South Korean government signals tighter oversight of nuclear exports SEOUL, October 24 (AJP) - South Korea’s trade minister expressed concern on Friday over an escalating dispute between two state-run energy companies, saying the conflict underscored the need for clearer governance in the country’s nuclear export program. The conflict centers on a roughly $1 billion cost adjustment related to the Barakah nuclear power plant in the United Arab Emirates — South Korea’s first nuclear export project, which began operations in 2021. The disagreement has reportedly escalated to arbitration at the London Court of International Arbitration. At a parliamentary audit, Trade, Industry and Energy Minister Kim Jung-gwan said the dispute between Korea Electric Power Corp. (KEPCO) and Korea Hydro & Nuclear Power (KHNP) “should not have occurred,” and that his ministry would review ways to establish a unified framework for future nuclear projects abroad. Lawmakers raised concerns that both companies submitted sensitive documents to foreign law and consulting firms during the proceedings, potentially exposing national assets. “This situation raises serious questions about governance and security in overseas nuclear operations,” said Democratic Party lawmaker Kim Dong-ah. Minister Kim acknowledged the ministry’s responsibility in the matter and said discussions were underway to consider a more centralized export system. He noted that other major nuclear-exporting nations operate under strong government-led frameworks, in contrast to South Korea’s divided structure between KEPCO and KHNP. “We are reviewing institutional improvements to prevent such conflicts from recurring,” Kim said, signaling a potential policy shift toward tighter oversight of nuclear export projects. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-24 15:25:04

Bangladesh's investment chief visits South Korea to discuss deepening ties SEOUL, October 23 (AJP) - South Korea and Bangladesh are moving to strengthen economic cooperation as Dhaka prepares to transition from least-developed country (LDC) status, officials here said Thursday. South Korean Trade Minister Yeo Han-gu met with Chowdhury Asik Mahmud Bin Harun, chairman of the Bangladesh Investment Development Authority, in Seoul to discuss ways to expand bilateral trade and investment , according to the Ministry of Trade, Industry and Energy. Yeo underscored Bangladesh’s potential as a key economic partner and reviewed progress on negotiations for a Comprehensive Economic Partnership Agreement (CEPA) — a bilateral trade deal aimed at facilitating market access and industrial collaboration. He expressed hope for “meaningful progress” before Bangladesh’s formal graduation from the United Nations’ LDC category. Both sides noted the complementary nature of their economies — Bangladesh’s young labor force and resource base alongside South Korea’s advanced manufacturing and technology capabilities — and agreed to broaden cooperation in manufacturing, infrastructure, and industrial development. Yeo also raised concerns voiced by South Korean firms operating in Bangladesh, citing customs delays, inconsistent product classifications, and complex licensing procedures as persistent obstacles to investment. He urged Dhaka to address these issues to create a more stable business environment. In a statement, the ministry said Seoul remains committed to strengthening institutional frameworks to boost trade and industrial ties not only with Bangladesh but across the broader South Asian region. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 14:09:37

Seoul moves to tackle Beijing's rare earth export controls SEOUL, October 16 (AJP) - Amid China’s tightening restrictions on rare earth exports, South Korea has launched a high-level task force to strengthen communication with Beijing and craft a comprehensive supply chain strategy by the end of the year, officials said Thursday. The move follows China’s Oct. 9 announcement of expanded export controls that require foreign companies to obtain government permits for seven types of rare earths — materials vital to advanced technologies such as semiconductors, electric vehicles and defense systems. The new rules also extend controls to five additional rare earths and equipment used in permanent magnet manufacturing, as well as lithium-ion battery materials and diamond powder used for industrial cutting and grinding. While the measures stop short of a full export ban, South Korean officials and industry analysts warned that the new permit process could slow shipments and disrupt supply chains heavily dependent on Chinese materials. China produces about 70 percent of the world’s rare earths and dominates global refining capacity. In response, the Ministry of Trade, Industry and Energy convened an emergency meeting Thursday to coordinate its response. The newly formed task force — led by Vice Minister Moon Shin-hak — will include multiple government agencies and work closely with major private-sector players. Officials said the task force’s immediate focus will be maintaining steady communication channels with Chinese authorities to ensure export permits for South Korean companies are processed quickly. The ministry noted that previous dialogue with Beijing had helped resolve supply issues after earlier export controls were introduced in April. To support local firms, the government will establish a support center to address company concerns, monitor inventories and provide emergency assistance. Information on China’s export procedures will also be made available through South Korea’s trade and investment agencies. Seoul plans to diversify its supply chain by expanding research into rare earth substitutes and recycling technologies, backing overseas mining ventures, and increasing public stockpiles to guard against future disruptions. “Rare earths are critical to our semiconductor and electric vehicle industries,” Vice Minister Moon said. “We will work closely with the private sector to strengthen resilience and safeguard our economy from external shocks.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 15:22:55

Major flour companies of South Korea under probe over alleged price fixing SEOUL, October 16 (AJP) - South Korea’s antitrust regulator has launched an investigation into seven major flour producers, including Daehan Flour Mills and CJ CheilJedang, over allegations of price fixing and other unfair market practices. The Korea Fair Trade Commission (KFTC) is examining whether the companies colluded to set flour prices or coordinated shipment volumes, actions that could have distorted competition and inflated costs for consumers. The probe comes amid broader government scrutiny of rising food prices and corporate practices in essential goods markets. During a Cabinet meeting on Sept. 30, President Lee Jae Myung called for stronger enforcement against unfair business conduct, urging regulators to “respond swiftly and firmly to anti-competitive behavior that harms consumers.” KFTC Chairman Joo Byung-ki said the commission is closely monitoring potential collusion in key raw materials, including flour, sugar, and eggs. The investigation has since widened to include companies such as Samyang Foods, which, along with CJ CheilJedang, is being reviewed for possible coordination in pricing or supply adjustments. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 13:28:14

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 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 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 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