Journalist

Lee Hugh
  • Hyundai Motor Group to supply 224 hydrogen buses to Guangzhou
    Hyundai Motor Group to supply 224 hydrogen buses to Guangzhou SEOUL, December 12 (AJP) - Hyundai Motor Group said Friday that its Chinese fuel-cell unit, HTWO Guangzhou, has won a contract to supply hydrogen-powered city buses to Guangzhou State-owned Bus Group, marking the largest single hydrogen bus procurement project in China to date. Under the project, HTWO Guangzhou will supply 224 buses to the Guangzhou operator. Hyundai said the order represents a significant milestone in its efforts to expand its hydrogen mobility footprint in China. The vehicles are 8.5-meter hydrogen electric buses jointly developed by HTWO Guangzhou and Chinese commercial vehicle maker Kaiwo Group, the company said. The buses are equipped with HTWO Guangzhou’s 90-kilowatt hydrogen fuel-cell system, which offers 64 percent power-generation efficiency — higher than conventional internal combustion engines — and a driving range of up to 576 kilometers under local testing standards. The latest contract follows a separate tender last month, in which HTWO Guangzhou and Kaiwo Group secured the largest share of orders — 25 out of 50 hydrogen buses — from the same public bus operator. An HTWO Guangzhou official said the deployment will reinforce the company’s position in the hydrogen energy sector. As Guangzhou designates hydrogen as a key tool to reduce transport emissions and improve energy efficiency, the project is expected to accelerate the city’s transition to cleaner public transport infrastructure, the official added. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-12-12 10:35:49
  • KakaoBanks collaboration with Indonesias Superbank gains momentum with Lucky Card rollout
    KakaoBank's collaboration with Indonesia's Superbank gains momentum with 'Lucky Card' rollout SEOUL, December 12 (AJP) - KakaoBank is deepening its partnership with Indonesian digital lender Superbank, its first overseas equity investment, as the South Korean internet-only bank steps up efforts to expand abroad. KakaoBank said on Friday it advised Superbank on the launch of a new financial product, following a financial consulting agreement signed between the two companies in November last year. Under the deal, KakaoBank has been sharing its mobile banking expertise and service-planning know-how to help Superbank introduce new digital services in Indonesia. Superbank, backed by Grab and in which KakaoBank acquired a 10 percent stake in 2023, represents the Korean bank’s first major push into international markets. Since its investment, KakaoBank has supported Superbank’s product design, app interface development and service rollout, using the collaboration to build its own overseas capabilities. The new product, “Kartu Untung (Lucky Card)," was developed over roughly a year based on an idea proposed by KakaoBank. The Korean lender participated in product planning and mobile design throughout the development process. The savings feature allows customers who deposit 50,000 rupiah (about 5,000 won) to draw a daily lottery-style cashback reward via the Superbank app. Kartu Untung incorporates KakaoBank’s experience in revamping savings offerings — such as its 26-week installment savings and group account products — and adds gamified elements designed to boost engagement. The product gained traction quickly, signing up more than 100,000 customers within two weeks of launch. Superbank has been growing rapidly, supported by access to the ecosystems of its major shareholders. The lender now has around 5 million users, with about 60% coming through Grab and digital wallet service OVO, underscoring the synergy among stakeholders. Its expansion is expected to improve KakaoBank’s investment returns. Superbank became profitable on a quarterly basis just nine months after launch and, on the back of its performance and growth momentum, plans to list on the Indonesia Stock Exchange this month. A KakaoBank official said the partnership has helped raise the company’s visibility in Southeast Asia and demonstrated the technological capabilities of South Korea’s digital finance sector. The bank plans to form consortiums with major international partners to pursue new business opportunities and extend its global footprint. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 10:14:42
  • Subway workers in Seoul call off strike after last-minute agreement
    Subway workers in Seoul call off strike after last-minute agreement SEOUL, December 12 (AJP) - Unionized subway workers in Seoul on Friday called off their planned full-scale strike after reaching a last-minute deal with management, averting major disruptions to the morning rush hour. Seoul Metro, which operates subway lines 1 through 8, said it reached an agreement early in the morning after overnight marathon negotiations. The workers had earlier threatened to strike from the first trains of the day unless their demands for higher wages, the hiring of more staff, and a halt to large-scale layoffs and pay cuts were met. Negotiations with workers from other unions also concluded in separate agreements later on. The key sticking point in the negotiations was staffing. Both sides agreed to hire approximately 820 workers to fill existing vacancies, with an additional 180 recruits for extended operations to be hired later through a separate process. The two sides also resolved other issues related to wages and working conditions by narrowing their differences. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 09:37:14
  • Celltrion secures major U.S. formulary deal for biosimilar Avtozma
    Celltrion secures major U.S. formulary deal for biosimilar Avtozma SEOUL, December 12 (AJP) - South Korean biopharmaceutical company Celltrion said Friday it has secured formulary inclusion for its autoimmune disease treatment Avtozma with Synergie Medication Collective, a major pharmacy benefit manager (PBM) formed by several Blue Cross and Blue Shield companies in the United States. The intravenous formulation of Avtozma, a biosimilar of Roche's tocilizumab, has been listed as a preferred drug across all public and private insurance formularies managed by Synergie Collective. Patient reimbursement coverage will take effect in January, paving the way for accelerated prescription growth in the world's largest pharmaceutical market. The agreement marks Celltrion's second major coverage win since launching Avtozma in October, following its earlier inclusion in Blue Cross and Blue Shield's Minnesota formulary. Celltrion's U.S. subsidiary has completed the deployment of specialized sales personnel for the rheumatoid arthritis segment, Avtozma's primary indication. A subcutaneous formulation of the drug is slated for release in the first half of next year, which the company expects will further strengthen its market position. "All products we launched in the U.S. market this year, including Avtozma, Stekima and Stoboclo-Osenvelt, have been smoothly listed on major PBM formularies, successfully laying the groundwork for accelerating patient prescriptions," said a Celltrion spokesperson. The top five PBMs control more than 90 percent of the U.S. prescription drug reimbursement market, making their formulary decisions a critical factor for commercial success in the country. 2025-12-12 09:33:09
  • Foreign investors turn net sellers of Korean stocks in November
    Foreign investors turn net sellers of Korean stocks in November SEOUL, December 12 (AJP) - Foreign investors sold more than 13 trillion won ($9.7 billion) worth of South Korean equities in November, turning net sellers for the first time in six months, while resuming net purchases of local bonds. According to the Financial Supervisory Service (FSS) on Friday, offshore investors recorded net equity sales of 13.4 trillion won. They offloaded 13.5 trillion won on the Kospi but were modest net buyers on the Kosdaq, purchasing 118 billion won. Foreign investors held 1,193 trillion won in listed equities and 322 trillion won in listed bonds as of the end of November, a combined total of 1,515 trillion won. Equity holdings fell 56.1 trillion won from October due to the sell-off, while bond holdings rose 14.6 trillion won on renewed net investment. European investors posted the largest net equity sales at 5.7 trillion won, followed by investors from the Americas with 3.6 trillion won and Asia with 2.7 trillion won. By country, the United Kingdom and the United States were the biggest net sellers, unloading 4.5 trillion won and 4.1 trillion won, respectively. Canada and Ireland were net buyers, at 500 billion won and 400 billion won. U.S. investors remained the biggest equity holders with 489 trillion won, or 41 percent of the total, followed by European investors with 375.3 trillion won (31.5 percent), Asian investors with 164.8 trillion won (13.8 percent) and Middle Eastern investors with 19.8 trillion won (1.7 percent). In the bond market, foreigners bought a net 17.62 trillion won in listed bonds in November and saw 1.37 trillion won mature, resulting in net investment of 16.25 trillion won. European investors led net bond purchases with 9.6 trillion won, followed by Asian investors with 4.5 trillion won and investors from the Americas with 1.7 trillion won. By holdings, Asian investors accounted for the largest share at 42.7 percent (137.2 trillion won), while European investors held 37.1 percent (119.2 trillion won). * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-12 09:30:18
  • Weaker won sends Koreas import prices up to a 19-mo high
    Weaker won sends Korea's import prices up to a 19-mo high SEOUL, December 12 (AJP) -South Korea’s import prices climbed in November despite a sharp pullback in global fuel costs, as the won’s depreciation against the U.S. dollar outweighed relief from cheaper energy, Bank of Korea data showed Friday. The import price index rose 2.6 percent on month and 2.2 percent on year to 141.82, accelerating from October’s 138.19 and posting the steepest monthly increase since April last year. The gains came even as Dubai crude averaged $64.47 per barrel in November, down from $65 in October, highlighting the dominant impact of exchange-rate movements on the country’s trade conditions. The dollar averaged 1,457.77 won in November — up 2.4 percent from the previous month and 4.6 percent from a year earlier — amplifying import costs across major categories. Raw materials rose 2.4 percent, led by higher natural gas prices, while intermediate goods such as computers and electronic components climbed 3.3 percent. Capital goods increased 1.5 percent and consumer goods 1.8 percent. Some inputs central to Korea’s industrial base posted sharp jumps. Lithium hydroxide surged 10 percent, and flash memory prices leapt 23.4 percent, reflecting a surge in chip-fabrication activity. Bank of Korea price statistics chief Lee Moon-hee cautioned that volatility remains elevated. “The average exchange rate from December 1 to 10 rose by 0.8 percent from the previous month,” he said. “Given the uncertainty, we need to monitor exchange rate fluctuations until the end of the month.” A weak won, however, proved supportive for exporters. The export price index climbed 3.7 percent on month and 7.0 percent on year to 139.73, boosted by a broad-based jump in semiconductor prices. DRAM led the gains with an 11.6 percent rise amid persistent supply tightness. When measured in U.S. dollars, import prices increased 0.7 percent in value and 4.3 percent in volume, while export prices surged 9.1 percent in value and 6.8 percent in volume, improving overall trade conditions. South Korea’s net terms of trade index rose 5.8 percent on year, marking 29 straight months of improvement. Export prices gained 2.1 percent, far outpacing the 3.4 percent decline in import prices, while the volume-based index jumped 13 percent, signaling strengthened purchasing power for the economy. 2025-12-12 07:53:01
  • OPINION: The compass for Seouls FX policy now points to Tokyo
    OPINION: The compass for Seoul's FX policy now points to Tokyo The Federal Reserve has cut its rate target range again this week, but the news barely rippled across Korean markets. The dollar strengthened, Korean stocks softened and yields inched upward — hardly the reaction one expects after a major policy decision from Washington. That muted response reflected an important shift in global finance: the Fed may still set the rhythm, but it no longer commands the stage. Markets registered the U.S. rate cut and immediately turned their gaze to Japan, where far more consequential changes are brewing. For more than a decade, investors have been conditioned to read every signal from the Fed as a defining market event. This time, they moved on. And they were right to. The Fed’s third consecutive cut — bringing the policy range to 3.50–3.75 percent — was fully anticipated and delivered with unmistakable caution. This was not a return to accommodative policy; it was a technical adjustment in an environment where the Fed’s room for maneuver is limited. The narrowing of the U.S.–Korea rate gap may ease some pressure on the won, but it won’t reverse the powerful outward flow of Korean capital into global markets. Nor does it free the Bank of Korea from its domestic constraints, including a housing market sensitive to any hint of loosening. Simply put, the U.S. rate cut has already played its part. The story now moves elsewhere. Japan’s Shift Is the Real Disruptive Forc Japan, long the quiet spectator in global monetary dynamics, is suddenly the decisive variable. After decades of anchoring global liquidity with near-zero rates, the Bank of Japan is edging toward normalization. Even a modest rate hike — a move unremarkable in most economies — would send tremors through the global financial system. That is because the yen carry trade is not a niche strategy; it is a structural pillar of global liquidity. Trillions of dollars in positions worldwide have been built on the assumption that Japanese money will remain cheap, the yen will stay weak and volatility will remain low. These conditions are evaporating. Japan’s 10-year government yield has been pressing toward multi-decade highs, speculative yen shorts are stretched and the currency is no longer one-directional. Markets know the implications. Every major episode of global market stress over the last 25 years — from the 1998 Asian crisis to the 2008 collapse, to the 2015–16 turbulence and the early-2020 shock — involved a surge in the yen and a disorderly unwinding of leveraged positions. Japan’s normalization would not merely shift sentiment; it would reprice risk across every major asset class globally. In that sense, the Bank of Japan’s next step is not a regional issue. It is the defining global risk of the coming year. Korea Lies Directly on the Fault Line Korea is one of the markets most exposed to this shift — not because its fundamentals are weak, but because it sits at the intersection of global capital flows shaped by both the United States and Japan. A disorderly carry-trade unwind would push up volatility in the won, trigger foreign rebalancing and pressure both equities and bond yields. But Korea also stands to benefit if it positions itself strategically. As rate differentials across the United States, Japan and Korea narrow, and as weaker emerging markets struggle with instability, Korea’s institutional credibility and relative resilience could enhance its standing as a safe regional alternative. The opportunity is real — but only if it is earned through preparation, not assumed by default. Policy Must Catch Up With Reality Korea’s macro playbook must evolve as the global axis of risk shifts. First, monitoring Japan must become as central as tracking the Fed. The yen’s trajectory, Japanese government bond yields, shifts in speculative positioning — these are now core indicators, not peripheral curiosities. Second, Seoul must treat interest rates, currencies and capital flows as an integrated system. Fragmented management will not withstand the level of volatility Japan could unleash. Third, Korea must strengthen its market infrastructure. Thin liquidity in FX and derivatives markets amplifies shocks. That vulnerability is no longer tolerable. Fourth, the country must communicate risk more directly to households and retail investors, whose aggressive overseas allocations have become a structural feature of the Korean market. The volatility ahead is not cyclical; it is systemic. The U.S. rate cut may dominate headlines, but it is no longer the hinge on which the global financial system turns. Japan’s slow exit from ultra-loose monetary policy represents a far more consequential shift — one that could reshape liquidity, valuations and volatility across the world. Korea does not get to choose whether this transformation happens. It only gets to choose how prepared it will be. What is clear is that the axis of global financial risk has already begun to tilt. It is no longer aligned solely with Washington. It is moving unmistakably toward Tokyo. And Korea’s ability to navigate the next phase depends on how quickly it internalizes that change. * The author is the managing editor of AJP. 2025-12-11 19:52:42
  • Korea hopes to let fabless catch up to fab power through $520 billion mega spending
    Korea hopes to let fabless catch up to fab power through $520 billion mega spending SEOUL, December 11 (AJP) - That South Korea is a semiconductor powerhouse is established fact: it is home to the world’s largest memory-chip production base. But in the fabless sector — the chip-design layer that defines system-semiconductor competitiveness — the country remains a laggard. That gap is driving an urgent and ambitious push to cultivate proprietary chip architecture capabilities. The government-led vision calls for more than 700 trillion won (about $518 billion) in public–private investment through 2047 to expand manufacturing capacity, elevate system-chip design capabilities, and build a national talent pipeline. Government documents show that by 2031, 1.26 trillion won will go toward AI-specialized chips, 2.6 trillion won into compound semiconductors, and 3.6 trillion won into advanced packaging, along with a 300-billion-won graduate-level semiconductor university intended to produce 300 MS/PhD engineers each year. Korea’s semiconductor strength remains overwhelmingly concentrated in memory, leaving the industry exposed to boom-and-bust cycles and dependent on design decisions made by U.S. chip architects, most notably Nvidia. While Samsung Electronics and SK hynix dominate memory globally, Korea’s fabless firms hold barely 1 percent of the global market—far behind the United States’ 72 percent and Taiwan’s 8 percent. Only one domestic firm, LX Semicon, is ranked among the world’s top 50 fabless companies. The combined revenue of Korea’s top ten fabless firms amounts to just 1.17 percent of global fabless sales. Chronic engineering shortages and limited access to affordable prototype production have long constrained growth. Industry experts say the government’s strategy reflects a structural truth: a world-class foundry cannot thrive without a strong base of domestic design customers. “Korea has extremely strong memory makers, but a healthy foundry business requires a wide range of fabless customers constantly bringing new designs and challenges,” said Gong Byung-don, a professor at POSTECH. “That was the foundation of Taiwan’s ecosystem. For 15 to 20 years, dozens of mid-sized design houses grew around TSMC, and that accumulated demand is what made the foundry giant possible.” To close Korea’s structural gap, the government will establish a 4.5-trillion-won “shared foundry”—a 12-inch, 40-nanometer fab that sets aside dedicated production capacity for domestic chip designers. Officials say the facility will ease prototyping bottlenecks, cut early-stage costs, and mirror Taiwan’s MPW and shuttle-run system that enabled rapid iteration among its small and mid-sized chip-design houses. The broader industrial blueprint links the fabless hub in Pangyo, the Yongin mega-fab cluster, and advanced packaging bases in Gwangju and Busan into an integrated value chain supporting design, production, testing, and assembly. Policymakers argue that AI accelerators, automotive semiconductors, and power devices will increasingly shape global chip demand—and that Korea must compete in these segments to reduce overreliance on memory cycles. Analysts say the initiative also responds to an AI-driven shift in global semiconductor power, with fabless firms such as Nvidia, AMD, and U.S. startups dictating the roadmap for next-generation chips. With hyperscalers pouring unprecedented capital expenditure into AI accelerators, governments see strategic value in securing both design and manufacturing capabilities to safeguard supply chains. Korean fabless firms have long argued that the lack of a dependable domestic manufacturing partner forced them abroad, weakening collaboration between designers and manufacturers and slowing commercialization. Gong said improved access to early-stage production could meaningfully change the landscape. “Test runs, MPWs and prototype fabrication matter enormously for small fabless firms,” he said. “But Korea still faces a market-access challenge. Domestic demand alone is not enough, and Korean startups must be able to reach U.S. and global customers to scale.” He added that while Korea has narrowed the technical gap, constraints remain. “In AI-specific chips, Korea has reached perhaps 80 to 90 percent of global competitiveness. But talent flows mainly into major corporations, and small fabless firms still struggle to secure diverse customers in a highly concentrated domestic market.” If the plan succeeds, officials believe Korea could raise its fabless market share to 10 percent by 2030 and build a semiconductor industry driven by both system-chip innovation and manufacturing scale. But they acknowledge the challenges: intensifying global competition for design talent, the entrenched dominance of U.S. and Taiwanese ecosystems, and the need for domestic firms to break quickly into AI and next-generation system-chip markets. Still, the government argues that combining mega-cluster development, expanded AI-chip R&D, and a dedicated fabless production line marks Korea’s most ambitious semiconductor realignment in decades — an attempt to build an industry powered not only by memory but by a full spectrum of system semiconductors. 2025-12-11 17:48:50
  • Defensive of KRW, Seouls attention shifts to potential rate hike in Japan after U.S. rate cut
    Defensive of KRW, Seoul's attention shifts to potential rate hike in Japan after U.S. rate cut SEOUL, December 11 (AJP) - A U.S. rate cut typically delivers immediate relief to Korean financial markets. This time, it barely moved sentiment. Investors quickly pivoted to risks emerging across the Pacific — namely the possibility of a Japanese rate hike that could unleash sweeping reversals of international capital leveraged through decades of zero-interest Japanese funding. As widely expected, the U.S. Federal Reserve delivered a third consecutive rate cut, lowering the federal funds rate to 3.50–3.75 percent and narrowing the gap with Korea’s base rate at 2.50 percent. A smaller interest differential usually encourages capital to remain in Korea. That pattern did not materialize. The dollar jumped 6.70 won to 1,473.30. The KOSPI fell 0.6 percent and the KOSDAQ slipped 0.04 percent on Thursday. The 10-year government bond yield inched up to 3.378 percent from Wednesday's 3.371 percent. BOJ policy and JGB yields fuel unwind fear The yen carry scare has returned. The Bank of Japan is under pressure to move on interest rates as long-term yields — those attached to financial products with maturities of one year or more — rise faster than authorities expected, heightening inflation risk. BOJ Governor Kazuo Ueda acknowledged the shift during a parliamentary budget committee session on Tuesday, reiterating earlier signals pointing toward an eventual rate hike. Japan for decades tolerated a weak yen to boost export competitiveness and fight deflation. The “yen carry trade” — in which global investors borrow cheap yen and invest in higher-yielding assets abroad — was central to this strategy. The trade thrived when Japanese interest rates stayed pinned at zero while U.S. and global rates surged during the tightening cycle. But with Japanese inflation now hitting the 2 percent target and concerns of overshooting rising, the BOJ’s stance is changing. A shift toward Japanese tightening — as the U.S. loosens — raises the risk of a carry trade unwind, which can drain capital from markets heavily reliant on foreign funds. Korea is particularly vulnerable when the won hovers near crisis-level ranges. Deputy chiefs overseeing fiscal, monetary, and financial policy convened an emergency macro-financial meeting Thursday, warning that vulnerabilities in the bond and FX markets could intensify under diverging global monetary conditions. The won fell 3.2 percent against the dollar in November, steeper than the Taiwanese dollar’s 1.9 percent decline and the Japanese yen’s 1.4 percent. Much of the downward pressure stems from a combination of rapid M2 money supply expansion and persistent net outflows stemming from individuals’ and institutions’ high overseas investment appetite. Analysts agree that a carry-trade unwind could accelerate the won’s decline but stop short of calling the situation a crisis. “Unlike last year, when yen futures were net short, this year long positions dominate. The market has already anticipated a BOJ rate hike,” said Cho Yong-gu, researcher at Shinyoung Securities. He added that for the Korean won and bond yields to stabilize, a BOJ rate hike could paradoxically be helpful, as it would calm super long-term JGB yields and prevent broader turmoil in Asian currency markets. Japanese government bond yields have been stoking unwind fears. The 10-year JGB yield has nearly doubled in a year, rising from 1.054 percent on Dec. 9, 2024 to 1.956 percent on Wednesday — surpassing the 1.87 percent level recorded in December 2008. A surge driven partly by heavy Japanese government bond issuance to fund stimulus has amplified inflation concerns, making BOJ tightening more urgent. Experts also bet on BOJ tightening Markets remain divided on the BOJ’s next move, as government and central bank signals continue to diverge. Heo Seong-woo, researcher at Hana Securities, said that expectations of rising inflation and wage growth — pushing the BOJ toward a December rate hike — have contributed to climbing JGB yields. “Core CPI, excluding fresh food, has risen to 3 percent, and super-core CPI, excluding energy, has increased to 3.1 percent. Prices are clearly climbing, and the government bond bid-to-cover ratio was poor compared to last year. The BOJ has no choice but to raise rates.” Yen market positioning also supports the case for tightening. Researcher Cho of Shinyoung noted that the yen’s exchange rate is above 155 per dollar, approaching the 162 level reached in July when the carry trade last unwound. He added that the 160 mark is considered a psychological ceiling in Tokyo markets. “We must remember that July’s unwind occurred during a decoupling — the U.S. Fed was cutting rates while the BOJ was tightening,” Cho said, arguing that another rate hike is “predictable.” 2025-12-11 17:40:17
  • Fine dust returns to Seoul
    Fine dust returns to Seoul SEOUL, December 11 (AJP) - Light rain tapered off early on the morning of December 11, but northwesterly winds carried fine dust back into the city. Viewed from Namsan in central Seoul, the skyline appeared muted and hazy beneath the incoming dust. 2025-12-11 17:38:14