Journalist
Lee Hugh
=
-
US Navy selects South Korea's HJ Shipbuilding for ship repair partnership SEOUL, January 16 (AJP) - HJ Shipbuilding & Construction said on Friday it has been selected by the U.S. Navy as a partner for its ship repair program. The decision enables the South Korean shipbuilder to participate fully in maintenance, repair and overhaul work for major U.S. naval vessels. The agreement will run from Jan. 23 through Jan. 22, 2031, the company said. The U.S. Navy program is a framework agreement between the U.S. government and private shipyards that allows qualified companies to compete for maintenance, repair and overhaul contracts for U.S. Navy ships. While such an agreement is not required for servicing noncombat vessels such as logistics support ships, it is a prerequisite for bidding on MRO projects involving combat ships. HJ Shipbuilding said the agreement provides the company with a foothold in the U.S. Navy’s ship maintenance market, which the company estimates to be worth about 20 trillion won ($15 billion) annually over the next five years. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-16 13:56:19 -
South Korea's 'sovereign AI' push stumbles as Naver, Kakao step aside SEOUL, January 16 (AJP) - Naver Cloud and Kakao, South Korea’s two largest internet platform operators, have decided not to take part in an additional round of bidding for the government’s flagship artificial intelligence project, dealing an early setback to Seoul’s push to build a “sovereign AI” foundation model. The withdrawal by the two companies — long seen as natural contenders given their vast user data, cloud infrastructure and AI research capabilities — comes after the first-round evaluation of the Ministry of Science and ICT’s state-led project. Their absence has raised concerns that the so-called “K-AI” initiative could lose momentum at an early stage. Naver Cloud, after being eliminated in the first evaluation round on Thursday, said it “respects the government’s decision,” but added it is “not considering” participating in the additional call. Kakao, which failed to advance in an earlier selection stage, also confirmed it has “no plan to try again,” according to a senior company official. The decisions reflect doubts about the benefits of the program and disagreements over the government’s evaluation standards, industry officials said. The ministry has emphasized building an AI model “from scratch,” limiting reliance on external open-source code and retaining full control over data and the model itself. Naver Cloud was cut after falling short of those criteria, officials said. An industry source said major platform companies, which have actively adopted open-source technologies in line with global AI development trends, likely concluded their chances were slim unless the government’s strict interpretation of “independence” changes. Companies may also have weighed the reputational risks of failing again after an initial loss, the source added. Other eliminated bidders, including NC AI and KT, have said they are still considering whether to apply for the additional round. The government plans to add one more participant to form a four-way competition, but the process already faces uncertainty. If major players stay out and the field narrows to smaller firms, the symbolic value of naming a “national representative” AI model could be diluted, industry watchers said. The three teams that advanced from the first round struck a confident tone. LG AI Research, which posted the highest overall score, said its efforts reflect Chairman Koo Kwang-mo’s AI-focused strategy and pledged to pursue global leadership through its “K-EXAONE” model. SK Telecom said it will work with partners, including game developer Krafton, to scale its model to trillions of parameters. Upstage, the only startup to advance, said it plans to collaborate with Stanford University and other institutions to build a model competitive with global big-tech offerings. Experts said the controversy highlights a widening gap between the government and the private sector over the definition of “sovereign AI.” Kim Yoo-seok, head of the Chey Institute for Advanced Studies, wrote in a recent report that South Korea needs a balance between technological self-reliance and global linkage, rather than unconditional localization. The ministry said it plans to proceed with the additional call for bids in the first half of the year. But with Naver Cloud and Kakao opting out, attention is now focused on whether the government can adjust incentives or criteria to lure them back — or whether the project will effectively consolidate around LG AI Research, SK Telecom and Upstage. 2026-01-16 13:45:34 -
KOSPI soars above 4,800 for first time while Nikkei tumbles SEOUL, January 16 (AJP) - Asian stock markets opened mixed in early trading on Friday, with South Korea's KOSPI hitting a fresh record high, while Japanese shares retreated on profit-taking. In Seoul, the benchmark index rose 0.95 percent to 4,841.81, surpassing the 4,800 level for the first time on record, while the tech-heavy KOSDAQ lagged, slipping 0.43 percent to 947.06 shortly after the day's trading began. Strong U.S. labor data kept the dollar firm, pushing the exchange rate for the South Korean currency to around 1,470 won per dollar. With the won under pressure, market attention is shifting to exporters in growth sectors like semiconductors and autos, while banks and insurers face potential volatility. Foreign investors offloaded shares in morning trading, while institutional and retail investors snapped them up. Among large-cap stocks, Samsung Electronics jumped 3.61 percent to 149,100 won ($101.2), buoyed by improved investor sentiment following TSMC's record earnings, which showed a sharp rise in revenue and strong profit growth, while SK Hynix rose 1.20 percent to 758,000 won. Samsung Life Insurance surged 6.64 percent to 171,800 won after hitting an intraday record high of 176,400 won, as expectations of additional legislative revisions to strengthen protections for retail investors boosted market sentiment. LG Energy Solution edged up 0.51 percent to 394,000 won, while Samsung Biologics fell 3.31 percent to 1.90 million won. Automakers showed mixed performance, with Hyundai Motor rising 0.12 percent to 422,500 won, while Kia gained 2.75 percent to 156,700 won. Defense and aerospace stocks traded near flat, with Hanwha Aerospace up 0.08 percent at 1.30 million won. Shipbuilding and heavy industry shares weakened, as HD Hyundai Heavy Industries fell 2.06 percent to 618,000 won and Hanwha Ocean declined 1.88 percent to 146,100 won. Japanese shares pulled back, with the Nikkei 225 Index down 0.69 percent at 53,738.18 in intraday trading, as profit-taking following a three-day rally combined with weakness in U.S. technology stocks and renewed yen strength. Elsewhere in Asia, China's Shanghai Composite Index rose 0.25 percent to 3,242.62. 2026-01-16 11:33:06 -
Advance train tickets for Lunar New Year now on sale SEOUL, January 16 (AJP) - Sales of advance train tickets for the Lunar New Year break began this week. According to railway operator KORAIL, tickets are available online for about a week starting Thursday, about a month in advance, for trains running during the weeklong holiday from Feb. 13 to 18. The first two days of pre-booking will be reserved for senior citizens aged 65 and older, people with disabilities, and recipients of national merit honors. Ordinary citizens can book tickets from next Monday to Jan. 21. However, booking dates may vary by destination. 2026-01-16 11:09:37 -
Lee to meet residents in Ulsan as part of regional growth initiative SEOUL, January 16 (AJP) - President Lee Jae Myung will visit Ulsan next week to meet residents and hear about the issues facing the industrial city. Lee, who stressed regional growth in his New Year's address, wrote on Facebook Thursday that he will hold his first town hall-style meeting of the year on Jan. 13, describing the southern city as “the heart of South Korea's industry. "Over the past 60 years, Ulsan has led our manufacturing industries including automobiles, petrochemicals, and shipbuilding, and has stood at the center of South Korea's economic growth," he wrote. "Now is the time to move forward on a new path, beyond being an industrial capital, to lead in artificial intelligence (AI) technologies in manufacturing and green industries." Lee said the government will make this year the "first year of a great leap through a major transformation," promoting growth beyond Seoul to boost regional development. He added that Ulsan, the leading city in the country's southeastern manufacturing belt, will help drive South Korea's industrial transformation. He urged residents to share their views, saying he wants to map out Ulsan's future and the country's next leap forward using citizens' collective wisdom. About 200 residents will be selected from those who apply by next Monday to attend the meeting. The meeting comes after Lee earlier outlined a vision for regional growth, with Seoul as the economic capital, the central region as the administrative capital, and the southern region as the maritime capital. 2026-01-16 10:56:12 -
Hyundai Motor brings in Tesla veteran to accelerate robotics ambitions SEOUL, January 16 (AJP) - Hyundai Motor Group has recruited Milan Kovac, a former Tesla executive who led development of projects including the humanoid robot Optimus, in a move aimed at strengthening its push for artificial intelligence and robotics. Hyundai said Kovac has been appointed as an adviser to the group and is expected to be named an outside director at Boston Dynamics, a robotics company owned by Hyundai Motor Group. Kovac brings nearly two decades of experience spanning software, hardware and AI-driven robotics systems, the company said. Most recently at Tesla, he oversaw development of the Optimus humanoid robot and a camera-based, vision-centered autonomous-driving system, playing a key role in the firm's push toward AI-centric mobility and automation. Hyundai said the appointment is intended to accelerate AI-based robotics innovation at Boston Dynamics and to advance the group’s mid- to long-term strategy and commercialization plans for its robot portfolio, which includes Spot, Stretch and Atlas. In his advisory role, Kovac will provide guidance on AI and engineering strategy and explore how advanced robotics technologies can be applied across Hyundai Motor Group’s industrial footprint, including manufacturing, logistics and service operations, the company said. “Boston Dynamics is a core company in the robotics ecosystem and an iconic organization that has inspired countless engineers,” Kovac said in a press release. “Combined with Hyundai Motor Group’s strong industrial base, it has a unique competitive advantage to lead the robotics industry, and I look forward to the journey of innovation.” 2026-01-16 10:17:03 -
Fire breaks out in Seoul's last remaining shantytown SEOUL, January 16 (AJP) - A fire broke out in a shantytown in southern Seoul early Friday morning, forcing residents to evacuate. The fire occurred at around 5 a.m. in Guryong Village, the last remaining slum of makeshift homes and shoddy tents in Seoul's affluent district of Gangnam. Over 200 firefighters were dispatched shortly after receiving a report that the fire had started in an empty home. Hours later, smoke and flames are still engulfing the area despite efforts to extinguish them, raising concerns that they could spread to nearby wooded hills. No injuries have been reported so far. Dozens of residents reportedly evacuated on their own. The village has just about 30 households, as it is slated for redevelopment, with plans to transform the area into a high-rise apartment complex that will accommodate 3,500 households, although some residents are refusing to leave. 2026-01-16 10:03:13 -
HMM to deploy AI navigation system on 40 ships in HD Hyundai tie-up SEOUL, January 16 (AJP) - HMM said Friday it will deploy an artificial intelligence–based autonomous navigation system across 40 vessels, stepping up efforts to improve efficiency and cut emissions through advanced maritime technology. The South Korean shipping company will introduce the system through a technical partnership with HD Hyundai affiliates HD Korea Shipbuilding & Offshore Engineering and Avikus, a developer of autonomous navigation solutions. A contract-signing ceremony was recently held at HD Hyundai’s global research and development center in Pangyo, attended by senior executives from the three companies. Under the agreement, HMM will equip 40 ships with Avikus’s autonomous navigation technology. Unlike conventional systems that provide navigational assistance, the AI-based platform is designed to independently calculate optimal routes, with the aim of enhancing operational safety, improving fuel efficiency and reducing carbon emissions, the company said. HMM said it plans to consider a broader rollout across its fleet based on performance results. The partnership also includes joint research to further develop autonomous navigation technology. HMM will apply the system in commercial operations and share operating data, Avikus will supply and upgrade the navigation software, and HD Korea Shipbuilding & Offshore Engineering will provide ship platforms and technical support, the companies said. “AI-based technology is a core tool for strengthening competitiveness in a digital and environmentally sustainable shipping ecosystem,” HMM said in a press release. The firm said autonomous navigation represents a potential “game changer” for both shipbuilding and shipping. 2026-01-16 09:54:50 -
Impeached president faces first verdict on martial law-related charges SEOUL, January 16 (AJP) - Impeached former President Yoon Suk Yeol will be sentenced on Friday for one of several charges related to his botched martial law debacle. In a nationwide televised trial scheduled for 2 p.m., the Seoul Central District Court in southern Seoul is set to deliver its ruling on whether Yoon obstructed law enforcement by blocking investigators and other officials who attempted to detain him following his abrupt late-night declaration of martial law on Dec. 3, 2024. It will be Yoon's first sentencing among his eight cases related to the debacle including the main charges of insurrection and abuse of power, whose verdict is likely to be handed down next month. At the case's final hearing in December last year, prosecutors sought 10 years in prison for Yoon - five years for obstruction of official duties, three years for abuse of power, and two years for fabricating official documents, calling it "a serious crime in which the defendant privatized state institutions to conceal and justify his wrongdoing." They said a heavy sentence is necessary "to restore constitutional order and the rule of law, and to prevent a recurrence." 2026-01-16 09:18:28 -
S. Korea leans on semiconductors as non-IT exports lose ground: BOK SEOUL, January 16 (AJP) - South Korea’s exports remain resilient, but the country is steadily losing ground in global competitiveness in some sectors, according to a report released Friday by the Bank of Korea. While headline export figures have held up, shipments of major non-IT goods — excluding semiconductors — have been largely stagnant for years, deepening performance gaps across industries. South Korea’s share of the global export market has been on a downward trajectory since 2018, as competition intensifies, particularly from China. Export growth since the COVID-19 pandemic has been concentrated in a handful of sectors, most notably semiconductors, while non-IT exports have effectively stalled since the mid-2010s, according to the report. Overall exports are expected to rise this year, supported by strong semiconductor demand. But persistent weakness in non-IT sectors could further widen disparities among products, highlighting structural vulnerabilities in the export base. By sector, the bank said steel and machinery have suffered a broad decline in competitiveness as global demand slows and both product quality and market positioning weaken. Expanded Chinese supply has intensified competition, weighing on South Korea’s presence in key markets such as Southeast Asia. Automakers strengthened competitiveness through brand premiumization and the development of dedicated electric-vehicle platforms, while semiconductor makers maintained a technological edge in high value-added memory chips and benefited from rising demand linked to artificial intelligence. Still, risks are mounting. The bank warned that global automakers are expanding local production in major export markets, potentially eroding South Korea’s market access. In semiconductors, China’s rapid progress could weaken competitiveness in general-purpose, lower-spec memory chips, the BOK said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-16 08:45:30