Journalist
Lee Hugh
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Samsung Biologics, Celltrion expand CDMO investment as labor and safety risks rise Samsung Biologics and Celltrion, after posting record results last year, are pressing ahead this year with multitrillion-won investments centered on contract development and manufacturing (CDMO) to expand capacity, industry officials said. Even with strong growth, both companies face rising internal and external risks, including labor friction, a factory safety incident and geopolitical uncertainty. Samsung Biologics reported 4.55 trillion won ($4.55 trillion won) in revenue and 2.06 trillion won in operating profit last year, reinforcing its No. 1 position in the CDMO sector, according to the industry. The company is reinvesting earnings to build Plants 5 and 6 in Songdo, Incheon, and plans to spend about 7 trillion won to develop a third bio campus. It is also moving to expand overseas production, including a $280 million investment to acquire a plant in Rockville, Maryland, as part of its strategy to widen its lead. Celltrion posted 4.16 trillion won in revenue and 1.16 trillion won in operating profit last year, and has been assessed as a global player spanning biosimilars and new drugs. It plans to invest 1.2265 trillion won to complete Plants 4 and 5 in Songdo. In the United States, it plans to invest $330 million to expand its Branchburg, New Jersey, facility to 75,000 liters. Once domestic and overseas expansions are completed, Celltrion expects to secure total production capacity of 570,000 liters, building infrastructure not only for new drugs and biosimilars but also for its contract manufacturing business. Risks have also intensified. At Samsung Biologics, labor-management tensions have deepened in recent years over disputes tied to revisions of internal rules on information security and discipline, including the introduction of a “three strikes” policy. A document was disclosed showing the human resources department separately classified and managed participants in a lawsuit over ordinary wages and union members, prompting allegations of discrimination in promotions and personnel decisions. Distrust has also lingered after negotiations over wages and working hours reductions. In this year’s wage talks, the union has demanded a 4.5-day workweek, higher starting pay and a new hazard allowance for ADC work, with talk of a possible strike. If a strike occurs, production stoppages could delay deliveries to clients and damage global confidence, given the industry’s reliance on continuous operations. It could also disrupt completion of Plants 5 and 6 and the Rockville plant, the report said. Celltrion is also under scrutiny after a subcontractor worker fell to his death at its Songdo plant, drawing criticism over industrial safety and health management. The Ministry of Employment and Labor issued a work stoppage order and launched a full investigation, including whether the case violated the Serious Accidents Punishment Act. At Celltrion’s shareholders meeting on March 24, Chairman Seo Jung-jin appeared in person for the first time in 11 years to address concerns and emphasize “responsible management,” the report said. Geopolitical uncertainty is another factor. As the war in the Middle East drags on, volatility in raw materials and fuel prices and broader supply-chain risks have increased, and there are signs global drugmakers are adjusting clinical and production budgets, the report said. “Companies are facing a new test in which they must design growth and responsibility at the same time, with good news and bad news coexisting,” an industry official said. How well they manage labor issues, major safety risks and geopolitical uncertainty “appears to be a key variable that will determine sustainable growth going forward,” the official said.* This article has been translated by AI. 2026-03-26 16:36:00 -
More workers to get day off as Labor Day set to become public holiday SEOUL, March 26 (AJP) - A bill to designate Labor Day as a statutory public holiday passed a committee in the National Assembly on Thursday. If it clears the remaining legislative steps including Cabinet approval, May 1 will be observed as a public holiday, taking effect this year. Labor Day was made a paid holiday in 1994, but public officials, teachers, and platform workers such as deliverymen have not been able to take the day off because they are not classified as employees under the relevant labor laws. 2026-03-26 16:29:44 -
South Korean ships can pass through Strait of Hormuz only with prior consultation, Iranian envoy says SEOUL, March 26 (AJP) - South Korean ships can pass through the Strait of Hormuz, but "only with prior consultation" with Tehran, Iran's top envoy said on Thursday. At a press conference at the Iranian Embassy in Yongsan, Seoul, Iranian Ambassador to South Korea Saeed Koozechi said there have been no safety concerns so far involving South Korean vessels or crew members, adding that the foreign ministers and embassies of both countries are "communicating smoothly" on the issue. Currently, some 26 South Korean vessels and their 178 crew members are stranded in the strategically important waterway, a critical chokepoint for roughly one-fifth of the world's oil supply. Koozechi also said that Iranian Foreign Minister Abbas Araghchi asked South Korean Foreign Minister Cho Hyun over the phone earlier this week to provide a list of stranded South Korean ships. Despite the Middle Eastern country seeing South Korea as a "non-hostile country," it would be "unavoidable" for ships doing business with U.S. firms to face restrictions as part of its "self-defense measures," the envoy said on a radio program earlier in the day. He also claimed that there is no dialogue between Tehran and Washington, saying Iran cannot trust U.S. statements and suspects the U.S. may be trying to buy time to prepare for renewed airstrikes. 2026-03-26 15:51:33 -
Korean game publishers play it safe as AI reshapes industry fault lines SEOUL, March 26 (AJP) - South Korea's major game publishers are sticking to safer bets — stable leadership and proven revenue drivers — as they navigate the uncharted waters of artificial intelligence. A wave of executive reappointments during this year's shareholder season reflects that caution. Krafton renewed the terms of Chairman Chang Byung-gyu and CEO Kim Chang-han for a third consecutive term, while Nexon retained CEO Lee Jung-hun after posting a record 4.5 trillion won in annual revenue. Netmarble and NHN are also set to extend leadership tenures on the back of strong earnings. The continuity underscores a structural shift in the industry, where blockbuster titles now take five years or more to develop, making leadership changes mid-cycle a costly risk. At the same time, publishers are accelerating a pivot beyond their traditional mobile-gaming base toward console and PC platforms, targeting global markets. Netmarble has launched its first cross-platform open-world title, The Seven Deadly Sins: Origin, spanning PlayStation 5, Steam and mobile, while NC — rebranded from NCSoft — is preparing console-focused titles such as Defect and Limit Zero Breakers. Pearl Abyss' Crimson Desert, a domestically developed triple-A open-world title, has already sold more than three million copies since its March debut, highlighting the industry's growing ambition to compete globally. Yet the rollout also exposed a new tension point: artificial intelligence. Players discovered AI-generated artwork embedded in Crimson Desert, including distorted visual elements, prompting an apology from Pearl Abyss. The company said the assets were created during early development using experimental tools and were unintentionally left in the final version. The backlash contrasted sharply with Nexon's Arc Raiders, which has been widely praised for using procedural AI to enhance gameplay environments. The title has sold over 14 million copies since its October 2025 launch, underscoring how AI can add value when deployed transparently. The divergence highlights a widening fault line across the industry: AI that enhances user experience tends to be rewarded, while undisclosed use — particularly in visible creative assets — risks consumer backlash. "AI output still reaches only about 90 percent of human quality," said Jung Nae-hun, a professor at the Tech University of Korea. "Studios tend to avoid using it for visible elements like characters or interfaces. When it slips through, it invites backlash." Korea's regulatory framework is also evolving. The Framework Act on Artificial Intelligence, which took effect in January, requires disclosure of AI-generated content, though the industry has raised concerns that additional rules could create overlap and confusion during iterative development processes. Beyond AI, publishers are facing broader structural challenges. Game production remains excluded from Korea's content production tax credit system, even as film and television receive incentives of up to 30 percent. Officials have acknowledged the gap, noting that flagship game titles now routinely cost more than 1 trillion won to develop. Meanwhile, legal risks are also emerging alongside technological shifts. A U.S. court recently ruled that Krafton breached its acquisition contract with Unknown Worlds Entertainment, after executives consulted ChatGPT in shaping a takeover strategy — a case that underscores the growing intersection between AI use and corporate governance. Despite these headwinds, the industry continues to grow modestly. Domestic game revenue reached 23.85 trillion won in 2024, up 3.9 percent on-year, while exports rose to $8.5 billion. Console games recorded the fastest growth, reinforcing the strategic pivot. North America's share of exports climbed to 19.5 percent, signaling early traction in Western markets, while industry employment expanded to around 87,600. Still, publishers say the numbers mask deeper constraints. "The biggest thing the government can do is curb excessive regulation," Jung said. "That remains a heavier drag on the industry than any tax gap." 2026-03-26 15:43:07 -
Chong Kun Dang CEO Kim Young-joo Pledges Profit Growth, Higher Corporate Value in 2026 Major drugmakers including Chong Kun Dang, Dong-A ST and Ildong Pharmaceutical held annual shareholder meetings on March 26, approving agenda items as proposed, including new director appointments and cash dividends aimed at boosting shareholder value. According to the industry, Chong Kun Dang held its 13th annual general meeting that morning at its headquarters in Chungjeong-ro. Shareholders approved a cash dividend of 500 won per share, equal to 20% of par value. In opening remarks, Chong Kun Dang CEO Kim Young-joo said the company would “deliver profit growth this year” by launching new products on schedule, strengthening product competitiveness and improving market responsiveness. He said it would also raise drug development efficiency through Achela, described as an NRDO (No Research Development Only) specialist, and “increase corporate value” by building a Baegot bio complex development cluster to secure biotech competitiveness. Chong Kun Dang Holdings also held its 71st annual general meeting on March 26. The company reported 2025 consolidated revenue of 959 billion won and operating profit of 58.3 billion won, and approved a cash dividend of 1,400 won per share, equal to 56% of par value. Dong-A ST held its 13th annual general meeting at its headquarters in Seoul’s Dongdaemun district, approving six items as proposed, including approval of financial statements, amendments to the articles of incorporation and director appointments. Shareholders approved a cash dividend of 700 won per common share and a stock dividend of 0.05 shares per share. The meeting also approved a 30 billion won reduction in capital reserves and a transfer to retained earnings to secure funding for tax-exempt dividends. CEO Jeong Jae-hoon said the company is also stepping up investment in digital health care, which he said will be central to future medical technology, and is building a foundation for growth. Dong-A Socio Holdings also held its 78th annual general meeting at its headquarters in Seoul’s Dongdaemun district. Shareholders approved five items as proposed: approval of the 78th financial statements and consolidated financial statements, partial amendments to the articles of incorporation, director appointments, appointment of an outside director who will serve on the audit committee, and approval of the cap on director compensation. They also approved a cash dividend of 1,000 won per share and a stock dividend of 0.03 shares per share. The company said the dividend is tax-exempt and not subject to dividend income tax. Ildong Pharmaceutical and Ildong Holdings each held annual shareholder meetings on March 26 at Ildong Pharmaceutical’s headquarters in Seoul’s Seocho district. Ildong Pharmaceutical CEO Yoon Woong-seop said the company will focus this year, under its management policy of “creating results with competitive advantage,” on generating sales and profit, securing new growth engines and building a sustainable business structure, while strengthening its core businesses such as pharmaceuticals and concentrating capabilities on future growth including R&D. At the meeting, all agenda items were approved as proposed, including approval of financial statements, partial amendments to the articles of incorporation, and the appointment of directors and an auditor. Ildong Holdings also approved its agenda items as proposed, including approval of financial statements reflecting its dividend plan, partial amendments to the articles of incorporation, and the appointment of directors and an auditor. Ildong Holdings CEO Park Dae-chang said the company will continue to pursue management efficiency and reform across group affiliates to strengthen its business foundation and build momentum for growth, adding that it also plans to work to enhance corporate value and increase shareholder returns.* This article has been translated by AI. 2026-03-26 15:33:00 -
Uzbekistan's business climate signals decoupling from historical stagnation as demand surges SEOUL, March 26 (AJP) - The Center for Economic Research and Reforms in Uzbekistan reported Wednesday that the national business climate reached 65 points in February 2026, an 11-point increase over the previous year. This shift signals a significant decoupling from historical stagnation, marking a fundamental transition in how the private sector navigates the regional economy. The acceleration aligns with a broader macroeconomic surge shown by data from the Statistics Agency of Uzbekistan. The country's GDP growth reached 6.0 percent in 2025 according to World Bank estimates, supported by record gold export revenues and a 10.5 percent growth in fixed asset investments. The February data marks a shift in private sector sentiment, as the composite index for expectations climbed 13 points to 81. This optimism is anchored by expansion in the real economy. 19 percent of enterprises reported increasing their workforce, up from 12 percent a year earlier. These developments suggest that Uzbekistan is moving into a high-velocity growth cycle, where domestic demand is becoming a primary engine. Agriculture has emerged as the vanguard of this expansion, with its sectoral index jumping 29 points to 73. This growth is reinforced by structural shifts, including a zero VAT rate for most agricultural producers that took effect in January 2026. Approximately 52 percent of agricultural entrepreneurs now report rising demand, up from 35 percent in early 2025. This reflects the success of new export corridors and an increase in domestic processing capacity. In the services and construction sectors, indices rose to 61 and 69 points, respectively. Construction activity has remained resilient, with the sector expanding by 14.2 percent throughout 2025. This is mirrored in the labor market, where 27 percent of construction firms expanded their payrolls. The industrial sector, while growing more moderately at 67 points, continues to benefit from a stabilization in energy supply. National utility reforms aim to commission 6.7 GW of new power capacity by the end of 2026, a move that has already led to a decline in the number of firms citing electricity shortages as a barrier to growth. Geopolitical and fiscal stability have supported these figures. Inflation in Uzbekistan was recorded at 8.8 percent over 2025, which provided a more predictable environment for the 61 percent of surveyed entrepreneurs who reported an absence of operational constraints. This is an improvement from the 57 percent recorded just one month prior. The survey highlights emerging friction points as the economy matures. While concerns regarding credit and logistics have receded, entrepreneurs are increasingly citing the cost of land resources and a 7 percent indexation of land and property taxes as rising challenges. Furthermore, tax reforms introduced in early 2026, including a move toward turnover-based taxation for smaller entities, represent a shift in the fiscal landscape. 2026-03-26 15:31:20 -
Online P2P lenders seek looser investment caps as cumulative loans near 20 trillion won Online investment-linked finance firms, known as on-tu-eop, are calling for deregulation — including higher investment caps for retail investors — to improve profitability and expand inclusive finance. With cumulative lending nearing 20 trillion won, the sector is increasingly seen as an alternative source of credit, drawing attention to whether talks on easing rules will gain momentum. According to the financial industry, the sector held a policy forum at the National Assembly on March 26 under the theme of measures to revitalize online investment-linked finance. The business connects investors and borrowers through online platforms. Investors participate in loans and earn returns through claims to principal and interest. After the relevant law took effect in 2020, the sector was brought into the regulated financial system. Recently, through linked investments with savings banks, firms have supplied midrate credit loans averaging in the 12% range to borrowers in the bottom 50% of personal credit scores, serving as a channel for working-class lending. At the forum, participants highlighted the need to broaden institutional investor participation and raise investment limits for individuals. Institutional investors are currently capped at 40% of investment per loan. The limit for general retail investors is 40 million won, while products tied to real estate-collateralized loans are capped at 20 million won. Lee Hyo-jin, CEO of 8percent, said the sector differs from traditional banks because it relies on transaction fees rather than net interest margins, meaning higher volume directly supports growth. “If we expand transaction volume through easing investment regulations, a virtuous cycle is possible — more funding supply, lower rates and stronger demand,” Lee said. He added that improving the operating environment is needed to meet policy goals such as spreading inclusive finance and supporting financial innovation. Speakers also called for expanding the scope of loans eligible for linked investment by lending institutions. Lee Jung-min, an attorney at Kim & Chang, said linked-investment products are currently limited to personal credit loans where risk can be managed. “Given the purpose of the On-tu Act to supply midrate financing to blind spots in lending, the scope should be expanded to include loans to sole proprietors, where funding demand is high,” he said. Other proposals included easing limits on on-tu firms’ own-capital investments and restructuring investment frameworks. Financial authorities and some experts urged caution. Jeong Seon-in, director of digital finance at the Financial Services Commission, said investment risks can emerge years later, requiring a careful approach. “Efforts to strengthen qualitative management and build trust must go hand in hand,” Jeong said. Seo Byeong-ho, head of the Financial Innovation Research Division at the Korea Institute of Finance, noted that deregulation such as raising minimum capital requirements was implemented in 2022 and 2023, and said the focus now should be on boosting trust, including stronger disclosure. 2026-03-26 15:24:00 -
Seoul deploys "wartime" policy arsenal to fight Gulf shockwaves SEOUL, March 26 (AJP) -South Korea is deploying “all possible” fiscal and policy tools — including a supplementary budget of around 25 trillion won ($18.7 billion), expanded fuel tax cuts and market stabilization measures — as it moves into what the government described as a “wartime” economic response to the prolonged Middle East conflict. “In the face of a grave wartime situation, we will mobilize all policy means and the optimal mix to ensure the hard-won recovery momentum is not derailed,” Deputy Prime Minister for Economy Koo Yun-cheol said in a televised briefing Thursday after an emergency cabinet meeting. The emergency package comes as the conflict enters its fourth week, driving sharp volatility in global oil prices and financial markets, with South Korea particularly exposed due to its heavy dependence on Middle Eastern energy imports. Under the plan, the government will expand temporary fuel tax cuts to 15 percent for gasoline and 25 percent for diesel through May 31, nearly doubled from current reductions, in a bid to cushion rising energy costs. The measures are part of a broader push to stabilize prices and supply chains, while preventing spillovers into vulnerable sectors such as small businesses, farmers and low-income households. To contain inflation and energy price shocks, authorities will maintain a ceiling price system on petroleum products, strengthen market surveillance against collusion and expand subsidies for freight and public transport operators. On the supply side, the government will secure alternative crude and liquefied natural gas sources, including increased imports from the United Arab Emirates and swap arrangements with Japan, while preparing to release strategic reserves in coordination with the International Energy Agency if needed. A crisis-level supply chain task force has also been launched to monitor key items such as naphtha and urea on a daily basis, with emergency financial support and import diversification measures to mitigate disruptions. To support affected businesses, policymakers will expand policy financing by more than 4 trillion won, provide low-interest loans and extend maturities for firms facing liquidity stress, while fast-tracking approvals for emergency funding. Additional targeted support will be directed at small merchants, farmers and transport operators, including energy subsidies, logistics cost assistance and temporary toll exemptions. In financial markets, authorities pledged “timely” intervention to curb excessive volatility in the won and bond markets, including liquidity injections, bond buybacks and activation of a 100 trillion won-plus market stabilization program if necessary. The finance ministry separately announced 5 trillion-won buyback program to bolster the bond market, with government bonds yielding more than 100 basis points over the base rate. The government will conduct stress tests across the financial sector and maintain 24-hour monitoring of foreign exchange and capital markets to guard against systemic risks. The U.S. dollar hit 1,506.90 won as of 3:00 p.m. Thursday, unshaken by the Seoul government response. The markets instead pay heed to the government warning. “The longer the situation persists, the greater the downside risks to the economy, including slower growth, higher inflation, supply chain disruptions and financial market volatility,” the government said in its assessment. 2026-03-26 15:18:42 -
Naver's counterfeit crackdown lifts seller revenues by 34%, study finds SEOUL, March 26 (AJP) - Naver's anti-counterfeit measures have driven a 34 percent rise in seller revenues and a 20 percent increase in sales volume on its e-commerce platform, according to research released by the company's user protection and self-regulation committee. The findings, led by Kim Ji-young, a professor at Sungkyunkwan University, drew on transaction data from sellers who cooperated with Naver's counterfeit prevention program. Brands participating in the initiative also saw likes and visitor counts on their Smart Store pages climb 11 percent and 9 percent, respectively. Consumer sentiment tracked alongside the sales data. More than 80 percent of shoppers surveyed said the program was effective at protecting them from fake goods, while over 73 percent expressed satisfaction with Naver's overall enforcement efforts. Brands were even more bullish — more than 92 percent said cooperation with Naver had a meaningful impact on their image, and every respondent indicated plans to deepen the partnership. Naver deploys an AI-powered monitoring system to flag suspicious listings and behavior at an early stage. The platform also runs a mystery shopping program, in which staff purchase goods as ordinary consumers before sending items for expert authentication, and a buyer-participation appraisal service that lets customers submit products for free verification. Sellers found to be distributing counterfeits face immediate account termination under a one-strike-out policy, a measure Naver says has sharply curtailed fake goods on the platform. "This is a leading case in which platform self-regulation has simultaneously achieved consumer protection and merchant growth," committee chairman Kwon Hun-yeong said, adding that the body would continue research to help spread similar practices across other platforms. 2026-03-26 15:07:08 -
South Korea to buy back $3bn bonds to bolster market SEOUL, March 26 (AJP) -South Korea will buy back 5 trillion won ($3.3 billion) of sovereign bonds in a rare market intervention to cap a surge in yields that have overshot the policy rate by more than 100 basis points amid the prolonged Middle East conflict. The Ministry of Economy and Finance (MOEF) said Thursday it will conduct the buyback on Friday, targeting Korea Treasury Bonds (KTBs) with maturities ranging from two to 10 years — one of the largest liquidity injections into the local bond market in recent years. The move comes as benchmark yields have spiked sharply, with the three-year KTB rising to 3.558 percent and the 10-year to 3.859 percent on Wednesday, both the highest levels since late 2023. The surge reflects a rapid sell-off in bonds as investors price in geopolitical risk, a weaker won and persistent inflation pressure. The buyback forms part of a broader emergency package that includes tax cuts, policy financing and a supplementary budget, as authorities shift into what they described as a “wartime” economic response to the monthlong Gulf conflict. “In the face of a grave wartime situation, we will mobilize all possible policy tools and the optimal mix,” Deputy Prime Minister for Economy Koo Yun-cheol said at a press briefing. The government said the intervention is aimed at preemptively containing excessive volatility and ensuring stable liquidity in the bond market, where yields have risen well above the 2.5 percent base rate. Bond prices move inversely to yields, and the sell-off has been exacerbated by currency weakness. The won has breached the key 1,500-per-dollar level and continued to slide toward 1,510, adding to upward pressure on market rates. MOEF said it will maintain round-the-clock monitoring of financial markets and coordinate closely with the Bank of Korea to deploy additional stabilizing measures if needed. Whether the intervention will help to reverse the sentiment remains uncertain, unless the war ends and removes oil price-driven inflationary scare. The buyback delivered only a mild lift to shorter-dated bonds while triggering a selloff at the long end, effectively inverting the policy’s intended signaling. The two-year government bond yield fell 2.2 basis points to 3.489 percent, with the three-year little changed at 3.552 percent. But yields further out the curve moved sharply higher: the 20-year jumped 3.9 basis points to 3.880 percent and the 30-year rose 4.6 basis points to 3.762 percent. Rather than easing overall financing conditions, the move steepened the curve — a sign that investors see the intervention as a near-term liquidity patch, not a solution to underlying inflation and supply risks. In effect, the market is pricing in more pressure ahead, demanding higher compensation for holding long-dated debt even as the government steps in. Immediate market response was lukewarm — and telling. The buyback delivered only a mild lift to shorter-dated bonds while triggering a selloff at the long end, effectively inverting the policy’s intended signaling. The two-year government bond yield fell 2.2 basis points to 3.489 percent, with the three-year little changed at 3.552 percent. But yields further out the curve moved sharply higher: the 20-year jumped 3.9 basis points to 3.880 percent and the 30-year rose 4.6 basis points to 3.762 percent. Rather than easing overall market conditions, the move steepened the curve — a sign that investors see the intervention as a near-term liquidity patch, not a solution to underlying inflation and supply risks. In effect, the market is pricing in more pressure ahead, demanding higher compensation for holding long-dated debt even as the government steps in. 2026-03-26 15:05:06