AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

Kim Hee-su
Kim Hee-su김희수
ReporterMinistry of Foreign Affairs, Seoul City Hall & Defense, Foreign Affairs
Kim Hee-su is a bilingual reporter at AJU Press, covering defense and foreign affairs. Before joining AJP in 2025, she worked at The Korea Times, where she wrote interview stories, including a profile of North Korean defector Kim Gum-hyok, and produced digital content. She also previously worked as a researcher for KBS News 9’s International News Department, supporting correspondents in 10 countries around the world. She graduated from the University of Toronto in Canada with a double major in Book and Media Studies and East Asian Studies. "I'm driven by storytelling."
Latest by Kim Hee-su
  • Soaring fuel surcharges push up overseas travel costs amid Iran war
    Soaring fuel surcharges push up overseas travel costs amid Iran war SEOUL, May 02 (AJP) - International airfare costs are set to rise sharply this month as higher oil prices driven by the U.S.-Iran war push fuel surcharges to a record level, adding pressure on travelers and forcing airlines to cut more flights. Tickets issued from May 1 are subject to the highest fuel surcharge level of 33, which applies when jet fuel prices exceed 470 cents per gallon, according to the airline industry. The benchmark Singapore jet fuel price, known as MOPS, reached 511.21 cents per gallon, marking the first time the top level has been applied since the current system was introduced in 2016. The surcharge jumped 15 levels from April. Fuel surcharges are additional fees airlines impose on top of fares to offset losses from rising oil prices. Airlines set their own surcharge amounts based on the monthly surcharge level. Korean Air set its May international fuel surcharge at 150,000 won to 1.128 million won ($765) for round-trip tickets, depending on distance. For the longest routes, the surcharge is nearly five times higher than the 231,000 won charged in January and about double last month’s level. Asiana Airlines will charge between 170,800 won and 952,400 won for round-trip international tickets. Jeju Air, the country’s largest low-cost carrier, will impose fuel surcharges of $52 to $126 for one-way tickets. The sharp increase is expected to weigh heavily on consumers already facing higher travel costs. Airlines are also struggling to offset rising expenses through fuel surcharges alone, prompting some carriers to reduce flights. Asiana Airlines had initially planned to cut eight flights on three international routes this month but later expanded the reduction to 13 flights. Jin Air, which suspended eight routes last month, will halt operations on 14 routes this month. Air Premia plans to cancel 22 flights in July. Korean Air has not yet decided whether to suspend flights but is closely monitoring the situation, according to industry officials. In some countries, including Vietnam, airlines are reportedly facing difficulties securing jet fuel supplies. “There are growing concerns that overseas travel demand, which had been recovering, could weaken again,” an airline industry official said. The surge in international fuel surcharges is also shifting travel demand toward domestic destinations. According to travel and accommodation platform Yeogi Eottae, overseas accommodation bookings from April 1 to 23 fell to 75 percent of the level recorded in February, before the Middle East war began. Domestic accommodation bookings, by contrast, rose to 107 percent of the February level. The trend suggests that more travelers are turning to domestic trips as overseas travel becomes more expensive. Domestic hotels and resorts are also seeing stronger demand. Hanwha Resorts said its average occupancy rate in April rose by 8 percentage points from a year earlier. Reservations for major locations, including Haeundae and Gyeongju, have already topped 80 percent this month, surpassing last year’s actual occupancy rates. 2026-05-02 12:10:04
  • Trumps Germany troop cut, EU tariff hike fuel concerns in Seoul
    Trump's Germany troop cut, EU tariff hike fuel concerns in Seoul SEOUL, May 02 (AJP) - U.S. President Donald Trump’s decision to withdraw thousands of troops from Germany and raise tariffs on EU vehicles starting next week is raising concerns in Seoul over whether Washington could use similar pressure against South Korea. The moves come amid growing tensions between the U.S. and its allies over their response to the Iran war. The Pentagon said Friday that Defense Secretary Pete Hegseth had ordered the withdrawal of about 5,000 U.S. troops from Germany, with the drawdown expected to be completed over the next six to 12 months. Germany hosts around 35,000 U.S. troops, the second-largest overseas U.S. military presence after Japan. It is also home to the headquarters of U.S. European Command and U.S. Africa Command, making it a key pillar of European security since the end of World War II. The Pentagon’s announcement came four days after Trump said on Truth Social that his administration was “studying and reviewing the possible reduction of troops in Germany," and would make a decision soon. The move is widely seen as having been triggered by German Chancellor Friedrich Merz’s remarks on April 27 that the United States had been "humiliated" by Iran and that the war was unlikely to end easily. Trump also said on Truth Social, “Based on the fact the European Union is not complying with our fully agreed to Trade Deal, next week I will be increasing tariffs charged to the European Union for Cars and Trucks coming into the United States.” Under last year’s U.S.-EU trade agreement, Washington agreed to lower tariffs on EU-made passenger cars and trucks from 25 percent to 15 percent. Trump’s latest announcement would restore the rate to its previous level. The sudden tariff move is being interpreted as another sign of Trump’s frustration with key NATO allies, many of which have effectively rejected Washington’s requests for military support in the Iran war. Trump has repeatedly complained that European allies are not doing enough, particularly in relation to efforts to secure the Strait of Hormuz. Trump has also voiced frustration with Indo-Pacific partners, including South Korea, Japan and Australia, which have been reluctant to send forces to the Strait of Hormuz. About 28,500 U.S. troops are stationed in South Korea. Since Trump returned to office, Seoul and Washington have been holding talks on what they call “alliance modernization,” which centers on readjusting the role and responsibilities of U.S. Forces Korea. After Trump floated the possibility of reducing U.S. troops in Germany, South Korea’s defense ministry sought to draw a line, saying there had been “no discussions at all” between Seoul and Washington on a reduction of USFK. Still, concerns remain as several major agreements reached at last year’s South Korea-U.S. summit have been slow to move forward. At the center of the issue is Seoul’s $350 billion investment pledge in the U.S., which was linked to Washington’s agreement to lower tariffs on Korean goods and support key security-related initiatives, including South Korea’s pursuit of nuclear-powered submarines for peaceful purposes. The Trump administration’s focus on the Iran war has limited Washington’s bandwidth for detailed consultations with Seoul. But diplomatic sources say the bigger reason behind delays in follow-up security talks appears to be Washington’s dissatisfaction with the pace of South Korea’s promised investment package. The U.S. has repeatedly urged Seoul to move faster in selecting and implementing investment projects. Japan’s announcement of its first and second U.S. investment projects in February and March has added pressure on the South Korean government. South Korea has moved to speed up preparations since Trump threatened in January to restore tariffs on Korean automobiles and other goods to 25 percent over delays in the investment agreement. The National Assembly passed a special law to support the package, and the government has continued talks with Washington over potential projects. But Seoul has yet to announce its first investment plan, taking a cautious approach given the size of the commitment and the need to ensure commercial viability. Trump’s latest moves against Germany and the EU have heightened concerns in Seoul that Washington may use trade and security leverage more aggressively in dealing with allies. Even if a reduction of U.S. troops in South Korea is not currently under discussion, Seoul may find it difficult to rule out renewed pressure if investment commitments continue to lag. 2026-05-02 11:00:28
  • Hanwha Aerospace posts solid Q1 earnings, record-high order backlog
    Hanwha Aerospace posts solid Q1 earnings, record-high order backlog SEOUL, April 30 (AJP) - Hanwha Aerospace reported solid first-quarter earnings on the back of improved performance in its aerospace division and key subsidiaries, while its order backlog reached a record high amid steady growth in overseas contracts. The company said Thursday that its consolidated revenue rose 5 percent year-on-year to 5.751 trillion won ($3.9 billion) in the January–March period, while operating profit climbed 21 percent to 638.9 billion won. By segment, the ground defense division posted revenue of 1.2211 trillion won and operating profit of 208.7 billion won. While revenue rose 5 percent on-year, operating profit fell 31 percent. Its order backlog reached a record high of about 39.7 trillion won, supported by overseas deals including a 1.3 trillion won Chunmoo export to Norway. The aerospace division reported revenue of 661.2 billion won and operating profit of 22.6 billion won. Revenue increased 25 percent, while operating profit surged more than fivefold on higher military demand and a greater share of high-margin businesses. Hanwha Ocean posted revenue of 3.2099 trillion won and operating profit of 441.1 billion won, up 2 percent and 71 percent, respectively, driven by more high-value ships such as LNG carriers and favorable exchange rates. A company official said the firm “maintained solid growth in the first quarter, supported by strong performance in the aerospace division and Hanwha Ocean,” adding that it would “continue to deliver new orders and maximize shareholder value on the back of a record-high backlog.” During an earnings conference call held on Thursday, Han Sang-yoon, executive vice president in charge of IR at Hanwha, said only part of the Polish order for Chunmoo launchers was reflected in the first-quarter results, adding that earnings momentum is expected to accelerate from the second quarter. “From the second quarter, deliveries to Poland, Australia and Egypt will begin to be reflected, leading to improved performance compared with the first quarter,” Han said. “Demand for air defense systems is rising in the Middle East, and projects such as Spain’s self-propelled howitzer program are expected to further support growth.” Meanwhile, Hanwha Aerospace said it signed a memorandum of understanding on Wednesday in Ontario, Canada, with the Automotive Parts Manufacturers’ Association and Hanwha Ocean to establish a joint venture for the production of military vehicles, including the K9 self-propelled howitzer. The agreement comes as Hanwha Ocean and HD Hyundai Heavy Industries are jointly bidding for Canada’s submarine program known as the CPSP. The two companies have formed a consortium to compete against Germany’s TKMS, with the preferred bidder expected to be announced in June. 2026-04-30 15:31:51
  • At War 60 Days: Trump again crying wolf? Seoul dismisses US troop pullout worries
    At War 60 Days: Trump again crying wolf? Seoul dismisses US troop pullout worries SEOUL, April 30 (AJP) - Washington has hardly been shy about prioritizing a home-first defense strategy over the Indo-Pacific, with repeated signals of potential rollbacks in U.S. force deployments in both Europe and South Korea — a direction embedded in its National Defense Strategy. Those warnings have only grown louder as allies have shown limited appetite to back Washington in its confrontation with Iran. Seoul, however, is drawing a firm line against speculation. South Korea’s Ministry of National Defense said Thursday that “no discussions whatsoever” have taken place with Washington regarding any reduction of U.S. Forces Korea (USFK), underscoring that the alliance’s core mission — maintaining a robust combined defense posture against North Korea — remains unchanged. The reassurance came after U.S. President Donald Trump said via social media that Washington is reviewing a possible troop reduction in Germany, adding that a decision would be made “soon.” While the comment was directed at Europe, its implications reverberated across alliance networks. Concerns that troop deployments could be wielded as political leverage are not new. Trump has repeatedly pressed allies on burden-sharing, at one point overstating U.S. troop levels in South Korea while arguing Seoul had fallen short of supporting broader U.S. strategic priorities. Yet the likelihood of an abrupt shift on the Korean Peninsula remains structurally constrained. The National Defense Authorization Act for Fiscal Year 2026 includes provisions barring any reduction of USFK personnel below 28,500 without congressional approval — a legislative safeguard designed to prevent precisely such politically driven recalibration. A parallel requirement to maintain at least 76,000 U.S. troops in Europe reinforces that, despite rhetorical pressure, alliance commitments retain institutional depth. Still, the more consequential shift is unfolding beneath the surface. U.S. Forces Korea is increasingly being repositioned not as a peninsula-bound deterrent, but as part of a broader Indo-Pacific operational framework emphasizing “strategic flexibility.” “The U.S. is seeking to ensure that USFK is no longer tied exclusively to peninsular defense, but can be mobilized across the Taiwan Strait and the South China Sea,” said Jeong Kyung-woon of the Korean Military Studies Association. This evolution is captured in the emerging concept of the “kill web,” highlighted by General Xavier Brunson, commander of the ROK-U.S. Combined Forces Command and USFK. The framework envisions a fully networked battlespace linking sensors — from satellites and drones to ground-based radar — with strike capabilities across allied forces, enabling faster, more flexible responses across theaters. In such a system, geography becomes secondary to connectivity. A threat detected in one domain could be processed and neutralized through assets deployed from another, effectively turning East Asia into an integrated operational space rather than a collection of discrete fronts. Brunson underscored that U.S. allies in the region cannot operate in isolation. “When you connect them, adversaries no longer have a single axis to focus on, which strengthens overall military effectiveness,” he said. This doctrinal shift coincides with ongoing negotiations over the transfer of wartime operational control (OPCON), with Washington signaling a possible timeline before early 2029 under the administrations of Lee Jae Myung and Trump. As the Iran conflict stretches U.S. resources and sharpens alliance expectations, the central question is no longer simply whether troops will be reduced, but how they will be used. For Seoul, the immediate risk of a drawdown may be limited. But the longer-term shift toward a more mobile, integrated and regionally oriented USFK presents a more complex strategic adjustment — one that extends well beyond the Korean Peninsula. 2026-04-30 15:02:42
  • Trumps hint of troop rollback in Germany likely to worry Seoul, Tokyo
    Trump's hint of troop rollback in Germany likely to worry Seoul, Tokyo SEOUL, April 30 (AJP) - U.S. President Donald Trump on Wednesday said Washington is reviewing a possible reduction of American troops in Germany, a brief one-sentence warning that could have wider repercussions across the Pacific, including in South Korea, where large-scale U.S. military deployments underpin regional security. “The United States is studying and reviewing the possible reduction of troops in Germany, with a determination to be made over the next short period of time,” Trump said on Truth Social. The statement followed an exchange of remarks with German Chancellor Friedrich Merz over the Iran conflict. Merz earlier said Iran was “humiliating” Washington in negotiations, prompting Trump to respond that the German leader “doesn’t know what he’s talking about.” The United States maintains its largest military presence in Europe in Germany, with about 34,547 troops as of 2025, according to available data, although estimates vary depending on rotations. These forces serve as a central hub for U.S. operations across Europe, including logistics and NATO coordination. Prior to Trump’s post, the U.S. State Department said Secretary of State Marco Rubio spoke with German Foreign Minister Johann Wadephul by phone, discussing Iran and the importance of securing freedom of navigation in the Strait of Hormuz. Any discord between Washington and Berlin — a central pillar of NATO — could carry implications beyond Europe, including in the Indo-Pacific. About 28,500 U.S. troops are stationed in South Korea under the bilateral alliance, while roughly 50,000 troops are based in Japan. These forces form a key part of U.S. deterrence posture in the region, particularly in relation to North Korea. Both countries are also linked to the Strait of Hormuz through energy supply chains. Before the recent conflict disrupted the waterway, South Korea depended on the strait for roughly 70 percent of its crude oil and about 20 percent of its natural gas, while Japan relied on it for about 93 percent of its crude imports. Earlier in April, Washington asked several countries, including South Korea and Japan, to consider supporting efforts related to security in the Strait of Hormuz. According to Seoul’s foreign ministry, Rubio spoke with Foreign Minister Cho Hyun on April 16 and referred to cooperation for long-term security in the area. The United States has previously reviewed troop levels in allied countries, including Germany, during earlier phases of the Trump administration. U.S. forces in Germany play a central role in logistics, command operations and support for NATO missions across Europe. No timeline or specific scale for a potential reduction in Germany has been announced. 2026-04-30 08:13:24
  • Seoul, Tokyo echo self-defense amid U.S. distraction in Gulf
    Seoul, Tokyo echo self-defense amid U.S. distraction in Gulf SEOUL, April 29 (AJP) - Self-sufficiency has shifted from a strategic choice to an absolute necessity for U.S. allies in East Asia. As American military resources become increasingly overextended in the Middle East, leaders in South Korea and Japan have begun harmonizing their rhetoric, placing a renewed emphasis on independent self-defense capabilities. During a cabinet meeting on Tuesday, President Lee Jae Myung delivered a lecture on the imperative of national self-reliance. "A nation must be able to defend itself. Why should we rely on others?" Lee bolstered his reasoning by citing South Korea’s current military standing: the world’s fifth-largest defense capability (independent of U.S. assets) and its position as the fourth-largest global arms exporter. The entrenched U.S. engagement in the Middle East after attacks on February 28, 2026 has precipitated this urgency. The financial burden on Washington is mounting; as of early April, the U.S. is estimated to have spent $35 billion on the conflict. Analysts project that total costs could exceed $1 trillion if the war continues to drag on. Amid this distraction, North Korea has ramped up its military provocations. In April alone, Pyongyang conducted four ballistic missile launches from Wonsan on April 8 and from the Sinpo area on April 19, raising the possibility of submarine-launched ballistic missile (SLBM) testing. The North also claimed to have tested short-range ballistic missiles equipped with cluster munitions between April 6 and 8. On paper, South Korea maintains a significant conventional advantage; its annual defense budget exceeds North Korea’s entire GDP. However, as the contemporary wars in Ukraine and Iran have demonstrated, firepower alone does not guarantee victory. Professor Kim Houng-yu of the Korea Defense Industry Association notes that "no country conducts war operations in isolation in modern conflict." He argues that military rankings are often deceptive, pointing to the Russia-Ukraine war as proof that even major powers face grueling uncertainty on the battlefield. "Alliances and coalition operations remain essential for national security," Kim concluded. Despite the rhetoric of self-reliance, several "anchors" keep the U.S.-ROK alliance in place. Under the U.S. National Defense Authorization Act, the number of U.S. troops stationed in South Korea is capped at 28,500, making any abrupt reduction difficult without congressional approval. Some analysts also note that the U.S. 2026 National Defense Strategy calls for maintaining “primary responsibility” for deterring North Korean conventional threats while continuing close coordination with the United States. Strain in traditional trilateral ties Recent months have seen visible friction in bilateral coordination. In January, Seoul requested a reschedule of trilateral air drills with the U.S. and Japan, citing the Lunar New Year and Japan's provocative "Takeshima Day." The U.S. ultimately proceeded with the drills alongside Japan only. Further tension surfaced on February 18–19, when U.S. Forces Korea conducted independent operations over the Yellow Sea. This prompted a standoff with Chinese fighter jets and a subsequent protest from South Korean Defense Minister Ahn Gyu-back regarding a lack of prior consultation. General Xavier Brunson reportedly issued an apology, and the drills were truncated from four days to two. Japan’s recent policy shifts add a layer of complexity. With roughly 55,000 U.S. troops on its soil, Tokyo is revising export rules to allow for the transfer of lethal weapons. This signals a move toward active combat readiness. Professor Hosaka Yuji of Korea University suggests this is a calculated alignment with Washington. "The Takaichi administration is leaning into cooperation with the Trump administration," he noted, highlighting that Japan is seeking a partnership that covers not just Chinese containment, but also the securing of critical resources like rare earths. As the U.S.-Iran conflict shows no sign of abating, South Korea is caught in a delicate balancing act. The trajectory of the alliance will be defined by how well Seoul can reconcile its goal of a self-reliant defense with the harsh realities of geopolitical interdependence. 2026-04-29 18:03:24
  • Hanwha Aerospace to develop homegrown meteor-class missile by 2033
    Hanwha Aerospace to develop homegrown meteor-class missile by 2033 SEOUL, April 29 (AJP) - Hanwha Aerospace has launched the development of a homegrown air-to-air missile comparable to the Meteor, as part of efforts to localize advanced aerial weapon systems. The company unveiled its localization roadmap at the “Hanwha Tech Academy 2026” event in central Seoul on Wednesday. The Meteor, developed by European defense firm MBDA, is known for its top speed of Mach 4 and an interception range exceeding 200 kilometers, making it one of the most advanced long-range air-to-air missiles currently in service. Hanwha Aerospace said it aims to complete development of the indigenous missile by 2033 in cooperation with the Agency for Defense Development (ADD), with mass production expected after 2036. The missile is intended for deployment on South Korea’s indigenous fighter jet, the KF-21 Boramae. A key focus of the project is the development of a "Ducted Ramjet Propulsion," a core technology that enables extended range and high maneuverability. The system generates propulsion by burning solid fuel using air intake during flight, significantly improving fuel efficiency. “The Ducted Ramjet Propulsion is what has made the Meteor missile recognized as one of the world’s most advanced long-range air-to-air missiles,” said Cho Bok-ki, a senior researcher at Hanwha Aerospace’s PGM Research Center. “Our goal is to apply this propulsion method while pursuing even greater performance.” The company said it plans to leverage more than two decades of experience in propulsion-related research, including work on propellants, gas generators and combustors under projects led by the ADD since 2005. Hanwha Aerospace also expressed expectations that integrating domestically developed air-launched weapons with Korean fighter jets such as the KF-21 and offering them as package deals could strengthen competitiveness in global markets. “We will continue working with the government and industry partners to localize advanced defense technologies, while boosting self-reliance and expanding defense exports,” a company official said. 2026-04-29 17:05:15
  • Hanwhas MASGA mission: one regulatory win but hurdles remain
    Hanwha's MASGA mission: one regulatory win but hurdles remain SEOUL, April 28 (AJP) - Hanwha Ocean, the South Korean caretaker of the “MASGA” (Make American Shipbuilding Great Again) initiative, is doubling down on its U.S. push after securing a key shipbuilding certification for its Philadelphia yard but faces a regulatory marathon in the United States. The company is accelerating efforts to develop the Philadelphia Shipyard — acquired at the end of 2024 — into a local production hub, positioning it as the centerpiece of its U.S. expansion strategy and a symbol of Korea–U.S. maritime cooperation. Last month, its U.S. units — Hanwha Philly Shipyard and Hanwha Defense USA — signed a partnership with VARD to collaborate on the conceptual design for the U.S. Navy’s Next-Generation Logistics Ship (NGLS). The NGLS program centers on support vessels designed to provide fuel, supplies and rearming capabilities at sea and ashore, and is widely seen as a potential entry point into the U.S. defense market. At the core of Hanwha’s expansion strategy is its push to obtain Facility Clearance (FCL), a mandatory U.S. security certification required to handle classified defense projects. The regulatory environment, however, remains tightly controlled. U.S. shipbuilding is protected by laws such as the Jones Act and the Byrnes-Tollefson Amendment, which effectively bar foreign shipyards from direct participation in commercial and naval vessel construction. Hanwha’s acquisition of a U.S.-based yard allows it to bypass geographic restrictions, but “Buy American” rules continue to limit participation in major combat programs such as destroyers and aircraft carriers. “Hanwha’s entry into the NGLS program was possible because auxiliary ships require relatively lower security clearance,” an industry official said. “The real challenge lies in combatant vessels.” The FCL system determines eligibility to access classified U.S. government information, with levels ranging from Confidential to Top Secret. Without certification, companies cannot review even basic bidding documents, effectively excluding them from construction, maintenance, repair and overhaul of U.S. Navy combat ships. No South Korean shipbuilder has secured FCL to date, industry sources said. Even if obtained, clearance would mark only the first step. Hanwha would still need to navigate strict export controls under the International Traffic in Arms Regulations and the Export Administration Regulations, which limit the transfer of sensitive defense technologies — even to foreign-owned firms operating in the U.S. That poses a challenge to Hanwha’s ambition to integrate advanced Korean naval design capabilities, including work from the KDDX destroyer project, into the Philadelphia yard. Such transfers would require Technical Assistance Agreements and case-by-case export licenses from the U.S. State Department. “The process is inherently complex, especially given foreign ownership,” said Jang Won-joon, a defense engineering professor at Jeonbuk National University. “It is expected to take time.” The FCL process typically takes between one and five years, depending on security reviews and ownership structure. Hanwha aims to scale the Philadelphia facility into a manufacturing hub capable of producing up to 20 vessels annually, though the timeline will depend on regulatory approvals and existing order backlogs. “Philly Shipyard already has a backlog of previously ordered vessels,” a Hanwha Ocean official said. “Our priority is to expedite deliveries and enhance productivity, while pursuing FCL in line with capacity expansion and future contract opportunities.” Financially, the company appears well-positioned to sustain the push. Hanwha reported 1.07 trillion won ($1.17 billion) in cash and cash equivalents at the end of March, alongside a 71 percent jump in first-quarter operating profit to 441.1 billion won. Still, industry observers caution that without overcoming technology transfer barriers, the shipyard’s expansion may fall short of the high-tech integration envisioned under the MASGA initiative. 2026-04-28 17:26:23
  • Hanwha Ocean posts 71% surge in Q1 operating profit on high-value ships, FX
    Hanwha Ocean posts 71% surge in Q1 operating profit on high-value ships, FX SEOUL, April 27 (AJP) - South Korean shipbuilder Hanwha Ocean reported better-than-expected earnings for the first quarter, driven by a higher share of high-value vessels and favorable exchange rates. The shipbuilder said in a regulatory filing on Monday that its consolidated operating profit rose 70.6 percent year-on-year to 441.1 billion won ($300 million) in the January–March period. The figure exceeded the market consensus of 375 billion won by 17.6 percent. Revenue came in at 3.21 trillion won, up 2.1 percent from a year earlier, but down 3.4 percent from the previous quarter due to fewer working days. Net profit surged 131.8 percent year-on-year to 500 billion won. As of the end of March, net borrowings stood at 5.07 trillion won, up 212.5 billion won from the end of last year. The strong performance was driven by a higher share of high-priced orders, along with cost cuts and improved productivity. The share of lower-priced LNG carriers ordered in 2022 declined, while more high-priced vessels ordered in 2024–2025 were delivered, helping boost margins. Improved productivity also allowed some vessels to be delivered earlier than planned, bringing forward profits. Since a large portion of payments is made upon delivery, this further supported earnings from high-value ships. Favorable foreign exchange rates also supported earnings. As most shipbuilding contracts are denominated in U.S. dollars, a weaker won increases revenue and profit when converted into local currency. The average exchange rate rose from around 1,330 won per dollar at the time of order to 1,464 won in the first quarter. Analysts estimated that FX effects alone added about 44 billion won in revenue and 15 billion won in operating profit. Hanwha Ocean expects earnings to continue improving as more high-value ship projects are delivered. Demand for LNG carriers and very large crude carriers (VLCCs) is also expected to remain strong. So far this year, the company has secured orders worth $2.45 billion, including four LNG carriers, seven VLCCs and one wind turbine installation vessel (WTIV). In the special ship segment, key projects include Canada’s submarine program (CPSP), a roughly $40 billion bid to replace its aging fleet, and South Korea’s next-generation destroyer project (KDDX), a project to build six advanced Aegis destroyers by 2036. “We aim to contribute to national security by leveraging our shipbuilding and engineering expertise,” the company said. “We will also keep seeking new orders in offshore and energy projects, including FPSOs and FLNGs.” Hanwha Ocean shares closed at 133,500 won on Monday, down 1.04 percent from a day earlier despite strong earnings, after trading between 131,700 won and 137,500 won. 2026-04-27 17:12:45
  • Korea-Japan rivalry may spill over to defense after Tokyos lift of weapons ban 
    Korea-Japan rivalry may spill over to defense after Tokyo's lift of weapons ban  SEOUL, April 27 (AJP) - The historic industrial rivalry between South Korea and Japan—once defined by a relentless "car war"—is migrating toward a high-stakes defense-industrial faceoff. As Tokyo pivots away from decades of postwar pacifist constraints to permit the export of lethal platforms, it enters a market where Seoul currently enjoys a global "golden age." While both nations operate as critical linchpins of the U.S. security architecture in Asia, their defense-industrial bases (DIBs) are products of fundamentally different strategic environments and threat perceptions. Despite hosting significant U.S. troop presences—roughly 28,500 in South Korea and 50,000 in Japan—the two nations have developed asymmetric military doctrines that have, in turn, shaped their industrial strengths. South Korea maintains a high-intensity, "total war" posture against North Korea, supporting a conscription-based force of 450,000 that prioritizes heavy armor and artillery. In contrast, Japan’s Self-Defense Forces operate as an all-volunteer force of 250,000 bound by Article 9 of its Constitution. Japan’s geography as an archipelago has necessitated a focus on "island defense" and "active deterrence," prioritizing maritime interdiction and aerospace superiority over ground-based power projection. This divergence has allowed South Korea to emerge as the world’s "arsenal for democracy" in land systems. Seoul’s competitive advantage lies in its integrated defense ecosystem, offering a "triple threat" of rapid delivery, cost-efficiency, and battlefield-proven reliability. Platforms like the K9 self-propelled howitzer and the K2 Black Panther tank are optimized for the European theater, where the threat of conventional land warfare has returned. Poland’s massive acquisition of K-defense systems underscores Seoul’s ability to scale production at a pace Western competitors often struggle to match. Furthermore, the Cheongung-II missile defense system’s reported 90 percent success rate against Iranian-origin threats in the Middle East has transitioned South Korea from a "budget alternative" to a premier Tier-1 provider of kinetic defense. Japan, meanwhile, is shedding its image as a "hidden supplier" of sub-components to become a visible lead integrator in the sea and air domains. The Soryu- and Taigei-class submarines, incorporating world-leading lithium-ion battery technology for extended undersea endurance, represent a quantum leap in conventional deterrence. Japan's recent breakthrough in the surface vessel market—specifically Canberra’s selection of a Mitsubishi Heavy Industries’ Mogami-class variant for the Royal Australian Navy—marks a watershed moment. This multi-billion-dollar deal signals Tokyo’s emergence as a major competitor in complex maritime procurement, moving beyond its previous role as a "reluctant exporter." South Korean shipbuilders, including HD Hyundai Heavy Industries and Hanwha Ocean, also participated in the 2024 tender but failed to make the final shortlist. Mitsubishi Heavy Industries ultimately secured the contract after competing against Germany’s ThyssenKrupp, highlighting strengths in stealth capabilities, reduced crew requirements and faster construction timelines. However, Japan’s resurgence introduces a new strategic vulnerability for the South Korean defense sector. Professor Kim Houng-yu, a member of the Korea Defense Industry Association, notes that Japanese companies hold world-class capabilities in missile sensors and optical systems, which he describes as “critical and strategic components” in modern weapons development. This technological leverage introduces a significant strategic risk for Seoul. Professor Kim warns that Japan’s growing influence in these niche areas could mirror the 2019 export restrictions on semiconductor materials. “If Japan designates these as strategic items and limits exports, Korean firms that rely on them could face serious challenges,” Kim said. He argues that to avoid a repeat of past industrial dependencies, South Korea must secure its own technological foundation. “To avoid this, South Korea must move toward full defense self-reliance and secure core technologies such as optics.” The emerging rivalry mirrors the 20th-century trajectory of the automotive and semiconductor sectors, where South Korea moved from assembling Japanese designs to dominating the global market. Yet, in the defense sector, the challenge is no longer just "catch-up" growth; it is technological sovereignty. For Seoul, the rise of a rearmed Japan serves as a catalyst for full-spectrum self-reliance. As the Indo-Pacific grows more volatile, the competition between the "K-Defense" mass-production model and Japan’s "High-Tech Shield" will not only determine market share but also the future of the region's security-industrial autonomy. 2026-04-27 16:26:12