Journalist
Lee Hugh
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South Korea's EV registrations jump 50 percent in 2025, ending two-year slump SEOUL, January 20 (AJP) - New electric-vehicle registrations in South Korea topped 220,000 last year, ending two consecutive years of decline and returning to growth, according to industry data released on Tuesday. In its 2025 report, the Korea Automobile & Mobility Association (KAMA) said new EV registrations rose 50.1 percent from a year earlier to 220,177 units. EV penetration — the share of EVs in new vehicle purchases — reached 13.1 percent, entering double digits for the first time. KAMA attributed the rebound to early disbursement of government subsidies and other policy support, aggressive sales promotions by automakers and an expanded lineup of new models. The recovery was driven in large part by strong demand for Tesla’s Model Y, which sold 50,397 units and accounted for 26.6 percent of the passenger EV market, KAMA said. Domestic automakers Hyundai Motor and Kia helped broaden the market with new models including the EV4, EV5, EV9 GT, PV5 and Ioniq 9. KG Mobility also entered a new segment with South Korea’s first electric pickup, the Musso EV. By automaker, Kia led the market with 60,609 registrations, followed by Tesla with 59,893 and Hyundai Motor with 55,461. Imported EVs continued to gain ground, taking a 42.8 percent market share. The share of domestically produced EVs fell to 57.2 percent, down from 75 percent in 2022. China-made EVs surged 112.4 percent from a year earlier to 74,728 units, emerging as a major force in the market. KAMA cited increased imports of China-produced Teslas and the market entry of brands such as BYD and Polestar. Industry officials said the growing presence of China-made EVs could broaden consumer choice and put downward pressure on prices, but also risks weakening South Korea’s manufacturing base and intensifying supply-chain competition, calling for longer-term policy responses. KAMA said the market’s recovery reflected a combination of policy support and the popularity of specific models rather than broad-based mass adoption or a structural shift in demand. The association called for a more active government role to meet South Korea’s national greenhouse gas reduction target, and to strengthen industry competitiveness. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-20 13:42:29 -
Asian markets track Wall Street pullback; KOSPI pauses after 12-day rally SEOUL, January 20 (AJP) — Asian markets moved lower on Tuesday, tracking an overnight retreat on Wall Street, with South Korea’s KOSPI taking a breather after a 12-day uninterrupted rally. As of 11:20 a.m., the benchmark KOSPI was down 0.61 percent at 4,874.83, pulling back after touching an intraday record high of 4,923.53 earlier in the session. The tech-heavy KOSDAQ bucked the trend, rising 0.45 percent to 971.48. Retail investors absorbed selling pressure from institutions and foreigners. Individuals bought a net 646.7 billion won ($438 million), while institutions and foreign investors sold a net 279.4 billion won and 409.4 billion won, respectively. Most large-cap stocks traded lower. Samsung Electronics fell 2.8 percent to 145,000 won, while SK hynix dropped 3 percent to 741,000 won. Samsung Biologics slipped 0.26 percent to 1,916,000 won. In contrast, Samsung Life Insurance rose 3.71 percent to 173,200 won, and LG Energy Solution gained 1.76 percent to 405,500 won. Hyundai Motor briefly topped a market capitalization of 100 trillion won at the open but later edged lower on profit-taking, trading down 0.83 percent at 476,000 won as of 10 a.m. Kia declined 2.12 percent to 165,900 won. Robot-related shares extended gains in early trade. Doosan Robotics jumped 7.06 percent, or 7,600 won, to 115,300 won, while Hyundai Movex advanced 5.15 percent to 36,750 won. Defense and aerospace stocks also traded higher, with Hanwha Aerospace up 0.75 percent at 1.34 million won. Shipbuilding and heavy industry names moved lower, as HD Hyundai Heavy Industries fell 2.78 percent to 630,000 won and Hanwha Ocean declined 1.21 percent to 147,000 won. In the currency market, the won weakened, with the dollar trading at 1,476.80 won, up 2.30 won from the previous session. In Japan, the Nikkei 225 fell 0.76 percent to 53,174.78 after Prime Minister Sanae Takaichi dissolved the lower house and called a snap election. 2026-01-20 11:31:45 -
Busan-sized metropolitan hubs envisioned in central and southern western Korea SEOUL, January 20 (AJP) - As Seoul grows ever more crowded, much of the rest of South Korea is quietly emptying out. The imbalance has become one of the country’s defining challenges, straining housing, jobs and infrastructure in the capital while leaving regional cities with shrinking populations, weaker local economies and eroding public services. More than 51 percent of South Korea’s 51.6 million people live in and around Seoul, an area that covers just 12 percent of national land. The concentration is extreme by international standards. Only 7.5 percent of Germany’s population lives around Berlin, 15.9 percent around Rome and 17.4 percent around Madrid. Even in countries known for dominant capitals, the share is far lower: 24.5 percent around Paris, 24.8 percent around London and 34.4 percent around Tokyo. In Korea, this imbalance has reinforced itself as young people leave regional cities for education and work in Seoul, accelerating decline elsewhere. What once fueled growth has now become a structural constraint. South Korea is entering a period of rapid population decline and aging faster than any other major economy. In that context, concentrating people and opportunity in one metropolitan area is no longer efficient. Seoul faces chronic shortages of housing and jobs, while large parts of the country are losing the scale needed to sustain industries, public services and local investment. Policymakers warn that without structural change, the capital will continue to swell even as regional Korea hollows out. Rather than trying to push people out of Seoul, the government is pursuing a different strategy: building regional cities large enough to function as real alternatives. The Lee Jae Myung administration is promoting administrative integration, merging neighboring cities and provinces to create larger metropolitan governments with greater fiscal capacity and policy authority. Prime Minister Kim Min-seok has framed the initiative as a matter of national survival, saying “balanced regional development is not regional favoritism but a survival strategy for a sustainable future.” He added that the government would make the shift from capital-centered growth to region-led growth one of its top policy priorities. The approach is beginning to take shape. In December 2025, Daejeon Metropolitan City and South Chungcheong Province declared their intent to integrate administratively. In January, Gwangju and South Jeolla Province followed, aiming to elect unified leadership in the June local elections. If completed, the new metropolitan governments would have populations of 3.6 million and 3.2 million, respectively — comparable to Busan and Incheon, the country’s second- and third-largest cities. To support the transition, the central government has pledged up to 5 trillion won per year for each integrated region, with total support reaching 20 trillion won over four years. Kim said the government would move quickly to institutionalize support, announcing plans to form a joint task force with relevant ministries to finalize financial and administrative measures and work closely with the National Assembly. A dedicated support committee under the Prime Minister’s Office will also be established to ensure continuity beyond the initial merger phase, officials said. The logic behind the policy is scale. Smaller and shrinking local governments struggle to attract businesses, retain young workers or invest in infrastructure. Larger metropolitan units, officials argue, can pool budgets, coordinate development and create labor markets deep enough to compete with Seoul. The aim is to slow youth migration to the capital, ease pressure on its housing and transport systems, and concentrate remaining growth in a limited number of viable regional hubs as the population shrinks. Experts broadly support the direction but caution that process will determine outcomes. Professor Park Jin-sol of Inha University warned that administrative integration must not be rushed. “If integration proceeds in haste, it may be driven by the central government without sufficient collection of residents’ opinions,” she said, adding that it is more important to ensure resident participation and deliberation than to focus on speed. Past experience underscores the risk. The Cheongju–Cheongwon merger followed more than two decades of consultation and a local referendum and later showed gains in administrative efficiency. By contrast, the Changwon–Masan–Jinhae merger, completed without a referendum, has faced persistent disputes over governance and local marginalization. The difference, Park noted, lay not in policy design but in legitimacy. Lawmakers from both ruling and opposition parties have voiced support for integration while echoing the need for public consent. Democratic Party lawmaker Chae Hyun-il said integration is necessary to strengthen regional competitiveness but stressed that it must “lead to future-oriented development and real improvements in quality of life.” People Power Party lawmaker Koh Dong-jin also backed the policy, emphasizing that “legitimacy must be secured through the collection of residents’ opinions.” At the same time, criticism has emerged over the scale of government funding. Another ruling party lawmaker, Lee Chul-gyu, questioned whether heavy financial incentives risk distorting priorities. “National finances are limited,” he said, arguing that integration should focus on efficiency rather than what he called a “money-driven approach.” Despite debate over funding levels and timing, there is broad agreement across party lines that Seoul’s dominance has become a national constraint rather than a source of strength. As the capital grows ever more crowded and regional Korea continues to hollow out, administrative integration represents a high-stakes attempt to rebalance a shrinking country. 2026-01-20 11:31:08 -
Blockchain operator Sign estimates 2026 to be turning point for institutional asset tokenization SEOUL, January 20 (AJP) - Sign, a blockchain infrastructure provider, released a market analysis Tuesday projecting that 2026 will serve as a pivotal year for Real World Asset (RWA) tokenization, forecasting a shift from experimental pilots to full-scale institutional integration. The company stated that the digital asset sector is currently undergoing a structural transition. While recent years have focused on technical proof-of-concepts, Sign’s outlook suggests the coming year will see traditional financial institutions begin utilizing blockchain infrastructure for core operations rather than just speculative investment. In its analysis, Sign highlighted industry data projecting the market for tokenized assets could reach 18.9 trillion U.S. dollars by 2033. The firm attributed this growth potential to increasing regulatory clarity in major jurisdictions and a growing demand for on-chain capital efficiency among asset managers. To support this projected influx of institutional activity, Sign announced it intends to expand its proprietary "Sign Chain." The company positions this Layer 1 blockchain as a specialized network designed to handle the rigorous compliance, identity verification, and data privacy requirements of regulated assets—features often lacking in general-purpose public networks. A central component of the company's 2026 roadmap involves government-level partnerships to establish sovereign digital infrastructure. Sign referenced its ongoing collaboration with the National Bank of the Kyrgyz Republic to develop systems for a Central Bank Digital Currency (CBDC) and the "Digital SOM." The company frames this project as a test case for how blockchain can digitize administrative and financial processes at a national level. The report also identified stablecoins as a critical driver for the 2026 outlook. Sign noted that stablecoin settlement volume recently exceeded 46 trillion dollars, interpreting this as evidence that the market is ready for programmable, on-chain currency solutions that can interface seamlessly with traditional banking systems. Addressing the technical barriers to this adoption, Sign stated it is prioritizing "omnichain" connectivity. This approach aims to allow assets to move fluidly between incompatible blockchain networks, removing the technical silos that have previously fragmented liquidity and deterred institutional users. Company executives indicated that Sign plans to roll out additional tokenization services and infrastructure updates in the coming months to align with these anticipated market shifts. 2026-01-20 11:18:36 -
Former PM to face verdict over martial law involvement SEOUL, January 20 (AJP) - Former Prime Minister Han Duck-soo is set to face his first verdict this week over his involvement in former President Yoon Suk Yeol's botched martial law debacle in December 2024. In a nationwide televised trial scheduled for 2 p.m. on Wednesday, the Seoul Central District Court in southern Seoul is set to deliver its ruling on him. Prosecutors sought 15 years in prison at Han's final hearing in November last year, accusing Han of aiding Yoon's Dec. 3 declaration of martial law instead of preventing it, despite his duty to check abuses of presidential power. They also criticized Han for refusing to cooperate with investigators, falsifying documents to cover up the debacle, and committing perjury when he testified during Yoon's impeachment trial in February last year, claiming he had not known in advance about Yoon's late-night bid. 2026-01-20 11:17:13 -
Former DP lawmaker appears for questioning over alleged bribery SEOUL, January 20 (AJP) - Kang Sun-woo, a former lawmaker of the Democratic Party (DP), appeared for questioning in western Seoul on Tuesday. She is accused of receiving 100 million Korean won (US$68,500) from Seoul city official Kim Kyung in return for the DP's candidate nominations for the 2022 local elections. The money was allegedly delivered to Kang's former aide, identified only by his surname Nam. Her questioning comes nearly a month after an audio recording was abruptly revealed late last month, in which Kang is heard discussing the acceptance of the money with then–DP floor leader Kim Byung-ki, who left the party earlier this week after resigning from his post amid a spate of bribery allegations and other misconduct. Arriving at a police station in Mapo at around 9 a.m., Kang said, "I sincerely apologize for causing public concern," adding, "I will fully cooperate with the investigation." When asked whether she had received the money, she responded that she has "principles" and has "lived a life that adheres to those principles." Police are expected to investigate whether the money was delivered and later returned and, if so, why Kim was later given a single nomination. During earlier investigations, Kim and Nam gave statements that differed slightly from one another. 2026-01-20 10:22:51 -
Pinkfong signs deal with US entertainment firm to develop family stage shows SEOUL, January 20 (AJP) - The Pinkfong Company said on Tuesday it has signed a partnership with U.S.-based live entertainment and touring firm Terrapin Station Entertainment to jointly develop new stage productions for family audiences. Terrapin Station Entertainment has produced and toured live shows based on family-oriented intellectual property, including Disney Junior, Peppa Pig and Gabby’s Magic House, and has operated large-scale tours across North America. Under the agreement, the two companies will plan and develop a K-pop concert-style family show featuring the Pinkfong Company’s intellectual property, including Pinkfong, Baby Shark and Bebefinn. The Pinkfong Company said it has staged performances in more than 200 cities across 16 countries, attracting a cumulative audience of over 1.5 million. It said the partnership is designed to move beyond one-off events toward repeatable, large-scale touring formats and to expand global revenue streams. The new production will target families and adopt a K-pop concert format built around the concept of “a child’s first concert.” The companies said the show will combine music, dance and visual effects with audience-participation segments to recreate the energy of a K-pop performance. Pinkfong and Baby Shark will headline the show, alongside Bebefinn. Jeong Yeon-bin, head of the Pinkfong Company’s U.S. operations, said the partnership provides a “new springboard” for expanding the company’s live entertainment business globally. “We will continue to broaden our engagement with fans worldwide through high-quality performance experiences,” Jeong said in a press release. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-20 10:14:48 -
Hyosung Heavy partners with German, Japanese power grid firms SEOUL, January 20 (AJP) - Hyosung Heavy Industries said on Tuesday it has signed an agreement with Germany’s Skeleton Technologies and Japan’s Marubeni to cooperate on the development and commercialization of “e-STATCOM,” a next-generation power-compensation system. Under the deal, Hyosung Heavy Industries and Skeleton Technologies will jointly develop e-STATCOM through 2027, while Marubeni, a strategic partner of Skeleton, will provide stable supplies of supercapacitors used in the system. e-STATCOM combines a conventional static synchronous compensator, or STATCOM, with a high-performance energy storage device known as a supercapacitor. The system is designed to adjust power supply and power quality in real time, helping improve grid stability. Hyosung said global power markets are increasingly in need of advanced stabilization technologies to address supply-demand imbalances stemming from the rapid expansion of AI-driven industries and the growing share of renewable energy sources. The company said e-STATCOM is emerging as essential infrastructure for future energy markets because it can help maintain stable power systems amid sharp fluctuations in demand. Hyosung Heavy aims to complete development of e-STATCOM in 2027 and pursue South Korea’s first commercialization of the technology. The company has steadily internalized power-stabilization technologies, including STATCOM, to respond to structural changes in electricity markets driven by AI growth and renewable energy expansion. Hyosung first developed a STATCOM domestically in 2006 and has since led the South Korean market. It commercialized a 150-megavolt-ampere reactive (Mvar) STATCOM in 2015 and installed 400Mvar STATCOM units in 2018 at the Sin Yeongju and Sin Chungju substations, which it said were the world’s largest single-unit installations at the time. The company has also supplied STATCOM systems to major overseas markets, including the United States, Europe and the Middle East. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-20 10:03:00 -
South Korea's Neptune sets sights on India as it scales adtech, game publishing SEOUL, January 20 (AJP) - South Korea's Neptune said on Tuesday it will expand businesses that combine advertising technology and gaming this year, centered on three new initiatives, following its acquisition by Krafton. Neptune outlined three strategic pillars: global expansion of its adtech operations, a stronger push into hybrid-casual games and the development of a new demand-side platform, or DSP, for advertisers. India has been identified as the top priority market for its adtech business. The company said its India strategy focuses on optimizing services for local mobile environments. It completed India-specific software development kits, or SDKs, and infrastructure capable of handling large-scale traffic in the third quarter of last year. The technology will be rolled out in phases, starting with popular mobile games in India in the first half of this year. The company has spent about six months establishing internal collaboration models after the takeover by Krafton and is now moving into an execution phase. In its games business, Neptune said it aims to diversify revenue by increasing investment and publishing in hybrid-casual titles that combine in-app purchases, or IAP, with in-app advertising, or IAA. It also plans to expand in-house game development to secure a steady pipeline of hit titles and user traffic. Chief Executive Kang Yul-bin said Neptune plans to leverage traffic from its parent company to gain a foothold in India’s adtech market, which he estimated to be worth about 3 trillion won ($2.2 billion). “By linking the expansion of hybrid-casual games with our India business rollout, we aim to take our adtech business to the next level,” Kang said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-20 09:48:48 -
Korea's producer prices rise nearly 2% on year amid weak won, surging memory chip costs SEOUL, January 20 (AJP) -South Korea’s producer prices rose for a fourth consecutive month in December, as a weak won lifted prices across a broad range of goods and services, while sharply higher memory chip costs added further upward pressure. According to data released Tuesday by the Bank of Korea, the producer price index for December stood at 121.76 (2020 = 100), up 0.4 percent from the previous month and 1.9 percent from a year earlier. For the full year of 2025, producer prices rose a relatively modest 1.2 percent. Fresh food prices jumped 7.5 percent on month, reflecting cold-weather conditions, while energy prices fell 0.9 percent on softer international prices despite unfavorable exchange-rate conditions. Raw material prices increased 1.8 percent on month, reversing a 0.5 percent decline recorded in November. Manufactured goods rose 0.4 percent. Gains in computer, electronic and optical equipment, which climbed 2.3 percent, and primary metal products, up 1.1 percent, were partly offset by a 3.7-percent drop in coal and petroleum products. Prices for electricity, gas, water and waste services rose 0.2 percent, led by increases in industrial city gas, up 1.6 percent, and sewage treatment services, up 2.3 percent. Service prices also rose 0.2 percent, driven by restaurants and lodging, which increased 0.4 percent, and financial and insurance services, up 0.7 percent. Among key cost drivers, production costs for DRAM surged 15.1 percent from the previous month and 91.2 percent from a year earlier. Costs for assembling flash memory rose 6 percent on month and 72.4 percent on year. By contrast, naphtha cracking costs fell 3.8 percent on month and 17.4 percent on year, reflecting a prolonged downturn in the petrochemical sector and ongoing capacity reductions under industrial restructuring. Lee Moon-hee, head of the Bank of Korea’s price statistics team, said farm product prices were influenced by seasonal supply-and-demand factors and temporary supply disruptions caused by harvest delays for certain fruit items. “Farm product prices typically tend to rise from the previous month in summer and winter, so this is not unusual,” Lee said. On the potential impact on consumer inflation, Lee said the recent rise in producer prices has been driven largely by higher prices for intermediate goods such as semiconductors and primary metals, suggesting the pass-through to consumer prices may take time. He added that international oil prices remain lower than the previous month’s average and could exert downward pressure on consumer prices through petroleum products. The won weakened overnight, with the dollar briefly rising above 1,480 won—widely viewed as a government defense line—before retreating to around 1,474.5 won. 2026-01-20 09:35:03