South Korea's credit card firms post profit drop as delinquency hits decade high SEOUL, September 05 (AJP) - South Korea's credit card companies saw their combined net profits sink more than 18 percent in the first half of the year, with delinquency rates climbing to their highest point in over a decade, according to data released Friday by the Financial Supervisory Service (FSS). Net profits stood at 1.2251 trillion won ($8.79 billion) for the January–June period, down 18.3 percent from a year earlier. The slide came even as revenue rose by 331.1 billion won ($238 million), because overall costs jumped by 604.9 billion won ($434 million). The increase in expenses was largely tied to higher loan loss provisions, which climbed 264.3 billion won ($190 million), as well as 11.3 billion won ($8.1 million) in additional interest costs. Merchant fee income also slipped by 291.1 billion won ($209 million). Asset quality weakened noticeably. As of the end of June, the delinquency rate on total receivables was 1.76 percent, up 0.11 percentage points from the end of last year. It marked the highest level since late 2014, when the figure stood at 1.69 percent. Non-performing loans rose as well, with the ratio increasing from 1.16 percent at the end of last year to 1.3 percent. The loan loss reserve ratio edged down slightly to 106.3 percent from 108.1 percent. On the other hand, capital adequacy remained solid. The sector's adjusted capital ratio improved 0.3 percentage points to 20.7 percent, comfortably above the regulatory minimum of 8 percent. An FSS official said net profits took a hit because of "reduced merchant fee income and increased loan loss costs," while stressing that "although delinquency rates and non-performing loans have gone up, loss absorption capacity remains 2025-09-05 13:26:46

LG Electronics to supply cooling systems for AI data center in US SEOUL, September 04 (AJP) - LG Electronics said Thursday it had secured a major contract to provide cooling solutions for a large artificial intelligence data center in the United States. Jo Joo-wan, the company’s chief executive, announced the win on LinkedIn, saying LG would supply chillers with advanced “free-cooling” capabilities. He didn't mention the value of the contract. “This demonstrates both our technological competitiveness and our ability to meet the demanding requirements of global AI infrastructure,” he wrote. The contract calls for LG to provide high-efficiency cooling systems tailored to the energy-intensive needs of data centers. Such facilities, which power the computing demands of generative AI, require vast amounts of electricity and are under increasing pressure to operate more sustainably. Demand is expected to surge. According to McKinsey & Company, global data center capacity could nearly triple by 2030 to 171 gigawatts, growing at an annual rate of 22 percent. In the United States alone, an additional 15 gigawatts of capacity will be needed, driven largely by artificial intelligence applications. LG has sought to position itself as a supplier of critical infrastructure for the AI era, expanding beyond consumer electronics into industrial technologies. Alongside data center cooling, the company is investing in equipment for semiconductor manufacturing, another area where the boom in AI is driving new demand. “The rapid rise of AI is accelerating demand across its critical infrastructure — particularly in data centers and semiconductor equipment,” Jo said. “At LG Electronics, we are capturing new opportunities in two of these foundational areas.” 2025-09-04 16:58:40

SK On expands into US energy storage market with $1.4 billion battery deal SEOUL, September 04 (AJP) - Battery maker SK On said Thursday it had secured a major foothold in the North American energy storage market by signing a large supply contract with Colorado-based Flatiron Energy. The deal covers one gigawatt-hour of containerized storage systems using lithium iron phosphate (LFP) batteries for a project in Massachusetts, beginning next year. SK On also gained “preferred supplier” status for Flatiron’s broader portfolio of U.S. projects, totaling 6.2 gigawatt-hours through 2030. In all, the partnership could reach 7.2 gigawatt-hours, with an estimated value of up to 2 trillion won, or $1.44 billion. Flatiron, founded in 2021, develops and operates large-scale energy storage systems across North America, overseeing the process from site acquisition to construction and operation. To meet demand, SK On plans to begin mass production of storage-specific LFP batteries in the second half of 2026. Part of its SK Battery America plant in Georgia, originally designed for electric vehicle batteries, will be converted to produce the systems. Executives said the pivot would help the company weather a slowdown in electric vehicle sales by broadening its product portfolio. The global market for stationary energy storage has been expanding rapidly, driven by renewable power generation and grid stabilization needs. “This contract is highly significant in that SK On has simultaneously expanded both its battery chemistry and business portfolio,” said Choi Dae-jin, head of the company’s ESS division. “Going forward, we will continue to secure additional customers based on our advanced battery technology and local production capabilities.” Industry analysts estimate that energy storage contracts average about 300 billion won, or $215 million, per gigawatt-hour, making the Flatiron deal one of SK On’s largest outside the electric vehicle sector. 2025-09-04 16:38:48

LG Energy Solution lands major battery deal with Mercedes-Benz SEOUL, September 03 (AJP) - LG Energy Solution said Wednesday that it had signed a major supply agreement with Mercedes-Benz to provide electric vehicle batteries for the German automaker’s European and U.S. operations. The deal, disclosed in a regulatory filing, covers two contracts. In Europe, LG Energy Solution will deliver 32 gigawatt-hours of batteries from August 2028 through late 2035. In the United States, it will supply 75 gigawatt-hours beginning in July 2029 and continuing through the end of 2037. Though financial terms were not revealed, industry analysts estimated the contracts’ value at roughly 15 trillion won, or $10.8 billion, based on their scale. The agreement is the second between the two companies. In October 2024, Mercedes signed a deal with LG Energy Solution for 50.5 gigawatt-hours of batteries. Under the new contract, the South Korean firm is expected to provide Mercedes with its 46-series cylindrical cells, a format gaining traction in the industry for its energy efficiency. Analysts said the agreement underscores LG Energy Solution’s ability to compete against Chinese rivals such as CATL and Farasis, which have been expanding aggressively with lower-cost offerings. 2025-09-03 15:21:47

Hyundai, Kia power Korean EV market to strong rebound SEOUL, September 03 (AJP) - South Korea’s electric vehicle market is showing signs of revival this year, fueled by a wave of new models from Hyundai and Kia after several years of declining sales. From January through July, registrations of new electric vehicles reached 118,047, according to data released Wednesday by the Ministry of Land, Infrastructure and Transport. The figure represents a 46.7 percent increase from the same period a year earlier and pushed cumulative registrations past the 100,000 mark in just seven months. The rebound follows three years of contraction. Annual new registrations slipped to 164,324 units in 2022, then to 162,507 in 2023 and 146,734 in 2024. If momentum continues through the second half of the year, analysts say, annual sales could surpass 200,000 units for the first time. Domestic automakers remain at the center of the surge. Hyundai and Kia accounted for nearly 63 percent of new registrations in the first seven months of 2025, propelled by the launch of high-profile models including Hyundai’s Ioniq 9 and Ioniq 6, and Kia’s EV3 and PV5. Industry analysts credit the fresh lineup with restoring consumer confidence in the market, noting that competitive pricing and extended driving ranges have helped boost demand. 2025-09-03 14:40:45

Gold prices soar on US rate cut expectations, geopolitical strains SEOUL, September 03 (AJP) - Gold prices surged to fresh records on Tuesday (local time), fueled by mounting expectations of U.S. Federal Reserve interest rate cuts and heightened geopolitical uncertainty. Spot gold climbed to $3,530 an ounce on Sept. 2, topping the previous peak of $3,500 set in April. Futures contracts on the Commodity Exchange rose even higher, touching about $3,600 an ounce during the session. The rally comes as investors increasingly bet that the Fed will lower borrowing costs when policymakers meet later this month. At the Jackson Hole economic symposium in August, Jerome Powell, the Fed chair, signaled that officials were prepared to act if evidence of slowing growth continued to build. The Federal Open Market Committee is scheduled to convene Sept. 16-17. A reduction in rates would likely weaken the dollar and bolster demand for gold, which is widely viewed as a hedge against inflation and economic instability. Traders are now turning their attention to the U.S. jobs report for August, due Friday. A further cooling in the labor market, after recent signs of softness, could strengthen the case for a rate cut and push gold even higher. 2025-09-03 13:49:45

Lotte Biologics signs manufacturing deal for immunotherapy drug with US firm SEOUL, September 02 (AJP) - Lotte Biologics said Tuesday it had signed a manufacturing agreement with a U.S. biotechnology company to produce an experimental immunotherapy. The deal, which runs through 2030, covers late-stage clinical trials and potential commercialization of the drug candidate, which is being tested across multiple disease indications. The name of the client company was not disclosed under confidentiality terms. Lotte Biologics, a unit of the Lotte conglomerate, is focusing on expanding its contract development and manufacturing organization, or CDMO, business, which produces drugs on behalf of pharmaceutical companies. Its U.S. production base, the Syracuse Bio Campus in New York, is positioned as a cornerstone of that growth strategy. The company said it plans to operate under a single quality-control system across both the Syracuse facility and its upcoming Songdo Bio Campus in South Korea, scheduled to begin operations in 2027, in order to attract more partnerships with American biotech firms. 2025-09-02 16:52:10

Hanwha showcases submarines, weapons systems in bid for Polish defense contracts SEOUL, September 02 (AJP) - Hanwha Group said Tuesday its three defense affiliates were taking part in Eastern Europe’s largest arms fair this week, as the South Korean conglomerate looks to strengthen its foothold in Poland and compete for a major submarine modernization program. From Sept. 2 to 5, Hanwha Aerospace, Hanwha Systems and Hanwha Ocean are exhibiting at the 33rd International Defense Industry Exhibition, or MSPO 2025, in Kielce, Poland. The companies have set up a joint booth spanning nearly 300 square meters to present what they describe as integrated land, air and naval solutions. Hanwha Ocean is highlighting its 3,000-ton Jangbogo-III (KSS-III) Batch II submarine, currently in service with the South Korean Navy. Equipped with air-independent propulsion and lithium-ion batteries, the vessel can remain submerged for more than three weeks and is capable of launching ballistic missiles. The display is aimed squarely at Poland’s ORKA program, a centerpiece of Warsaw’s defense modernization drive. The initiative seeks to replace the Polish Navy’s lone Russian-built Kilo-class submarine with a new fleet of diesel-electric vessels. Given the Baltic region’s coastal operating environment, Hanwha said it was also prepared to offer patrol ships, fast missile craft and unmanned surface vessels tailored to local needs. Hanwha Ocean said it planned to sign agreements with Polish shipbuilders covering technology transfer, workforce training and marine development funding. Hanwha Aerospace, meanwhile, is promoting the K9A2, an upgraded version of its self-propelled howitzer. The new model features fully automated shell loading, raising its firing rate from six to nine rounds per minute while cutting required crew from five to three. Hanwha Systems is also unveiling its Active Protection System for the first time, a defensive suite designed to detect and neutralize incoming threats such as anti-tank missiles. “Hanwha has built deep trust with Poland by keeping promises through the K9 and Chunmoo projects,” said Son Jae-il, chief executive of Hanwha Aerospace and Hanwha Systems. “We will continue to play an active role in building a stronger defense ecosystem together.” 2025-09-02 15:58:21

[[K-Tech]] UNIST develops AI system to spot microscopic assembly defects in seconds SEOUL, September 02 (AJP) - The Ulsan National Institute of Science and Technology said Tuesday it had developed an artificial intelligence-based inspection system that can detect microscopic assembly defects in less than three seconds, a breakthrough that could speed up manufacturing and cut costs across multiple industries. The system, designed by a team led by Professor Jung Im-doo of the university’s Department of Mechanical Engineering, uses a “smart jig” — a fixture that holds parts in place during assembly — fitted with soft, 3D-printed sensor caps. When components are clamped down, the caps deform slightly to reflect the surface profile. AI algorithms then analyze those patterns to spot irregularities the moment parts are secured. Defects often occur when component surfaces do not align properly, weakening joints and lowering product quality. Traditional inspection methods can take more than 10 minutes per part. The new system reduces that to just 2.79 seconds, enabling full inspection without slowing automated production lines, the researchers said. The system visualizes results in heat maps, allowing operators to quickly identify both the location and severity of flaws. It is capable of detecting defects as small as a few hundred micrometers, or millionths of a meter. Professor Jung said the technology could be applied in sectors ranging from electric vehicles and home appliances to semiconductors and aerospace. “We expect annual cost savings in the hundreds of millions of won through reduced inspection staff and time, improved quality reliability, and minimized defects,” he said in a statement. 2025-09-02 15:52:20

Korean retailers scramble as US ends duty-free imports on small packages SEOUL, September 02 (AJP) - South Korean online retailers are rushing to adapt after the United States eliminated a duty-free exemption for packages under $800, a move that threatens to raise costs and dampen demand in one of their most important overseas markets. Beginning Aug. 29, American consumers ordering from Korean platforms face a 15 percent tariff on purchases that had previously entered the country without customs duties. The policy shift, announced by the Trump administration, has rattled Korea’s cross-border e-commerce sector, which relies heavily on U.S. shoppers for sales of fashion and beauty products. The change affects a significant slice of business. In the second quarter, Korean companies’ direct online sales abroad totaled 738.8 billion won, or about $530 million, according to Statistics Korea. The United States accounted for 138.2 billion won, or $99 million — nearly a fifth of the total — making it the third-largest destination after China and Japan. To soften the blow, retailers are retooling their systems. Musinsa, a popular fashion marketplace, said it will now include U.S. tariffs in the final checkout price rather than charging customers separately on delivery, while also warning of potential customs delays. Beauty company CJ Olive Young has adopted a similar approach, automatically applying a 15 percent duty at checkout. Other companies are placing the burden directly on customers. Amorepacific said U.S. buyers will be billed not only a 15 percent tariff but also an $18.30 clearance fee, collected by DHL on delivery. For Korean sellers, the worry is whether higher costs will blunt the enthusiasm of U.S. consumers for K-beauty creams, trendy streetwear and other cultural exports that have powered sales overseas. “We’re keeping a close eye on how this develops,” one industry official said. “Discounts and promotions may be the only way to keep American customers coming back.” 2025-09-02 10:57:53