also said the display incorporates a higher-resolution design and next-generation organic materials to improve power efficiency without compromising image quality. Samsung described Flex Titanium as the culmination of seven generations of foldable display development aimed at delivering a thinner design, greater durability and a more immersive viewing experience. The announcement follows the circulation of videos on Chinese social media over the weekend that were claimed to show Samsung's upcoming Galaxy Z Fold 8. The footage drew attention after viewers noted that the display crease appeared substantially less visible than on previous Fold models, prompting speculation that Samsung had adopted a redesigned hinge and display structure. Moon Sung-hoon, executive vice president of Samsung Electronics' Mobile eXperience business, said the company's competitiveness lies in combining a deep understanding of consumer needs with technologies that deliver practical value. Yoo Kyung-jin, executive vice president and head of product development at Samsung Display, said the newly developed titanium plate enhances both flexibility and durability while improving power efficiency through new display materials and design. Samsung is expected to unveil its next-generation foldable smartphones, including the Galaxy Z Fold series, at its Galaxy Unpacked event in London on July 22. Details of the new Flex Titanium technology and the upcoming devices are expected to be disclosed at the event. 2026-07-15 11:57:06 -
Foreign shoppers fuel record first-half sales at South Korea's department stores SEOUL, July 15 (AJP) - Foreign tourists spent a record 1.72 trillion won ($1.24 billion) at South Korea's three largest department store chains in the first half of 2026, as inbound travelers broadened their spending from luxury goods to Korean fashion, beauty and dining. Lotte Department Store, Shinsegae Department Store and Hyundai Department Store each posted record first-half foreign sales, according to industry data released on Tuesday. Lotte led with 640 billion won in foreign sales, followed by Shinsegae at 580 billion won and Hyundai at about 500 billion won. All three retailers expect annual foreign sales to surpass 1 trillion won this year if current growth continues. Lotte said its first-half foreign sales reached a record 640 billion won, nearly matching its full-year 2025 total of 734.8 billion won. The retailer expects to exceed last year's annual figure this month and said foreign sales could top the 1 trillion won mark as early as the third quarter. Foreign sales of luxury goods at Lotte rose about 130 percent from a year earlier, while fashion sales climbed 135 percent. At its flagship Myeong-dong store, foreign shoppers accounted for roughly 30 percent of total sales, with foreign revenue jumping 140 percent on year. At its K-fashion specialty zone, "Kinetic Ground," overseas visitors generated about 70 percent of total sales. Tourist spending has also expanded beyond central Seoul. Foreign sales at Lotte World Mall in Jamsil rose 120 percent in the first half, while its Busan flagship store and Dongbusan outlet posted increases of 150 percent and 170 percent, respectively. Shinsegae reported first-half foreign sales of 580 billion won, up 120 percent from a year earlier and equivalent to about 90 percent of its full-year 2025 foreign sales. The retailer said the composition of overseas shoppers has become more diversified. Chinese customers accounted for 48.5 percent of foreign sales in the first half, down from 77.5 percent in 2019, while the share of U.S. customers increased to 19.1 percent from 1.1 percent over the same period. Visitors from Southeast Asia and other Asian markets also increased their share to 14.9 percent from 4.4 percent. By category, luxury goods sales rose 129.3 percent, followed by men's fashion at 110 percent, women's fashion at 89.4 percent, cosmetics at 87.3 percent and food and beverages at 62.9 percent, suggesting tourist spending is broadening beyond high-end brands into Korean lifestyle products. Hyundai Department Store posted about 500 billion won in foreign sales during the January-June period, already exceeding 70 percent of its full-year 2025 total of around 700 billion won. Foreign sales at its flagship The Hyundai Seoul store surged 134 percent from a year earlier, with overseas visitors accounting for more than 20 percent of total sales. The company also expects annual foreign sales to exceed 1 trillion won for the first time. Department store operators attributed the growth not only to the recovery in inbound tourism but also to a shift in travel patterns, with independent travelers increasingly viewing department stores as destinations where they can experience K-fashion, K-beauty, food and cultural offerings in one location. Retailers are also expanding services tailored to overseas visitors. Hyundai has added real-time voice translation to its AI shopping assistant and expanded language support to Spanish and French, while strengthening partnerships with overseas retail operators. Lotte plans to introduce QR code and near-field communication (NFC) payments through a partnership with UnionPay in September and has expanded its presence on major Chinese digital platforms. Shinsegae said it is working with tourism authorities to attract more visitors from North America, Europe and Taiwan while strengthening promotions with global payment platforms. 2026-07-15 08:27:00