AJU PRESS - ASIA NEWS HUB

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Candice Kim, Lim Jaeho candicekim1121@ajupress.com, ajupresswogh@ajupress.com

S. Korea's presidential office orders probe into Czech nuclear deal with Westinghouse SEOUL, August 19 (AJP) - South Korea’s presidential office on Tuesday ordered an investigation into media reports that state-run energy companies accepted "unfavorable" terms from Westinghouse Electric, the American nuclear technology firm, during negotiations for a multibillion-dollar power plant project in the Czech Republic. Presidential spokeswoman Kang Yu-jung said Chief of Staff Kang Hoon-sik directed the Ministry of Trade, Industry and Energy to conduct the inquiry after high-level discussions at a morning meeting. The move, she said, was aimed at addressing public concerns about the negotiation process and the fairness of the contract terms. The order followed local media reports that a “global agreement” signed in January between Korea Hydro & Nuclear Power, Korea Electric Power Corporation and Westinghouse included sweeping provisions favoring the U.S. firm. Among them were requirements that future Korean-designed nuclear reactors intended for export be verified by Westinghouse, as well as obligations to purchase $650 million worth of equipment and services per reactor and to pay $175 million in technology licensing fees per unit. Kang said the investigation would determine whether the two Korean companies complied with relevant laws and procedures in reaching the agreement and whether they had properly safeguarded national interests in the process. Prime Minister Kim Min-seok told reporters earlier Tuesday that the government had already begun preliminary fact-finding efforts. Critics warn that the terms of the Czech contract could undermine Seoul’s bid to establish itself as an independent nuclear exporter rather than a "junior partner" to U.S. firms. 2025-08-19 17:31:06
Cost overruns push S. Korea's nuclear project in UAE into the red SEOUL, August 19 (AJP) - South Korea’s flagship nuclear power venture in the United Arab Emirates has slipped into the red for the first time, underscoring the financial strains of the multibillion-dollar project once heralded as a cornerstone of Seoul’s ambitions to export nuclear technology. According to Korea Electric Power Corporation’s first-half 2025 financial disclosures released Tuesday, the Barakah nuclear plant posted a cumulative loss of 34.9 billion won, or about $25 million, with its rate of return dipping to negative 0.2 percent. Cumulative profit for the project, which had stood at 435 billion won at the end of 2023, fell to 72.2 billion won late last year before tipping into negative territory this summer. Returns slid from 2 percent in 2023 to 0.3 percent in 2024, before turning negative. The four-reactor complex, South Korea’s first nuclear export project and one of its largest overseas construction contracts at roughly 22.6 trillion won ($16.6 billion), was originally slated for completion in 2020. But repeated delays pushed back full commercial operations until 2024, when the fourth and final unit came online. The setbacks drove up costs and eroded profitability. Korea Hydro & Nuclear Power, a KEPCO subsidiary responsible for providing operational support, has sought $1 billion in compensation for cost overruns tied to the delays and extra work orders. In May, the company filed an arbitration case with the London Court of International Arbitration to recover part of those expenses. KEPCO, for its part, has stressed that the Barakah project should not be judged solely on immediate financial results. Executives argue that the venture has bolstered South Korea’s reputation as a nuclear exporter and reinforced its domestic nuclear industry, while promising decades of future revenue through dividends from electricity sales over the plant’s 60-year lifespan. Still, the dispute between KEPCO and Korea Hydro highlights unresolved tensions over who will absorb the additional construction costs, estimated at 1.4 trillion won. KEPCO has set aside about 170 billion won in provisions — roughly 10 percent of the disputed sum — as negotiations with Emirati authorities continue. 2025-08-19 14:03:21
Taiwan likely to top South Korea, Japan in per capita GDP SEOUL, August 18 (AJP) - Taiwan's government raised its 2025 economic growth forecast on Monday, projecting the island will become the first of the original "Four Asian Tigers" to reach a per capita gross domestic product of $40,000. Officials now expect the economy to expand by 4.45 percent next year, a significant jump from the previous estimate of 3.1 percent. The Four Asian Tigers — a term for the high-growth economies of South Korea, Taiwan, Singapore, and Hong Kong — achieved rapid industrialization from the 1960s through the 1990s. Now, Taiwan is poised to surpass regional economic powerhouses like South Korea and Japan in per capita GDP. Taiwan's government reported that the island's GDP surged by 8.01 percent in the second quarter compared to the same period a year ago. That growth rate far outpaced its regional peers: South Korea saw an increase of just 0.5 percent, Singapore's GDP grew by 4.4 percent, and Hong Kong's by 3.1 percent. Officials credited the strong performance to record-breaking exports, which are projected to reach $589.2 billion this year, up 24.04 percent from 2024. This growth is being driven primarily by surging global demand for artificial intelligence-related technology. Taiwan's dominance in the global semiconductor supply chain, led by the TSMC, has made it a key beneficiary of this AI boom. Tsai Yu-tai, the head of the country's statistics directorate, said that despite uncertainties from U.S. tariff policies, the momentum in the AI sector remains strong, prompting companies to continue increasing capital expenditures. By contrast, South Korea, which reached a per capita GDP of $30,000 in 2014, has struggled to move past that benchmark. The country has faced weakened domestic consumption following a martial law crisis last year and export challenges from U.S. tariff pressures. The Korea Development Institute, a state-run think tank, maintained its 2025 growth forecast at a modest 0.8 percent in May, a downgrade from its 1.6 percent projection in February. While the Four Asian Tigers once averaged annual economic growth of more than 7 percent, their paths have diverged in recent decades. Although all four economies had a per capita GDP exceeding $30,000 by 2021, according to the International Monetary Fund's estimates, growth has slowed significantly since the 2000s due to factors like aging populations and shifting global supply chains. 2025-08-18 15:53:49
Samsung's China semiconductor sales decline while US revenue grows SEOUL, August 18 (AJP) - Samsung Electronics posted diverging fortunes in China and the United States in the first half of 2025, as U.S. sanctions weighed on Chinese demand and American technology companies fueled a surge in semiconductor purchases. Samsung's exports to China fell 11 percent year-on-year to 28.79 trillion won (about $20.7 billion), down from 32.35 trillion won a year earlier. Sales to the United States, by contrast, climbed to 33.48 trillion won, overtaking China for the first time since late 2024, when Beijing’s trade-in subsidies briefly lifted demand. Most of Samsung’s China-bound shipments were semiconductors, including LPDDR memory, NAND flash, image sensors and display driver chips, as well as some high-bandwidth memory products. Its on-the-ground operations in China also flagged. Samsung China Semiconductor, which produces NAND flash in Xi’an, reported revenue of 4.41 trillion won and operating profit of 533.6 billion won — both down from the previous year. Shanghai Samsung Semiconductor, its local sales arm, saw revenue fall to 12.35 trillion won from 15.88 trillion won, with operating profit sliding to 193.8 billion won from 232.2 billion won. Analysts attributed the slump to waning trade-in incentives, sluggish consumer recovery and rising competition from Chinese rivals such as ChangXin Memory Technologies, or CXMT. By contrast, U.S. operations delivered robust growth. Samsung Austin Semiconductor, its Texas foundry, reported revenue of 2.3 trillion won, up 5.6 percent, while operating profit soared 65 percent to 423.8 billion won. Samsung Semiconductor Inc., its U.S. sales subsidiary, recorded a 28 percent revenue jump to 22.72 trillion won. The surge was driven by heavy investment from American technology giants in artificial intelligence servers and data centers, as well as rising demand for Samsung’s foundry services. 2025-08-18 11:16:18
Upbit operator fined $165 million for tax evasion SEOUL, August 17 (AJP) - South Korea’s largest cryptocurrency exchange operator, Dunamu, has paid more than 22 billion won, or about $165 million, in back taxes after authorities accused the company of tax evasion — adding to the regulatory pressures already weighing on the firm. Dunamu, which runs the Upbit trading platform, disclosed that the Seoul Regional Tax Office levied 22.6 billion won in corporate and related taxes following an audit. The investigation, led by the office’s International Transaction Bureau, began in February, and the penalty notice was issued on June 30. The company has since paid the full amount. The sum represents about 23 percent of Dunamu’s second-quarter net profit of 97.6 billion won. The tax penalty comes as Dunamu is also fighting sanctions from financial regulators. In February, the Financial Intelligence Unit ordered the company to suspend part of its operations for three months, issued a reprimand to its chief executive, Lee Seok-woo, and sanctioned nine employees. The FIU accused Dunamu of facilitating nearly 45,000 crypto transactions with 19 unregistered overseas virtual asset operators that had failed to comply with mandatory reporting requirements under South Korea’s anti–money laundering law. Regulators also said the company had violated obligations related to customer verification and transaction restrictions. Dunamu has challenged the measures in court, which has temporarily suspended enforcement of the sanctions while the case proceeds. 2025-08-17 15:38:45
[[K-Tech]] Samsung emerges as alternative to TSMC with landmark Tesla, Apple deals SEOUL, August 17 (AJP) - Just six months ago, Samsung Electronics’ foundry unit was mired in uncertainty. Hemorrhaging nearly 2 trillion won, or about $1.5 billion, in annual losses and struggling to attract clients, the division’s very survival was in doubt. Now, a pair of blockbuster deals with Tesla and Apple has jolted the business into a new trajectory. Samsung announced last month that it had secured a $16.5 billion contract with Tesla to produce advanced artificial intelligence chips — its largest single foundry order since the unit was established in 2017. Apple has also tapped Samsung to manufacture image sensors for iPhones, in a contract widely believed to be worth billions. The agreements underscore not only Samsung’s technical capabilities but also the shifting dynamics of global trade. Tesla CEO Elon Musk said the real value of his company’s agreement was “several times” the disclosed figure, while Apple’s Tim Cook hailed a partnership that he said would pioneer “innovative chip manufacturing technology” for the first time worldwide. Analysts say success in delivering on these orders could reposition Samsung Foundry as a growth driver for the company, overtaking its dominant memory business, which has faltered in the high-bandwidth memory market. Geopolitics played a decisive role. Beginning this month, the Trump administration is imposing sweeping tariffs: 15 percent on Korean imports and a 100 percent levy on semiconductors. Yet the measures exempt companies with U.S.-based production. Samsung, which already operates a plant in Austin, Texas, and is building another in Taylor, is uniquely positioned to sidestep the tariffs by manufacturing chips domestically — an advantage that likely appealed to Tesla and Apple. The moves also reflect a broader push to challenge the dominance of Taiwan's TSMC, which controls two-thirds of the global foundry market. By comparison, Samsung holds just 8 percent. Industry analysts say diversifying suppliers allows firms like Tesla and Apple to secure capacity, hedge geopolitical risks and exert pressure on prices. Tesla, in particular, faces urgency. It is racing to produce its next-generation “AI6” chip for autonomous vehicles but has been unable to secure timely supply from TSMC, whose production lines are booked solid. Apple, meanwhile, is shifting part of its iPhone image sensor business from Sony, which commands more than half the market, to Samsung, the second-largest player with 15 percent. Both partnerships appear likely to extend beyond chip supply. Musk called Samsung’s Taylor plant “strategically vital” to Tesla’s future, while Cook highlighted plans to introduce new manufacturing technologies with Samsung. Some analysts see the collaboration evolving into deeper technological exchange. “This could move beyond contract manufacturing into a model of true cooperation,” said Im Hyung-kyu, a former Samsung executive. “Tesla could bring AI expertise into Samsung’s foundries, while Samsung’s process technology could accelerate Tesla’s expansion. Together, they may create a new model for U.S.–Korea semiconductor collaboration.” The deals could also cascade through Samsung’s sprawling empire. Affiliates such as Samsung Display and Samsung SDI are well placed to benefit from closer ties with Tesla, raising the prospect of a broader realignment in the tech supply chain. 2025-08-17 11:12:48
S. Korea, India to seek ways to deepen economic partnership SEOUL, August 17 (AJP) - South Korea’s Foreign Minister, Cho Hyun, and his Indian counterpart, Subrahmanyam Jaishankar, held talks in New Delhi, Saturday (local time) as the two countries marked the 10th anniversary of their strategic partnership and pledged to expand cooperation in security, technology and defense. Cho's visit come amid a flurry of high-level exchanges between the two governments, including a summit meeting between President Lee Jae Myung and Prime Minister Narendra Modi on the sidelines of the Group of 7 gathering earlier this year and a visit by a South Korean presidential envoy. Jaishankar welcomed Cho’s return to India, noting that he had once served as South Korea’s ambassador to the country, and underscored New Delhi’s commitment to deepening ties with Seoul. He also delivered an invitation for President Lee to visit India at a “mutually convenient time,” according to South Korea’s Foreign Ministry. Both ministers agreed to strengthen cooperation not only through more frequent high-level visits but also in global diplomacy and security affairs. Cho said South Korea was pursuing a more diversified foreign policy, guided by its ambition to act as a “responsible global power” in a shifting international order. That effort, he added, includes building stronger relationships with regional powers such as India, alongside the United States, China, Japan and Russia. The two sides highlighted plans to update their Comprehensive Economic Partnership Agreement, aiming to expand collaboration in supply chains, critical technologies and defense industries. Cho also asked New Delhi to give “special consideration” to South Korean companies operating in India, calling for greater cultural and people-to-people exchanges. They also discussed regional and global security issues, including tensions on the Korean Peninsula, the foreign ministry said. 2025-08-17 09:48:55
South Korean display makers to get boost as ITC's impending ban on Chinese BOE panels SEOUL, August 14 (AJP) - Display maker Samsung Display is expected to benefit from a ruling that would ban U.S. imports of organic light-emitting diode (OLED) panels from China’s BOE Technology for more than a decade. In a preliminary ruling last month, the U.S. International Trade Commission (ITC) barred the Chinese display maker and its seven subsidiaries from importing OLED panels into the U.S. for 14 years and 8 months, industry sources said Wednesday. The ruling followed Samsung Display's complaint over trade secret theft in October 2023, with a final decision expected sometime in November. The ITC found that BOE violated Section 337, which applies to the importation or sale of products made abroad, by illegally obtaining trade secrets through the hiring of former employees or via supplier contracts to access Samsung Display's proprietary OLED technology. Samsung Display alleged that BOE acquired the technology without independent research and development, despite being a latecomer, some 16 years after Samsung began producing OLEDs in 1997. The ruling's unprecedented penalty length was calculated by combining the development timelines of multiple OLED technologies that Samsung Display created over decades, with a massive investment of hundreds of millions of dollars. The ITC also imposed restrictions on BOE's marketing and advertising activities in the U.S, effectively halting all its business operations. Industry observers described such bans as "unprecedented in severity," as part of broader strategies amid the U.S.’ heated competition with China, making it virtually impossible for BOE to acquire new U.S. customers." BOE held 22.7 percent of share for small OLED panel markets for Apple's iPhone in the second quarter of this year, surpassing LG Display's 21.3 percent, according to industry data. BOE's rival market players like Samsung Display and LG Display, which have served as Apple's primary and secondary suppliers, are expected to get a boost, once the ruling is finalized in November. 2025-08-14 17:00:25
Netflix tops most popular streaming platform among South Koreans SEOUL, August 14 (AJP) - Global streaming giant Netflix was voted the most popular streaming platform among South Koreans, a survey reveals. According to a survey of 1,500 users conducted by the Korea Consumer Agency and released on Thursday, participants were asked to express their satisfaction levels, with Netflix taking the top spot with an average score of 3.75 out of a possible 5 points. It was followed by Tving with 3.66 points, Coupang Play with 3.64 points, Wavve with 3.62 points, and Disney Plus with 3.51 points. About 20.3 percent of respondents cited the availability of diverse programs as their main reason for choosing a platform, while slightly fewer users ticked subscription fees. Netflix earned the highest score of 4.07 points for content diversity, while Coupang Play scored 3.74 points for its relatively affordable subscription fees. But some 12.2 percent of respondents said they experienced service disruptions due to server and connection problems. 2025-08-14 16:01:35
State-run think tank maintains growth forecast for this year SEOUL, August 13 (AJP) - The state-run Korea Development Institute on Tuesday decided to keep the country's growth forecast for this year unchanged at 0.8 percent. The figure remains the same as the think tank's previous forecast in May, despite the government's series of measures including a 30 trillion won supplementary budget and cash vouchers handed out to all South Koreans to boost consumption. KDI estimated private consumption will rise by just 0.2 percentage points to 1.3 percent thanks to the government's stimulus measures, but the overall effect is expected to be minimal. Citing the prolonged slump in the construction sector as one of the reasons for its latest forecast, it projected that relevant investment is now likely to decline by 8.1 percent, down from 3.9 percent in its earlier projection. As economic uncertainties have somewhat eased after the country's recent tariff-related deal with the U.S. was reached late last month, the growth outlook for exports was revised to 2.1 percent, up by 1.8 percentage points. KDI's latest forecast is in line with projections from the Bank of Korea (BOK), as well as other major foreign financial institutions such as the International Monetary Fund (IMF) and the Asian Development Bank (ADB). 2025-08-13 14:33:42