Journalist
Candice Kim, Lim Jaeho
candicekim1121@ajupress.com, ajupresswogh@ajupress.com
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Korean Auto Eyes Diversification, Localization Amid Tariff Stalemate SEOUL, September 30 (AJP) - South Korea’s government and automaking conglomerate are tapping alternative markets and local sourcing as tariff talks with the United States drag on without conclusion. Hyundai Motor Group has rolled out contingency measures while negotiations remain in limbo. The automaker is leaning more on domestic suppliers, adjusting dealer incentives to avoid immediate consumer price hikes, and accelerating model launches in Europe. Hyundai Mobis, the group’s parts arm, last week hosted the inaugural Auto Semicon Korea forum with 23 companies and research institutes—a move widely seen as part of a broader push to localize auto semiconductor production. “In the short term we are adjusting dealer incentives to avoid raising consumer prices, while in the longer term we are focusing on local sourcing and expanding production in the United States,” a Hyundai official said. Seoul and Washington reached a provisional deal to cut U.S. tariffs on Korean cars from 25 percent to 15 percent, but a final agreement has yet to be signed. Korean brands remain disadvantaged, facing a 25 percent levy compared with the 15 percent rate applied to Japanese and European cars. The industry ministry has rolled out low-key support, including a “Trade Law Caravan” program to help small and medium-sized suppliers navigate U.S. regulations and prepare contingency plans. Cars are a pillar of Korea’s exports. Last year, Korea shipped $43 billion worth of cars to the U.S., dwarfing $2.5 billion in imports. Exports to Europe totaled $2.7 billion against $7.85 billion in imports, while shipments to Japan hit nearly $3 billion—triple its imports from Japan. “The tariff burden will likely cut Hyundai Motor Group’s operating margin by about 1 percentage point this year and up to 2 percentage points if fully applied,” said Lee Jae-il of Eugene Investment & Securities. “But basic product competitiveness remains intact, so there will be no sudden shift in demand toward Japanese or European cars.” The global auto chip market is projected to expand 9 percent annually to reach $138 billion by 2030, underscoring why Hyundai Mobis is aiming to boost the share of locally developed semiconductors to 10 percent by that year. “We are expanding joint development with fabless firms and design houses while strengthening ties with major foundries,” said Lee Kyu-seok, president of Hyundai Mobis. “We will also encourage IT and mobile companies to enter the auto sector, helping build a domestic ecosystem.” Executive vice president Park Chul-hong added that optimizing chips with controllers and conducting real-car testing will “speed up development and enhance competitiveness.” 2025-09-30 17:46:50 -
Major battery pack fires pose setback to Korean battery makers' ESS bet SEOUL, September 29 (AJP) - A fire from an aging lithium battery storage system that triggered a nationwide disruption of South Korea’s electronic public services has cast a shadow over its maker, LG Energy Solution (LGES), and the government’s renewable transition drive centered on energy storage systems (ESS). LGES, the country’s top battery producer, has been betting heavily on ESS to offset a slowdown in electric vehicle demand. According to Mirae Asset Securities, its ESS revenue is expected to reach 2.7 trillion won ($2.0 billion) in fiscal 2025, accounting for 11.3 percent of total sales, up from 7.15 percent last year. The shift underscores how reliant the company has become on storage projects, making the latest fire especially sensitive for both investors and policymakers. The company has already been struggling. Consolidated revenue slid 24 percent year-on-year to 25.6 trillion won in 2024, with operating profit plunging 74 percent. While LGES does not disclose detailed ESS revenue, it cited “substantial growth from grid-scale projects” in its Q3 2024 earnings and has pinned high hopes on storage to shore up profits amid weakening EV demand. The business, however, remains fraught with safety concerns. In January 2025, a blaze ripped through the 300-megawatt Moss Landing facility in California—once the world’s largest storage site—equipped with LG’s nickel manganese cobalt cells. Operator Vistra Corp wrote down $400 million in losses. In Europe, two German residential fires raised alarms. A November 2024 basement fire in Werne involving an LGES module led to precautionary replacements in 77 homes. In February 2025, an explosion in Schönberg destroyed part of a newly built home. In Australia, regulators have tracked multiple home-battery fires and recalls since 2020, affecting around 18,000 units, with 15 incidents causing property damage. While not all incidents were conclusively tied to LG cells, the repeated accidents have intensified scrutiny of the company’s technology and manufacturing standards. "In automotive battery packs, we design systems to prevent domino-effect failures by containing thermal runaway to one or two cells," said Kim Jin-yong, a mechanical engineering professor at Hanyang University ERICA. "ESS manufacturers need to develop similar safety-focused designs, including thermal insulation between batteries, to prevent these recurring accidents." Global ESS installations, however, are still set to accelerate. BloombergNEF forecasts annual additions will reach 94 gigawatts and 247 gigawatt-hours in 2025, growing at a 14.7 percent compound rate through 2035. “Such high-profile accidents are unlikely to derail ESS growth, but what matters is how operators manage the risk,” said Han Byung-hwa, senior analyst at Eugene Investment & Securities. “There is no alternative to ESS today. The challenge is rapid detection, containment, and revenue protection through tools like AI-based monitoring.” Competition is also intensifying. Chinese producers, which dominate in lithium iron phosphate (LFP) cells—cheaper and considered safer than nickel-based chemistries—are quickly capturing share in stationary storage. Samsung SDI and SK On, also pivoting toward ESS to offset sluggish EV sales, face similar headwinds. LGES stressed that maintenance and replacement of the government’s UPS battery were the operator’s responsibility, adding that it continues to strengthen safety protocols. “We have no further comment as we only supplied the battery pack to CNS, the contractor responsible for the installation,” an LGES official said. The latest fire—three years after the 2022 “Kakao blackout” spurred calls for stronger safeguards—has reignited debate over whether Korea’s ESS ambitions can advance without renewed focus on safety and redundant backup systems. 2025-09-29 17:36:30 -
K-beauty popularity props up Busan's tourism and retail market BUSAN, September 25 (AJP) - South Korea’s southern port city of Busan is riding a surge of foreign arrivals as more visitors venture beyond the capital region — and beauty chain Olive Young is reaping the rewards. According to Busan metropolitan authorities, foreign tourist arrivals reached 2.03 million through July, up 23 percent from a year earlier. The influx has delivered a welcome boost to the local retail market. International purchases at Busan Olive Young outlets totaled 758,385 as of August, up 70 percent from a year earlier — and a staggering leap from just 19,439 in 2022. Olive Young’s test bed outside Seoul Busan carries strategic importance for Olive Young, serving as the brand’s first franchising test bed beyond the Seoul metropolitan area. Starting with its Busan National University Station branch in 2008, the chain now operates 85 stores across the city. A field visit to three flagship locations highlighted strategies tailored to diverse foreign shoppers. “We came to Busan because our social media Xiaohongshu recommended the area to us,” said Jesse Wang, 37, from China, browsing at Olive Young’s Delight Project Store. “We came here to pick up snacks for our friends back home.” At the Seomyeon 1st Street store, product names are displayed in both Korean and English, while shelves mix K-beauty items with instant noodles and snacks promoted alongside Netflix hit K-pop Demon Hunters. Foreign customers account for 65 percent of this location’s revenue. Nearby, the Seomyeon Town branch — spanning 270 pyeong (about 8,900 square feet) — stands as the largest Olive Young store outside Seoul. During June’s Olive Young sale, daily visitors topped 10,000. Global draw, local twists Tourists from 170 countries visited Busan Olive Young stores in 2024, representing 88 percent of UN member nations. In the Haeundae tourism district, foreign purchases jumped 105 percent year-on-year between January and August. Just blocks from the Town branch, the Seomyeon Bujeon Central store operates until 11 p.m., the latest hours among all Olive Young outlets nationwide. The extended schedule makes it the top location for product tester usage, as late-night shoppers from nearby bars and entertainment venues sample skincare lines. “We’ve been to many Olive Young stores during our trip, but this one stood out,” said Janet Yim, 30, and Hira Qureshi, 31, from Chicago at the Jeonpo Station branch. “We even got our skin analyzed by a machine — like a fun dermatology test. We didn’t know we had dry skin until then.” The Jeonpo Station outlet caters to younger shoppers in their 20s and 30s with skin analysis and personal color consultation services. Olive Young has expanded such experiential features nationwide, designating more than 110 stores as “Global Tourism Commercial Districts” with multilingual signage, foreign-language staff, and immediate tax refunds on purchases over 15,000 won. Local flavors, new frontiers Region-specific products drive much of the foreign enthusiasm. The Delight Project Haeundae store, the first standalone branch for Olive Young’s health snack brand, features Busan-themed specialties such as Seed Hotteok Dalgona and the Haeundae Red Pepper Cake Gift Collection. Olive Young aims to cement its role as a tourist retail magnet by fusing experiential content with merchandising — positioning itself at the crossroads of K-beauty, tourism, and local flavor. 2025-09-25 16:06:20 -
Korean memory giants await super bumper years on AI harvest SEOUL, September 23 (AJP) - South Korea’s memory giants and investors are betting on a looming chip super cycle that could prove the most lucrative and enduring yet, fueled by the surging appetite for artificial intelligence (AI). SK hynix is poised to lead the AI-driven memory race, having leapt ahead in conventional DRAM and seized the initiative in high-bandwidth memory (HBM), a critical component for powering AI chips. The company is expected to command at least half of the global HBM market through 2027 under its contract with NVIDIA. Its stock, already at historic highs, is projected to climb further as demand for HBM is forecast to grow more than 50 percent next year. Samsung Electronics, dethroned by SK hynix in the HBM market due to its slower move, has nevertheless secured milestone foundry contracts that could lift its chip division earnings close to pandemic-era peaks. Samsung has won orders to produce 7-nanometer chips for IBM’s data center processors and 2-nanometer chips for Tesla’s sixth-generation AI processors. Chip super cycles typically emerge every three to four years when breakthrough technologies spark sustained demand surges lasting 18 to 24 months. The smartphone revolution of 2010–2011 marked the first major super cycle, driven by explosive demand for mobile DRAM and NAND flash memory. Cloud computing and cryptocurrency mining underpinned the 2017–2018 cycle, while the pandemic-driven remote work boom fueled the 2020–2022 surge, sending memory prices soaring amid supply shortages. The upcoming bull cycle differs fundamentally from past booms, which were driven by supply shortages or consumer electronics adoption. AI data centers require specialized HBM chips capable of processing massive datasets with minimal latency, creating what industry executives describe as a structural shift toward higher-value products. “This AI boom has a bigger effect than data centers alone,” said Lee Seung-woo at Eugene Investment Securities. “We expect this cycle could break records that haven’t been touched since around 2016, roughly 10 years ago.” HBM shipments are projected to rise about 70 percent year-on-year, with global sales jumping from an estimated $38 billion in 2025 to $58 billion in 2026, according to TechInsights and JPMorgan. In a report titled “Memory Supercycle — Rising AI Tide Lifting All Boats”, Morgan Stanley named Korean chipmakers as prime beneficiaries, designating Samsung Electronics as its “top pick” and raising SK hynix’s target price by 58 percent to 410,000 won. The AI-driven cycle may also last longer than the typical two-year span, depending on transitions by big-data giants Google, Amazon, and Meta. Recent developments suggest the cycle may have more momentum than initially expected, with Oracle's September 11 earnings announcement helping to dispel "AI peak" concerns. Lee noted that mobile and PC manufacturers are now actively requesting increased supply, while the latest iPhone model launch has shown strong sales performance, suggesting pent-up smartphone demand may be emerging alongside AI growth. TechInsights projects more than 2.5 million AI models will be deployed in 2025—nearly double the number in 2024—while datacenter NAND demand could grow over 30 percent as operators shift from hard disk drives to high-capacity solid-state storage for faster data access. 2025-09-23 16:38:52 -
K-dessert course featured in dramas excites international sweet tooth SEOUL, September 22 (AJP) - Korean traditional flavors — black sesame, mugwort, jujube, gardenia, and rice — are folded into the filling of the Joseon macaron, a reimagined treat that delights the palates of haughty Chinese envoys on screen and the cravings of global audiences off screen in the hit Korean drama Bon Appétit, Your Majesty. The global craze for Korean cuisine has spilled beyond savory dishes into desserts and pastries, cleverly catering to both health-conscious consumers and sweet lovers — and perfectly timed with the Chuseok Thanksgiving holiday. Google search data shows sharp increases in queries for yakgwa (Korean honey cookies), Korean desserts, and rice cakes among international users. TikTok hashtags related to traditional Korean sweets are also surging, reflecting growing global curiosity about Korea’s centuries-old confectionery culture. Yakgwa, a thousand-year-old honey cookie traditionally served during ancestral rites and festive occasions, has captivated pastry lovers worldwide. Made with wheat flour, honey, sesame oil, and ginger juice, the deep-fried confection represents hangwa — Korea’s traditional sweet category encompassing ceremonial desserts. Korean rice cakes, or tteok, are likewise gaining attention abroad for their artistry, diversity, and cultural significance, especially during holidays like Chuseok. “I came here to enjoy authentic Korean food. When you try these desserts, you can tell they’re not instant or unhealthy. We took the chance to experience traditional, healthy sweets here in Korea,” said Carol Johnson, a tourist from Washington, as she browsed a dessert shop in Seoul. “I saw viral TikToks about Korean desserts and wanted to try them myself,” added Mareva from France while picking out sweets at a convenience store. “In 2023, there was a domestic yakgwa craze that drove record sales. Since then, injeolmi and black sesame products have gained popularity, leading to more Korean-style desserts on the market,” said a GS Retail representative. “Foreign tourists usually purchase Korea’s most popular products, which seems to be fueling this trend.” The craze is supported by sales data. CJ CheilJedang’s bungeoppang varieties surpassed 1 billion won in monthly sales in late 2024. Convenience stores report rising foreign demand for traditional Korean sweets, while Shinsegae Duty Free has opened dedicated sections for them, with yakgwa gift sets proving especially popular among international visitors seeking an authentic taste of Korea. 2025-09-22 18:01:06 -
Drugstores rising as must-visit stops in Seoul for foreign visitors SEOUL, September 19 (AJP) - Drugstores are must-visit stop in Europe, famed for their iconic pharmacy brands — and Korea is fast emerging as a beauty mecca of its own, fueled by a social media-driven reputation for affordable skincare. Tourists are now venturing beyond the ubiquitous Olive Young chain, browsing independent pharmacies where shelves are lined with beauty products labeled in English, Chinese, and Japanese. “I read about this cream on Instagram Threads and knew I had to try it,” said Giselle, a 40-year-old shopper at a pharmacy in downtown Seoul. “It’s all the rage in Taiwan right now for its pore-tightening and whitening effect,” she told AJP. Dermatology and skincare-related shopping and treatments have become a major component of foreign visitation to Korea. Last year, 1.17 million foreign patients came for medical, beauty, dermatology, and cosmetic procedures. With inbound arrivals hitting a fresh record of 8.8 million in the first half of this year, the medical and beauty segment is expected to have grown even further. The surge in visitors has widened the scope of shopping sites — and sharpened customer expectations. “PDRN products have become so popular among foreign visitors that we are running out of stock,” said Seo Peter, a Seoul-based pharmacist in his 30s. “The supply comes in batches and sells out quickly to foreign tourists. Last winter, we couldn’t source these products at all due to overwhelming demand.” Pharmacies are gaining traction for specialized products such as acne treatment ointments, regenerative creams, high-concentration vitamin C supplements, and pain-relief patches — pharmaceutical exclusives not typically found in beauty chains. They also offer a unique advantage by combining medical expertise with cosmetic consultation, allowing tourists to receive personalized product recommendations from licensed pharmacists. Travel platform Creatrip has capitalized on the boom by launching a formal “K-pharmacy” category in August, partnering with nine pharmacies in districts such as Gangnam, Hongdae, and Myeongdong. Bookings rose 44 percent between the first and second weeks of September, with tourists from Singapore surging 121 percent, Hong Kong 96 percent, and Taiwan 9 percent. Helen from the United States, shopping at a pharmacy, told AJP, "I've been watching TikTok videos about 'things to buy at Korean pharmacies' before coming to Korea, so I'm planning to try all these products during my visit." The pharmacy-tourism phenomenon reflects a broader shift in Korea’s healthcare and beauty industries. International visitors are drawn by what they perceive as “verified effectiveness” and “reasonable prices” — qualities tied to Korean pharmaceutical standards. Social media has amplified the trend, with hashtags like #KoreanPharmacy generating hundreds of thousands of views across TikTok and Instagram. 2025-09-19 15:47:04 -
KB Financial pivots to artificial intelligence to lead Asian banking Editor's Note: This article is the 36th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, September 18 (AJP) - South Korea’s largest financial group is making a high-stakes wager on artificial intelligence, betting that the technology will reshape the future of banking in Asia and cement its dominance in the region’s fast-changing financial industry. “People should say that if you want to do financial AI, you have to go to KB,” Yang Jong-hee, chairman of KB Financial Group, told employees at a workshop early this year. The remark has since become a kind of rallying cry for a company determined to lead what it sees as a digital revolution in finance. KB reported a net profit of 3.44 trillion won, or about $2.5 billion, in the first half of 2025, a 23.8 percent jump from the year before. The results, executives say, underscore the strength of its new AI-first strategy, which they believe will transform how customers across Asia use financial services — from loans and insurance to wealth management and payments. Founded in 2008 when Kookmin Bank reorganized into a holding company, KB has grown into a sprawling financial conglomerate with 13 subsidiaries in banking, securities, insurance, credit cards and asset management. Its origins stretch back to the 1960s, when South Korea created state-backed lenders like Housing & Commercial Bank to fuel industrial growth. A merger in 2001 gave rise to modern Kookmin Bank, the core of today’s KB Financial. Expansion has long been central to KB’s strategy. Over the past decade, it has spent billions acquiring rivals and pushing into Southeast Asia. It bought LIG Insurance in 2015, Hyundai Securities a year later, and Prudential Life Insurance Korea in 2020 for 2.3 trillion won. In 2021, it acquired Indonesia’s Bank Bukopin, now KB Bukopin, which returned to profitability this year. Banking remains KB’s bread and butter, but fee-based services are becoming increasingly important. In 2025, non-interest income topped 1 trillion won in a single quarter for the first time. The company’s KB Star Banking app, which combines more than 70 services ranging from mortgages to credit cards, has helped cement its reputation as one of South Korea’s most digitally advanced lenders. Last year, regulators designated eight KB subsidiaries as “innovative financial services” for their use of generative AI — the most of any financial group. “Through the designation, KB will be able to stay one step ahead in the AI-centered financial innovation race,” a company spokesman said. Even as it invests heavily in digital technology, KB has maintained a focus on rewarding shareholders. This year it announced 850 billion won in stock buybacks and a cash dividend of 920 won per share, moves that will bring total shareholder returns to 3.01 trillion won — the highest in its history, according to chief financial officer Na Sang-rok. The group has retained strong credit ratings — A1 from Moody’s and A from both S&P and Fitch — and has been listed on the Dow Jones Sustainability Index World for seven consecutive years, signaling to investors that it sees environmental and governance concerns as inseparable from financial performance. With operations spanning South Korea, the United States, China, Britain and Southeast Asia, KB now wants to leverage its AI edge in pursuit of a larger goal: transforming itself from a national banking champion into a regional powerhouse. 2025-09-18 17:12:54 -
School violence cases hit record high in South Korea SEOUL, September 17 (AJP) - Bullying and violence in South Korean schools have worsened despite tougher discipline and prevention efforts, with reported cases now affecting 5 percent of elementary school students, a government survey showed. Of the 3.26 million students from fourth grade through high school, 2.5 percent said they experienced school violence this year, up 0.4 percentage points from last year, according to the Education Ministry. The figure has steadily risen from 1.1 percent in 2021 to 1.7 percent in 2022, 1.9 percent in 2023, and 2.1 percent in 2025. The problem is most acute in elementary schools, where 5 percent reported violence — the highest since the survey began in 2013 — compared with 2.1 percent in middle schools and 0.7 percent in high schools. “My child woke up at night for several days,” said Park, the father of a 9-year-old boy assaulted by peers. “Teachers need more authority to intervene early and impose meaningful consequences,” he said, requesting anonymity. Despite years of anti-bullying campaigns and zero-tolerance policies, the rise of cyberbullying has made oversight harder. Lee Soo-jung, a criminal psychology professor at Kyonggi University, said online harassment has “explosively increased” as students weaponize social media and videos to intimidate classmates. “The nature of school violence has changed — whereas physical abuse was more common before, online bullying is now much more prevalent,” she said. Education officials are reviewing prevention strategies as they struggle to tackle violence in one of the world’s most academically demanding school systems. 2025-09-17 18:31:42 -
Korean firms explore stakes in $45 billion Alaska LNG project SEOUL, September 15 (AJP) - South Korean companies are emerging as early partners in a multibillion-dollar plan to export natural gas from Alaska, signaling growing alignment between Seoul’s energy ambitions and Washington’s push to expand liquefied natural gas (LNG) exports. Posco International last week became the first Korean firm to formally engage with Glenfarne Alaska LNG, the project’s developer, signing a preliminary agreement that covers potential LNG imports and steel pipe supply. If finalized, the nonbinding deal could lead to a 20-year contract for one million tons of LNG annually, while positioning Korea’s steelmakers to help construct the 807-mile pipeline linking Prudhoe Bay to the Nikiski port near Anchorage. Other Korean steel producers — including SeAH Steel, HUSTEEL and Nexsteel — are closely monitoring opportunities to provide the 42-inch-diameter pipes required for the line. Conglomerates such as SK, Hanwha and GS are also examining possible participation in energy-related aspects of the development. The $45 billion project, which aims to begin operations around 2030, is approaching a final investment decision by year’s end, according to Glenfarne and industry officials. Korea Gas Corporation, the state-run importer, is considering redirecting some of its LNG contracts from Middle Eastern suppliers to U.S. producers, part of a strategy to diversify energy sources and narrow the trade imbalance with America. 2025-09-15 17:43:41 -
K-beauty leaders sell assets, seek growth abroad as competition with indie brands intensifies SEOUL, September 15 (AJP) - South Korea’s top cosmetics companies are accelerating restructuring efforts, selling assets and seeking new growth channels as they confront intensifying competition from a rising wave of independent K-beauty labels. Industry officials said Monday Aekyung Industrial, best known for its dual portfolio of cosmetics and household goods, is preparing for a transfer of ownership to Taekwang Group. Cosmetics account for 40 percent of its revenue and generated 29.1 billion won ($21 million) in operating profit last year, outpacing the household goods unit. In July, Taekwang amended its articles of incorporation to include cosmetics manufacturing and sales, signaling a push to expand in beauty. Analysts expect the new ownership to reduce Aekyung’s heavy reliance on China, which makes up 70 percent of its export revenue, and to diversify into new markets. LG Household & Health Care, another pillar of South Korea’s beauty sector, is exploring the sale of its beverage arm, which reported 1.82 trillion won ($1.4 billion) in revenue last year. The company has tapped Samjong KPMG as its lead restructuring adviser. The beverage unit’s profitability has slipped in recent years, prompting LG to double down on its core beauty business. The company has also moved into beauty devices, acquiring LG Electronics’ Pra.L brand in June and partnering with the biotech firm Mimetics to develop needle-free delivery technology for home use. New products using the system are expected early next year. Amorepacific, South Korea’s largest cosmetics maker, is concentrating on overseas growth. The company aims to raise the share of global revenue to 70 percent by 2035, up from about half today. The firm's 2023 acquisition of the skincare brand CosRX strengthened its foothold overseas, and its “Pentagon 5” strategy lays out expansion across five regions: Korea, North America, Europe, India and the Middle East, China, and the broader Asia-Pacific. 2025-09-15 15:52:44