USD-KRW nears annual highs as trade talks stall, China tensions mount SEOUL, October 13 (AJP) - South Korean authorities issued a strong verbal warning – and possibly followed up by won-propping action - on Monday, after the U.S. dollar hovered above the psychologically important 1,430-won mark amid stalled tariff negotiations with Washington and renewed trade tensions between the United States and China. The won opened at 1,430.0 per dollar, up 9.0 won from the previous session, briefly touching 1,434.0 before stabilizing in the mid-1,420s. It was the weakest level since May 2, when it hit 1,440.0. The currency, down nearly 3 percent so far this month, later recovered to 1,426.1 following government intervention. In a joint statement, the Ministry of Economy and Finance and the Bank of Korea warned against “potential herd behavior,” adding, “The foreign-exchange authorities are closely monitoring the market with heightened vigilance, as volatility in the won has increased due to recent domestic and global factors.” The dollar remains firm, with the U.S. Dollar Index at 99.018. Persistent uncertainty over the U.S. government shutdown since Oct. 1 and heightened trade-war fears have fueled risk aversion. Beijing’s move to tighten rare-earth exports prompted U.S. President Donald Trump to threaten a 100 percent tariff on Chinese imports starting Nov. 1. Trump later struck a softer tone on Truth Social, writing, “Don’t worry about China. Everything will be fine,” while noting that President Xi Jinping was facing a “bad moment” but did not want a recession. Korean markets reacted nervously. The KOSPI fell more than 1 percent to the 3,500 range as foreign investors offloaded shares. The won-yen exchange rate rose to 940.31 per 100 yen, up 10.67 won from the previous close of 929.64, while the yen-dollar rate weakened 0.6 percent to 151.931 yen. “Trump’s criticism of China’s export controls and his tariff threats could spark sharp declines in Asian markets and currencies,” said Min Kyung-won, economist at Woori Bank. “Although foreign selling and local buying may temporarily support prices, prolonged uncertainty over trade negotiations will likely weigh on sentiment.” 2025-10-13 16:04:34

KOSPI reaches new high after weeklong holiday SEOUL, October 10 (AJP) - The benchmark KOSPI surpassed the 3,600 level for the first time on Friday, following a sharp opening after a weeklong break for the country's biggest Chuseok holiday. KOSPI hit a record intraday high of 3,617.86 and closed at 3,610.60, up 61.39 points or 1.73 percent, from the previous session. The record rally was fueled by foreign investors, who snapped up a net 1.06 trillion won in shares. Among the top market-cap stocks, Samsung Electronics rose 6.07 percent to close at 94,400 Korean won (US$66.48), SK Hynix gained 8.22 percent to 427,000 won ($300.70), Doosan Enerbility jumped 14.97 percent to 74,400 won ($52.39), and Naver increased 5.73 percent to 267,000 won ($188.03). On the other hand, shares of LG Energy Solution fell 9.90 percent to close at 359,500 won ($253.17), while those of Hanwha Aerospace dropped 5.01 percent to 1,040,000 won ($732.39), seeing relatively steep declines. The junior Kosdaq closed at 859.49, up 5.24 points or 0.61 percent from the previous trading session. 2025-10-10 16:51:44

Stock markets open higher after weeklong Chuseok holiday SEOUL, October 10 (AJP) - South Korean stock markets opened sharply higher on Friday after a weeklong break for the country's biggest Chuseok holiday. The benchmark KOSPI opened at 3,598.11, up 1.38 percent, while the junior Kosdaq rose 0.54 percent to 858.86. Within just several minutes of trading, the KOSPI climbed to 3,606.86, reaching the 3,600 level for the first time. Before the holiday that began last Friday, the KOSPI closed at a record high of 3,549.21 on Oct. 2. While South Korean stock markets were closed, U.S. stocks rose, led by artificial intelligence-related shares, which seemed to boost Friday's strong opening here. By around 9:00 a.m., Samsung Electronics and SK Hynix, the market's two largest companies, were trading at 93,900 won ($66.13) and 425,500 won ($299.65), posting solid gains. But the won opened at 1,423.8 to the greenback, down 23.8 won from the previous session, its weakest level in roughly five months since May 14 when it fell to 1,421.3. During the holiday, the won traded around 1,420 in the offshore non-deliverable forward (NDF) market, continuing its decline. The weakening won appears to stem from ongoing uncertainty over U.S. tariff-related investment projects. The yen also tumbled, sliding to an eight-month low of around 153 per dollar, after Japan's ruling Liberal Democratic Party picked far-right winger Sanae Takaichi as its new leader over the weekend, making her likely to become the island country's first female prime minister. Takaichi is expected to continue the expansionary policies of the late former Prime Minister Shinzo Abe, who pursued large-scale quantitative easing and increased fiscal spending under his monetary approach known as "Abenomics." 2025-10-10 11:11:18

OpenAI on board, Korea's AI drive and chip stock rally hit the accelerator SEOUL, October 02 (AJP) - South Korea has hit the accelerator in the global race for AI supremacy, drawing global capital and top-tier software players while leveraging its world-class chip and hardware infrastructure to establish itself as Asia’s hub for data centers. On Wednesday, the country’s two leading conglomerates—Samsung and SK Group, both home to the world’s biggest memory chipmakers—announced landmark partnerships with OpenAI, the creator of ChatGPT. The alliance spans the full AI ecosystem—from semiconductor production to data center design, operations, and AI service deployment—with the aim of driving next-generation AI infrastructure innovation. SK hynix, the global leader in high-bandwidth memory (HBM) crucial for AI chips, will supply OpenAI with advanced memory solutions and collaborate on its data center in southwestern Korea under an MoU signed with OpenAI CEO Sam Altman. SK Telecom, the group’s wireless carrier, will jointly develop an OpenAI-dedicated AI data center in the region—already dubbed the “Korean Stargate.” Samsung Group struck a separate broad-ranging business partnership with OpenAI covering semiconductors, data centers, and cloud services. The joint venture will engage Samsung Electronics, Samsung SDS, Samsung C&T, and Samsung Heavy Industries to build out global AI infrastructure. The landmark deals come on the heels of Korea’s agreement with BlackRock Chairman Larry Fink during President Lee Jae Myung’s U.S. trip last month. Under the pact, the world’s largest asset manager pledged to channel global capital into Korea’s AI and renewable energy initiatives. “AI development must go hand in hand with decarbonization, given the immense power needs of data centers,” Ha Jung-woo, Senior Presidential Secretary for AI Future Planning, said in New York. Chairman Fink, he added, committed to actively facilitate capital flows to help establish Korea as Asia’s “AI Capital.” As not to compromise its decarbonization scheme with AI drive, Seoul is building renewable energy “highways” to power the next wave of AI infrastructure—projects requiring heavy government outlays and large-scale private investment. The initiative has already drawn marquee names including Amazon, BlackRock, and OpenAI. The global spotlight on Korea’s AI push sparked a market rally. The benchmark KOSPI surged 3 percent Thursday to break past the 3,500 milestone. Shares of SK hynix soared 11 percent, Samsung Electronics jumped 5 percent, and foreign investors were net buyers of more than 1.7 trillion won ($1.21 billion) “The structural growth trajectory of the AI industry continues to lift the entire value chain,” said Han Ji-young, researcher at Kiwoom Securities. “Micron’s stock surge underscores expectations that explosive AI demand will drive a super cycle across memory sectors including HBM, DRAM, and NAND.” 2025-10-02 13:31:11

Korean shipbuilders out to defend LNG dominance as orders revive SEOUL, October 01 (AJP) - Korean shipbuilders have dominated the global orderbook for liquefied natural gas (LNG) carriers this year, securing 14 out of 16 new orders and leaving none for Chinese rivals despite an overall market slowdown. The global LNG market has long been split between Korea and China, with Korea’s lead appearing at risk until last year. But Korean yards have pulled ahead again in 2025, buoyed by shifts in demand and trade policies. China’s slowdown is partly explained by new U.S. protectionist fees and weaker orders from Qatar, a major client for Chinese builders. Beginning October 14, the U.S. Trade Representative will impose a $50-per-net-tonnage fee on Chinese-built, -operated, or -flagged vessels docking in U.S. ports. Safety concerns have also weighed on Chinese yards. In 2023, the CESI Qingdao, an LNG carrier built by Hudong-Zhonghua Shipbuilding, suffered a generator failure at an Australian terminal, disrupting operations. The broader shipbuilding market contracted in the first half, with global order volume falling 55 percent year-on-year. Orders for LNG carriers plunged 83 percent to 1.05 million compensated gross tonnage (CGT). But momentum has shifted in the second half, with major energy companies preparing fresh investments. Australian producer Woodside Energy is in talks with shipyards on 16 to 20 LNG carriers, while U.S. firm Sempra has approved a $14 billion LNG project that could generate up to 20 carrier orders. Korean shipbuilders are already seeing results. Hanwha Ocean announced a $251 million order from a North American shipowner this week and forecast stronger earnings for the rest of the year. “Hanwha Ocean is positioned to substantially build up its capacity to construct LNG carriers in the United States by securing unparalleled technology and supply dominance,” said Oh Jun-ho, an analyst at Stunning Value Research, predicting the company could achieve 1 trillion won ($710 million) in operating profit this year. Samsung Heavy Industries also struck an optimistic tone, noting that “LNG carrier orders will remain robust as the Trump administration resumes export approvals for non-FTA countries and new final investment decisions accelerate.” 2025-10-01 16:21:56

Unequal match between Dunamu and Naver hinges on shareholder blessing SEOUL, September 30 (AJP) - South Korea’s internet giant Naver and Dunamu, operator of Upbit—the world’s fourth-largest crypto exchange—are waging a war of nerves ahead of their $14 billion strategic tie-up through a stock swap, as they seek the blessing of their respective shareholders. Naver Financial, the fintech arm of the country’s dominant internet platform, has agreed on a share-for-share merger with Dunamu, which would bring the crypto powerhouse firmly under the Naver family The challenge lies in valuation. Dunamu, which trades at over 400,000 won apiece in the over-the-counter market, commands a market value of about 15 trillion won ($11 billion)—roughly three times that of Naver Financial, valued at 5 trillion won. Under the proposed terms, one Dunamu share would be swapped for about three newly issued Naver Financial shares. While that may look attractive on paper, many Dunamu shareholders remain unconvinced that multiple lower-valued shares fairly compensate for a single high-priced one. Adding to the intrigue, Dunamu shares have been hitting fresh highs amid speculation of a Nasdaq listing—momentum that could give investors second thoughts about locking themselves into the deal. Dunamu’s largest shareholder, Chairman Song Chi-hyung, who holds around 26%, is expected to emerge as the biggest shareholder of Naver Financial under the new structure. That would effectively give him control over both Dunamu and its broader digital asset business within the Naver ecosystem. On the flip side, existing stakes held by Naver Corp. and financial investor Mirae Asset Financial Group could face dilution. Mirae Asset has reportedly ruled out further capital injections, while other investors, including Kakao Investment and Hanwha Investment & Securities, are still weighing their options. Hanwha said Tuesday it was reviewing the potential impact but had not reached a decision. For Dunamu, the merger amounts to choosing Naver as its gateway to the mainstream financial system. Through Naver’s big-tech platform, Dunamu could strengthen its position in future financial arenas such as virtual assets, payments, and stablecoins, while securing ties with traditional banking infrastructure. If completed, the share swap would establish a chain of ownership running from Naver to Chairman Song, then to Naver Financial, Dunamu, and finally Upbit. The arrangement would allow Dunamu to access financial operations and payment infrastructure without the need to acquire a bank outright. The tie-up is also seen as a stepping stone for Dunamu’s long-anticipated Nasdaq IPO, with analysts expecting it to follow Naver’s example of listing Webtoon in the U.S. “The collaboration secures long-term growth drivers,” said Lee Jee-eun, an analyst at Daishin Securities, who kept a “Buy” rating on Naver with a target price of 330,000 won ($236). She noted that consolidating Dunamu’s financials could boost Naver’s net profit and enterprise value. Longer term, she added, capturing the won-denominated stablecoin market early could allow the merged entity to generate steady income from stablecoin deposits and collateralized lending services. 2025-09-30 16:27:03

Digital front-runner Korea chagrined by lack of backup for e-government SEOUL, September 29 (AJP) - South Korea tops the OECD scale in digitalization and proudly teaches and exports e-government strategy and systems, which may explain the chagrin and furor over the mass-scale crippling of the public-sector electronic system. Much of the work at public-service windows had to be handled in person after an outage caused by a battery fire at the National Information Resources Service (NIRS) data center in Daejeon, which brought down 647 civil service systems. The blaze started during the relocation of aging lithium-ion batteries within an uninterruptible power supply (UPS) system. A UPS provides short-term backup power to protect facilities such as data centers and hospitals, while larger-scale energy storage systems (ESS) deliver utility-scale and long-duration storage to stabilize the grid. Unlike ESS, UPS systems lack multiple layers of safety features and require closer maintenance and monitoring of battery units to prevent overheating or overload. The same kind of UPS-related fire caused the collapse of Kakao’s data center in 2022. Three years ago, a battery fire in the electrical room of SK C&C’s data center in Pangyo, Gyeonggi Province, cut power to the entire facility, resulting in a simultaneous outage of KakaoTalk and other services of the chat platform used by virtually every Korean. The government mandated disaster recovery and redundancy requirements for private companies, and created a regulatory framework requiring data centers and internet service providers to undergo regular oversight and supervision. Yet an administrative network used by local government officials nationwide also came to a stop for three days two years ago. Since then, the government has been operating more than 1,600 national information systems across three locations: the main facility in Daejeon, where the fire occurred, plus branch offices in Daegu and Gwangju. Currently, 647 national information systems belonging to the Daejeon headquarters remain offline. The government vowed to build a comprehensive data redundancy system to ensure smooth operation of government systems in the event of disasters such as fires, floods, or cyberattacks. But the NIRS budget for disaster recovery in 2023 amounted to just 2.6 billion won, or about $1.86 million, hardly enough to launch even a pilot program. Experts warn of permanent damage if restoration does not take place within the first week. This poses an embarrassment for the government, which takes great pride in its digital infrastructure and global ranking. Korea topped the OECD Digital Government Index for the second straight year in 2023, scoring 0.935, near the perfect 1. It ranked fourth in the United Nations e-government evaluation among 193 U.N. members. The high ranking has translated into over $500 million in exports of government e-solutions from 2021 to 2023. These exports include providing overseas governments with the human resources, technology, and intellectual property needed to build e-government systems. Korea’s digital government capabilities also help domestic ICT infrastructure companies and software SMEs expand abroad. South Koreans no longer carry physical ID cards thanks to mobile and biometrics-based identification across public and private services, from airport clearance to liquor purchases at convenience stores. As of the end of 2024, more than 4 million of the country’s 50 million citizens were using digital IDs. The digital connection, however, highlights the danger of large-scale breakdowns such as the latest incident. Unlike the government, domestic cloud companies like Naver and Kakao already run AI-based anomaly detection systems. These analyze temperature and power data in real time to detect early signs of overheating or anomalies, and proactively address cooling system issues. Internationally, Google, Amazon, and Microsoft have implemented artificial intelligence for IT operations (AIOps) to optimize power and cooling efficiency while predicting anomalies in real time. The latest mishap is a wake-up call, experts say, to hasten investment in backup infrastructure and consider adopting proven private-sector solutions like AIOps. 2025-09-29 15:27:55

Naver-Upbit tie-up may fuel Korea's won-pegged stablecoin initiative SEOUL, September 26 (AJP) - A tie-up between Korean internet giant Naver and Dunamu, operator of the world’s fourth-largest cryptocurrency exchange Upbit, is widely expected to accelerate the country’s ambition to launch a won-based stablecoin ecosystem. Naver on Thursday confirmed a stock-swap deal with Dunamu is under way, noting that stablecoins are among several ventures under discussion between the two firms, though nothing has been finalized. Analysts see stablecoins as a key driver behind the partnership. The two companies are expected to build digital financial infrastructure by combining Naver’s vast platform ecosystem with Dunamu’s blockchain expertise. Stablecoins are digital currencies designed to maintain a fixed value, usually pegged to fiat currencies like the U.S. dollar. For example, a stablecoin tied to $1 keeps its value stable because the issuer holds $1 in reserve for every token issued. The ruling Democratic Party has already proposed a bill to promote stablecoins pegged to the Korean won. Under such a model, Dunamu could issue tokens that would be accepted for payments across Naver’s platforms, including its Naver Pay app. This would not only expand usage but also help Naver cut credit card transaction fees. Potential revenue streams include collateralized lending, foreign exchange remittances, and cross-border payments, while management of deposit reserves could generate additional profits. Although Naver has expanded its platform business in Japan and Southeast Asia, it has lacked a clear edge in global finance. By linking up with Dunamu, Naver could enter overseas payment and remittance markets using blockchain and crypto infrastructure. The partnership could pave the way for a Korean fintech model capable of competing with global players like PayPal, Stripe, and Coinbase. “We need to pay attention to Naver Financial’s corporate value, given that synergies can be created through collaboration between the nation’s leading fintech company and top cryptocurrency exchange,” said Oh Dong-hwan, a researcher at Samsung Securities. 2025-09-26 16:28:43

Seoul opts for promotion-first and regulation-later approach on AI deployment SEOUL, September 18 (AJP) - South Korea has chosen a middle path between Europe’s strict rules and U.S.’s hands-off stance in global race to govern artificial intelligence. The Ministry of Science and ICT this week detailed the criteria for high-impact AI systems pertinent to the Act on the Development of Artificial Intelligence and Establishment of Trust" dubbed as the AI Basic Act due to take effect next January. Seoul will be the second jurisdiction after the European Union to set statutory guidelines for AI, though with an emphasis on promotion over regulation during the early stage of the technology. AI systems trained with cumulative computing power of 10^26 floating-point operations or more will be classified as high-impact — a threshold aligned with U.S. standards but looser than the EU’s 10^25 level. Companies deploying such systems will be required to adopt risk management plans, disclose training data and supervisors online, and provide users with clear advance notices through terms of service or interfaces. Additional measures include watermarking AI-generated content, labeling deepfakes in ways easily recognizable to users, and marking outputs from generative AI for both human and machine readability. While the act empowers regulators to impose penalties for noncompliance, the ministry indicated enforcement will be delayed. Fines are expected to be deferred for at least a year after the enactment. “Promotion takes priority over regulation,” said Kim Kyung-man, AI policy director at the ministry. “We don’t intend to impose stricter rules ahead of other countries.” The U.S. has taken a far looser approach, passing the “One Big Beautiful Bill Act” in July to block state-level AI regulation for a decade. Europe, by contrast, set the global precedent when its AI Act came into force in August 2024, imposing strict transparency, accountability, and anti-discrimination requirements on companies. With its AI Basic Act, South Korea is seeking to balance light-touch regulation with global alignment as it pursues its ambition to become one of the world’s top three AI powers. 2025-09-18 17:48:21

Korea's Hanwha Ocean bags $1.4-bln order for LNG carriers from Taiwan SEOUL, September 17 (AJP) - Hanwha Ocean, one of South Korea’s three largest shipyards, has bagged an order of 1.93 trillion won ($1.4 billion) from Taiwan's Yang Ming Marine Transport to deliver seven liquefied natural gas (LNG)-fueled container ships. The shipbuilder disclosed that the contract calls for construction of seven 15,880 TEU (twenty-foot equivalent unit) LNG dual-fuel containers at Hanwha’s Okpo Shipyard in Geoje, South Gyeongsang Province, with deliveries to be completed by the first half of 2029. The deal is the company’s second from Taiwan this year. In March, Hanwha Ocean won an order from Taiwanese shipper Evergreen worth 2.3 trillion won ($1.69 billion) for six 24,000 TEU LNG dual-fuel eco-friendly ultra-large container ships. The Yang Ming vessels will be powered by LNG dual-fuel engines as standard and feature ammonia-ready specifications that allow future conversion to ammonia dual-fuel propulsion. The ammonia-ready design means the hull structure can accommodate retrofitting from LNG-diesel fuel systems to ammonia propulsion, enabling triple-fuel capability - diesel, LNG, and ammonia. The vessels will incorporate Hanwha Ocean's core technologies, including the world's first LNG fuel tanks capable of withstanding 1.0 bar of pressure (approximately 14.5 psi). By operating at higher pressure than conventional fuel tanks, these systems can store vaporized natural gas longer and safer. "This first contract with Yang Ming validates Hanwha Ocean's differentiated eco-friendly technology and design capabilities,” said Kim Hee-cheol, CEO of Hanwha Ocean. Hanwha Ocean shares were trading at 112,300 won as of Wednesday, up 1.35% from the previous closing of 110,800 won. Hanwha, formerly Daewoo Shipbuilding & Marine Engineering, is among Korea’s three dominant shipbuilders, which together command more than half of the global LNG carrier orderbook. 2025-09-17 14:06:15