Journalist

김혜준
Candice Kim, Lim Jaeho
  • Korean petrochemical industry looks to shipbuilding playbook for survival
    Korean petrochemical industry looks to shipbuilding playbook for survival SEOUL, September 09 (AJP) - LG Chem’s new partnership with Toyota Tsusho Corporation is being hailed by industry analysts as a blueprint for South Korea’s petrochemical sector, which is struggling to withstand a flood of low-cost Chinese competition. Announced Tuesday, the agreement gives Toyota Tsusho a 25 percent stake in LG Chem’s cathode materials plant in Gumi. Analysts say this will help restructure the joint venture in a way that allows the facility to comply with the United States Inflation Reduction Act and secure access to the North American battery market. The move highlights the growing urgency for South Korea’s petrochemical companies, which face structural oversupply, declining demand, and eroding competitiveness. “We used to export heavily to China, but now they’ve built extensive facilities and achieved self-sufficiency,” Kim Byung-jun, a professor at Korea Polytechnic University’s Petrochemical Process Technology Institute, told AJP. “They’re producing more than they consume domestically and dumping the surplus cheaply into our market, creating a domino effect throughout our supply chains.” Kim argued that survival depends on a move toward high-value products. The crisis has prompted comparisons to the shipbuilding industry’s painful but ultimately successful restructuring two decades ago, when Korean yards shifted away from low-margin vessel production and focused on high-value segments such as liquefied natural gas carriers. That pivot enabled South Korea to maintain global leadership, securing roughly 80 percent of the LNG carrier market today. Analysts say the pace of transformation is likely to accelerate as environmental regulations tighten and carbon border taxes take effect. They say c​​​​​ompanies that successfully reposition themselves in specialty and eco-friendly materials may emerge stronger, while those clinging to traditional commodity products risk being priced out by cheaper rivals abroad. LG Chem’s pivot toward battery materials illustrates the kind of specialization analysts see as essential. The company has secured contracts worth more than 30 trillion won with automakers including Toyota and General Motors to provide advanced materials for electric vehicles. Its Gumi plant, with annual production capacity of 66,000 tons, embodies the transition from commodity chemicals to next-generation materials. “Korea once led in hydrocracking technologies, but China and the Middle East have caught up,” Professor Kim said. “Now we must pivot to eco-friendly strategies like hydrogen, carbon capture and storage, and sustainable product development to prepare for tightening carbon regulations.” Kim added that industry consolidation may be unavoidable. “In Ulsan and Yeosu, multiple companies make the same products, which worked when export markets were abundant,” Kim said. “Now we need coordination — possibly mergers — to reduce duplication and strengthen competitiveness.” According to a May report by Samil PwC Management Consulting, the combined operating profit margins of South Korea’s 10 largest petrochemical companies fell from 12.5 percent in 2021 to minus 0.9 percent in 2023 and minus 1.8 percent in 2024 — a 14.3 percentage point drop in just three years. Capacity utilization at major naphtha cracking complexes run by Yeochun NCC, Lotte Chemical, SKC and Hyosung Chemical slipped to 77 percent in 2024, down from 86 percent in 2021. Losses have mounted across the sector. Lotte Chemical reported an 894.1 billion won operating loss last year, after a 762.6 billion won deficit in 2022. LG Chem’s petrochemical division posted a 135.8 billion won loss, while SKC lost 276.8 billion won. Only Kumho Petrochemical, bolstered by its strength in synthetic rubber, remained in the black, with a 3.8 percent operating margin. 2025-09-09 17:05:38
  • South Koreans detained in US immigration crackdown to be flown home Thursday
    South Koreans detained in US immigration crackdown to be flown home Thursday SEOUL, September 09 (AJP) - A charter plane is expected to depart for the United States as early as Wednesday to fly home more than 300 South Koreans who were detained at a battery plant construction site in Georgia, according to officials and industry sources. Korean Air will deploy a B747-8i charter flight from Incheon International Airport to Hartsfield-Jackson Atlanta International Airport, with a potential departure time of Wednesday morning, the sources said. The large aircraft, which has a capacity of 368 seats, will be able to accommodate all of the South Koreans who were detained at the joint venture battery factory between Hyundai Motor Group and LG Energy Solution. The return trip, carrying the released individuals, is expected to leave Atlanta late on Wednesday and arrive at Incheon Airport late Thursday afternoon, Korean time. The released South Koreans will be transported from a detention facility operated by the Immigration and Customs Enforcement agency in Folkston, Ga., to the Atlanta airport, a four-and-a-half-hour drive. 2025-09-09 14:06:12
  • Reliance on short-term visas exposes weak link in Korean projects in US
    Reliance on short-term visas exposes weak link in Korean projects in US SEOUL, September 08 (AJP) - Korean companies building some of the largest industrial facilities in the United States are bracing for construction delays that could stretch up to two years, after stepped-up immigration enforcement exposed widespread reliance on short-term business visas for technical staff. Industry data compiled in the aftermath of last week’s raid on a Hyundai–LG Energy Solution battery plant in Georgia show that 22 projects worth about 145 trillion won, or more than $100 billion, are potentially at risk. At least six plants scheduled to begin operations this year now face staffing shortages severe enough to force comprehensive revisions to their timelines. The Georgia battery plant is the most immediate casualty. LG Energy Solution recently postponed the facility’s startup from the second half of 2025 to at least early 2026, after construction ground to a halt. The $4.4 billion venture, intended to supply 30 gigawatt hours of battery cells annually, is critical to Hyundai and Kia’s electric vehicle production schedules. Surveys conducted by industry groups revealed that about 90 percent of Korean engineers and technicians dispatched to U.S. sites had been working under visa waiver programs or short-term B-1 business visas — categories never intended for long-term technical operations. In response, Samsung Electronics has ordered employees to limit visa waiver trips to two weeks or secure expatriate visas for longer stays, while Hyundai canceled all planned U.S. business travel. The disruption has triggered an urgent government response in Seoul. Park Jong-won, deputy assistant minister for trade at the Ministry of Trade, Industry and Energy, said after a hastily convened meeting with major investors that the government would coordinate closely with the Foreign Ministry to craft a solution. “This cannot be a one-time meeting,” Park said. “We will continue communicating with companies operating locally to find solutions.” The visa bottleneck extends well beyond Georgia. Projects at risk include Samsung’s $17 billion semiconductor fabrication plant in Texas, LG Chem’s cathode materials facility in Tennessee, Samsung SDI’s joint battery plant with Stellantis in Indiana, SK On’s battery complexes with Ford, and Hanwha Q Cells’ solar hub. Together, they represent critical elements of Washington’s supply chain strategy under the Inflation Reduction Act. But securing proper work authorization is no quick fix. L-1 intracompany transfer visas or E-2 investor visas often take one to two years to process, and the oversubscribed H-1B program — capped at 85,000 annually — would require congressional intervention to expand. Seoul has been lobbying for a Korea-specific visa category similar to programs available to Australia and Singapore, though legislative timelines remain uncertain. In the meantime, companies face hard choices: overhaul staffing to rely more heavily on local hires, accelerate automation to reduce technical labor needs, or absorb costly delays. The stakes are especially high for the semiconductor and battery sectors, linchpins of U.S. industrial policy and vulnerable points in global supply chains if new facilities fail to come online as planned. 2025-09-08 17:47:51
  • Trump administrations immigration crackdown puts Korean firms in US on edge
    Trump administration's immigration crackdown puts Korean firms in US on edge SEOUL, September 08 (AJP) - Korean companies with sprawling manufacturing projects in the United States are bracing for major disruptions as the Trump administration intensifies its immigration crackdown, now extending its reach to foreign-led construction sites. The detention of hundreds of workers last week at a Hyundai Motor–LG Energy Solution battery plant under construction in Bryan County, Ga., has jolted South Korean executives and policymakers. Though officials in both countries said the matter appeared to be heading toward resolution, the sweep has deepened anxiety among Korean conglomerates pouring billions of dollars into electric vehicle batteries and advanced semiconductor plants across the United States. The fear, executives say, is not only higher costs but construction delays, missed deadlines and shaken confidence in investment pledges that Korean firms have made in tandem with Washington. “We are reviewing our processes to ensure that all parties working on our projects maintain the same high standards of legal compliance that we demand of ourselves,” Hyundai Motor said in a statement. LG Energy Solution confirmed that 47 of its employees were among those detained, adding it would “make every effort to promptly resolve the situation, including ensuring the speedy and safe return of all employees.” The raid, which authorities called the largest single-site enforcement action in agency history, swept up 475 workers and exposed a legal gray zone that has long governed how foreign firms deploy staff to U.S. construction projects. Many of those detained entered on short-term business visas or under visa waiver programs, which permit stays for meetings and contract work but not for installation or technical support. Immigration officials argued that such work required more complex H-1B or L-1 visas. The episode has already rippled through financial markets. LS Securities downgraded LG Energy Solution’s target price, citing concerns about delayed battery mass production at the $7.6 billion Georgia site, where construction remains suspended pending the immigration investigation. Tom Homan, a senior security official often described as Trump’s “border czar,” underscored the administration’s intent to widen its enforcement. “We will increase our enforcement activities at workplaces,” he told CNN, adding, “Illegally entering this country is a crime, and hiring foreigners who are here illegally is also a crime.” He framed the raids as protecting American workers from unfair competition. The policy shift could hit hardest at Korean giants like Samsung and SK, which are building semiconductor fabs and EV battery plants in states that lobbied aggressively for their investments. Executives worry that technical workers needed for installation and training could now face months of visa hurdles, raising the risk of project delays. The South Korean government convened emergency meetings with major investors on Sunday and pressed Washington for assurances. Meanwhile, South Korean Foreign Minister Cho Hyun told lawmakers in Seoul on Monday that an agreement had been reached to prevent the detained workers from facing reentry bans once they are released. “Negotiations are proceeding well,” he said, promising that voluntary departures would not trigger automatic five-year entry bars. However, since Trump began his second term, deportations have surged to more than 1,500 a day, topping 300,000 overall. Administration officials said large-scale workplace raids would continue, signaling that last week’s operation in Georgia may only be the beginning. 2025-09-08 17:28:25
  • South Korea to allow visa-free travel for Chinese visitors starting this month
    South Korea to allow visa-free travel for Chinese visitors starting this month SEOUL, September 07 (AJP) -South Korea announced Sunday that it would temporarily allow visa-free entry for Chinese tour groups of three or more people, in a move aimed at revitalizing its tourism sector. The new policy, which takes effect on Sept. 29, permits these groups to travel across the country for up to 15 days. China has already been allowing visa-free travel for South Korean nationals since November of last year. Under the new policy, which will run until June 30 of next year, groups must be recruited by travel agencies that are either designated by the South Korean Ministry of Culture, Sports and Tourism or a South Korean diplomatic mission in China. In an effort to prevent illegal stays, the government has also implemented stricter controls. Designated South Korean travel agencies are now required to register their tourists' lists on the Hi Korea website at least 24 hours before their arrival, or 36 hours for those arriving by ship. Individuals identified as high-risk will be denied the visa exemption and must obtain a separate visa to enter the country. The government has also strengthened administrative sanctions for unauthorized departures. If a tourist leaves a group intentionally or with collusion, the travel agency's designation will be immediately revoked. The policy change comes ahead of China's holiday season in October, a period known for a significant increase in international travel. To prepare for the expected surge in visitors, the government has allowed travel agencies to begin registering tourist lists starting on Sept. 22. Officials said they anticipate the temporary visa exemption will boost the tourism industry and local economies while also fostering greater understanding and goodwill between the two countries through increased people-to-people exchanges. The new policy does not affect Jeju Island, which, under its own special act, already permits individual and group tourists to visit for up to 30 days without a visa. 2025-09-07 17:40:27
  • Immigration crackdown leads Korean firms to cancel business trips to US
    Immigration crackdown leads Korean firms to cancel business trips to US SEOUL, September 07 (AJP) - Hyundai Motor Company has canceled all scheduled business trips to the United States after hundreds of South Korean workers were arrested in Georgia on charges of illegal stay and employment. Industry sources confirmed Sunday that the automaker had notified employees that all travel to the U.S. was suspended. The decision comes after a raid on a joint battery plant operated by LG Energy Solution and Hyundai Motor Group on Sept. 4 led to the detention of 475 people. About 300 of those arrested are believed to be South Korean citizens. Reports indicate that most of the detained Koreans entered the U.S. with either an Electronic System for Travel Authorization (ESTA) or a B-1 business visa. While both allow for short-term visits, they do not permit employment. Proper work visas for foreign nationals, such as the H-1B or L-1/E-2, can take months or even years to secure. For years, companies have informally relied on ESTA and B-1 visas to send workers on business trips, a practice that is now under scrutiny. The unprecedented immigration raid, which led to the mass detention, appears to have prompted Hyundai's decision to halt travel. Industry observers now expect other South Korean firms with investments in the U.S. to also delay or postpone their business trips. One industry official called the U.S. government's action a "first-of-its-kind crackdown on a long-standing practice." "If travel becomes too difficult, it could make it virtually impossible for Korean companies to execute their business plans in the U.S. as scheduled," the official said on condition of anonymity. 2025-09-07 14:25:49
  • Samsung plans to embed AI across 90 percent of its business by 2030
    Samsung plans to embed AI across 90 percent of its business by 2030 SEOUL, September 07 (AJP) - Samsung Electronics plans to integrate artificial intelligence into nearly all of its operations within the next five years, a sweeping transformation that the company says will redefine how it makes and markets everything from smartphones to home appliances. Roh Tae-moon, the acting head of Samsung’s DX Division, which oversees consumer electronics and mobile devices, said at a news conference at the IFA 2025 trade show in Berlin that the company aims to apply AI to 90 percent of its business areas by 2030. “We will turn Samsung Electronics into a company that uses AI better than anyone else — a company that works and grows with AI,” Roh said. “AI will secure our competitiveness and become a new engine of growth.” Roh also teased new hardware, saying that development of a “tri-fold” smartphone — a device that folds three times — was in its final stages and would be released later this year. He added that extended-reality headsets and smart glasses would follow once the technology was mature enough. The push comes as global technology companies race to embed generative AI into products and services, seeking to boost efficiency and win over consumers increasingly drawn to smart features. Roh said Samsung intends to install AI functions on more than 400 million Galaxy devices by the end of this year. He added that AI would be expanded to televisions and household appliances, and that robotics using so-called “physical AI” would be a future growth driver. Samsung is developing its own large language model, known as Gauss, while also working with partners such as Google, whose Gemini AI is already embedded in Galaxy smartphones. “We want to provide the best AI model or platform depending on customer needs,” Roh said, adding that Samsung was also in talks with other partners beyond Google. The company sees Europe as a key proving ground. “European consumers tend to adopt advanced features more quickly than in other regions,” Roh said. “Our goal is to popularize AI technology, starting with premium products but quickly expanding to mass-market devices.” 2025-09-07 10:57:08
  • Charter flight to bring home Korean workers held in US
    Charter flight to bring home Korean workers held in US SEOUL, September 07 (AJP) - The South Korean government said on Sunday that it had successfully negotiated the release of over 300 of its citizens who were detained by American immigration authorities at a construction site in Georgia. The workers were building a joint battery plant for Hyundai Motor Group and LG Energy Solution. Lee Hun-sik, the chief of staff to President Lee Jae Myung, announced that “negotiations for the release of the detained workers have been completed,” and he credited the rapid response of government ministries, corporations and economic organizations. Speaking at a high-level meeting in Seoul, Lee noted that while the release had been secured, administrative procedures were still pending. "A charter flight will depart to bring our citizens home as soon as those procedures are completed," he said. He added that the government would "not let down its guard" until the workers had returned safely to South Korea, and that officials would work to review and improve the visa system for South Koreans traveling to the United States for large-scale projects to prevent similar incidents. The detentions occurred after federal immigration authorities carried out what they called the largest enforcement operation in their history at the Bryan County construction site. Immigration and Customs Enforcement (ICE) and Homeland Security Investigations arrested 475 workers during the raid on Sept. 4, citing widespread violations involving unauthorized employment and visa overstays. U.S. authorities said many of those taken into custody had entered the country under the visa waiver program or on short-term visas that do not permit employment. LG Energy Solution confirmed that 47 of its own employees were among those arrested, including 46 South Koreans and one Indonesian. The company said roughly 250 workers from its partner firms were also detained, most of whom were believed to be South Korean. Consular officials from South Korea’s Consulate General in Atlanta began meeting with the detainees on Saturday at an ICE processing center in Folkston, Ga., to check on their health and living conditions. The on-site support team is being led by Cho Ki-joong, consul general at the South Korean Embassy in Washington. LG Energy Solution said it had suspended all business travel to the United States for its employees, except for essential customer meetings, and had instructed staff members currently in the country to either return home or remain at their accommodations. On Friday, President Donald Trump, who has made immigration enforcement a centerpiece of his administration, praised the operation and referred to those detained as “illegal aliens.” ICE later released a video clip of the raid, showing workers being screened, shackled with chains and handcuffs, and loaded onto a transport vehicle. 2025-09-07 10:06:26
  • LG Electronics targets doubling Europe appliance revenue within five years
    LG Electronics targets doubling Europe appliance revenue within five years SEOUL, September 05 (AJP) - LG Electronics outlined plans to double its European home appliance revenue within five years and become the region's leading appliance brand, according to statements made Friday (KST) during a media briefing at IFA 2025 in Berlin. Home and Living Solutions division head Ryu Jae-chul presented the company's European market strategy focusing on B2B, direct-to-consumer sales, and non-hardware services to achieve sustainable growth. The European appliance market represents approximately $113 billion in 2025 and is expected to grow at an average annual rate of 4.1 percent through 2030, according to market research firm Statista. LG Electronics currently competes with international brands across both premium and volume segments in Europe, while maintaining its number one position in the North American premium appliance market. LG plans to expand its built-in appliance business revenue tenfold by 2030, targeting a top-five position in Europe's estimated $24 billion built-in market. The company will strengthen B2B operations through its "LG Built-in" mass premium brand and expand from Southern European markets to Western and Northern European premium segments. Commercial laundry appliances under the "LG Professional" brand will also launch across Europe. The company aims to triple its online brand shop revenue by 2030 while expanding AI-powered home platform services including the ThinQ ON hub and LG IoT devices across major European markets. LG will introduce region-specific B2B AI home solutions, including building management systems for North American rental developers and residential complex management packages for European and Middle Eastern markets. LG showcased energy-efficient appliances designed specifically for European requirements, including washing machines that use 70 percent less energy than EU A-grade standards and refrigerators consuming 40 percent less energy. European consumer media evaluations ranked LG refrigerators first in 19 categories across eight countries and washing appliances first in eight categories across five countries as of August 2025, according to the company's data. 2025-09-05 17:36:26
  • SK hynix maintains DRAM market lead over Samsung in second quarter
    SK hynix maintains DRAM market lead over Samsung in second quarter SEOUL, September 05 (AJP) - SK hynix retained its position as the world's largest DRAM manufacturer in the second quarter of 2025, widening its lead over Samsung Electronics as high-bandwidth memory (HBM) demand continued to drive growth, according to data released Friday by market research firm Omdia. Global DRAM industry revenue increased 17.3 percent quarter-over-quarter to $30.92 billion, driven by rising contract prices and increased HBM shipments. SK hynix expanded its DRAM market share to 39.5 percent in the second quarter from 36.9 percent in the first quarter, maintaining the top position it first claimed in early 2025. Samsung Electronics' market share declined to 33.3 percent from 34.4 percent during the same period, keeping the company in second place for the second consecutive quarter. The gap between the two South Korean memory manufacturers widened significantly, with SK hynix's lead expanding from 2.5 percentage points in the first quarter to 6.2 percentage points in the second quarter. In absolute terms, SK hynix generated $12.23 billion in second-quarter DRAM revenue compared to Samsung's $10.3 billion, a difference of more than $1.9 billion. SK hynix's dominance stems largely from its leadership in the high-bandwidth memory market, where it holds over 50 percent market share and serves as the primary supplier to major technology companies including NVIDIA. The company has reportedly sold out its entire 2025 HBM production capacity and is currently negotiating contracts for 2026 deliveries. Market research firm TrendForce corroborated the findings, reporting SK hynix's DRAM market share increased from 36 percent to 38.7 percent between the first and second quarters. SK hynix's second-quarter performance marks the first time since 1992 that Samsung has lost its global DRAM market leadership position, ending a 33-year streak at the top of the memory industry. 2025-09-05 13:31:52