Journalist
Lee Hugh
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Bank of Korea flags growing investor preference for overseas stocks SEOUL, December 23 (AJP) - South Korean retail investors have been taking profits when local share prices rise while continuing to buy overseas stocks, a shift the central bank linked to differences in long-term return expectations. In its Financial Stability Report released on Tuesday, the Bank of Korea (BOK) said that from July to October — when both South Korean and U.S. equity markets were rising — individual investors were net sellers of 23 trillion won in domestic stocks and net buyers of $10.3 billion, or about 15.28 trillion won, in overseas shares. The central bank said retail investment in domestic and overseas stocks previously tended to move in tandem, but since 2020 the relationship has increasingly become one of substitution, with buying in one market accompanied by selling in the other. During 2020–2021, when overseas stock investment surged, individual investors also made large net purchases of South Korean shares, seeking diversification benefits. More recently, however, the bank said the tendency has strengthened, with overseas stock purchases increasingly accompanied by sales of domestic shares. The report said that when short-term returns rise both at home and abroad, retail investors often lock in gains in South Korean stocks while chasing overseas investments. This pattern became more pronounced in September and October, when the KOSPI outperformed the U.S. S&P 500, rising 28.9 percent compared with 5.9 percent. The BOK said the growing substitution reflects low expectations for long-term returns in South Korea’s stock market. “Because the long-term return gap between the South Korean and U.S. markets has fixed investors’ expectations at low for South Korea and high for the United States, a pattern has emerged of selling domestic stocks and buying overseas stocks when short-term returns rise,” the bank said in the report. It added expectations of foreign-exchange gains amid a recent rise in the won-dollar rate appeared to reinforce the preference for overseas stocks. The bank said that because the return-expectation gap has formed over a long period, temporary improvements in returns are unlikely to alter investor behavior. The bank called for policy efforts such as improving corporate governance and expanding shareholder returns to strengthen the long-term performance and stability of South Korea’s capital markets. Jang Yong-seong, a member of the bank’s Monetary Policy Board who led the report, said easier financial conditions have boosted risk-taking and pushed asset prices up rapidly, warning that vulnerabilities could increase if a shock triggers a sharp market adjustment. 2025-12-23 13:58:02 -
PHOTOS: Seoul's iconic ice rink offers affordable winter fun The Seoul Plaza Ice Rink, Dec. 19, 2025/ AJP Yoo Na-hyun SEOUL, December 22 (AJP) – The outdoor ice rink at Seoul Plaza officially opened its doors to the public last week, marking the return of one of the city’s most beloved winter traditions. The rink is scheduled to operate for a total of 52 days, welcoming skaters through February 8. According to city officials, the facility is open from 10 a.m. to 9:30 p.m., Sunday through Friday. On Saturdays and public holidays, operating hours are extended until 11 p.m. to accommodate larger weekend crowds. In an effort to keep the activity accessible, admission remains priced at only 1,000 won (approximately $0.75) per one-hour session. This entry fee includes the rental of both ice skates and a helmet. While essential safety gear, including helmets and knee pads, is provided free of charge, visitors should note that personal winter accessories and on-site storage lockers are available for an additional fee. 2025-12-23 13:43:23 -
US nuclear-powered submarine docks in Busan to replenish supplies SEOUL, December 23 (AJP) - The USS Greenville arrived on Tuesday in South Korea's southern port city of Busan to replenish supplies and provide rest for crew members. The Los Angeles-class nuclear-powered attack submarine Greeneville, named after Greeneville, Tennessee, will engage in activities to strengthen cooperation between the two allies, according to the South Korean Navy. The submarine, which is 110 meters long and 10 meters wide, is equipped with Tomahawk cruise missiles launched from approximately 12 vertical launching systems (VLS), as well as torpedoes fired from four launch tubes. The USS Greenville last docked in Busan in 2016, with the latest visit marking its fourth trip to South Korea. Its arrival comes about 10 months after the USS Alexandria visited the same naval base for similar activities in February. 2025-12-23 11:15:16 -
Santa rally in Asia kicks off on wobbly note SEOUL, December 23 (AJP) - Asian equity markets opened Tuesday on a fragmented footing, as the first session of the traditional five-day “Santa rally” window failed to deliver a uniform year-end surge. With momentum cooling after recent gains, investors across the region adopted a wait-and-see stance. In Seoul, the benchmark KOSPI rose 0.57 percent to 4,129 as of 10:45 a.m., extending gains for a second day after Monday’s 2 percent rally. Foreign and institutional investors led the advance, with overseas funds net buying 227.4 billion won ($153.2 million) and institutions adding 302.0 billion won. Retail investors, meanwhile, locked in profits, selling a net 497.0 billion won. Despite solid equity inflows and a mild retreat in the dollar index, the Korean won weakened to 1,484 per dollar, down 3.2 won, breaching the 1,480-level that many traders view as a key psychological support level. Markets remained focused on the timing of potential currency-hedging operations by the National Pension Service and further foreign-exchange stabilization signals from authorities. Blue-chip technology stocks tracked higher. Samsung Electronics gained 1.5 percent to 112,000 won, while SK hynix rose 1.6 percent to 590,000 won, supported by strong earnings from U.S. peer Micron Technology and continued optimism over HBM4 development. Shipbuilding and defense stocks outperformed. Hanwha Ocean surged 9 percent to 119,700 won after reports that Donald Trump announced plans to collaborate with the company on U.S. domestic frigate construction. Defense-linked Hanwha Systems climbed 3.5 percent to 58,800 won. In contrast, the tech-heavy KOSDAQ slipped 0.7 percent to 922, pressured by a 157.0 billion won net sell-off by foreign investors. Aerospace stocks were hit hard, reversing gains driven by earlier SpaceX-related speculation. InnoSpace plunged 27 percent to 11,000 won after its HANBIT-Nano launch vehicle failed its mission, while satellite firm Nara Space Technology tumbled 23 percent to 35,500 won. In Japan, the Nikkei 225 was little changed at 50,376, as investors paused after recent advances. Automakers edged lower, with Toyota Motor down 0.3 percent and Honda Motor slipping 0.2 percent, weighed by lingering rate-hike effects and a lack of fresh catalysts. Japanese semiconductor stocks saw profit-taking, with Advantest down 2.2 percent and Tokyo Electron off 0.9 percent. Financials, however, extended gains on higher-rate expectations, as Mitsubishi UFJ Financial Group rose 0.9 percent and Mizuho Financial Group added 1.3 percent. Taiwan’s TAIEX advanced 0.5 percent to 28,290, led by a 1 percent gain in TSMC and a 0.65 percent rise in Foxconn. Mainland China markets were flat, with the Shanghai Composite at 3,922 and the Shenzhen Component at 13,356. Hong Kong’s Hang Seng Index was also little changed at 25,829, reflecting the region’s cautious tone. 2025-12-23 11:11:40 -
Korean won nears annual trough despite all-out defense SEOUL, December 23 (AJP) - The Korean won is nearing its annual trough of 1,487.6 per dollar last seen on April 9, when global markets reeled from renewed risk aversion triggered by Donald Trump’s tariff barrage, despite all-out defensive efforts by South Korean authorities. The dollar closed Tuesday in Seoul at 1,483.6 won, up 3.5 won even as the dollar index eased 0.23 percent to 98.072 and the greenback softened against the Japanese yen — underscoring idiosyncratic weakness in the won rather than broad dollar strength. The dollar is down 0.96 yen at 156.12 yen. The won’s slide through the psychologically critical 1,480 “defense line” came against the tide of foreign equity inflows, with overseas investors buying 955 billion won worth of KOSPI shares amid a global technology-stock shopping spree. The breach has raised questions over the effectiveness and limits of authorities’ FX-defense capabilities, particularly as equity inflows failed to translate into currency support. Ha Joon-kyung, senior presidential secretary for economic growth, became the latest official to join the chorus of intervention, warning in a local media interview on Monday that “one-sided market behavior has become pronounced since November,” and that speculative bets on further won weakness are intensifying. “It would be a misjudgment to think the government will stand by in the face of excessive market concentration,” Ha said — a pointed signal that authorities are prepared to act. Authorities have hinted all possible actions to defend the won, including dollar-selling and hedging operations by the National Pension Service, heightened real-time monitoring of FX flows, and repeated assurances that disorderly, speculative moves will not be tolerated. The Bank of Korea has supplemented with liquidity incentives, including interest payments on banks’ FX reserve deposits and a temporary waiver of the FX stability levy, while signaling readiness for additional liquidity support and market-smoothing operations to counter disorderly won moves. 2025-12-23 11:11:21 -
POSCO invests $3 million in US humanoid robot startup in push for 'physical AI' SEOUL, December 23 (AJP) - POSCO DX is making a strategic investment in a U.S.-based industrial humanoid robot startup as it seeks to accelerate automation and improve safety at heavy industrial sites such as steel mills. POSCO DX, led by Chief Executive Shim Min-seok, said on Tuesday it will invest $2 million in Persona AI and collaborate with the company on joint robot development. Including a separate $1 million investment from a fund backed by POSCO Technology Investment, the total investment at the group level amounts to $3 million. The move is part of POSCO DX’s strategy to combine POSCO Group’s artificial intelligence capabilities with advanced robotics to develop so-called “physical AI,” which integrates intelligence directly into machines operating in real-world environments. Persona AI, founded in June last year, is a U.S. startup focused on humanoid robots for labor-intensive industrial workplaces. The company was co-founded by Chief Executive Nicholas Radford, a former NASA robotics engineer, and Jerry Pratt, who previously served as chief technology officer at humanoid robot maker Figure AI. POSCO DX said Persona AI’s technology enables precise manipulation across a wide range of tasks, from assembling small components to handling heavy objects. According to the company, the robots are equipped with multi-axis tactile sensors in their hands that process data in real time, allowing simultaneous control of force and position through compliant control, which supports stable operation in industrial environments. Persona AI also applies artificial intelligence algorithms based on a robot foundation model, enabling autonomous interaction and task execution, POSCO DX said. POSCO DX said it plans to integrate its industrial AI software with Persona AI’s humanoid robot hardware to develop robots capable of replacing high-risk manual processes at POSCO facilities. The company has previously introduced technologies that allow remote operation of ultra-large equipment, including steel-mill cranes and unloading machines. A POSCO DX official said humanoid robots tailored to heavy industrial environments could simultaneously improve productivity and workplace safety. 2025-12-23 10:45:26 -
Nearly 90% of North Korean defectors satisfied with life in South Korea, survey finds SEOUL, December 23 (AJP) - About eight in 10 North Korean defectors say they are satisfied with their new life in South Korea, a survey reveals. The Korea Hana Foundation on Tuesday released its survey of around 2,500 North Korean defectors who arrived in Seoul between January 1997 and December last year. This year's survey, conducted through face-to-face interviews by about 76 specialized counselors, with a response rate of 86.4 percent or around 2,160 respondents, found that 81.2 percent were content with life in South Korea, up 1.6 percentage points from a year earlier and the highest level since the survey began in 2011. "Freedom" was the most common reason for satisfaction, cited by 41.5 percent, while 24.3 percent pointed to "separation from family" as the main reason for dissatisfaction. Some 14 percent said they experienced discrimination or were looked down on in the past year for being defectors, down 2.3 percentage points from the previous year and the lowest on record. Some 61.6 percent expressed satisfaction with their social and economic achievements, and 72.2 percent believed they could improve the social and economic status of themselves and their children. Wage gaps, however, still remain, with their average monthly income at 2.61 million won, compared to 3.20 million won for ordinary South Koreans. About 61.3 percent were employed, slightly lower than their compatriots in the South. 2025-12-23 10:38:43 -
Hyundai E&C joins offshore wind farm project in $480 million deal SEOUL, December 23 (AJP) - Hyundai Engineering & Construction (Hyundai E&C) said on Tuesday it has signed a construction contract worth 668.4 billion won ($480 million) to participate in an offshore wind farm project off Sinan, South Jeolla Province, a development with a total construction cost of 2.64 trillion won. The project, led by Hanwha Ocean, calls for the installation of 26 offshore wind turbines, each with a capacity of 15 megawatts, in waters southeast of Uido in Sinan County. Hyundai E&C’s contract accounts for 668.4 billion won of the total project cost. Hyundai E&C will jointly carry out construction with Hanwha Ocean, excluding turbine supply and installation. Its scope of work includes manufacturing and installing substructures, laying 32.5 kilometers of subsea cables, and building an offshore substation as well as an onshore monitoring facility. Construction is expected to take about three years, with commercial operations targeted for 2029. Once completed, the project is expected to generate 1,052 gigawatt-hours of electricity annually, enough to power about 292,500 four-person households for a year, based on average monthly consumption of around 300 kilowatt-hours. Hyundai E&C entered the offshore wind construction sector in 2015. The company said it has since built a track record in the sector, including the successful completion of the Jeju Hallim offshore wind farm, currently the country’s largest, which entered operation following a completion ceremony on Sept. 15. Hyundai E&C said it is also seeking to secure technologies linked to Hyundai Motor Group’s hydrogen value chain and to lay the groundwork for expansion into global renewable energy markets. As part of that effort, it signed a strategic memorandum of understanding in 2023 with Germany-based RWE, Europe’s largest power generation company. 2025-12-23 10:03:11 -
Korean automaker KGM partners with Samsung SDI on developing EV battery packs SEOUL, December 23 (AJP) - South Korean automaker KG Mobility (KGM) has signed a memorandum of understanding with Samsung SDI to form a strategic partnership aimed at developing and commercializing electric vehicle battery packs. Under the agreement, the two companies will jointly develop cylindrical nickel-cobalt-aluminum (NCA) battery packs and cooperate closely on high-voltage battery pack development, testing and production. The project will use Samsung SDI’s cylindrical 46-series NCA cells, which have a diameter of 46 millimeters. Samsung SDI said the cells offer long driving range and fast charging through high energy density, while improving safety and durability under a wide range of driving conditions. KGM said the cells incorporate high-capacity, high-nickel NCA cathode materials along with Samsung SDI’s proprietary silicon carbon nanocomposite (SCN) anode material, which reduces swelling, increases energy density and extends battery life while maintaining safety. Beyond the battery pack development program, KGM and Samsung SDI said they plan to pursue a longer-term partnership. This includes joint product planning based on Samsung SDI battery cells, cooperation on vehicle lineups, a global branding strategy for overseas markets and a joint review system for emerging technologies. Kwak Jeong-hyeon, head of KG Mobility’s business strategy division, said in a press release that the partnership will help the automaker respond to rapid changes in industry conditions and government policies, including the diversification of battery materials. 2025-12-23 09:46:36 -
New phone activations require face verification under pilot program SEOUL, December 23 (AJP) - Starting Tuesday, anyone activating a new mobile phone in South Korea must undergo face verification in addition to presenting an ID. The Ministry of Science and ICT said it launched a pilot program for stricter identity checks to prevent phones from being illegally activated for crimes such as voice phishing and smishing. Under the program, face verification will be mandatory for new activations at in-person sign-up counters run by major telecom operators including SK Telecom, KT, and LG Uplus as well as online channels operated by some 43 budget carriers. After a roughly three-month trial, the ministry plans to expand the verification procedure to all mobile carriers in March next year. Addressing privacy concerns, the ministry said facial data will be used solely for identity verification and immediately deleted afterward. 2025-12-23 09:36:57