KDB fast-tracks $73 billion tech fund to bolster strategic industries SEOUL, July 22 (AJP) - Korea Development Bank plans to launch a sweeping 100 trillion won (approximately $73 billion) investment fund aimed at strengthening South Korea’s capabilities in critical high-tech sectors, including artificial intelligence, semiconductors, biotechnology, and robotics. According to financial industry sources, the state-run lender has formed a task force to lay the administrative groundwork for the fund and is actively exploring organizational restructuring. One proposal under review calls for the creation of a dedicated, senior-level department to oversee the fund's operations. The initiative, part of a broader government strategy to future-proof Korea’s economy, envisions a public-private partnership anchored by state capital and expanded through investments from pension funds, private financial institutions, and individual investors. The plan begins with 50 trillion won in seed funding over five years, led by KDB and other government-affiliated entities, with the goal of ultimately surpassing 100 trillion won through expanded participation. The fund will be managed separately within KDB’s accounting system and will have a 20-year time horizon. Financing mechanisms include government-guaranteed fund bonds, borrowings from the Bank of Korea, and direct capital injections from public and private sector partners. Fund bonds will be issued in phases under annual ceilings set by the National Assembly, with projected annual issuance ranging from 9 trillion to 10.25 trillion won, depending on market conditions and funding needs. Officials expect these instruments to play a central role in mobilizing the full capital target in collaboration with commercial banks. The fund’s investment mandate will focus on projects and infrastructure tied to strategic technologies, including semiconductors, secondary batteries, displays, biotechnology, defense systems, robotics, vaccines, hydrogen energy, next-generation mobility platforms, and AI. Support will be extended across the industrial spectrum — from large conglomerates to small and mid-sized enterprises — provided they align with the fund’s technological focus areas. Financial assistance will take a range of forms, including low-interest loans, equity stakes in joint ventures or special-purpose vehicles, subordinated loans for long-term infrastructure development, and structured financing packages for technology buyers. 2025-07-22 14:06:50

[[K-Tech]] Korean tech firms race to build homegrown AI foundation model SEOUL, July 22 (AJP) - South Korea’s top technology firms, artificial intelligence startups, and academic institutions are vying to lead a high-profile government initiative aimed at developing a sovereign AI foundation model — part of the country’s broader push to establish itself as a global AI powerhouse. The Ministry of Science and ICT said Tuesday it had received proposals from 15 consortia — described by officials as “elite teams” — for its Korean AI Foundation Model program, which offers government backing in computing infrastructure and AI talent development. Each consortium is anchored by a lead company or research institution and includes industry or academic partners. Major contenders include SK Telecom, Naver, LG AI Research, KT, Kakao, and NCSoft’s AI unit, along with startups such as Lunit, Upstage, and Konan Technology. The Korea Advanced Institute of Science and Technology (KAIST), one of the country’s top research universities, is also in the running through affiliated teams and faculty-founded startups. The competition is quickly emerging as a three-way race among Upstage, LG AI Research, and Naver Cloud, each of which is leading a consortium. Upstage has drawn international attention following the release of its next-generation large language model “Solar Pro 2,” which scored 58 on an intelligence benchmark published by analytics firm Artificial Analysis — ranking 12th globally. The result was amplified after Elon Musk, founder of xAI, shared the news on social media, boosting the company’s profile. Both LG AI Research and Naver Cloud bring institutional heft to the race, with deep ties to the current administration. Science Minister Bae Kyung-hoon formerly led LG AI Research, while Ha Jung-woo, the senior presidential secretary for AI Future Planning, previously headed Naver Cloud’s AI Innovation Center. Telecom firms are also positioning themselves aggressively. SK Telecom has partnered with game developer Krafton, AI education firm Riiid, and chipmaker Rebellion to form its consortium, following the release of its own AI model, A.Dot X 3.1. KT is leading an independent bid leveraging its in-house AI capabilities, while LG Uplus is reportedly considering participation if LG AI Research is selected as a lead consortium. KAIST, long seen as a critical player in South Korea’s AI research ecosystem, has assembled a team comprising internal researchers and faculty-affiliated startups, including former employees of major U.S. tech firms like NVIDIA and Google. The ministry plans to evaluate the proposals in multiple stages: first screening for eligibility, then narrowing the field from 15 to 10 based on written proposals, and down to five after live presentations. A final round of budget negotiations and adjustments will follow. The government expects to finalize contracts and announce the winners by early August. 2025-07-22 14:02:28

Trump-era tax law threatens Hyundai's US EV sales, $2 billion at risk: analysis SEOUL, July 21 (AJP) - Hyundai Motor Group could lose up to $1.95 billion in U.S. electric vehicle sales following the enactment of Trump’s sweeping tax legislation, the One Big Beautiful Bill Act (OBBBA), according to the Federation of Korean Industries. The OBBBA, which took effect on July 4, abruptly ends key clean energy incentives introduced under former U.S. President Biden, including the $7,500 federal EV tax credit. The phase-out — now set to conclude by September, more than seven years ahead of schedule — threatens to upend Hyundai’s electric vehicle strategy in the world’s second-largest auto market. According to the FKI analysis, Hyundai’s U.S. EV sales could drop by as many as 45,828 units, a 37 percent decline from its 2024 sales of 123,861 units. The projected sales slump would translate to revenue losses of nearly $2 billion. The five affected models — the Hyundai Ioniq 5 and Ioniq 9, Kia EV6 and EV9, and Genesis Electrified GV70 — had only recently become eligible for the federal tax credit in January, raising hopes for a surge in demand. But the rollback of incentives under the OBBBA has heightened investment risk and clouded Hyundai’s longer-term outlook in the United States. “The legislation reflects Trump’s broader policy pivot,” the FKI said in its report, “which includes aggressive fiscal retrenchment, a hard line on border security, and a clear reversal of Biden-era clean energy policies.” The new law compounds mounting pricing pressures for Hyundai, which has already signaled it will postpone any near-term price hikes in the U.S. market. A report from DB Financial Investment suggested the company plans to sustain its pricing strategy and continue expanding market share through year’s end by drawing on its more than 30 trillion won ($21.6 billion) in accumulated cash reserves. Hanwha Investment & Securities analyst Kim Sung-rae estimates that tariffs imposed on 28 percent of Hyundai’s U.S. sales — roughly 1 million units in total — could add more than 2.6 trillion won ($1.87 billion) in costs this year alone. “Profitability is set to deteriorate further in the second half,” Kim warned, citing both the expiration of tax credits and elevated tariff burdens as key threats to margins. That pressure is already becoming evident in the company’s second-quarter performance. Hyundai’s sales for the quarter are expected to reach 46.52 trillion won, a modest 3.3 percent year-on-year increase, while operating profit is forecast to decline by 17.4 percent to 3.53 trillion won. Kia, its sister brand, is also expected to post a 17.6 percent drop in operating profit for the same period. In response to the shifting policy landscape, Hyundai and Kia are preparing to hold a global regional headquarters meeting later this month. 2025-07-21 11:02:52

US tariffs on Chinese graphite open door for Korean supplier POSCO Future M SEOUL, July 21 (AJP) - The U.S. Department of Commerce has made a preliminary decision to impose a 93.5 percent anti-dumping tariff on anode-grade graphite imported from China, a move that could position South Korea’s POSCO Future M as a key beneficiary. The decision, announced on July 17, marks a notable shift from earlier actions that targeted specific companies — such as the more than 700 percent countervailing duties slapped on China’s Kaijin in May. This latest measure applies uniformly across all Chinese producers and is being described by U.S. battery industry officials as a “carpet-bombing” tactic that effectively blocks Chinese graphite from entering the U.S. market. The sweeping tariff aligns with the Trump administration’s broader strategy of reducing reliance on Chinese supply chains, particularly in critical sectors like clean energy. Under the Inflation Reduction Act (IRA), U.S. subsidies for electric vehicle battery components sourced from China are set to expire in 2027. Analysts view the new graphite tariff as a de facto acceleration of that timeline. Chinese companies currently dominate the global anode market, with BTR, Shanshan, Shinzoom, and Kaijin together accounting for more than 80 percent of global shipments. Anodes — typically made from natural or synthetic graphite — are a critical component in lithium-ion batteries used in electric vehicles, smartphones, and grid storage systems. Until now, major battery makers including Tesla, LG Energy Solution, SK On, Samsung SDI, and Panasonic have relied heavily on Chinese graphite. Now, the disruption of that supply stream could offer a rare market opening for POSCO Future M, the only non-Chinese company ranked among the global top 11 anode producers. The South Korean firm has long struggled to compete on price. Chinese natural graphite anodes are typically priced at around $2 per kilogram — some 40 to 50 percent lower than POSCO’s offerings. That cost disadvantage has weighed on production; the utilization rate at the company’s Sejong plant dropped from 67 percent in 2022 to below 40 percent in the first half of 2025. But with China’s price advantage erased by the tariff, POSCO Future M is now in a stronger position. Last year, the U.S. imported roughly $347 million worth of Chinese anodes. POSCO’s total anode revenue in 2024 amounted to around 150 billion won (approximately $115 million), suggesting even modest penetration of the U.S. market could yield a significant boost in earnings. Beyond anodes, POSCO Future M is also making inroads in cathode materials, another core component of lithium-ion batteries. On May 27, the company announced it had completed development of lithium manganese-rich (LMR) cathode materials and is preparing for mass production by the end of the year. LMR technology, which reduces reliance on expensive materials like nickel and cobalt by increasing manganese content, is viewed as a promising next-generation solution for cost-effective, high-energy-density battery storage. POSCO began developing the materials in 2023, and its accelerated progress suggests a broader ambition to establish itself as a full-spectrum battery materials supplier in a rapidly evolving market. 2025-07-21 10:49:08

Prominent Korean AI researcher departs OpenAI to join Meta SEOUL, July 18 (AJP) - Hyung Won Chung, a prominent researcher at OpenAI and the only Korean contributor to its cutting-edge o1 model, has joined Meta’s newly formed Superintelligence Lab. Chung will move to Meta alongside Jason Wei, another former OpenAI researcher with whom he collaborated on both the o1 model and OpenAI’s Deep Research initiative. Chung, who earned his Ph.D. from the Massachusetts Institute of Technology in 2019, previously spent four years at Google Brain, where he focused on large language models and reasoning systems. He joined OpenAI in early 2023 and quickly became a key contributor to some of its most ambitious projects. Among the 20 researchers involved in developing the o1 model, he was the only Korean participant. Chung and Wei had previously worked together at Google before moving to OpenAI. Their joint arrival at Meta suggests they were recruited as a package, a practice that has become increasingly common as firms seek to reduce onboarding friction and accelerate research output. The hires come amid a broader talent offensive led by Meta CEO Mark Zuckerberg, who has made public his ambition to compete directly with OpenAI, Google DeepMind, and Anthropic in the race to develop artificial general intelligence. 2025-07-18 10:17:48

[[K-Tech]] Low birthrate forces military pivot toward drones, automation SEOUL, July 17 (AJP) - With fewer than 240,000 babies born in South Korea last year, the nation’s demographic decline is accelerating at a pace that is now shaping defense policy as urgently as it has shaped economic and social planning. South Korea’s total fertility rate remains one of the lowest in the world, at approximately 0.75 children per woman. The implications for national defense are profound. The armed forces, which maintained a troop strength of around 690,000 in the early 2000s, have steadily shrunk to fewer than 500,000 as of 2024. Maintaining even that level of force requires an annual intake of roughly 220,000 personnel. But the number of 20-year-old South Korean men — a key conscription pool — is projected to fall below 120,000 by 2045. Compounding the manpower crunch is the transformation of modern warfare. Emerging technologies such as artificial intelligence, drones, and cyber capabilities are altering how wars are fought — placing a premium not on sheer numbers but on technological sophistication and adaptability. In response, South Korea is reimagining its military structure, investing heavily in unmanned systems and what defense planners call "manned-unmanned teaming," or MUM-T — hybrid operations in which soldiers and autonomous systems operate together in combat zones. In April 2023, the Defense Acquisition Program Administration (DAPA) solicited bids for multi-purpose unmanned ground vehicles designed for high-risk operations where deploying troops is dangerous or impractical. Hyundai Rotem and Hanwha Aerospace emerged as leading contenders, submitting their HR-Sherpa and Arion-SMET platforms, respectively. These systems are designed to carry out surveillance, logistics, medical evacuation, and explosive disposal missions. The Army has begun field-testing various unmanned platforms — grouped into reconnaissance, infiltration, and fixed surveillance categories — to support its evolving mission needs. In one demonstration of the MUM-T concept, unmanned drones were dispatched to scout contested areas, with light attack helicopters following behind. Each helicopter is capable of coordinating with up to four drones simultaneously. Some drones may eventually be upgraded to carry explosive payloads, capable of executing precision or kamikaze-style attacks. To counter potential electronic warfare threats, these platforms are being equipped with anti-jamming technologies and autonomous rerouting protocols, allowing them to continue their missions even when GPS or communication links are disrupted. The Navy’s silent swarms South Korea’s Navy is also moving toward autonomous operations — both above and below the waterline. It recently completed testing on an autonomous underwater mine detection vehicle developed by LIG Nex1. The system, now entering deployment, uses side-scan sonar to identify and classify underwater mines, navigating autonomously along pre-programmed routes after launch. Under the Navy’s "Sea Ghost" initiative, Hanwha Ocean was awarded a contract in April 2024 to design a new class of unmanned underwater vehicles. Although still in a conceptual phase, mock-ups suggest modular payload systems could be part of the eventual design. Meanwhile, companies such as Hanwha Systems and LIG Nex1 are showcasing early-stage suicide unmanned surface vessels (USVs), equipped with electro-optical sensors and internal warheads. These swarm-capable vessels are designed to coordinate in saturation attacks and may carry guided rockets or electronic countermeasures — though such configurations remain speculative. South Korea’s Air Force is spearheading perhaps the most ambitious overhaul. It has outlined a multi-phase transformation from a manned-dominant force to a distributed, manned-unmanned network built around modular drone systems. Initial efforts focus on two drone classes: expendable models for reconnaissance or loitering strikes, and reusable platforms capable of launching precision air-to-ground and air-to-air missiles. These drones are integrated into a broader MUM-T concept, with piloted fighters like the KF-21 coordinating up to several unmanned vehicles in real time. “In the future, unmanned assets will carry out autonomous missions, while manned aircraft will act as command nodes,” said Lt. Col. Gil Jong-seon, an officer overseeing drone development. Long-term plans envision swarms of expendable drones clearing airspace or gathering intelligence ahead of manned operations, while stealth drones conduct high-risk precision strikes. Taken together, these investments mark a strategic pivot — one driven less by military fashion than by necessity. South Korea’s declining birthrate has eroded its ability to maintain a large conscripted force, forcing military planners to rethink how defense can be sustained with fewer people. Yet even as unmanned systems proliferate, defense experts caution against the illusion of a fully robotic military. “The time for debating the need for unmanned and manned-unmanned systems has already passed,” said Chun In-bum, a retired general and former commander of South Korea’s Special Warfare Command. “The integration of humans and machines — whether robots or drones — is now a defining trend in modern warfare. But someone still has to maintain, refuel, and rearm those systems.” Automation, he emphasized, is a force multiplier — not a full replacement for human soldiers. As the Republic of Korea confronts its demographic future, its military is adapting not only to new technologies, but to a new operational reality — one in which fewer soldiers will be expected to do more, with machines at their side. 2025-07-18 09:40:16

Chey Tae-won calls APEC Summit showcase for Korean democracy SEOUL, July 17 (AJP) - Chey Tae-won, chairman of SK Group and president of the Korea Chamber of Commerce and Industry (KCCI), said Thursday this year’s APEC Summit in Seoul will serve as a “grand showcase of Korea’s economic strength” and a rare opportunity to bring global business leaders into direct dialogue. Speaking at the opening of the 48th KCCI Summer Forum in Gyeongju, Chey cast the October summit as both a symbolic and strategic milestone for the country. “This year’s APEC Summit must become a historic event that signals the restoration of Korean democracy,” he said. “It also presents an extraordinary chance to spotlight our economic capabilities on the global stage.” The APEC CEO Summit, held alongside the official gathering of Asia-Pacific Economic Cooperation leaders, is the region’s largest business forum. The Seoul event is expected to attract senior executives from the 21 member economies — collectively representing roughly 60 percent of global GDP — as well as more than 1,700 corporate leaders from around the world. Chey said KCCI would coordinate closely with government officials to ensure the summit serves as a platform for new international business partnerships. Plans include a slate of side events such as the Future Tech Forum and the K-Technology Showcase, designed to highlight Korean firms’ advancements in innovation and sustainability. “These programs will not only demonstrate Korea’s technological edge but also its long-term vision for growth and resilience,” he said. Chey also used the forum to reflect on the broader mission of Korean industry leaders at a time of economic and geopolitical uncertainty. 2025-07-17 16:25:08

[[K-Tech]] Hanwha brings 3D printing to US shipyard in push for LNG, naval market share SEOUL, July 16 (AJP) - Hanwha is rolling out advanced 3D printing technologies at Philly Shipyard, part of a sweeping plan to transform the historic U.S. shipbuilding site into a hub for high-value commercial and military vessels. Hanwha Ocean and Hanwha Systems, which jointly acquired the Philadelphia-based facility in 2023, have begun deploying metal additive manufacturing processes to fabricate complex components directly on-site — a shift that marks a departure from traditional shipbuilding methods, which typically depend on third-party suppliers for precision parts. The initiative is central to Hanwha’s strategy to boost efficiency, localize production in the United States, and expand into premium sectors such as liquefied natural gas (LNG) carriers and naval vessels. Company officials say in-house production of selected parts could shorten construction timelines and improve responsiveness in time-sensitive defense and energy projects. “By integrating additive manufacturing with digital production tools, we’re redefining how ships are built in the U.S.,” a Hanwha spokesman said in a statement. The project draws on experience from Hanwha’s South Korean shipyards, where 3D printing is already being used to produce engine components like bellmouths, prechambers and custom pipe fittings. The company plans to replicate and scale those practices in Philadelphia, adapting them to meet U.S. regulatory standards and operational requirements. To facilitate the transition, Philly Shipyard has launched a series of workforce training programs covering additive manufacturing design, 3D printer operations, and digital systems integration. The company is also digitizing its parts catalog, introducing augmented reality training modules, and installing a centralized control system that leverages satellite-based positioning for real-time assembly tracking. At the heart of Hanwha’s commercial ambitions is the growing demand for LNG carriers in the United States. The company projects that 11 vessels will be needed by 2028, representing a market opportunity of roughly $2.8 billion, based on an estimated $255 million per ship. Beyond the commercial market, Hanwha is eyeing a broader role in U.S. naval shipbuilding. Philly Shipyard is currently participating in U.S. government pilot programs — partnering with the Navy, defense contractors, and research institutions — to qualify 3D-printed components for use on active-duty vessels. To meet the stringent demands of U.S. military contracts, Hanwha has implemented a robust testing regime that includes ultrasonic and x-ray inspection and fatigue testing in simulated maritime conditions. The company is also incorporating digital twin models and AI-powered predictive maintenance systems to monitor the real-time performance of ship components throughout their lifecycle. 2025-07-16 16:11:37

Korea moves to establish renewable-powered industrial zone SEOUL, July 16 (AJP) - South Korea is intensifying efforts to establish industrial zones powered primarily by renewable energy, part of a broader strategy to align with international sustainability standards and accelerate the country's corporate energy transition. On Wednesday, the Ministry of Trade, Industry and Energy convened the first meeting of a new task force at the Korea Chamber of Commerce and Industry in central Seoul. The group, composed of senior officials from multiple ministries, is charged with drafting special legislation and crafting a development blueprint for what the government is calling “RE100 industrial complex," which will operate primarily on electricity from solar, wind, and other renewable sources. Vice Minister Moon Shin-hak, who chaired the meeting, said the initiative reflects the urgency of preparing domestic industries for an era in which global supply chains are increasingly governed by sustainability standards. “RE100 is becoming an essential requirement for export-oriented companies,” Moon said. “We must treat it not as a regulatory burden, but as an opportunity — using renewable energy to promote balanced regional development and advance our energy transition.” The plan follows a senior aides’ meeting on July 10 led by President Lee Jae Myung, during which the RE100 complex project was identified as a national policy priority. The term “RE100” refers to a global corporate initiative under which companies commit to sourcing 100 percent of their electricity from renewable sources by 2050. As major multinational firms require their suppliers to comply with RE100 standards, South Korea sees the initiative not only as a matter of environmental policy but also of economic competitiveness. The task force brings together representatives from the Office for Government Policy Coordination, the Ministry of Economy and Finance, the Ministry of Land, Infrastructure and Transport, the Ministry of Environment, and other key agencies. Officials said they had agreed to coordinate efforts across several domains: developing renewable energy infrastructure, enhancing residential and educational conditions for workers and their families, and creating incentives for companies to relocate to the complexes. Among the ideas discussed were sharp reductions in electricity rates, deregulated business environments, and the provision of high-quality housing, schools, and other amenities aimed at attracting top-tier talent and investment. The task force is expected to meet biweekly, with the goal of presenting a finalized blueprint and legislative proposal by the end of the year. 2025-07-16 14:13:37

Korean dessert chain Sulbing to enter Philippine market SEOUL, July 16 (AJP) - South Korean dessert franchise Sulbing is expanding its footprint in Southeast Asia, announcing a new master franchise agreement with a local partner in the Philippines, Wednesday. The agreement, signed on July 15 at Sulbing’s headquarters in central Seoul, brings the brand into its third Southeast Asian market following Malaysia and Cambodia. Sulbing CEO Kim Eui-yeol and Winnie Go, head of Beyond Bingsu Cafe Inc. — a newly formed company under the Fredley Group of Companies — attended the signing ceremony. The Fredley Group, which operates more than 200 restaurants across the Philippines, will oversee Sulbing’s operations in the country through the new franchise entity. The first location is scheduled to open by the end of this year at the SM Mall of Asia in Manila, one of the Philippines’ largest commercial centers. A second location is also slated to launch before year’s end. “With Beyond Bingsu Cafe’s extensive experience in food and beverage operations, we expect to offer localized service and ensure stable store management,” a Sulbing official said in a statement. “Their expertise will play a key role in establishing Sulbing in the Philippine market.” Founded in South Korea and known for its modern take on bingsu — a traditional shaved ice dessert — Sulbing currently operates 587 stores domestically and 12 overseas, including locations in the United States, Japan, Australia, Malaysia, and Cambodia. The company also said it aims to expand into additional Southeast Asian markets, including Singapore, Taiwan, Vietnam, and Laos, as part of a broader push to increase its global presence. 2025-07-16 09:44:23