Journalist
Candice Kim, Lim Jaeho
candicekim1121@ajupress.com, ajupresswogh@ajupress.com
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Heavy autumn rain brings relief to drought-stricken South Korea SEOUL, September 13 (AJP) - Heavy autumn rain fell across South Korea overnight Friday into Saturday, bringing the first significant precipitation in two months to drought-stricken areas including Gangneung, where extreme water shortages had prompted disaster declarations, officials said Saturday. Rainfall totals from Friday noon to Saturday afternoon reached 173 millimeters in Dangjin, South Chungcheong Province, and over 100 millimeters in Gangneung, which had declared a drought disaster. The precipitation caused localized flooding in several areas, with flood advisories issued for rivers in the region. The Obong Reservoir in Gangneung, a key water source for the city, saw its water level rise from 11.5 percent to 13.9 percent by Saturday afternoon - the first increase in 53 days. Local residents called it "golden rain" after enduring severe water restrictions that limited daily supply to six hours for apartment complexes. President Lee Jae-myung acknowledged on Facebook that while the rainfall would not fully resolve the drought that began July 6, it would provide some comfort to Gangneung residents who had been unable to do laundry or shower freely due to water restrictions. 2025-09-13 17:41:36 -
Korean beauty company Leferi signs distribution deal with Philippine partner SEOUL, September 13 (AJP) - South Korean beauty creator management company Leferi signed a strategic partnership agreement with Philippine distributor Biocostech Philippines Corporation on September 5 to jointly develop K-beauty content and cosmetics distribution models, the company announced Friday. Under the memorandum of understanding, the companies will establish "K-Beauty Selection Zones" in Philippine online and offline retail channels. Leferi will provide its proprietary big data system called "Leferi Selects Index" and creator intellectual property-based selection services to support Korean beauty brands entering the Philippine market. Biocostech, which has operated K-beauty brands in the Philippines for over 20 years, will handle distribution and marketing through its retail network of more than 8,818 stores including Watsons, 7-Eleven and SM Department Store, as well as online platforms like Lazada and Shopee. The company sells millions of products annually in the Philippine market. Leferi manages approximately 400 beauty and lifestyle influencers and has conducted four "Select Store" events in major Seoul retail areas including Seongsu-dong and Yeouido through July. The company plans to expand internationally with a Tokyo location scheduled for April 2026. The partnership represents Leferi's first overseas application of its data-driven selection system as Korean beauty companies seek to expand beyond traditional export models into localized distribution approaches in Southeast Asian markets. 2025-09-13 14:51:30 -
Korean and US trade ministers meet in New York amid stalled tariff negotiations SEOUL, September 13 (AJP) - South Korean Industry Minister Kim Jung-kwan met with US Commerce Secretary Howard Lutnick in New York on Saturday to discuss follow-up negotiations on the Korea-US tariff agreement reached in July, according to multiple diplomatic sources. The ministerial talks come as working-level discussions between the two countries have reportedly reached a deadlock over detailed implementation of the trade deal. Under the July 30 agreement, the US reduced planned reciprocal tariffs on South Korea from 25 percent to 15 percent in exchange for Korean commitments to invest $350 billion in the United States. Kim traveled to the US on Thursday to personally lead the negotiations after technical talks between Korean and US officials on September 8 failed to make progress. The main sticking points involve the detailed structure of Korea's investment commitments and potential impacts on foreign exchange markets. Lutnick increased pressure on South Korea on Wednesday, citing Japan's acceptance of similar terms and stating there is no flexibility in the US position. He outlined how Japan agreed to a 50-50 revenue split until recovering its $550 billion investment, after which the US would take 90 percent of profits. President Lee Jae-myung emphasized during his 100-day press conference on Wednesday that Korea would not accept any agreement that harms national interests or lacks fairness and rationality. The presidential office maintained this stance despite Lutnick's pressure, saying the government will prioritize national interests in negotiations. 2025-09-13 11:19:44 -
KOSPI extends 9-day rally to fresh high, up 50% from April low SEOUL, September 12 (AJP) - Kospi shares continued to slope upward, finishing the week at new heights, riding on the global liquidity-powered rally. Extending a nine-session winning streak, the Kospi ended Friday 1.5 percent higher at 3,395.54 — up 7 percent from Sept. 2 and 48.6 percent above the annual low in April. Foreign and institutional investors were the main buyers, while retail investors, cautious of a potential fizzle in the summer rally, took profits. The U.S. dollar slipped 3.6 won to 1,388.2 on robust foreign demand for Korean equities. Across Asia, shares tracked Wall Street’s strength on expectations of a U.S. rate cut this month. Foreign investors snapped their net-selling streak in May and turned steady buyers, purchasing a net 2 trillion won that month, 3.08 trillion won in June, and 3.4 trillion won in July. But momentum cooled in August, with net purchases shrinking to just 5.7 billion won after the government proposed lowering the capital gains tax threshold for large shareholders. President Lee Jae-myung’s stock-friendly remarks buoyed sentiment. At a televised press conference Thursday marking his 100th day in office, Lee signaled he was open to leaving the current tax threshold unchanged. “The stock market moves on sentiment,” he said. “The government shouldn’t necessarily push with the tax revision if it proves detrimental to the rally." The government had planned to lower the taxable threshold for large shareholders’ capital gains to 1 billion won from the current 5 billion won. Analysts said removing uncertainty over the plan has further bolstered investor confidence, helping to sustain the bullish run till the end of the year. “The fundamental environment surrounding global markets is not that bad, so upward momentum should continue until year-end,” said Lee Jung-hoon, analyst at Eugene Investment & Securities. 2025-09-12 16:55:22 -
S. Korea sees surge in complaints over social media livestream shopping SEOUL, September 12 (AJP) - South Korea’s consumer protection agency on Friday warned of a surge in complaints from shoppers who purchased fashion items through livestreaming on social media platforms. The Korea Consumer Agency said it had received 444 complaints related to clothing and textile products sold through livestream commerce on platforms such as YouTube, Instagram, TikTok, Naver Band and Facebook from 2022 through June 2025. The number of grievances has grown each year, jumping from 54 in 2022 to 185 last year. In the first half of 2025 alone, consumers filed 139 complaints. Nearly half of the cases involved sellers refusing to process cancellations. Other problems included poor product quality and contract violations, the agency said. Clothing items, particularly jackets and coats, accounted for the majority of disputes, followed by handbags and shoes. Some of the cases cited by the agency were striking: one buyer paid 4.51 million won, or about $3,300, for three mink coats but was unable to reach the seller to request returns; another made 32 purchases worth 2.68 million won, or about $1,950, but never received any of the items. The agency said livestream commerce on social media poses more risks than traditional online shopping, because it is often difficult to verify seller information or review return policies. It urged shoppers to confirm business registration numbers and to use secure payment methods rather than direct bank transfers before making purchases. 2025-09-12 14:18:38 -
Hyundai says immigration crackdown will delay Georgia battery plant by 2-3 months SEOUL, September 12 (AJP) - Hyundai Motor’s top U.S. executive said Friday that construction of its $7.6 billion battery plant in Georgia will be pushed back by at least two to three months. Jose Munoz, Hyundai Motor’s global president and chief operating officer, said raids at the construction site created staffing shortages as some workers returned to South Korea following mass detentions. “For the construction phase of the plants, you need to get specialized people. There are a lot of skills and equipment that you cannot find in the United States,” Munoz told reporters in Detroit. The facility, a joint venture with LG Energy Solution, is central to Hyundai’s electric vehicle expansion in North America. To limit disruption, Hyundai said it would source batteries from other plants, including a separate Georgia facility run with SK On. The company stressed that its long-term U.S. strategy remains unchanged despite the delay. Hyundai Motor Group’s Chairman, Chung Eui-sun, also commented publicly on the incident, expressing relief that detained workers had returned home and urging closer coordination between Seoul and Washington on visa rules for specialized labor. 2025-09-12 11:29:17 -
Korea goes all-out to pull slumbering 30s back into the labor market SEOUL, September 11 (AJP) - U.K.-educated Koo turned 30 this year but still cannot dream of moving out of her parents’ home in Seoul after repeated job rejections. “Once you miss the usual hiring window, it gets harder each year and many peers end up stuck like me,” said Koo, who asked not to be fully named. After studying fashion in Britain for three years, Koo returned home and searched for work for more than a year. She gave up after repeated denials in the final rounds of hiring. “Age became an issue as an entry-level candidate, even with my overseas experience and credentials,” she said. Koo is among the 328,000 Koreans in their 30s who have dropped out of the labor force for reasons not recognized in official statistics—such as childcare or health treatment. This group, often labeled NEETs (not in employment, education, or training), has been rising for six straight months since September last year. As of early 2025, more than 504,000 Koreans aged 15 to 29 fell into the NEET category, or the the economically inactive population. The figure is expected to worsen as the youth unemployment rate climbed to 7.5 percent in March, with little sign of reversal. The paradox is especially stark in Korea: seven out of ten Koreans aged 25 to 34 hold a college degree or higher—the highest share among advanced economies—yet many remain sidelined. Fearing a vicious cycle of stalled youth employment feeding into the nation’s ultra-low birth rate, the government on Wednesday unveiled its most aggressive package yet, branded the “Job First-Step Guarantee Program.” Under the scheme, authorities will create a database to track and identify 150,000 idle youths annually for customized training and job matching. Monthly job-search allowances will rise to 600,000 won ($440) from the current 500,000 won starting next year. The statutory definition of “youth” will also be extended to age 34 from 29, reflecting delays in first-job entry and men’s mandatory military service. Government measures may act as priming water, but experts warn that the problem of “new unemployables”—well-qualified young people who still fail to secure work—cannot be resolved without structural fixes. “While companies complain about labor shortages, young people struggle to find jobs because there’s a disconnection between academic learning and workplace requirements,” said Kim Deok-pa, economics professor at Korea University. 2025-09-11 16:40:35 -
Humanoid robots promise cheaper cars. Are they ready for assembly lines? SEOUL, September 10 (AJP) - Cars glide down the assembly line with the practiced rhythm of human workers moving in unison in ordinary automotive plants. But if a new vision of the future proves correct, those workers may soon be replaced by machines that look uncannily like them. Humanoid robots — once confined to science fiction and corporate stage shows — are being recast as the next frontier of industrial labor. And according to a recent analysis by Samsung Securities, their widespread adoption could do more than reshape factory floors. It could cut the cost of building cars so dramatically that sticker prices fall by half. The math, at least on paper, is compelling. A Hyundai Motor plant in Korea pays an average of $38 per hour in labor costs, already a fraction of what Detroit automakers are on track to spend by 2027. But Tesla’s Optimus robot, used as a benchmark in the Samsung study, could operate at just $14 per hour if purchased for $100,000 and run around the clock. If mass production slashes robot prices to $30,000, as some expect, the figure plunges to $5 per hour — cheaper than labor in China, the global capital of low-cost manufacturing. For automakers, the potential payoff is enormous. Hyundai’s current two-shift system tops out at 310,000 cars a year. Robots never sleep, and with 24-hour operations, annual output could climb to 520,000 vehicles, a 60 percent jump. Analysts say such efficiency could drive down plant costs from nearly 80 percent to the low 40s, opening the door to cars priced at levels unimaginable today. But reality is still far messier than the spreadsheets suggest. Robots tire more quickly than humans — their batteries last only about two hours — and wear out faster too, with critical components needing replacement within a year. “They are best suited right now for simple, repetitive tasks,” Yoo Beom-jae, a senior researcher at the Korea Institute of Science and Technology, told AJP. “Substantial development is still needed before they can take on full production roles.” BMW is putting robots from the California start-up Figure to work in South Carolina. Mercedes-Benz is using Apptronik’s Apollo models in Europe. BYD, the Chinese electric vehicle giant, has already deployed 500 humanoid robots on its factory floors. Hyundai, not to be left behind, plans to roll out Boston Dynamics’ Atlas robots at its new Georgia plant later this year. The changes underway may reach far beyond cars. Lim Eun-young, who led the Samsung Securities study, believes humanoid robots could help catalyze an economic transformation. “If vehicles become both cheap and smart,” she said, “transportation becomes more efficient, traffic is better organized, and the number of cars in cities actually decreases. We could reclaim parking lots and free up enormous amounts of space.” The stakes are high, and national competitiveness may be on the line. “This is not a change Korea can ignore,” Lim warned. “The United States and China are already racing ahead. Without active government support in building data centers and power grids, Korea risks falling behind and becoming dependent on others’ technology.” 2025-09-11 10:35:03 -
KOSPI hits record high on hopes of US rate cuts, tax relief SEOUL, September 10 (AJP) - South Korea’s benchmark KOSPI index closed at a record high on Wednesday, lifted by heavy foreign and institutional buying amid optimism about potential U.S. interest rate cuts and speculation that the government may ease capital gains taxes for large shareholders. The KOSPI gained 54.48 points, or 1.7 percent, to finish at 3,314.53, surpassing the previous record set more than four years ago. Foreign investors led the rally, with net purchases of 1.38 trillion won (about $1 billion). Analysts said the rally reflected improved sentiment after robust U.S. employment data, along with growing hopes that Korean policymakers will act to ease investor concerns over tax policy. Market headwinds that weighed earlier this year — from a hawkish monetary stance by the U.S. Federal Reserve to disappointment over tax reform and fears of an AI bubble — appear to be fading, they said. Among blue chips, KB Financial posted the sharpest rise, climbing 7 percent to 117,600 won. Chipmaker SK hynix advanced 5.6 percent to 304,000 won, while market bellwether Samsung Electronics gained 1.5 percent to 72,600 won. The KOSDAQ, the country’s secondary tech-heavy index, also rose, adding 0.99 percent to close at 833. 2025-09-10 16:32:14 -
Korean e-commerce companies forge alliances to counter Chinese rivals SEOUL, September 10 (AJP) - South Korea’s e-commerce industry is shifting from cutthroat rivalry to strategic cooperation as domestic players seek to blunt the advance of low-cost Chinese platforms. Naver, the country’s dominant search engine, and Market Kurly, a premium fresh-grocery delivery service, recently unveiled “Kurly N-Mart" joint project. The venture links Naver’s platform with Kurly’s logistics network and offers free overnight delivery to Naver's members on purchases over 20,000 won, or about $15. It marks Kurly’s first major alliance with another Korean e-commerce company. The move follows Shinsegae Group’s announcement late last year of a 50-50 joint venture with Alibaba Group. The partnership, Grand Opus Holdings, folds Gmarket and AliExpress Korea into a single operation valued at roughly 6 trillion won ($4.1 billion). Shinsegae contributed most of its Gmarket stake, while Alibaba invested 300 billion won ($203 million) in cash. Such alliances come as Chinese firms Temu and AliExpress rapidly gain ground. Together, they recorded an estimated 4.3 trillion won in transaction volume in Korea last year, up 85 percent from 2023. Globally, Temu reached $70.8 billion in gross merchandise value in 2024 and counts 292 million monthly users. In Korea, AliExpress alone had nearly 9.7 million monthly users in November, second only to Coupang’s 32.2 million. “Neither Naver Shopping nor Market Kurly are market leaders,” Prof. Park Jung-eun, who is teaching e-commerce at Ewha Womans University, told AJP. “With Coupang firmly in first place, other major players are turning to alliances to shore up their positions.” Coupang, often compared to Amazon, controls nearly 40 percent of the market, followed by Naver at 27 percent and Gmarket at 7 percent. Coupang generated about 40 trillion won in sales last year; Naver’s commerce business reported more than 50 trillion won in merchandise value. The biggest threat from Chinese competitors is price, analysts say. Temu and AliExpress benefit from far lower production costs in China’s inland regions, where wages are a fraction of those in Korea. By contrast, Korean companies continue to emphasize speed and service. Kurly, Shinsegae’s SSG.com and others pioneered “dawn delivery,” which guarantees groceries by morning if ordered the previous evening. “China wins on cost. Korea wins on service,” Park said. “The question is how far Korean companies can push quality differentiation when price wars are not sustainable.” Pooling resources also allows Korean platforms to cut costs and broaden offerings. Combined sourcing reduces per-unit expenses while partnerships expand product variety. Yet challenges remain. Online luxury retailing has yet to take hold in Korea, limiting premiumization strategies that might help local firms escape the price trap. The country’s fast-paced consumer culture adds another wrinkle. The trait can amplify both opportunities and risks: new trends spread quickly, but missteps are punished just as fast. For Alibaba, teaming up with Shinsegae offers more than market share. The Chinese company gains an image boost through its Korean partner and access to Gmarket’s 600,000 sellers, potentially diversifying its sourcing base. Industry observers say further consolidation is likely as Korean firms try to fortify themselves against global entrants. “The market will polarize,” Prof. Park predicted. “Chinese brands will dominate the ultra-low-cost segment, while Korean platforms must double down on premium services, delivery speed and quality to survive.” 2025-09-10 15:49:33