Saltlux launches AI center to guide corporate adoption SEOUL, July 15 (AJP) - South Korean artificial intelligence firm Saltlux on Tuesday announced the launch of its AI Work Innovation Center aimed at helping businesses integrate generative AI and AI agents into their operations from concept to deployment. The center is intended to support companies grappling with the challenges of AI adoption by offering a structured, end-to-end consulting and implementation service. Its offerings span strategy development, technology assessment, prototype development, and full-scale integration. While AI agents are increasingly seen as essential tools for boosting productivity and maintaining competitiveness, many companies remain hesitant, citing uncertainties around implementation, compatibility with legacy systems, security risks, and cost control. Saltlux said its approach is designed to address those hurdles through tailored, sector-specific solutions. The process begins with an intensive two-week strategy workshop to assess client goals and operational conditions. From there, the company develops AI agent prototypes and user interface designs, aiming to deliver technology that fits into existing workflows and scales effectively from pilot to production. “AI is no longer a choice, but a strategic necessity that every company must prepare for,” said Lee Kyung-il, chief executive of Saltlux. “We will continue to actively support Korean companies in their AI transformation by leveraging our technical expertise and experience, and help all organizations harness AI as a tool for innovation.” 2025-07-15 16:16:29

Korea's budget airlines see passenger decline despite peak travel season SEOUL, July 15 (AJP) - South Korea’s low-cost carriers reported disappointing results for the second quarter of 2025, as passenger numbers dipped below last year’s levels despite the start of the summer travel season. Total traffic on budget airlines fell 2.8 percent year-on-year to 17.46 million domestic and international passengers, according to data released by the Ministry of Land, Infrastructure and Transport. The decline comes amid ongoing fare suppression, persistent safety concerns, and softer-than-expected demand — fueled in part by viral but unfounded rumors of seismic activity in Japan, a key destination. The subdued figures are in sharp contrast to those of South Korea’s full-service airlines. Korean Air and Asiana Airlines posted a combined 3.2 percent increase in passenger numbers over the same period, suggesting that travelers may be opting for legacy carriers amid concerns over service and safety at budget airlines. The gap was even wider when viewed over the first half of the year. While Korea’s two flagship carriers saw passenger growth of 3.8 percent, the collective total for low-cost carriers declined by 5.4 percent. Jeju Air is expected to report a second-quarter operating loss of 39.9 billion won, widening from a 32.6 billion won shortfall in the first quarter, according to estimates from market tracker FnGuide. Jin Air, which had posted an operating profit of 58.3 billion won earlier in the year, is now forecast to swing to a 5.1 billion won loss. T’way Air is projected to remain in negative territory, with an estimated 41.5 billion won operating loss. Analysts point to the aftermath of a runway overrun at Muan International Airport late last year as a key factor behind the financial strain. In the wake of the incident, low-cost carriers slashed ticket prices to rebuild demand — but those fare cuts have since become entrenched, making it difficult to restore profitability even during the typically robust summer period. “In the process of recovering from the Muan Airport incident, low-cost carriers significantly lowered their fares, and those price cuts have since become entrenched — preventing them from regaining profitability even during the peak season,” said Choi Go-un, an analyst at Korea Investment & Securities. Currency fluctuations are adding to the strain. Budget airlines remain heavily exposed to a strong U.S. dollar, which affects core costs such as aircraft leases, fuel, maintenance, and insurance — all typically paid in dollars. “For some carriers, the underlying demand base is starting to weaken,” Choi added, warning that the mounting financial pressure could prompt some airlines to pursue capital raises through rights offerings in the second half of the year. 2025-07-15 15:27:24

POSCO to supply advanced steel for Saudi Aramco's gas plant SEOUL, July 15 (AJP) - South Korea’s largest steelmaker POSCO will supply hydrogen-induced cracking (HIC) resistant steel to Saudi Aramco for its Fadhili gas plant expansion project. The agreement is a strategic win for POSCO and a notable shift in procurement norms for Aramco, the world’s largest oil producer, which has traditionally sourced such critical materials from European manufacturers. The Fadhili expansion, designed to increase the plant’s gas processing capacity by roughly 60 percent, demands materials capable of withstanding severe operational conditions, including hydrogen-induced cracking — a corrosive failure mechanism caused by hydrogen sulfide exposure in high-pressure environments. HIC-resistant steel, a specialized alloy used in the fabrication of pipes, pressure vessels, and structural components, plays a vital role in energy infrastructure. While POSCO has previously supplied HIC-grade steel for pipelines, this project represents the first time its steel will be deployed within the plant itself, positioning the Korean company as a serious contender in an elite global market. “This contract is a clear example of how technological innovation and quality can break entrenched market barriers,” a POSCO spokesperson said. The company described the deal as part of its broader strategy to achieve what it calls “super-gap” competitiveness — offering premium, high-value-added steel products that few global players can match. Beyond the commercial win, the agreement carries significant implications for South Korea’s broader industrial ecosystem. The HIC-resistant steel will be fabricated domestically into pipes, pressure vessels, and other components by firms including Hyundai Steel Pipe, SeAH Steel, Bumhan Mecatec, and Taekwang Industrial. Aramco had initially considered European firms for downstream production. But POSCO’s selection helped redirect that work to South Korean manufacturers, bolstering the country’s plant engineering and fabrication sectors. For Aramco, the decision also reflects a broader shift toward diversifying its supplier base as it embarks on ambitious expansions across gas and petrochemical processing. Construction on the Fadhili gas plant expansion is expected to begin later this year. 2025-07-15 13:33:25

Korea's top yards post triple-digit profit growth SEOUL, July 11 (AJP) - South Korea’s top three shipbuilders — HD Korea Shipbuilding & Offshore Engineering (HD KSOE), Hanwha Ocean, and Samsung Heavy Industries — are projected to post a combined operating profit of more than 2.57 trillion won ($1.86 billion) for the first half of 2025, more than triple the earnings from a year earlier, as the industry rides a wave of high-margin vessel deliveries and growing defense contracts. The projected total marks a 226 percent increase from the 788.5 billion won reported during the same period in 2024, according to estimates compiled by financial data provider FnGuide and industry analysts. For the second quarter alone, the shipbuilders are forecast to earn 1.33 trillion won in operating profit, up 167 percent from the year-earlier quarter. HD KSOE, the intermediate holding company that controls Hyundai Heavy Industries' shipbuilding units, is expected to lead the surge with an estimated 900 billion won in second-quarter profit, a 139 percent jump from a year earlier. For the first half, its operating profit is forecast to reach 1.76 trillion won, up 228 percent. Much of the gain stems from improved margins at HD Hyundai Heavy Industries, which posted an operating margin of 11.3 percent in the first quarter and is projected to sustain margins near 12 percent in the second. Industry analysts attribute the rise in profitability to a waning impact from low-margin contracts signed during the industry downturn of 2020–21, which now account for just 2 percent of revenue. Hanwha Ocean, which returned to the black last year after four consecutive years of losses, is poised to post a dramatic turnaround. The company is projected to report an operating profit in the mid-250 billion won range for the second quarter, compared to a loss in the same period last year. Its first-half profit is expected to total about 510 billion won — an increase of more than 1,000 percent year-over-year. Hanwha's recovery is being powered by a portfolio shift toward high-value contracts, including submarine construction and maintenance and overhaul (MRO) work for the U.S. Navy. The company’s operating margin hit 8.2 percent in the first quarter and is expected to remain in the 7-percent range. Samsung Heavy Industries is also expected to show solid results, with a projected first-half operating profit of 298.8 billion won, up 43 percent from a year earlier. The company’s focus on floating liquefied natural gas (FLNG) platforms — a segment where it commands a dominant share of the global market — has provided a steady stream of high-margin work. Much of the industry’s recent momentum is rooted in the delivery of high-value vessels, particularly LNG carriers and container ships. HD Hyundai’s current backlog consists of gas carriers making up about 70 percent of its total orders. LNG-related contracts account for more than 60 percent of Hanwha Ocean’s order book. Samsung, for its part, continues to bet heavily on FLNG infrastructure, with demand remaining strong amid a global push for energy security. Korean shipbuilders are also diversifying into defense and offshore energy platforms, adding stability to what has long been a cyclical industry. With the Trump administration preparing to invest in revitalizing the U.S. shipbuilding sector, analysts say South Korean firms could see new opportunities emerge in the American commercial and naval markets in the latter half of the year — a development that could open a lucrative new export channel. 2025-07-11 17:01:38

Korean exporters brace for weaker second half as tariff uncertainty looms SEOUL, July 11 (AJP) - South Korea’s export momentum is expected to falter in the second half of 2025, weighed down by rising uncertainty over U.S. trade policy and softening global demand, according to a new industry survey. The Federation of Korean Industries (FKI), in partnership with research firm Mono Research, surveyed 150 companies among Korea’s top 1,000 exporters across ten key sectors. The findings paint a cautious picture: overall export volume is projected to decline by 1.6 percent year-over-year, reversing gains seen earlier in the year. The export outlook varies sharply by industry. Bio-health products are expected to lead the few gainers, with shipments projected to rise 1.6 percent, followed by electronic components (1.3 percent), automotive parts (0.8 percent), and computers (0.4 percent). In contrast, steel exports are forecast to fall 5.0 percent, shipbuilding by 2.5 percent, and both petrochemicals and general machinery by 2.2 percent. Automobile and semiconductor exports are also expected to contract, though more modestly. The most pressing concern among exporters is the potential for escalating U.S. tariffs. More than half of respondents identified American trade policy as the top risk to their businesses, ahead of broader worries about a global economic slowdown and the intensifying U.S.–China rivalry. Industry anxiety has grown since Washington announced on July 7 that new retaliatory tariffs — reaching as high as 25 percent — could take effect on August 1. If implemented, they would pose a severe burden for Korean exporters, the survey found. A full 92 percent of respondents said their businesses would struggle to absorb tariffs above 15 percent. Notably, 42 percent indicated that even a single-digit increase would be difficult to manage. In response, companies are exploring a range of mitigation strategies. About one-third said they plan to reduce costs, while a similar share are preparing to adjust export prices. Roughly 15 percent are considering shifting production overseas. Still, 14.2 percent of firms acknowledged having no concrete plan in place. Profit margins are expected to remain under pressure. Nearly 39 percent of companies forecast deteriorating profitability in the second half of 2025, citing rising tariff-related costs (44.8 percent), tougher price competition (34.5 percent), and increasing labor and operational expenses (13.8 percent). Only 14 percent expect an improvement. Sectors such as auto parts, automobiles, general machinery, petrochemicals, and steel were more likely to report projected margin declines. Only the semiconductor and shipbuilding industries had more companies forecasting improved profitability than those expecting deterioration. To bolster resilience, exporters are urging the government to prioritize trade pacts aimed at reducing tariff exposure and to expand financial support. Policy recommendations include enhanced corporate tax incentives, investment credits, and initiatives to help firms access new export markets. “With U.S. tariff policy and sluggish global growth likely to persist, cost-cutting alone is not a sustainable strategy,” said Lee Sang-ho, head of economic and industrial policy at FKI. “What’s needed are trade agreements that reflect Korea’s strengths, regional diversification of exports, and broader institutional support to secure long-term competitiveness.” 2025-07-11 13:57:48

Hyundai Motor unveils high-performance EV, Ioniq 6 N SEOUL, July 11 (AJP) - Hyundai Motor has debuted its latest high-performance electric vehicle, the Ioniq 6 N, at the Goodwood Festival of Speed in southern England, marking the brand’s second entry into its performance-focused N electric vehicle lineup. Following last year’s launch of the Ioniq 5 N, the new model builds on Hyundai’s ambition to fuse electric powertrains with track-ready performance. The Ioniq 6 N features a dual-motor setup, enabling it to sprint from zero to 100 kilometers per hour in 3.2 seconds. Its top speed is rated at 257 km/h. “Ioniq 6 N combines formidable power, sophisticated battery management, aerodynamic mastery and advanced suspension systems to deliver a compelling blend of speed, stability and comfort,” said Manfred Harrer, executive vice president and head of vehicle development tech at Hyundai Motor. To sustain high-performance driving, Hyundai has equipped the vehicle with an enhanced thermal management system called N Battery, designed to reduce preconditioning time and maintain battery efficiency under stress. Exterior aerodynamic upgrades — most notably a swan-neck rear wing and flared fenders — are aimed at boosting downforce and improving stability at speed. Beneath the surface, Hyundai engineers have reconfigured the suspension geometry and added stroke-sensing electronically controlled dampers, which adapt to various driving scenarios — from everyday commutes to aggressive cornering on racetracks. The company plans to exhibit the Ioniq 6 N for the first time in South Korea at the Lotte Premium Outlet in Uiwang, Gyeonggi Province, from July 13 to 20. A commercial launch is scheduled for the fourth quarter of 2025, with pricing to be announced at a later date. 2025-07-11 10:09:57

Korean defense industry posts record quarter amid export boom to Europe, Middle East SEOUL, July 10 (AJP) - South Korea’s defense industry continued its unprecedented growth trajectory in the second quarter, buoyed by sustained international demand for weapons systems and armored vehicles. The nation’s four leading defense contractors — Hanwha Aerospace, Hyundai Rotem, LIG Nex1, and Korea Aerospace Industries (KAI) — are projected to report a combined operating profit exceeding 1 trillion won for the first time, according to financial estimates released this week. Analysts at FnGuide, a South Korean financial data provider, forecast total revenue of 9.7 trillion won ($7 billion) for the April–June period, with operating profit expected to reach 1.1 trillion won ($800 million). The performance eclipses the previous record set just a quarter earlier, when the sector posted 8.3 trillion won in revenue and fell just short of the 1 trillion won profit mark. Hanwha Aerospace led the surge, with second-quarter revenue projected at 6.26 trillion won and operating profit at 696.3 billion won — up 124.8 percent and 94.1 percent, respectively, from a year earlier. The company benefited from continued deliveries of K9 self-propelled howitzers and Cheonmu multiple launch rocket systems to Poland, as well as exports of propellant materials to the United Kingdom and Sweden. A sharp increase in European ammunition demand, spurred by the protracted conflict in Ukraine, further boosted performance. Hyundai Rotem also reported robust growth, driven by Poland’s large-scale acquisition of K2 main battle tanks. The company is expected to post 1.38 trillion won in revenue and 232.5 billion won in operating profit, reflecting annual increases of 26.5 percent and 106.1 percent, respectively. Of the 180 K2 tanks contracted under a 2022 agreement, 133 had been delivered by the end of June, including 49 units shipped this year. The remaining 47 are scheduled for delivery later in 2025. On July 2, Hyundai Rotem confirmed it had concluded negotiations with Poland’s Ministry of Defense for a second-phase contract valued at $6.5 billion (approximately 8.8 trillion won). The deal was South Korea’s largest-ever single defense export contract. LIG Nex1, a key player in the guided weapons sector, is expected to post revenue of 883.4 billion won and operating profit of 83.1 billion won, representing year-over-year increases of 46.1 percent and 69 percent. Much of the growth stems from domestic production of the Cheongung-II (M-SAM) surface-to-air missile system and a significant export deal with the United Arab Emirates. Signed jointly with Hanwha Aerospace in 2022, the $3 billion contract includes a 2.34 trillion won share for LIG Nex1. Korea Aerospace Industries (KAI) was the lone outlier, with earnings expected to dip slightly in the second quarter. The company is forecast to report 891.4 billion won in revenue and 68.6 billion won in operating profit — down 0.08 percent and 8.77 percent, respectively, from the same period last year. The decline is attributed to delayed deliveries of FA-50 light combat aircraft to Poland and the absence of large-scale aircraft handovers during the quarter. However, analysts remain optimistic about a rebound later in the year, as KAI ramps up mass production of its KF-21 next-generation fighter and begins work on a recently awarded order from the Philippines for an additional 12 FA-50 jets. 2025-07-10 15:55:27

Hanwha Ocean intensifies bid for Poland's $6 billion submarine project SEOUL, July 10 (AJP) - Hanwha Ocean is intensifying its campaign to win a multibillion-dollar submarine contract from the Polish government, offering a localized production model, technology transfer, and strategic financing in a bid to secure the next-generation Orka submarine program. The project, valued at an estimated 8 trillion won, or roughly $6 billion, is a key component of Poland’s broader military modernization push, as the country seeks to bolster its naval capabilities amid rising geopolitical tensions in the region. At a recent media briefing in Warsaw, Hanwha Ocean laid out its proposal, underscoring its intent to work closely with Polish authorities and domestic defense contractors. According to a defense industry official familiar with the matter, the company is exploring a range of financing mechanisms — including partnerships with private banks and public financial institutions — to help ease the fiscal burden of the project on the Polish government. At the core of Hanwha’s bid is the KSS-III Batch-II class submarine, a cutting-edge vessel equipped with air-independent propulsion (AIP) and ten vertical launch system (VLS) cells. Designed for enhanced stealth and maneuverability, the submarine is seen as particularly well-suited for operations in the shallow waters of the Baltic Sea. Since 2023, Hanwha has steadily deepened its footprint in Poland. In April, the company proposed leasing a KSS-I submarine to provide an interim solution ahead of the delivery of new units — an offer aimed at bridging potential capability gaps in the Polish Navy. Hanwha’s outreach has included direct negotiations with major Polish shipyards, including Remontowa and Nauta, to explore avenues for maintenance, repair and overhaul (MRO) infrastructure development and core technology transfer. In May, the company signed memorandums of understanding with PGZ Stocznia Wojenna (PGZ SW) and Nauta during the MADEX naval defense exhibition, formalizing its commitment to local partnerships. Its proposal also includes the establishment of a permanent MRO center, a $100 million investment package, workforce development initiatives, and long-term industrial cooperation agreements with local shipbuilders. The company frames this not merely as an arms deal, but as a strategic contribution to Poland’s defense industrial base. By offering a comprehensive package that ties cutting-edge technology with local production and economic investment, Hanwha Ocean is positioning itself as more than a supplier — it aims to become a long-term partner in Poland’s national defense strategy. 2025-07-10 09:59:33

Korean instant noodle firms Samyang, Nongshim poised for strong earnings SEOUL, July 09 (AJP) - South Korea’s leading instant noodle exporters, Samyang Foods and Nongshim, are expected to post robust second-quarter earnings, buoyed by growing overseas demand and a favorable currency rate. According to analyst consensus, Samyang Foods is projected to report 542.6 billion won ($395 million) in revenue for the April–June period, a 27.9 percent increase from the same period last year. Operating profit is forecast to rise 43 percent to 127.9 billion won, setting a new quarterly record and surpassing the previous high of 529 billion won in the first quarter. Following its milestone of exceeding 1 trillion won in annual sales for the first time in 2023, Samyang now appears on pace to cross that threshold within just the first half of this year. The company's rapid ascent has been fueled by its aggressive expansion into international markets. Its overseas sales ratio climbed from 57 percent in 2020 to 77 percent in 2024 and reached 80 percent in the first quarter of 2025. Samyang has made significant inroads into mainstream retail channels across the United States, Europe and Latin America, while also diversifying its exports to include sauces alongside its signature spicy ramen offerings. Nongshim is also expected to show signs of recovery after a softer first quarter. The company is projected to post 905.6 billion won in revenue for the second quarter, a year-on-year increase of 5.2 percent, with operating profit forecast to rise 16.5 percent to 50.9 billion won. The upbeat projections come amid rising global appetite for Korean instant noodles, particularly among younger consumers seeking bold flavors and convenient meals. While domestic growth has matured, industry leaders are increasingly focused on export markets as key engines of long-term growth. 2025-07-09 16:21:43

Korean agricultural machinery firms brace for 25 percent US import tariff SEOUL, July 09 (AJP) - South Korea’s agricultural machinery industry is bracing for a major blow after the United States announced it would impose a 25 percent retaliatory tariff on all Korean imports beginning August 1, a move that threatens to disrupt one of the country's most export-reliant sectors. Among the hardest hit are leading tractor manufacturers Daedong and TYM, both of which derive a substantial portion of their revenue from the North American market. Daedong, whose exports totaled 957.7 billion won ($696 million) in 2023, saw approximately 74 percent of its total revenue that year come from overseas shipments. In 2024, exports made up about 65.3 percent of sales, with nearly 80 percent of that volume headed to North America. The company’s strategic dependence on the U.S. market remains clear: in the first quarter of 2025, Daedong’s North American unit held a 10.8 percent share of the region’s tractor market, highlighting the scale of its exposure to the looming tariffs. TYM, another major player in the sector, finds itself in a similarly vulnerable position. The company posted export ratios of 71 percent in 2023, 62 percent in 2024, and 65 percent in the first quarter of this year. North America accounted for 60.2 percent of TYM’s revenue in the first quarter of 2025. The companies now face a dual challenge: mitigating the immediate financial blow from tariff-related cost increases while safeguarding their long-term competitiveness. Both Daedong and TYM are cautiously weighing price increases in the U.S. market. TYM raised prices earlier this year in response to climbing raw material and shipping costs, while Daedong is expected to implement price adjustments in the second half of 2025. 2025-07-09 14:36:55