Journalist
Lee Hugh
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State creditor bank demands more aggressive output cut from Korean naphtha makers SEOUL, December 30 (AJP) -The government is intensifying pressure on South Korea's major petrochemical producers to further reduce naphtha cracking capacity during the prolonged industrial slump, demanding more aggressive streamlining from Hanwha, DL and Lotte tenants of Yeocheon complex, industry sources said. According to the sources on Tuesday, Lee Bong-hee, executive vice president and head of corporate finance at the Korea Development Bank (KDB), visited Yeocheon NCC on Friday for an on-site inspection. He later held discussions with executives from Hanwha Solutions, DL Chemical and Lotte Chemical on voluntary reductions in naphtha cracking capacity. During the meetings, Lee asked the three companies to submit a concrete plan to permanently shut Yeocheon NCC’s third plant, which has been idled and has an annual capacity of 470,000 tons, the sources said. He also conveyed that if additional cuts are made at Yeocheon NCC’s first plant (900,000 tons) and second plant (910,000 tons), as well as at Lotte Chemical’s Yeosu NCC facility (1.23 million tons), the government and creditor banks could offer support in return. The state policy bank is the lead creditor bank for Hanwha Solutions, DL Chemical and Yeocheon NCC, and also serves as a creditor to Lotte Chemical. Lee oversees petrochemical restructuring and creditor-bank management at KDB. With the companies seeking bond maturity extensions and additional financing, his targeted visit to Yeocheon NCC was widely viewed as adding pressure on the firms to move faster on restructuring, the sources said. KDB has also urged the companies to submit detailed capacity-reduction plans alongside additional self-help measures, including further capital injections by major shareholders. The policy lender has made clear that it will not provide additional financial support unless the three companies reach agreement on concrete restructuring steps, the sources added. At the same time, Hanwha Solutions, DL Chemical and Lotte Chemical are accelerating preparations to establish a joint venture to consolidate their naphtha cracking operations. The companies aim to set up a jointly funded subsidiary by the first quarter of 2027 to jointly operate Yeocheon NCC’s first and second plants together with Lotte Chemical’s Yeosu NCC facility. They are currently conducting due diligence with Samil PwC and other advisers to finalize the joint venture structure and additional capacity-reduction measures, which they plan to submit to the government in January, the sources said. If the companies propose further cuts, total industry-wide reductions in naphtha cracking capacity could exceed the government’s initial target of 2.7 million to 3.7 million tons by roughly 1 million tons, according to industry estimates. Market participants are watching closely whether authorities and creditor banks will selectively accept voluntary restructuring plans. Companies fear that if their proposals fall short of official expectations, only the originally announced cuts may be recognized, limiting the scope of support. Lee Deok-hwan, emeritus professor of chemistry at Sogang University, cautioned that direct engagement by government-side officials with individual firms before voluntary restructuring plans are finalized could undermine trust in the process. “Companies may interpret such moves as groundwork for accepting only the measures favored by the authorities while rejecting others,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-30 17:43:18 -
Asian stocks end 2025 quietly as Korean chipmakers steal the spotlight SEOUL, December 30 (AJP) - Asian equities wrapped up the final trading session of 2025 mostly flat on Tuesday, while South Korean semiconductor shares closed the year in celebratory fashion, hitting fresh all-time highs. Korea’s benchmark KOSPI slipped 0.15 percent to finish at 4,214.17. Despite the modest pullback, the index logged a surge of more than 75 percent from the final trading day of last year — the strongest annual performance among major Asian stock markets. Foreign and institutional investors locked in profits ahead of year-end, net selling 472.8 billion won ($327 million) and 368.9 billion won, respectively. Retail investors absorbed the selling pressure, posting net purchases of 818.9 billion won in a final-year buying spree. The won weakened as demand for dollars rose toward year-end settlement, with the currency closing at 1,446.8 per dollar, down 12.3 won as of 4:20 p.m. The softer currency pushed bond yields higher across the curve. The three-year government bond yield rose 1.3 basis points to 2.952 percent, while the 10-year yield climbed 3.1 basis points to 3.385 percent. Semiconductor heavyweights led the market’s standout gains. SK hynix advanced 1.72 percent to 651,000 won, while Samsung Electronics added 0.33 percent to 119,900 won, with both stocks setting new all-time highs. The rally followed an upbeat outlook from Nomura Securities, which set 2026 target prices of 160,000 won for Samsung Electronics and 880,000 won for SK hynix. Shares of Hyundai Motor Group affiliates also moved higher. Hyundai Motor rose 1 percent to 296,500 won, Hyundai Mobis gained 1.77 percent to 373,000 won, and Hyundai AutoEver jumped 6.41 percent to 332,000 won, leading gains within the group. Battery-related stocks, however, underperformed. LG Energy Solution fell 3 percent to 368,500 won, weighed down by a series of contract cancellations, while rival Samsung SDI slid 2.9 percent to 269,500 won. The tech-heavy KOSDAQ underperformed regional peers, dropping 0.76 percent to 925.47, as foreign investors offloaded a net 312.3 billion won to lock in profits. Elsewhere in Asia, Japan’s Nikkei 225 slipped 0.37 percent to 50,339.48. Toyota Motor fell 0.24 percent to 3,356 yen, while Honda Motor declined 0.32 percent to 1,536 yen. Semiconductor-related stocks showed mixed performance, with Ibiden rising 1.58 percent and Disco gaining 0.88 percent, while Advantest fell 0.73 percent to 19,635 yen. Taiwan’s TAIEX also retreated, closing 0.36 percent lower at 28,707.13. Heavyweights dragged on the index, with TSMC slipping 0.65 percent to 1,520 Taiwan dollars ($48.46) and Foxconn falling 1.3 percent to 228 Taiwan dollars. MediaTek ended flat at 1,420 Taiwan dollars. Mainland Chinese markets were little changed. The Shanghai Composite finished nearly flat at 3,965.12, while the Shenzhen Composite rose 0.49 percent to 13,604.07. Hong Kong’s Hang Seng Index ended 0.6 percent higher at 25,828.25. Most regional markets close for the year after Tuesday, though mainland Chinese exchanges will continue trading through Wednesday. 2025-12-30 17:08:23 -
PHOTOS:KOSPI tops 2025 performance SEOUL, December 30 (AJP) - South Korea’s stock market wrapped up the year on a strong note despite a slight pullback on the final trading day. On Monday, the benchmark KOSPI closed at 4,214.17, down 6.39 points, or 0.15 percent, from the previous session. The tech-heavy KOSDAQ ended at 925.47, down 7.12 points, or 0.76 percent. For the full year, the KOSPI and KOSDAQ jumped roughly 75 percent and 36 percent, respectively, marking significant annual gains. In the afternoon, electronic boards at Hana Bank’s headquarters dealing room in central Seoul displayed the closing figures, capturing the market’s year-end sentiment. At the same time, the Korean won weakened against the U.S. dollar. As of 3:30 p.m., the won-dollar exchange rate closed at 1,439.0 won per dollar, up 9.2 won from the previous session. 2025-12-30 16:48:16 -
KOSPI posts world's fastest gains in 2025, but capital outflows cloud celebration SEOUL, December 30 (AJP) - South Korea emerged as the world’s best-performing equity market in 2025, with its benchmark KOSPI surging nearly 76 percent over the year. Yet the historic rally came with a paradox: while stock prices soared to record highs, outbound investment overwhelmed domestic buying, leaving the won among the weakest currencies in the region. The KOSPI closed at 4,214.17 on Dec. 30, the final trading day of the year, nearly doubling from 2,399.49 at the end of 2024. The annual gain of 75.6 percent ranks as the third-largest in the market’s history, behind only the 93 percent rally during the 1987 “three-lows” boom and the 83 percent surge in 1999 at the height of the post-IMF technology bubble. Few could have imagined such a turnaround at the start of the year. Investor confidence had been badly shaken by political turmoil following a brief declaration of martial law and the subsequent impeachment of the president. Uncertainty lingered through the first half until a snap presidential election in June began to stabilize sentiment. Optimism strengthened after President Lee Jae Myung pledged to lift the KOSPI to 5,000, injecting momentum into a market long viewed as structurally undervalued. Earlier in the year, volatility had peaked when renewed “Trump-style” tariff threats pushed the KOSPI down to 2,328.2 and the KOSDAQ to 651.3 on April 7 — their lowest levels of 2025. Foreign investors retreated sharply during that period, unloading 13.6 trillion won ($9.6 billion) worth of Korean equities in April alone. The outflows pushed the monthly average exchange rate to around 1,440 won per dollar, highlighting pressure on the currency. Sentiment began to recover only after the June election, as the new administration rolled out policies aimed at strengthening capital markets and enhancing shareholder returns. Momentum accelerated in the second half of the year. The KOSPI closed above 3,000 on June 20 for the first time in three and a half years and broke the 4,000 mark intraday on Oct. 27. On Nov. 3, it reached an all-time closing high of 4,221.87, entering uncharted territory 45 years after the index was launched. Fastest growth among major global markets With a 75.6 percent annual return, the KOSPI recorded the strongest performance among major global equity benchmarks in 2025. Japan’s Nikkei 225 rose 26.5 percent, China’s Shanghai Composite gained 18.3 percent, and Taiwan’s Taiex advanced about 25 percent over the same period. Analysts attribute Korea’s outsized rally to a combination of policy support, ample liquidity and powerful industrial tailwinds, amplified by the global boom in artificial intelligence after the market began the year deeply undervalued. Chipmakers supplying high-bandwidth memory to Nvidia and other AI leaders emerged as the biggest beneficiaries. Samsung Electronics climbed to 120,000 won for the first time intertrade, while SK Hynix more than tripled in value, hitting a record high. “The global liquidity environment remains supportive, and strong corporate earnings combined with the AI growth cycle should continue to underpin the market,” said Kim Jong-min, head of research at Samsung Securities. The tech-heavy KOSDAQ also ranked among the world’s top performers, rising 37 percent for the year. After lagging earlier in 2025, it attracted renewed foreign inflows from October, exceeding 5 trillion won. On Oct. 27, the index closed at 902.7, and on Dec. 4 — nearly a year after the martial law shock — its total market capitalization surpassed 500 trillion won for the first time. Brokerages reap windfall from rally Domestic securities firms were among the biggest beneficiaries of the bull run. According to the Financial Supervisory Service, the combined net profit of 60 brokerage houses reached 2.5 trillion won in the third quarter alone, up 60 percent from a year earlier. Their total assets stood at 908.1 trillion won as of late September, more than 20 percent higher than at the end of 2024. Korea Investment & Securities became the first domestic brokerage to surpass 2 trillion won in cumulative operating profit by the third quarter, with full-year earnings projected to reach 3 trillion won. That would place it close to Nomura Holdings’ 472 billion yen ($3.1 billion) operating profit for fiscal 2024, potentially ranking it third or fourth among Asia’s largest brokerages by earnings in 2025. A rally at home, but money flows abroad Despite the historic rise in share prices, capital flows tell a more complex story. According to Bank of Korea data, outbound portfolio investment by Korean residents surged $11.2 billion in September alone, exceeding the $9.1 billion in foreign inflows into Korean securities. Between January and October, residents invested a net $117.1 billion overseas — including $89.9 billion in equities and $27.2 billion in bonds. October alone recorded a record $17.3 billion in outflows. The scale of these movements suggests not short-term currency speculation but a structural reallocation of portfolios. In that sense, 2025 may be remembered as the year Korea’s stock market delivered its strongest performance on record — even as Korean capital increasingly chose to look abroad. 2025-12-30 16:45:53 -
Lee to visit China for summit with Xi Jinping next week SEOUL, December 30 (AJP) - President Lee Jae Myung will embark on a four-day trip to China early next week for a summit with Chinese President Xi Jinping. At a press briefing at Cheong Wa Dae on Tuesday, presidential spokesperson Kang Yu-jung said Lee is scheduled to depart for Beijing on Sunday for the summit, then travel to Shanghai before returning home on Wednesday. The meeting will be the two leaders' second since their first meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju in November. "The two leaders will meet again in about two months to build on the momentum toward fully restoring the bilateral partnership between the two countries," Kang said. "They will discuss ways to achieve concrete outcomes in areas that directly affect people's lives" including supply chains and environmental issues, as well as measures to combat transnational online crime. Lee's itinerary will include an event commemorating the 150th birth anniversary of independence fighter Kim Gu, who led the country's provisional government-in-exile in Shanghai in 1919. Lee will also attend a forum for startup entrepreneurs from both countries to foster partnership and promote future cooperation. 2025-12-30 16:44:35 -
2025 K-pop: between global success and internal strain SEOUL, December 30 (AJP) - The K-pop industry in 2025 stood at a crossroads, marked by record-setting global achievements alongside growing structural challenges at home. From the global success of Netflix's animated series "KPop Demon Hunters" to Rosé's "APT." topping the Billboard charts — and from the NewJeans dispute to a shrinking album market — K-pop experienced a year of both expansion and strain. 'KPop Demon Hunters': Turning K-pop into a universe One of the most notable phenomena of 2025 was the global success of Netflix's animated series "KPop Demon Hunters." Released in June, the series went beyond surface-level aesthetics, weaving idol training systems, fandom culture and music industry rituals into a cohesive narrative universe. The fictional idol groups Huntrix and Saja Boys were consumed much like real K-pop acts. The OST single “Golden” topped the Billboard Hot 100 for eight nonconsecutive weeks, while Huntrix ranked No. 1 on Spotify’s U.S. daily chart, forming a real-world fan base. The success, however, also underscored structural limits. Despite being rooted in Korean popular culture, the project was produced by Sony Pictures Animation and launched by Netflix in the U.S., with intellectual property revenues largely flowing overseas. Stray Kids break records, as the market contracts Stray Kids dominated 2025 with eight consecutive No. 1 debuts on the Billboard 200, a record unmatched globally. According to Circle Chart, the group sold 6.98 million physical albums domestically and drew more than 500,000 concertgoers in North America through three world tours, attracting a total of over 2.15 million fans worldwide and setting a record for the largest cumulative tour attendance by a K-pop act. Yet the broader market showed signs of fatigue. Korea's physical album sales fell 7.5 percent year on year through the 50th week of 2025, with sales by female artists dropping nearly 20 percent. Total sales among the top 400 albums stood at about 90.9 million units, making a return to the symbolic 100 million mark increasingly unlikely. Rosé's 'APT.' and the question of K-pop's boundaries Rosé of BLACKPINK topped the Billboard Hot 100 with "APT.", becoming the first Korean female solo artist to do so. Inspired by a Korean drinking game, the song went viral on TikTok and served as the lead single from her debut studio album "rosie," released in December 2024. Other BLACKPINK members also remained active as solo artists throughout the year, releasing albums largely in English and collaborating with pop musicians — a shift that underscored the group's growing emphasis on individual branding. At the same time, "APT.", an English-language track led by U.S. producers, reignited debate over how K-pop should be defined as artists increasingly pursue global audiences. The NewJeans dispute and cracks in the system The most disruptive development of 2025 involved NewJeans. A dispute that began in late 2024 between former ADOR CEO Min Hee-jin and parent company HYBE escalated into the group's announcement in November that they would seek to terminate their contracts. Three members ultimately chose to remain with ADOR, while the status of the remaining two diverged. The case highlighted deeper tensions within the K-pop system, raising questions about artist autonomy and the pressures placed on young performers. BTS's return and hopes for a rebound In June, all seven members of BTS completed their mandatory military service. BigHit Music has announced plans for a comeback and world tour in the first half of 2026. With major acts such as BTS and BLACKPINK set to return, alongside milestone events like BigBang's 20th anniversary, the industry is cautiously optimistic that 2026 could mark a rebound after a year defined by both growth and strain. 2025-12-30 16:30:21 -
New senior post in charge of AI created at Defense Ministry SEOUL, December 30 (AJP) - A deputy minister-level post in charge of artificial intelligence (AI)-related affairs has been created within the Ministry of Defense to accelerate the military's technological modernization. Approved at a Cabinet meeting on Tuesday and set to take effect later this week, the new post will spearhead the military's adoption of cutting-edge technologies while overseeing key areas where AI is needed, including logistics, information, and the procurement of military assets. Won Jong-dae, who currently manages the military's resource management, is set to assume the new role. The restructuring plan also includes the appointment of civilian experts to a military adviser post, which was usually held by an active-duty general. The ministry said the military's move toward an AI-driven, high-tech force will help South Korea achieve its goal of becoming one of the world’s top three AI powers in the defense sector. 2025-12-30 16:21:56 -
Seoul completes elevator rollout across 338 stations; Protesters flag remaining barriers SEOUL, December 30 (AJP) — The Seoul Metropolitan Government announced on Tuesday that all 338 subway stations in the capital are now equipped with elevator access from ground level to the platforms, marking a milestone in the city's efforts to improve public transit accessibility. To commemorate the achievement, city officials held a ceremony at Kkachisan Station on Line 5. The completion of the "one-route" system means that passengers with reduced mobility, including those using wheelchairs, can now navigate from the street to the train platforms entirely via elevators without outside assistance. However, the announcement was met with friction. Members of a group advocating the disabled staged a protest at the ceremony site, challenging the city’s claim of universal accessibility. The advocacy group argued that the city's declaration is misleading, noting that several stations within the broader metropolitan network — specifically those managed by the state-run Korea Railroad Corporation (KORAIL) — still lack necessary elevator installations. Protesters claimed that describing the project as "complete" overlooks the persistent barriers faced by disabled commuters transferring between different jurisdictions. 2025-12-30 16:12:06 -
Korea faces unavoidable shift toward renewables, nuclear power: energy minister SEOUL, December 30 (AJP) - South Korea faces an unavoidable shift in its energy mix as it confronts the climate crisis, requiring a combination of carbon-free renewable energy and nuclear power while gradually phasing out coal and gas, Climate, Energy and Environment Minister Kim Sung-hwan said on Tuesday. Kim made the remarks at the First Energy Mix Policy Forum held at the National Assembly, calling for a pragmatic and science-based approach to energy policy. Kim said the Moon Jae-in administration sought to advance an energy transition over five years but became mired in debate over a nuclear phaseout, slowing efforts to retire coal-fired power plants. He said the subsequent Yoon Suk Yeol administration took the opposite approach by prioritizing nuclear power while neglecting the expansion of renewable energy. “As a result, South Korea’s share of renewable energy now ranks last among OECD countries,” Kim said. South Korea’s current energy mix is roughly 30 percent nuclear, 30 percent coal, 30 percent gas and 10 percent renewables, Kim said, adding that restructuring the mix would be foundational to the country’s future economic development. The Lee Jae Myung administration has pledged to end coal-fired power generation by 2040, a target that is also reflected in the legally mandated basic plan for long-term electricity supply and demand. He said this would require a concrete roadmap for phasing out coal and determining a sustainable future energy mix. He also pointed to structural limits to renewable energy expansion, citing intermittency as a major challenge. Kim said South Korea, unlike parts of Europe, cannot rely on cross-border power grids and functions effectively as an “energy-independent island.” Its relatively short east-to-west span also limits solar generation hours, making it difficult to secure stable power supply when sunlight is unavailable, he said. Replacing that gap with energy storage systems or pumped-storage hydropower is not straightforward in practice, Kim added. On nuclear power, Kim said it has long served as South Korea’s most important energy source and that the country has the highest concentration of nuclear power plants per unit of land area in the world. He cautioned, however, that nuclear power carries significant risks in the event of an accident. Kim said South Korea has not operated its nuclear plants flexibly, limiting their ability to complement renewable energy sources. Determining how to effectively combine nuclear and renewables is an unavoidable national task, he said. President Lee has instructed officials to avoid ideological approaches to energy policy and instead rely on scientific evidence and consensus-based problem solving. 2025-12-30 15:58:29 -
Seoul lifts ban on access to North Korea's party newspaper SEOUL, December 30 (AJP) - South Korea has lifted long-standing restrictions on access to Rodong Sinmun, the official newspaper of North Korea’s Workers’ Party, allowing the public to read it uncensored at designated institutions, the Unification Ministry said Tuesday. Under the revised rules, South Koreans can access the newspaper at facilities that handle special materials — including the Unification Ministry’s North Korea Information Center and the National Library of Korea — without submitting an application or additional identification, Vice Unification Minister Kim Nam-jung said at a briefing. Restrictions on copying have also been eased, removing the requirement for written approval. The regulatory change was first proposed during a ministerial briefing to President Lee Jae Myung on Dec. 19. Lee reportedly said South Koreans are fully capable of distinguishing propaganda from fact. The issue was later discussed formally among the Unification Ministry, the National Intelligence Service and other relevant agencies last Friday. In the same vein, the ministry is reviewing whether to expand access to certain North Korean websites by revising the Information and Communications Network Act, in an effort to help the public better understand North Korea. About 60 North Korea–related websites — including Rodong Sinmun and the Korean Central News Agency — are currently blocked in South Korea. The ministry noted that the widespread use of VPNs has already weakened the effectiveness of such controls, creating a gap between policy and reality. The government also plans to continue consultations with the National Assembly to expedite passage of a pending bill governing the use and management of North Korea–related materials. Rodong Sinmun, published entirely in Korean, primarily carries speeches and directives by North Korean leader Kim Jong Un, along with policy lines of the Workers’ Party. As the party’s official organ, it promotes the superiority of the regime and its ideology, while also covering international affairs and inter-Korean relations. Although it does not have a dedicated culture section, it occasionally carries cultural articles. Academics welcomed the move as long overdue. “It is appropriate to reclassify Rodong Sinmun as ‘general material,’” said Kim Yong-hyun, a professor of North Korean studies at Dongguk University. “Reading it will hardly make South Koreans become sympathetic toward North Korea. It is time we respond to North Korean issues with confidence.” Koh Yu-hwan, also a professor of North Korean studies at Dongguk University, said the restrictions had long been outdated. “Since 1994, when I founded the Department of North Korean Studies and began teaching, not a single student has turned into a pro–North Korea sympathizer or joined a Juche faction simply by reading Rodong Sinmun,” he said. Access to the North’s official mouthpiece could instead help deepen public understanding of the regime as it really is, said Park Jie-won, a Democratic Party lawmaker and a key architect of the landmark 2000 inter-Korean summit in Pyongyang. “Allowing people to read it directly can be the most effective form of national security education — and even anti-communist education,” Park told AJP. 2025-12-30 15:27:23