Journalist

Lee Hugh
  • Coupang founder apologizes for data breach as government weighs suspension
    Coupang founder apologizes for data breach as government weighs suspension SEOUL, December 28 (AJP) - Kim Bom-suk, the founder of South Korean e-commerce giant Coupang, released a public apology Sunday regarding a massive data breach, acknowledging the company's failure to communicate promptly with affected users. The statement comes a month after the leak was discovered and amid intensifying scrutiny from regulators, who have signaled that the company could face severe penalties, including a potential suspension of operations. In a statement released under his name as chairman of Coupang, Kim offered a "sincere apology" on behalf of all employees. He admitted that the company's initial response was insufficient and that the lack of clear, direct communication fueled fear and anxiety among users regarding the safety of their personal information. Addressing the criticism over the month-long delay in his public response, Kim explained that he had initially believed the company should recover "100 percent" of the stolen data before making an announcement. He stated that he viewed data recovery as the entirety of restoring customer trust, but in retrospect, waiting until all facts were verified was a "wrong judgment." Coupang, often described as the "Amazon of South Korea" and listed on the New York Stock Exchange, has faced mounting public backlash not only for the breach itself but for its handling of the crisis. Government authorities have taken an unprecedentedly hardline stance, launching a pan-government task force and indicating a strict crackdown that could legally lead to a suspension of Coupang's services in South Korea if systemic failures are found. Regarding the ongoing investigation, Kim maintained that Coupang has cooperated fully with the government and strictly adhered to confidentiality requests, even as misinformation spread. He pledged to invest in building a "world-class cyber security system" to prevent future incidents. The apology was released just two days before a major joint hearing at the National Assembly involving six standing committees. Despite the public statement, Kim submitted a notice on Saturday that he would not attend the hearing as a witness, citing overseas business schedules. Critics view the timing of the apology as an attempt to mitigate public anger while avoiding direct questioning by lawmakers. 2025-12-28 14:55:28
  • KAIST technology cuts AI service costs by 67 percent using personal GPUs
    KAIST technology cuts AI service costs by 67 percent using personal GPUs SEOUL, December 28 (AJP) - SEOUL, South Korea — Researchers at the Korea Advanced Institute of Science and Technology (KAIST) have developed a technology that significantly reduces the operating costs of large language models (LLMs) by utilizing consumer-grade graphics processing units (GPUs) found in personal computers and mobile devices. The university announced on December 28 that a team led by Professor Han Dong-su from the School of Electrical Engineering has created "SpecEdge," a framework that integrates low-cost edge GPUs into the infrastructure typically reserved for expensive data centers. AI services currently rely heavily on high-performance GPUs housed in centralized data centers. This dependency results in high operational expenses and creates significant barriers to entry for new AI technologies. While consumer-grade hardware, such as the NVIDIA RTX 4090, offers substantial computing power at a fraction of the hourly cost of data center equipment, existing systems have struggled to effectively coordinate these distributed resources with central servers. SpecEdge addresses this by distributing the inference workload. The system employs a technique known as "speculative decoding." In this process, a smaller language model running on a local device—such as a personal computer or smartphone—rapidly generates a sequence of draft words, or "tokens." The massive language model in the data center then verifies these drafts in a single batch. To maximize efficiency, the local device does not wait for the server's validation before proceeding. Instead, it continues to generate subsequent words, eliminating idle time. This allows the system to function effectively even over standard internet connections without requiring specialized high-speed networks. By offloading a portion of the computation to local devices, the research team reduced the cost per token by approximately 67.6 percent compared to systems relying solely on data center GPUs. The approach also improved server throughput by 2.22 times and cost efficiency by 1.91 times compared to performing speculative decoding exclusively on the server. "Our goal is to utilize edge resources around users as part of the LLM infrastructure, going beyond data centers," said Professor Han Dong-su. "We aim to lower the cost of providing AI services and create an environment where anyone can utilize high-quality AI." The research team included Dr. Park Jin-woo and Cho Seung-geun, a master's student at KAIST. The findings were presented as a "Spotlight" paper—a distinction awarded to the top 3.2 percent of submissions—at the Conference on Neural Information Processing Systems (NeurIPS 2025), held in San Diego from December 2 to December 7. The project was supported by the Institute for Information & Communications Technology Planning & Evaluation (IITP) under the "AI-Native application service support 6G system technology development" project. 2025-12-28 13:38:48
  • South Koreas biotech technology exports top 20 trillion won led by platform deals
    South Korea's biotech technology exports top 20 trillion won led by platform deals SEOUL, December 28 (AJP) - South Korean pharmaceutical and biotech companies saw technology exports surge 162 percent to a record $14.5 billion this year, driven by robust demand for platform technologies and new drug candidates. The Korea Pharmaceutical and Bio-Pharma Manufacturers Association said Sunday that total non-confidential contract values jumped from $5.5 billion last year, demonstrating the sector's growing global competitiveness. Bio-platform deals led the charge. ABL Bio secured the year's largest contract in April, a $3.0 billion agreement with GSK for its "Grabody-B" blood-brain barrier shuttle technology, followed by a $2.6 billion licensing deal for the same platform with Eli Lilly last month. Other major agreements included Alteogen's March deal with AstraZeneca's MedImmune to export its human hyaluronidase technology for $1.4 billion, and Rznomics' $1.4 billion licensing pact with Eli Lilly for RNA editing therapies in May. Exports of new drug candidates were also strong. Abion signed a $1.3 billion joint development deal for its antibody therapeutic in June. Recently, ADEL licensed its Alzheimer's candidate to Sanofi for $1.0 billion, while Aimed Bio signed a contract with Boehringer Ingelheim worth nearly $1.0 billion. Industry observers attribute the streak of large-scale deals to strategic pipelines that match global demand. Experts emphasize that companies must now aggressively reinvest these profits into R&D to ensure sustainable growth, a strategy ABL Bio has already committed to following its recent windfalls. 2025-12-28 13:11:37
  • South Korea weighs expanding tax-free repatriation accounts to include bonds and cash
    South Korea weighs expanding tax-free 'repatriation' accounts to include bonds and cash SEOUL, December 28 (AJP) - The South Korean government is actively reviewing a plan to expand the scope of its proposed tax-exempt "Return-to-Domestic-Market Accounts" (RIA) to include bond exchange-traded funds (ETFs) and cash holdings, officials said Sunday, a move designed to accelerate capital repatriation and stabilize the currency. This follows the government's announcement on December 24 that it would waive capital gains taxes on overseas stocks for investors who sell their foreign holdings and reinvest the proceeds into South Korean equities for at least one year. The original policy aimed to catch two birds with one stone, stabilizing the exchange rate and boosting the domestic stock market. However, officials have acknowledged the practical difficulty of expecting investors to shift immediately from high-performing overseas assets to the volatile domestic stock market. Recognizing that such a switch requires a certain level of expected return, the government is now discussing detailed measures to lower the barrier to entry. According to government sources on Sunday, the revised plan under consideration would allow investors to park their repatriated funds in bond ETFs or mixed stock-and-bond ETFs and still qualify for the tax break. Furthermore, to maximize the currency-stabilizing effect of converting dollars to won, authorities are reportedly discussing granting the tax benefit even if the funds are simply held as won-denominated cash within an RIA. This potential expansion signals a strategic shift, prioritizing exchange rate stability over immediate stock market boosting amid a prolonged period of a weak won. To improve investor convenience, the RIA system is being designed to allow portability across financial institutions. Investors would be permitted to open only one RIA across all brokerages, but they could, for example, sell overseas stocks at Brokerage A and transfer the proceeds to an RIA at Brokerage B to buy domestic assets. Brokerages are expected to launch RIA products by next February. Regulators are also rushing to devise safeguards against tax avoidance. Online investment communities have already begun sharing "cherry-picking" strategies, such as selling overseas stocks to claim the RIA tax break while simultaneously selling existing domestic holdings to repurchase foreign stocks. While the government is reviewing options to reduce or deny benefits for transactions deemed to be for tax avoidance purposes, there are concerns about the administrative burden. Monitoring investors' entire trading histories across different accounts could make the RIA design overly complex and require significant resources. Despite these challenges, market observers remain optimistic about the potential capital inflow. They draw parallels to the 2016~2017 period, when the government introduced tax-free overseas stock funds to encourage capital outflow during a low-exchange-rate era. That initiative attracted approximately 4 trillion won ($2.8 billion), or about 10 percent of the total overseas investment scale at the time. Given the significantly larger volume of overseas investment today, analysts believe that even if the inflow ratio falls below 10 percent, the absolute amount of capital returning to the domestic market could still be substantial. 2025-12-28 10:57:14
  • South Korean shipbuilders regain 20 percent market share despite global slump
    South Korean shipbuilders regain 20 percent market share despite global slump SEOUL, December 28 (AJP) - South Korean shipbuilders have successfully defended their order books this year, regaining a 20 percent global market share despite a sharp downturn in worldwide vessel orders, industry data showed Sunday. South Korea currently stands as one of the world's two dominant shipbuilding nations, locked in a fierce rivalry with China. While China often leads in sheer volume, South Korea has carved out a stronghold in the market for high-value, high-technology vessels, particularly liquefied natural gas (LNG) carriers and eco-friendly ships. The sector is anchored by three major conglomerates often referred to as the "Big Three" -- HD Hyundai, Hanwha Ocean, and Samsung Heavy Industries. After years of competing for volume, these companies have recently shifted strategies to prioritize profitability, engaging in "selective order taking" to fill their docks with premium contracts rather than low-margin bulk carriers. According to Clarkson Research, a British shipbuilding and shipping market analysis firm, cumulative global orders from January to November this year totaled 44.9 million Compensated Gross Tonnage (CGT), or 1,627 vessels. This represents a 37 percent decrease compared to the same period last year. Despite the shrinking global pie, South Korea secured 10.0 million CGT (223 vessels), capturing a 22 percent market share. While this volume represents a 5 percent decline from the previous year, industry analysts view it as a strong performance given that rival China saw its orders plummet by 47 percent to 26.6 million CGT over the same period. The result marks a significant recovery for South Korea, whose market share had fallen to the 10 percent range last year, specifically 17 percent, the lowest level since 2016. The industry appears poised to finish the year comfortably back in the 20 percent range. The "Big Three" shipbuilders have posted solid results, aided in part by geopolitical factors. Industry observers note that the United States' measures to contain the Chinese shipbuilding industry have prompted some international shipowners to redirect orders to South Korean yards. Specifically, following a Section 301 investigation initiated in 2024, the U.S. Trade Representative has moved to impose fees on Chinese-built vessels, creating uncertainty that has benefited Korean competitors. HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company for HD Hyundai's shipbuilding units, has secured $18.2 billion in orders (129 vessels) so far this year. This achieves 100.6 percent of its annual target of $18.1 billion, marking the fifth consecutive year the company has exceeded its goals. Although HD KSOE's total order value decreased by 13 percent compared to last year's $20.9 billion, the industry attributes this to the company's "selective order" strategy, as its construction docks are already fully booked for several years. Hanwha Ocean has secured $9.8 billion in orders to date, surpassing its total performance from last year ($9.0 billion). Its portfolio includes high-value contracts for 20 Very Large Crude Carriers (VLCCs) and 13 LNG carriers. Samsung Heavy Industries has won orders totaling $7.4 billion this year, including 9 LNG carriers, 9 shuttle tankers, 9 container ships, 2 ethane carriers, and 11 crude oil tankers. While this figure represents only 76 percent of its annual target of $9.8 billion, industry officials remain optimistic, noting that additional contracts for offshore plants are expected soon. 2025-12-28 10:47:36
  • Franchise chicken stores top 30,000 in South Korea as major brands dominate
    Franchise chicken stores top 30,000 in South Korea as major brands dominate SEOUL, December 28 (AJP) - The number of franchise fried chicken stores in South Korea has surpassed 30,000 for the first time, the National Data Agency said Sunday, driven by the expansion of major chains even as independent shops struggle to survive. In South Korea, fried chicken is more than just fast food. It is a cultural staple comparable to pizza in the United States. The combination of chicken and beer, known locally as "chimaek," is a ritual for sporting events and social gatherings, evolving from a rare treat in the 1970s to the country's default comfort food. This immense popularity has led to the country being jokingly dubbed the "Republic of Fried Chicken." Opening a franchise is a common path for retirees and former corporate workers seeking a second act, creating a market density so high that brands must constantly innovate with new sauces and flavors to compete. According to the national statistical agency's "2024 Franchise Statistics Results," there were 31,397 franchise chicken stores operating nationwide as of the end of last year. This represents a 5.3 percent increase, or 1,592 locations, from the previous year. The sector has seen steady growth, crossing the 25,000 mark in 2018 and adding approximately 1,000 new franchise locations annually over the past six years. Competition at the top of the market remains fierce. BBQ reclaimed the number one spot last year with 2,316 stores, adding 67 new locations. It overtook bhc, which fell to second place with 2,228 stores after closing 48 locations. Kyochon Chicken followed in third with 1,361 stores, while Cheogajip Seasoned Chicken and Goobne Chicken rounded out the top five. Despite the rise in store numbers, the industry faces signs of saturation. While total revenue for franchise chicken stores rose 7.3 percent to 8.7 trillion won ($6 billion), the average annual revenue per store grew only 1.9 percent to 279.6 million won. The data also highlighted the small-scale nature of these businesses. The average number of employees per store dropped to 2.1, the lowest among all major food service franchises, indicating that most are family-run operations relying on minimal staff. The increasing concentration of franchises reflects a shift in consumption patterns, as delivery apps drive demand toward recognizable brands over independent operators. However, the prevailing view in the sector is that the domestic market has effectively reached a saturation point, leaving little room for major players to continue expanding their footprint aggressively. This saturation is evident in the broader market figures. When including non-franchise independent shops, the total number of chicken restaurants in South Korea has actually declined for three consecutive years, falling to 39,789 in 2023. With domestic growth stalling, major chains are looking abroad. BBQ recently established a European headquarters in Spain and opened a drive-thru location in the United States. Competitors are following suit, with bhc expanding into Indonesia and Kyochon opening new outlets in China this year. 2025-12-28 09:24:36
  • Fire breaks out at motorcycle repair shop in Namyangju
    Fire breaks out at motorcycle repair shop in Namyangju SEOUL, December 27 (AJP) - A fire broke out at a motorcycle repair shop in Namyangju, south of Seoul, authorities said Saturday. Fire officials said the blaze started about 2:55 p.m. at the shop in Byeollae-myeon, Namyangju, in Gyeonggi province. Black smoke rose from the building, prompting a series of calls from nearby residents. No casualties had been confirmed as of Saturday afternoon. Firefighters deployed 31 pieces of equipment and 78 personnel to contain the flames. Police and fire officials said they will investigate the cause and assess damage once the fire is fully under control. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-27 17:18:45
  • Mergers, pricing wars and tighter rules reshape South Koreas content industry in 2025
    Mergers, pricing wars and tighter rules reshape South Korea's content industry in 2025 SEOUL, December 27 (AJP) - Consolidation trumped expansion as the dominant narrative across South Korea's gaming, streaming and webtoon sectors this year, as domestic platforms merged to survive, regulators tightened oversight and companies raced to secure global distribution deals. Streaming services combined subscriber bases while freezing prices under regulatory pressure. Webtoon publishers transformed anti-piracy operations from cost centers into strategic advantages. And game developers navigated stricter loot box rules while claiming international awards and closing major acquisitions. 1. Competition watchdog approves TVING-WAVVE merger with price freeze attached South Korea's competition authority cleared the merger between streaming platforms TVING and WAVVE in June, but attached conditions requiring the companies to hold subscription prices steady for a set period. The decision reflected regulators' attempt to balance industry consolidation against consumer protection. Analysts said the message was clear: build scale to compete globally, but don't pass the costs to users. The streaming sector has burned cash for years as content spending spiraled into a race that benefited viewers but devastated balance sheets. The merger signaled a strategic pivot away from duplicate investments toward leveraging combined subscriber numbers for better content licensing deals. 2. Legal merger stalls, but companies launch joint subscription to test market The formal merger process hit delays over shareholder negotiations and regulatory procedures. Rather than wait, TVING and WAVVE rolled out a combined subscription package on June 16 that gave users access to both platforms. The move captured the year's broader dynamic: regulatory and corporate processes take time, but consumer-facing products can launch immediately. The joint pass went beyond promotional tactics, effectively creating an integrated user experience before legal structures caught up. When the full merger closes, the real test will be integrating content libraries, pricing tiers and recommendation algorithms into a seamless interface. 3. Netflix raises prices in South Korea as ad-tier hits 7,000 won Netflix adjusted its South Korea pricing in May, pushing the ad-supported tier to 7,000 won ($4.85) and raising other plans. The timing put pressure on local platforms just as they sought relief through consolidation. The move also challenged the assumption that ad-supported streaming would remain budget-friendly. Industry observers interpreted the price increase as Netflix setting a new floor for the entire market. Higher average revenue per subscriber funds better content, which drives subscriber growth, completing a cycle that Netflix bet would lift all players. 4. TVING debuts branded collection inside Disney+ Japan in distribution experiment TVING launched a curated section within Disney+ Japan in November, marking a new approach to international expansion. Rather than building standalone services abroad or simply licensing content, TVING secured dedicated shelf space inside an established platform. The model represented a middle path between direct market entry and content supply deals. It gave TVING brand visibility and curation control without the overhead of launching infrastructure. Whether other platforms replicate the approach across different markets remains an open question. 5. Disney invests in WEBTOON, launching joint comics platform Disney and WEBTOON Entertainment announced plans in September to build a new digital comics platform, with Disney taking a 2 percent stake through a non-binding term sheet. The deal flipped the traditional relationship between webtoons and global entertainment. For years, Korean webtoon platforms served as IP farms for Hollywood adaptations. This partnership positioned webtoons as primary distribution channels in their own right. Disney's willingness to invest validated webtoons not as source material awaiting adaptation, but as standalone consumer products capable of monetizing IP directly. 6. Naver WEBTOON adds short-form video with 'Cuts' feature WEBTOON Enetertainment's Naver WEBTOON launched "Cuts" on Sept. 1, expanding beyond scrollable comics into user-generated video content designed for Gen Z consumption patterns. The feature lets creators turn webtoon panels into short clips optimized for social sharing and algorithmic distribution. The format shift addressed retention and discovery challenges. Short videos spread faster through recommendation engines and lower barriers for new readers. Competition among webtoon platforms now extends beyond content catalogs to feed algorithms and viral distribution. 7. Kakao Entertainment blocks 240 million piracy incidents as enforcement becomes core capability Kakao Entertainment reported blocking 240 million instances of illegal content distribution globally in the second half of 2024, according to its anti-piracy white paper. Piracy scales alongside market growth, with illegal sites copying and redistributing content faster than legal teams can respond. The company has shifted enforcement from reactive cleanup to integrated operations combining watermarking technology, automated takedown systems and cross-border legal coordination. Platform competitiveness now depends as much on anti-piracy infrastructure as content acquisition. 8. Kakao shelves restructuring plans for entertainment unit Kakao explored restructuring options for Kakao Entertainment in the first half of the year, including potential stake sales or a separate listing, before abandoning the discussions in August. The reversal suggested that near-term capital raising prospects had dimmed. Kakao Entertainment bundles webtoons, web novels, music and video production under one roof. That scope requires constant capital for original content, IP acquisitions and international marketing. Major funding events would directly accelerate content investment and global expansion. The shelved plans underscored how content companies remain vulnerable to shifting capital market conditions and investor sentiment. 9. Loot box rules shift focus to liability and damages Gaming companies confronted a fundamental change in regulatory enforcement around loot boxes this year. From Aug. 1, the burden of proof shifted to operators, requiring them to demonstrate compliance with probability disclosure rules. Penalties expanded to include civil liability with potential triple damages. The rules went beyond simple disclosure requirements. Companies had to overhaul data retention, logging systems and dispute response protocols. Compliance infrastructure became as critical to live service operations as content updates. 10. Foreign game operators face new accountability as domestic awards and acquisitions pile up Starting Oct. 23, foreign game companies operating in South Korea must designate local representatives, bringing international operators under the same regulatory framework as domestic publishers. The requirement formalized South Korea's approach to holding global platforms accountable under local rules. Meanwhile, Korean publishers extended their global reach through both recognition and acquisitions. Embark, a Nexon subsidiary, won Best Multiplayer at The Game Awards in December for "ARC Raiders." Krafton announced plans in June to acquire Japan's ADK, connecting gaming IP to advertising and animation production. The moves illustrated an industry transformation from game development to full IP management across media formats. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-27 11:35:45
  • FX volatility spurs interest in dollar-denominated insurance in Korea
    FX volatility spurs interest in dollar-denominated insurance in Korea SEOUL, December 27 (AJP) -The dollar-won exchange rate has retreated sharply following strong verbal warnings by authorities against excessive volatility, combined with year-end dollar-selling demand and a broader weakening of the U.S. currency. Still, growing belief that the exchange rate may settle into a new “mid-1,400 won” range has renewed interest in foreign-currency–linked financial products, including dollar-denominated insurance. Sales of dollar insurance at South Korea’s five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — totaled 1.5526 trillion won from January through November this year, according to industry data. That compares with 225.4 billion won in 2022, 568.5 billion won in 2023, and 964.1 billion won last year, underscoring a rapid expansion in demand. The increase is widely seen as reflecting expectations of further dollar strength, as well as a desire among corporations to diversify portfolios amid prolonged weakness in the won. Because premiums and benefits under these products are denominated in U.S. dollars, exchange-rate movements directly affect their cost and payout value. A higher exchange rate raises the won cost of paying premiums, while a lower rate at the time of payout can reduce the won value of benefits. Some analysts note that if the exchange rate is expected to decline, delaying enrollment could help lower premium burdens. Conversely, if the dollar is expected to strengthen further, policyholders may benefit from locking in exposure earlier. Others caution, however, that foreign-currency insurance products are typically long-term contracts — often spanning five to 10 years — making short-term exchange-rate fluctuations less decisive. Over time, currency movements may average out, reducing the impact of near-term volatility. During periods of elevated exchange rates, consumers may also consider products that include mechanisms designed to mitigate exchange-rate risk. “Foreign-currency insurance is not designed as a vehicle for currency speculation,” an industry official said. “If exchange rates or overseas bond yields move unfavorably, premiums can rise or benefits may fall, and additional costs such as foreign-exchange fees can apply. Careful consideration is essential.” 2025-12-27 10:13:49
  • Coupang shares jump 6% in New York after company releases probe findings on data leak
    Coupang shares jump 6% in New York after company releases probe findings on data leak SEOUL, December 27 (AJP) - Coupang shares rose on the New York Stock Exchange (NYSE) on Friday (local time), the first trading day after the company released its own findings on a major personal data leak. Coupang Inc., the parent company of the e-commerce firm, closed up 6.45 percent at $24.27 on the NYSE. U.S. markets were closed the previous day for Christmas, making Friday the first session after the announcement. Coupang said in a news release on Thursday that it had identified a former employee who leaked customer information using forensic evidence. The company said it recovered and secured all devices and hard disk drives used to access and steal the data, and its review found no external transmission. Coupang also said the leaker deleted all stored information and that no customer data were sent to third parties, according to its findings. The rebound was seen as reflecting investor expectations that the situation could stabilize after the company's announcement. The government, however, dismissed Coupang's statement, saying that what Coupang claims has not been confirmed by the joint public-private investigation team and is a one-sided claim. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-27 09:32:23