Journalist
Candice Kim, Lim Jaeho
candicekim1121@ajupress.com, ajupresswogh@ajupress.com
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Korea looks to shipbuilding ties as strategic tool in tariff talks with US SEOUL, July 09 (AJP) - As South Korea prepares for high-stakes tariff negotiations with the United States over the next three weeks, the country’s shipbuilding industry has emerged as a central element of Seoul’s diplomatic and strategic playbook. Government officials said Wednesday that cooperation in the shipbuilding sector is being positioned as more than just a bargaining chip in ongoing trade discussions. A senior official at the presidential office noted that the Korea–U.S. partnership in shipbuilding “will not be used merely as leverage,” underscoring its broader significance within the countries’ economic and security relationship. The talks, which include not only trade policy but also defense cost-sharing and the role of U.S. military forces stationed on the peninsula, are being shaped by a growing recognition of shipbuilding’s dual role — as both a geopolitical asset and an industrial powerhouse. Korean officials believe highlighting the sector's strategic utility will help frame negotiations more comprehensively. That positioning gained momentum this week when Hanwha Ocean announced it had secured its third U.S. Navy maintenance contract — this time for the USNS Charles Drew, a supply ship in the Navy’s 7th Fleet. The deal involves maintenance, repair and overhaul (MRO) work scheduled to begin in mid-July at Hanwha’s Geoje shipyard and conclude by the end of the year. The Charles Drew, a 41,000-ton non-combat vessel tasked with transporting cargo and ammunition, follows two earlier contracts awarded to Hanwha for the Wally Schirra and the Yukon in 2024. The Yukon is expected to leave the Geoje yard later this month after completing repairs. Hanwha is targeting five to six MRO projects in 2025 and is preparing to transition into direct ship construction for the U.S. market following facility expansions at its recently acquired Philadelphia shipyard. Meanwhile, HD Hyundai Heavy Industries, South Korea’s largest shipbuilder, signed a memorandum of understanding with Huntington Ingalls Industries, the top American military shipbuilder. The agreement aims to explore collaboration in areas such as process innovation and workforce development — areas seen as critical to the revitalization of American naval production capacity. Industry officials describe South Korea’s major shipbuilders as among the few realistic partners capable of supporting the U.S. Navy’s modernization ambitions. Their strengths in eco-friendly vessel construction and smart shipyard technologies are also seen as a counterweight to China’s expanding shipbuilding footprint, particularly in the military domain. The geopolitical undercurrents of the sector were highlighted by President Lee Jae Myung during remarks Tuesday at a defense industry forum marking the country’s first National Defense Industry Day. Lee described the defense sector as a “future growth engine” and pledged to diversify the industry’s ecosystem away from its traditional conglomerate-centered model. He also committed to expanding government-to-government cooperation and making South Korea one of the world's top four defense powers. 2025-07-09 16:50:30 -
Power demand hits July record, prompting emergency measures SEOUL, July 09 (AJP) - South Korea’s electricity demand surged to its highest level in three years this week, as an unusually early and intense heat wave swept across the country. National power consumption reached 93.4 gigawatts on Monday, surpassing the previous July record of 92.99 GW set in 2022. By Tuesday evening, the load climbed further to 95.7 GW, pushing electricity reserves below the critical 10 percent threshold for the first time this summer, according to data from the Ministry of Trade, Industry and Energy. The spike came nearly two weeks earlier than the typical peak in summer energy use. In response, the government activated a broad emergency management system. Deputy Industry Minister Lee Ho-hyun on Tuesday visited Daejeon to inspect key infrastructure. The emergency operations include real-time surveillance of critical generation plants and transmission lines to quickly detect and respond to potential disruptions. In tandem with infrastructure monitoring, authorities have intensified support for low-income and at-risk populations. Beginning July 1, the government began distributing enhanced energy vouchers — up to 701,300 won (about $540) — to more than 1.3 million households. Eligible recipients include older adults, people with disabilities, and families with infants. Officials have also completed the early installation of air conditioning units in 18,000 low-income homes and 500 social welfare centers, and have dispatched teams to conduct door-to-door visits to educate recipients on how to effectively use cooling systems without fear of rising bills. Additionally, an “energy cashback” program has been introduced, offering rebates of up to 100 won per kWh for households that reduce electricity use by at least 3 percent compared to their average consumption over the past two years. The incentive aims to curb demand during peak periods while helping households offset higher cooling costs. 2025-07-09 14:28:56 -
From streetwear to skincare, Seoul's Seongsu-dong emerges as Korea's 'Style Capital' Editor's Note: This is the sixth article in our series exploring the evolving landscape of the Korean beauty industry and the products that captivate international visitors. SEOUL, July 08 (AJP) - In the heart of Seongsu-dong, a once-industrial neighborhood now transformed into one of Seoul’s trendiest enclaves, foreign visitors will find a curated showcase of South Korea’s rising fashion and beauty prowess — all under the banner of e-commerce powerhouse Musinsa. With multiple flagship locations spread across the district, Musinsa has reimagined retail as an immersive experience. Anchoring the area is Musinsa Store Seongsu at Daelim Changgo, a minimalist concept shop housed in a preserved 50-year-old warehouse that once stored rice. The location is Musinsa’s third offline venture, following openings in Daegu and Hongdae, and represents the company’s ambitions to be more than just a digital marketplace. “There are quite a few days when lines stretch far outside the stores,” said a Musinsa spokesperson. “During pop-up events, the crowd is sometimes so large it clogs the streets of Seongsu.” For international visitors, the spokesperson offered a tip: plan around weekday mornings to avoid the rush. The Daelim Changgo store is more than a retail space — it is a stage for emerging Korean labels like Stand Oil, a homegrown bag brand that has developed a cult following. More than half the visitors to its Seongsu flagship are foreign, many drawn by its now-ubiquitous Oblong and Butter bag lines, both of which have become everyday sights on Seoul’s subways. With official online shops in Japan and Taiwan and sellout performances at pop-ups in Tokyo and Osaka, Stand Oil encapsulates the exportable appeal of Korean fashion — practical, stylish, and distinctively local. Another cornerstone of Seongsu’s streetwear identity is thisisneverthat, a pioneer of Korea’s first-generation streetwear movement. Founded in 2010 by Inwook Park, Nadan Cho, and Jonkyu Choi, the brand now operates seven stores across Seoul and boasts international flagships in Harajuku, Osaka, and Shanghai. Its recent Seongsu outpost, which also houses affiliated label Khakis, fuses utilitarian military aesthetics with 1990s sportswear — a look that resonates with younger audiences both in Korea and abroad. Seongsu also offers a glimpse into Korea’s growing influence in beauty. Oddtype, a cosmetics label known for its experimental lip products, challenges the boundaries of conventional makeup with thick-brush applicators and highly pigmented tints. “Oddtype tints coat particularly well with a glossy finish,” said Yeji Jung, a professional makeup artist. “They create volume and reflect light beautifully.” At Musinsa’s Daelim Changgo store, curious tourists can test the products themselves — a hands-on introduction to the next wave of Korean beauty innovation. Footwear label Rockfish Weatherwear, originally founded in Cornwall in 2004, has been reimagined for Korean tastes. Known for seasonal staples like Mary Jane flats and platform rain boots, the brand gained celebrity cachet through appearances on K-pop idols including NewJeans and IVE’s Wonyoung. Now, Rockfish is more than a footwear label — it is a lifestyle brand, merging British heritage with Korean climate-conscious design. For those seeking sophistication over streetwear, Matin Kim offers minimalist, professional fashion with international reach. Founded with a focus on refined daily wear for modern women, the label recently opened its first Japanese location in Tokyo’s Shibuya district and is aiming for 15 stores in Japan by 2030. A recent Osaka pop-up drew 9,000 visitors in a week, selling out its signature Ribbon Round Bags and Coated Jumpers. Matin Kim’s growth is backed by a five-year partnership with Musinsa, underlining the strategic importance of Japanese expansion for Korea’s fashion brands. Together, these labels — each with distinct aesthetics and values — form the core of Seongsu’s transformation from a neighborhood of shoe factories into a beacon of cultural commerce. Adjacent to the bustling Seongsu Cafe Street, Musinsa’s stores cater primarily to twenty-somethings drawn to neutral tones and accessible pricing. But the appeal stretches further: the compact district offers a walkable introduction to the textures of Korean lifestyle, blending coffee shops, fashion flagships, and cultural landmarks. In one visit to Seongsu, foreign visitors can experience the full spectrum of Korean fashion and beauty — from cutting-edge lip tints to globally recognized bags — within blocks. More than a shopping trip, the Musinsa-led development offers insight into Korea’s evolving creative industries, which are no longer content to imitate global trends but are instead setting them. For travelers seeking to understand the intersection of culture, commerce, and style in South Korea, Seongsu-dong is a compelling place to start. 2025-07-09 10:28:24 -
Samsung Electronics reports 55.9 percent drop in Q2 operating profit SEOUL, July 08 (AJP) - Samsung Electronics forecast a steep decline in its second-quarter operating profit, highlighting persistent challenges in the global tech industry despite signs of recovery in the semiconductor sector. The South Korean tech giant on Tuesday said it expects an operating profit of 4.6 trillion won, or approximately $3.5 billion, for the April to June period — down 55.9 percent from a year earlier. Revenue is projected to total 74 trillion won, a marginal 0.09 percent decline from the same quarter in 2024. The earnings guidance, released ahead of final audited results, also reflected a quarterly slowdown. Operating profit dropped 31.2 percent from the previous quarter, while revenue slid 6.5 percent, according to preliminary figures based on Korean International Financial Reporting Standards. The company attributed the figures to investor disclosure obligations, noting that the estimates are subject to change following external audits of its headquarters and affiliated entities. Samsung, which began offering quarterly guidance in 2009, emphasized its continued commitment to transparency and global accounting standards by adopting IFRS in 2010. Samsung said it plans to hold a conference call to discuss the final earnings later this month, where executives are expected to field questions from shareholders and analysts about the company’s performance, ongoing industry pressures, and future outlook. 2025-07-08 10:36:50 -
LG Electronics partners with Saudi institutions for extreme heat HVAC research SEOUL, July 07 (AJP) - LG Electronics has entered into a joint research partnership with King Saud University, Pusan National University in South Korea, and Saudi-based distributor Shaker Group to develop HVAC technologies designed to withstand extreme heat in desert and tropical environments. The agreement, signed on July 3, will focus on testing LG’s residential and commercial air conditioning units in actual Saudi climate conditions. Researchers will collect data to enhance product performance, particularly evaluating the energy-saving functions of LG’s AI Engine. This technology, embedded in LG’s ‘Multi V i’ system, adjusts cooling output based on indoor and outdoor temperatures and reduces energy use when no one is in the room. LG has previously set up research consortiums in cold-weather regions such as Alaska, Oslo, and Harbin, China. It also operates five dedicated air solution R&D centers across South Korea, North America, Europe, and India. To support installation and maintenance in local markets, the company runs HVAC academies in 65 locations across 43 countries, training around 30,000 engineers each year. "LG Electronics' HVAC technology is being pursued and is expected to expand to other high-temperature regions such as Southeast Asia and Africa, in addition to Saudi Arabia, because air conditioning is essential in these areas," an LG Electronics official told AJP. LG says the new partnership marks another step in strengthening its ability to tailor HVAC systems to specific regional climates. 2025-07-07 15:53:35 -
LG Electronics reports 46.6 percent drop in Q2 operating profit amid tariff pressures SEOUL, July 07 (AJP) - LG Electronics reported a 46.6 percent decline in second-quarter operating profit to 639.1 billion won ($491 million) as the South Korean appliance maker faced headwinds from the United States tariffs and weakened demand for televisions and IT products. Revenue fell 4.4 percent year-on-year to 20.74 trillion won in the April-June period, the company said in a preliminary earnings statement on Monday. The results reflect challenging operating conditions, including tariff burdens from US trade policies and increased logistics costs that weighed on profitability across multiple business segments. LG's home appliance division and business-to-business operations, including automotive components and air conditioning systems, maintained relatively stable performance despite the difficult environment. However, the company's media and entertainment unit, which includes TV and IT products, struggled with demand contraction and rising LCD panel prices that pressured margins. The electronics giant said it expects logistics cost burdens to ease in the second half compared to the same period last year. LG plans to focus on what it calls "qualitative growth" areas, including B2B operations, subscription services, webOS platform development, and direct-to-consumer sales through its LGE.com platform to maintain business fundamentals. LG's automotive components business continued to grow based on a stable order backlog, with operating profit increasing year-on-year through improved operational efficiency. The company also plans to accelerate its push into AI data center cooling solutions and European air-to-water heat pump markets following its recent acquisition agreement with Norwegian water heating company OSO. 2025-07-07 14:40:06 -
Special counsel team seeks arrest warrant for Yoon Suk Yeol SEOUL, July 06 (AJP) - A special counsel team investigating the Dec. 3 martial law incident has requested an arrest warrant for former President Yoon Suk Yeol. At a press briefing, Sunday, prosecutor Park Ji-young confirmed that the team filed the request with the Seoul Central District Court earlier in the day. Yoon faces multiple charges, including obstruction of official duties by public officials, violation of the Presidential Security Act, abuse of power, and falsification of official documents. However, a key allegation that Yoon ordered the military’s drone operations unit to send an unmanned aircraft into Pyongyang to fabricate grounds for declaring martial law was not included in the arrest warrant. “The treason-related charge is still under investigation and requires further inquiry,” Park said. “It was not included at this stage due to the ongoing nature of the probe.” Yoon was initially arrested on January 15 but was released 52 days later following a controversial court decision. 2025-07-06 18:05:27 -
Korea's security chief heads to US for talks on Lee-Trump summit SEOUL, July 06 (AJP) - South Korea's National Security Adviser Wi Sung-lac departed for Washington, D.C., on Sunday for high-stakes talks with U.S. officials as the two allies navigate a tense moment in trade and defense negotiations — and explore the possibility of a summit between President Lee Jae Myung and U.S. President Donald Trump. Speaking to reporters at Incheon International Airport ahead of his departure, Wi said his three-day trip is aimed at “deepening consultations” on a range of urgent bilateral issues, including Washington’s evolving tariff regime and South Korea’s defense cost-sharing contributions. “Trade and security consultations between South Korea and the U.S. have entered a critical phase,” Wi said. “My visit reflects the importance of this moment.” At the top of the agenda are U.S. tariffs and sector-specific measures targeting steel, autos, and other key industries. Wi’s visit comes just days before a 90-day pause on the reciprocal tariffs is set to expire Tuesday. Wi also confirmed that preparations for a potential Lee-Trump summit are “on the agenda,” signaling Seoul’s intent to reset high-level diplomacy after months of political uncertainty. He added that a meeting with U.S. Secretary of State Marco Rubio — who also serves as National Security Advisor — is being pursued. The visit follows Wi’s participation in informal discussions with U.S. officials during last month’s NATO Summit, where he represented President Lee. He declined to disclose the outcome of those earlier talks, saying only that this week’s meetings would build on prior efforts. Wi’s trip marks his first to Washington since taking office last month and comes as South Korea mounts a coordinated diplomatic push in Washington. Trade Minister Yeo Han-koo also arrived in Washington on Saturday to lead parallel negotiations on tariffs and trade. “Minister Yeo’s visit is part of the government’s all-out efforts to respond to the current situation,” Wi said. His trip also comes in the wake of a last-minute cancellation by Rubio of a planned visit to Seoul. 2025-07-06 15:04:25 -
South Korea's ruling party axes Cambodia loan aid linked to former first lady SEOUL, July 06 (AJP) - South Korea’s ruling Democratic Party has scrapped the entire budget for development loans to Cambodia, as special prosecutors are investigating whether a former official from the Unification Church lobbied former First Lady Kim Keon Hee to support church-backed projects in the Southeast Asian country. The 80 billion won ($58 million) in official development assistance (ODA) loans, originally allocated for civil cooperation in Cambodia, has been cut, the party said on Sunday. The decision targets a sharp increase in loan support that took place during the administration of former President Yoon Suk Yeol. The move comes amid an ongoing special counsel probe into alleged behind-the-scenes influence by the controversial religious group. In April, prosecutors raided the home of Yoon and Kim as part of the investigation. A search warrant reportedly cited lobbying related to the “Mekong River Development Project” in Cambodia — a project linked to the Unification Church. Under Yoon’s leadership, South Korea raised its ODA loan ceiling for Cambodia twice: first from $700 million to $1.5 billion in June 2022, then to $3 billion following a summit with Cambodian Prime Minister Hun Manet in May 2023. One former ranking Unification Church official, identified only by the surname Yoon, claimed during a church event in May 2022 that he had met with then-President-elect Yoon Suk Yeol to discuss development aid. The Finance Ministry approved the first increase in loan limits just weeks later. 2025-07-06 14:32:51 -
Trump's sweeping economic bill may boost Korea's semiconductor, shipbuilding sectors SEOUL, July 06 (AJP) - U.S. President Donald Trump has signed into law a wide-ranging economic bill — dubbed the “One Big Beautiful Bill for America,” or OBBBA — cementing key elements of his domestic agenda and delivering a potential windfall to South Korea’s semiconductor and shipbuilding industries. The legislation, signed on July 4, includes a suite of measures aimed at reducing taxes, reforming welfare, strengthening national defense, and loosening government regulations. Among the chief beneficiaries are industries expected to see increased federal spending under the Trump administration, with semiconductors leading the pack. A centerpiece of the bill is an expansion of investment incentives tied to the 2022 CHIPS and Science Act. The tax credit for companies constructing semiconductor manufacturing facilities in the United States will rise to 35 percent from the current 25 percent — an aggressive push to boost domestic chip production and reduce reliance on overseas suppliers. Analysts in Seoul say the new incentives could offer a significant tailwind for South Korean tech firms like Samsung Electronics and SK hynix, which have already poured billions into U.S.-based fabs and R&D. Given the heavy capital intensity of the semiconductor industry, analysts expect the enhanced tax benefits to accelerate construction timelines and shorten the path to profitability. “The increased investment tax credits could prompt earlier groundbreaking of new fabs and research centers,” said one industry analyst. “That could have a meaningful impact on earnings going forward.” The legislation also earmarks $32.7 billion for the U.S. Department of Defense to rejuvenate the domestic shipbuilding industry, a move widely interpreted as part of Washington’s broader efforts to secure defense supply chains and strengthen military readiness. South Korean shipbuilders, including Hanwha Ocean and HD Hyundai Heavy Industries, are expected to be key partners in this initiative. Both companies are poised to win contracts in the U.S. commercial and naval ship markets, potentially starting in the second half of the year. Not all sectors fared well under the new law. Clean energy and healthcare industries, once central to the Biden-era Inflation Reduction Act, face significant setbacks. The OBBBA imposes steep cuts to tax credits previously offered for renewable energy and electric vehicle purchases. It also tightens eligibility deadlines, raising uncertainty around long-term investment in green technologies. Tax credits of up to $7,500 for electric vehicle purchases, originally set to remain in place through 2032, will now expire on Sept. 30. Similarly, tax incentives for solar and wind projects will begin phasing out in 2026 and are scheduled to be eliminated entirely by 2028 — four years ahead of schedule. Analysts warned the changes could dampen investor sentiment across the clean energy, battery, and EV sectors. “It’s not just the early sunset of the tax credits,” said another analyst. “The bill also strips away mechanisms for raising funds in these areas, effectively halting meaningful federal support.” While the OBBBA marks a significant pivot in U.S. industrial policy, it also signals a recalibration of priorities — favoring strategic manufacturing and defense capacity over decarbonization and healthcare expansion. 2025-07-06 10:37:54