Journalist

Kim Seong-se
  • Koreas FDI dips 18% as of Q3 2025 amid weak M&A and currency
    Korea's FDI dips 18% as of Q3 2025 amid weak M&A and currency SEOUL, October 15 (AJP) - Foreign direct investment (FDI) in South Korea fell 18 percent in the first nine months of 2025 from a year earlier, hit by sluggish merger and acquisition (M&A) activity, political uncertainty, and the Korean won’s steep depreciation against the U.S. dollar, the Ministry of Trade, Industry and Energy said Tuesday. Cumulative FDI pledges as of the third quarter stood at $20.65 billion, down from $25.18 billion a year earlier. Actual arrivals also slipped 2 percent to $11.29 billion. The biggest drag came from a 54-percent plunge in M&A investments amid a sluggish capital market and political instability stemming from the presidential impeachment trial and election earlier this year. The ministry added that last year’s record figures also created a high base effect. Despite the downturn, this year’s performance remained above the five-year average of $20.35 billion. “There was a lack of large-scale M&A deals due to domestic political instability and uncertainties surrounding U.S. trade policy,” a ministry official said. The U.S. dollar strengthened 4.4 percent year-on-year against the Korean won during the period, further dampening investment sentiment, he added. M&A commitments totaled $2.88 billion, down 54 percent, while greenfield investments—new and expanded facilities—fell 6.1 percent to $17.77 billion. By source, the United States remained the top investor, pledging $4.95 billion as of September, up 59 percent from a year earlier, led by investment in artificial intelligence and data centers. Investments from other regions fell by double digits. By sector, manufacturing saw a 29.1-percent drop to $8.73 billion due to declines in electronics and chemicals, while IT and retail sectors recorded growth, with IT investment jumping 25.7 percent, driven by AI and data centers. FDI arrivals reached $11.29 billion, down 2 percent from a year earlier, reversing a 2.7-percent increase in the first half. Greenfield arrivals rose 23 percent to $8.21 billion, while M&A arrivals fell 36.5 percent to $3.07 billion. Arrivals from the United States nearly doubled, but those from the European Union and Japan dropped sharply. The ministry said it will continue efforts to attract foreign investment through incentives such as cash grants and location support. It also plans to hold overseas investor relations (IR) sessions targeting advanced industries and regional IR programs to identify additional investment needs from foreign companies operating in Korea. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-15 13:45:02
  • South Koreas industry minister defends Czech nuclear deal
    South Korea's industry minister defends Czech nuclear deal SEOUL, October 13 (AJP) - South Korea’s industry minister on Monday defended the country’s contentious nuclear power contract with the Czech Republic, calling it a “standard agreement” despite mounting criticism over its terms and the involvement of U.S. nuclear firm Westinghouse. Speaking during a parliamentary audit, Industry Minister Kim Jung-gwan acknowledged that “every agreement has its pros and cons,” but argued that the deal gives South Korea a valuable strategic foothold in Europe’s growing nuclear energy market. He added that further negotiations are expected once the Czech Republic’s new government takes office. The remarks come amid an escalating debate over South Korea’s partnership with Westinghouse Electric Co., which critics say has constrained the country’s nuclear export ambitions. The controversy dates back to a 2022 lawsuit filed by Westinghouse in the United States, claiming ownership of key technologies used in Korea Hydro & Nuclear Power’s (KHNP) APR1400 reactor — the model South Korea hopes to export to Europe. The case fueled concerns that South Korea’s nuclear exports could become dependent on U.S. approval, undermining the country’s long-cultivated autonomy in reactor design. Earlier this year, KHNP and Westinghouse reached a settlement that allowed them to jointly bid on overseas projects, including the Czech tender. But the arrangement has been criticized by some lawmakers and industry experts, who argue that it limits South Korea’s leverage and reduces potential profits. Minister Kim pushed back against such criticism, saying the collaboration reflects the realities of international nuclear trade. “We must look at the broader picture — our exports need to thrive for our companies to succeed,” he said. “Even with certain restrictions, South Korea has continued to expand its nuclear presence abroad.” Kim also acknowledged lingering “trust issues” between Seoul and Washington over nuclear technology rights but urged policymakers to take a long-term view of national interests. The Czech Republic’s nuclear expansion project, one of the largest in Europe, has become a key test of South Korea’s ability to reassert itself as a global reactor exporter after years of slowdown. Despite the controversy, officials in Seoul see the project as a critical opportunity to reestablish the country’s nuclear credentials on the world stage. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-13 16:01:26
  • South Koreas Sept exports at 3-year high and Q3 all-time high
    South Korea's Sept exports at 3-year high and Q3 all-time high SEOUL, October 01 (AJP) - South Korea’s exports surged nearly 13 percent in September from a year earlier, extending growth for the fourth straight month on strong demand for semiconductors and automobiles, despite tariff-related setbacks in the United States. According to the Ministry of Trade, Industry and Energy, outbound shipments totaled $65.95 billion, up 12.7 percent on-year and the highest monthly tally since March 2022. For the July–September period, exports rose 6.6 percent to a record $185.03 billion, lifting cumulative shipments for the first nine months of the year by 2.2 percent to $519.78 billion. Officials noted that September gains partly reflected more working days, as the Chuseok holiday fell in the same month last year. On an average daily basis, exports slipped to $2.93 billion from $2.75 billion a year ago. Semiconductor shipments jumped 22 percent to $16.61 billion, powered by demand for AI servers and high-value memory products. Automobile exports, including electric and hybrid vehicles, gained 16.8 percent to $6.4 billion, while vessel exports climbed 22 percent to $2.89 billion, marking a seventh consecutive month of growth. Bio products and displays posted record September sales, while agricultural and cosmetic products also hit all-time highs, buoyed by the global popularity of Korean food and beauty items. By contrast, petrochemical and steel exports edged down on weak oil prices and global oversupply. Exports to the United States slipped 1.4 percent to $10.27 billion, dragged by a 2 percent fall in car sales. Shipments to China inched up 0.5 percent to $11.68 billion, ending a four-month slide, while most other regions recorded growth. Imports increased 8.2 percent to $56.39 billion, with energy purchases down 8.8 percent but non-energy imports up 12.5 percent. The monthly trade surplus widened to $9.56 billion, the largest for September since 2018. For the year to date, the surplus reached $50.47 billion, up $13.85 billion from a year earlier. “The robust trade results are meaningful, as they were achieved despite external headwinds such as U.S. trade barriers,” Trade Minister Kim Jung-kwan said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-01 13:48:41
  • [Korea-Japan Ties] South Korea weighs FTA with Japan amid US protectionism
    [[Korea-Japan Ties]] South Korea weighs FTA with Japan amid US protectionism Editor’s Note: Aju Business Daily is publishing a special series to mark the 60th anniversary of the normalization of diplomatic ties between South Korea and Japan. The series reflects on the renewed relationship between the two neighbors. SEOUL, October 01 (AJP) - Facing growing protectionist pressures from Washington, South Korea is under increasing pressure to deepen economic ties with Japan as the two countries mark 60 years of diplomatic relations. Calls are mounting for a revival of talks on a long-stalled bilateral free trade agreement, though many in Seoul argue that joining a broader regional pact should take priority. Negotiations on a South Korea-Japan free trade deal have been frozen since 2012, hampered by decades of economic rivalry and unresolved historical issues. The debate has gained urgency after President Lee Jae Myung returned from the United Nations General Assembly in New York last month without progress on U.S. tariff disputes. South Korea’s trade minister, Yeo Han-gu, also met with U.S. Trade Representative Jamieson Greer, but the talks ended without a breakthrough. The lack of progress with Washington has prompted calls for a “Plan B.” But an FTA with Japan would not be without costs: South Korea has never recorded a trade surplus with its neighbor since relations were normalized in 1965, and over the past five years alone, it has posted a deficit of $88.6 billion. The Korea Institute for Industrial Economics and Trade has cautioned that a bilateral pact could deepen that imbalance, particularly through rising imports of automobiles, petrochemicals and electronics. Instead, many economists and officials are looking toward the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a Japan-led trade bloc that includes 12 countries such as Australia, Canada and Britain and accounts for 15 percent of global GDP. Deputy Prime Minister Koo Yoon-cheol recently said Seoul would explore membership, while Trade Minister Yeo has held talks with counterparts from Australia, New Zealand and Indonesia. Joining the pact would open South Korean exporters to markets such as Mexico, which is preparing to levy tariffs as high as 50 percent and with which Seoul has no bilateral free trade deal. Analysts say the benefits could outweigh those of a narrower Japan pact. “Evaluating the need for a South Korea-Japan FTA after joining the CPTPP is not too late,” said Jeong Seong-chun, a senior researcher at the Korea Institute for International Economic Policy. But hurdles remain steep. Domestic opposition, particularly from farmers worried about foreign competition, is strong. Membership requires unanimous consent from current members, and Japan has signaled it could use its leverage to press Seoul to resume imports of Japanese seafood — a sensitive issue tied to lingering fears over contamination from the Fukushima nuclear disaster. Still, analysts say the shifting trade environment may leave Seoul with little choice. With Washington doubling down on tariffs and supply chain controls, South Korea’s options may hinge less on resolving bilateral disputes with the United States than on securing a place in the regional trade architecture that Tokyo now leads. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-01 08:19:03