Journalist
Candice Kim, Lim Jaeho
candicekim1121@ajupress.com, ajupresswogh@ajupress.com
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US auto tariffs to reduce Korean car production by 315,000 units SEOUL, April 24 (AJP) - South Korea’s passenger vehicle production is projected to fall by more than 300,000 units over the next two years as a result of newly imposed U.S. automotive tariffs, according to a report released Thursday by S&P Global Mobility. The research firm estimates that South Korean output will drop by 112,000 vehicles in 2025 and a further 203,000 in 2026, as a 25 percent tariff introduced by the Trump administration begins to take its toll. S&P cited not only the trade restrictions but also ongoing political uncertainty as compounding factors affecting the country’s automotive sector. The impact is expected to be felt more broadly across the globe. S&P forecasts that global passenger vehicle production will shrink by 944,000 units this year and another 778,000 next year due to the tariffs. Japanese automakers are projected to cut production by 300,000 units annually through 2026, for a total of 600,000 vehicles. In China, passenger car output is expected to decline by 198,000 units in 2025 and 503,000 units the following year. Ironically, the tariffs — intended to bolster U.S. automotive manufacturing — may instead suppress it. S&P predicts that North American production will fall in parallel with global trends, decreasing by 944,000 units in 2025 and 778,000 in 2026. If realized, the drop would mark the steepest contraction since the COVID-19 pandemic. The firm projects that by 2027, production in North America could stabilize at around 15.47 million units, buoyed in part by increased local manufacturing investments from foreign automakers such as BMW and Honda, who are adjusting to the new trade environment. “Tariffs are expected to significantly threaten global passenger car production for at least the next two years,” the report said, adding that “North America appears to be the hardest hit.” S&P also forecast that current tariff levels will remain in place through 2026, before dropping to 15 percent in 2027 for most markets. Canada and Mexico would see a slightly lower rate of 12 percent under the revised structure. 2025-04-24 14:40:43 -
Alibaba's 26-year rise as Asia's technology titan Editor's Note: This article is the 15th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, April 24 (AJP) - In 1999, in a small apartment in Hangzhou, eastern China, a former English teacher named Jack Ma gathered 17 friends and associates to launch a new kind of business. Their goal was audacious: to create an online marketplace that would connect Chinese manufacturers with international buyers. At a time when China’s internet infrastructure was primitive and the promise of e-commerce uncertain, few could have predicted the transformation that would follow. Twenty-six years later, that venture — Alibaba Group — has become one of the world’s most influential digital conglomerates, its reach extending far beyond e-commerce into cloud computing, financial technology, logistics, and artificial intelligence. Today, Alibaba commands roughly half of China’s e-commerce market through platforms like Taobao and Tmall, which operate on an asset-light model that connects buyers and sellers while outsourcing logistics to third-party providers. The result is a sprawling digital ecosystem that serves hundreds of millions of consumers and businesses. The company's financial results reflect its stature. In 2024, Alibaba reported revenues of $130.35 billion, up 3 percent from the previous year. For the fiscal third quarter ending in December 2024, it posted revenue of 280.2 billion yuan — about 55 trillion won — an 8 percent increase, driven by a rebound in e-commerce and expanding cloud services. Ma, who had no formal background in technology or finance, nevertheless proved a compelling leader. His vision and charisma helped secure investor confidence and attract early talent. He emphasized creativity and customer focus, often urging his teams to “follow competitors but never copy them.” His tenure set the tone for a culture that prized innovation and agility. Ma stepped down as executive chairman in 2019, handing the reins to Daniel Zhang, then CEO, who led efforts to globalize the business and digitize its infrastructure. Under Zhang, the company turned China’s Nov. 11 shopping festival — Singles' Day — into the world’s largest online retail event. Today, Alibaba is led by Chairman Joe Tsai and CEO Eddie Wu, who are steering the company through a new era of global expansion and regulatory recalibration. The firm’s overseas footprint has grown markedly through platforms like AliExpress and Tmall Global, and with acquisitions such as Lazada in Southeast Asia, where Alibaba now commands roughly 30 percent of the market. In Russia, the company has pursued partnerships with domestic firms like Mail.ru and Megafon, tapping into a local user base of over 100 million. Its cloud computing arm, Alibaba Cloud, has become a cornerstone of the company’s growth strategy. Ranked first in China and third across the Asia-Pacific region, Alibaba Cloud posted 13 percent revenue growth in the third fiscal quarter of 2025, with further acceleration expected. Unlike Western rivals such as Amazon Web Services and Google Cloud, Alibaba has focused on solutions tailored for governments and small- to mid-sized enterprises, expanding its data center network in Southeast Asia and the Middle East. Meanwhile, the company’s financial affiliate, Ant Group, has evolved from its roots as Alipay into the world’s largest mobile payments platform, serving 1.3 billion users and 80 million merchants globally. But Ant’s meteoric rise drew regulatory scrutiny. In 2020, Chinese authorities halted its anticipated IPO — valued at $46 trillion won — just days before the offering. The move followed critical remarks by Ma about China's financial regulatory system and marked a turning point in the company’s relationship with Beijing. The fallout was swift. In 2021, Alibaba was fined 27.5 billion yuan (about $4.2 billion) for antitrust violations — the largest such penalty in Chinese history. Ant Group was restructured, with its credit and lending operations brought under tighter state control. Even as it navigates these headwinds, Alibaba is pressing ahead with technological investment. It has pledged 380 billion yuan (roughly $58 billion) over the next three years to expand its AI capabilities. Among its latest innovations: Qwen2.5 Omni, a multimodal model that processes text, images, and video; and Tongyi Wanxiang, a generative image tool used in e-commerce design and advertising. Its logistics arm, Cainiao, integrates robotics, AI, and IoT to deliver same-day service in China and 72-hour delivery globally. The system relies on a fleet of over 500 autonomous guided vehicles and includes strategic hubs in Dubai and Kuala Lumpur, part of a broader push to reshape trade routes linking Asia, Europe, and the Middle East. Sustainability has become a focal point. The company aims to reach carbon neutrality by 2030, with initiatives such as the deployment of 40,000 new energy vehicles and a full transition to renewable energy in its data centers. The Ant Forest program — through which users earn points for eco-friendly behavior that translate into real-world tree planting — has led to over 100 million trees planted across China. Still, challenges remain. Alibaba’s share of China’s e-commerce market has dipped below 50 percent, amid growing competition from domestic players like Pinduoduo and international rivals such as Amazon and TikTok Shop. To stay competitive, Alibaba is expanding features like free shipping and local currency support on AliExpress, while betting on livestream commerce to drive engagement across regions. Geopolitical uncertainty poses additional risk. U.S.-China tensions could threaten access to advanced semiconductors, essential for the company’s AI ambitions. Analysts say Alibaba’s success in the coming years will depend on its ability to balance innovation with compliance, and to navigate a shifting global regulatory landscape. 2025-04-24 09:17:29 -
South Korea sees first monthly rise in births in 11 years SEOUL, April 23 (AJP) - South Korea recorded its first year-on-year monthly increase in births in more than a decade in February, offering a rare glimmer of hope in the country’s ongoing demographic crisis. According to data released Wednesday by Statistics Korea, 20,035 babies were born in February, a 3.2 percent increase from the same month last year, or 622 additional births. This marked the first time since 2014 that February births had risen and the largest such increase for the month since 2012, when births grew by 2,449. February also became the eighth consecutive month to show a year-on-year uptick in births, a notable reversal in a country grappling with the world’s lowest fertility rate. The national total fertility rate — defined as the average number of children a woman is expected to have in her lifetime — rose slightly to 0.82 for the month, up from 0.77 a year earlier. Births increased in nine of the country's cities and provinces, including major metropolitan areas like Seoul and Busan. However, they declined in eight others, such as Gwangju and Sejong. Marriage rates also saw a significant rise. A total of 19,370 couples tied the knot in February, an increase of 2,422 or 14.3 percent from a year earlier, marking the highest number of February marriages since 2017. All 17 major cities and provinces reported gains in the number of marriages, continuing a trend of growth that began in April 2024. “Births continue to increase due to factors including more marriages,” a Statistics Korea spokesman said. “The upward trend in births may continue.” Despite the bump in births, South Korea’s population continued to decline naturally for the 64th consecutive month, as deaths once again outnumbered births. In February, 30,283 people died — 401 more than a year earlier — resulting in a natural population decrease of 10,248 people. Divorces were virtually unchanged, totaling 7,347 for the month, down by just seven cases or 0.1 percent from the previous year. 2025-04-23 17:11:46 -
Retailers battle for supremacy in booming online fresh food market SEOUL, April 23 (AJP) - South Korea’s major retailers are intensifying their push into the fresh food market, a fast-growing segment that has emerged as a critical battleground for both e-commerce and traditional chains. Coupang, the country’s dominant online retailer, is leading the charge. The company has ramped up its investment in fresh food logistics, forging direct partnerships with regional producers across South Chungcheong, South Gyeongsang, and North Gyeongsang provinces. Its fresh produce purchases, particularly fruit, have more than tripled since 2021. Coupang’s hallmark Rocket Delivery network now offers next-morning delivery of produce harvested just the day before, underscoring its ambition to dominate perishable goods logistics. Market Kurly, a premium grocery delivery startup, has formed a strategic alliance with internet giant Naver and is slated to join the Naver Plus Store platform later this year — a move designed to widen its reach and challenge Coupang’s dominance. SSG.com, the online arm of retail conglomerate Shinsegae Group, is also bolstering its fresh food business. Drawing on the sourcing expertise of E-mart, its supermarket affiliate, the company is expanding its early morning delivery services beyond the Seoul metropolitan area to regional hubs such as Chungcheong, Busan, Daegu, and Gwangju. The competition comes as South Korea’s online fresh food market experiences explosive growth. Digital transactions for agricultural, livestock, and fishery products totaled 12.83 trillion won (about $9 billion) in 2024, more than tripling from 3.72 trillion won in 2019, according to government data. This surge stands in stark contrast to a sluggish overall retail environment, hampered by persistent inflation and elevated interest rates. Online sales of fresh food, however, jumped 17.2 percent last year alone. Analysts note that the sector still has considerable room to grow, with an online penetration rate of just 26.2 percent — lagging behind categories like electronics (38.0 percent) and fashion (44.7 percent). Traditional retailers are responding with their own innovations. E-mart has introduced “Order to Home,” a farm-to-doorstep delivery service available through its app, which now boasts 3 million monthly users. Lotte Mart has rolled out “Lotte Mart Zeta,” a grocery-focused platform developed in collaboration with British retail tech firm Ocado. Homeplus has also increased the footprint of stores that dedicate nearly all their shelf space to food items. “Fresh food is an area that both online and offline retail channels absolutely cannot afford to lose for survival,” an industry source said. “It’s becoming the core of retail market competition going forward.” 2025-04-23 17:06:05 -
With AI in focus, Naver, Kakao brace for earnings SEOUL, April 23 (AJP) - South Korea’s leading tech companies, Naver and Kakao, are set to release their first-quarter earnings for 2025 next month, amid intensifying pressure to keep pace in the rapidly evolving landscape of artificial intelligence. According to a filing with the Financial Supervisory Service on Wednesday, Naver will announce its results on May 9 via a conference call, while Kakao is scheduled to release its earnings a day earlier, on May 8. Analysts anticipate that Naver will report revenue of 2.8 trillion won (approximately $2.05 billion) for the first quarter, representing a year-on-year increase of 10.9 percent. Operating profit is projected to rise 16.6 percent to 512.3 billion won. Naver, which crossed 10 trillion won in annual revenue for the first time last year, continues to post record quarterly figures. However, the company has faced criticism for lagging in the global race to develop competitive AI technologies. The return of founder Lee Hae-jin as chairman of the board last month has signaled a renewed strategic focus. Lee has pledged to prioritize artificial intelligence and new business ventures, underscoring the urgency with which the company is approaching the current wave of technological transformation. In the first quarter, Naver launched “AI Briefing,” a generative AI-powered search service integrated into some of its platforms, including Place. It also introduced the Naver Plus Store, a standalone shopping app, as part of an aggressive push into e-commerce. “While advertising revenue may soften slightly due to economic conditions, growth in commerce will sustain the upward trend in operating profit,” said Oh Dong-hwan, an analyst at Samsung Securities. He added that the near-term impact of the new app and AI service would likely be limited. Kakao, by contrast, is expected to report a year-on-year decline in both revenue and profit. Analysts project revenue of 1.94 trillion won, down 2.5 percent, and operating profit of 105.6 billion won, a 12.2 percent drop. The company has faced a series of challenges in recent months, including regulatory scrutiny and legal issues involving its founder, Kim Beom-su. Investigations into key business units such as Kakao Mobility have added to the strain. In February, Kakao sought to reset its strategic direction by announcing a partnership with OpenAI CEO Sam Altman during his visit to Korea. The collaboration reflects a contrasting approach to Naver’s “sovereign AI” model, with Kakao favoring a more integrative orchestration strategy. Internally, Kakao continues to restructure, spinning off its Daum portal service and reportedly weighing the sale of stakes in Kakao Entertainment and Kakao Mobility. Despite plans to launch its own AI-based “Kanana” service in the first half of the year, the product has yet to debut. The OpenAI collaboration remains in its early stages, with few tangible outcomes to date. “The content segment, which contributes nearly half of Kakao’s revenue, will remain under pressure in the near term,” said Nam Hyo-ji, an analyst at SK Securities. “However, we expect performance to improve in the latter half of the year as optimism builds around the OpenAI partnership.” 2025-04-23 14:07:40 -
LG Display eyes turnaround as demand for OLED TVs surges in China SEOUL, April 22 (AJP) - Sales of televisions equipped with Korean-made OLED (organic light-emitting diode) panels are rapidly gaining ground in China’s premium TV market, reflecting a notable shift in consumer preferences and industry momentum. According to market research firm Omdia, OLED panels are projected to account for 78.3 percent of premium televisions priced above $2,500 in China this year. That figure marks a sharp increase from 47.2 percent in 2024, suggesting a growing appetite for high-end display technology despite the segment’s relatively modest size. Over the same period, the market share of LCD TVs in the premium bracket is expected to fall from 52.8 percent to 21.7 percent. China’s high-end television market remains relatively small, with annual sales estimated at between 200 billion and 300 billion won ($145 million to $220 million). Most Chinese consumers continue to favor more affordable options, with products under 10,000 yuan (roughly 2 million won, or $1,380) eligible for government subsidies that can cover up to 20 percent of the retail price, capped at 2,000 yuan. Still, analysts say OLED’s rising dominance in the premium category points to a broader trend: OLED is increasingly seen as the display of choice, even in China. The shift could provide a critical boost for South Korea’s LG Display, which supplies more than 80 percent of the world’s large OLED TV panels. The company is expected to return to profitability in the first half of this year, reversing two consecutive years of losses that each exceeded 2 trillion won. LG Display’s panels are used not only by its affiliate LG Electronics but also by competitors such as Samsung Electronics and Sony. Jung Cheol-dong, who was appointed chief executive in December 2023, has led a strategic overhaul aimed at streamlining the company’s large OLED operations and expanding its capabilities in small- and medium-sized displays. Analysts forecast that LG Display could post operating profits of around 500 billion won this year, marking its first profitable year since 2021. 2025-04-22 16:23:05 -
Procurement dispute emerges over Korea's first privately-led geostationary satellite SEOUL, April 22 (AJP) - A procurement dispute has erupted over South Korea’s first privately-led geostationary satellite development project, underscoring growing competition in the country’s burgeoning space sector. Industry sources said Tuesday that the committee overseeing the Chollian Satellite 5 project selected LIG Nex1 as the preferred negotiation partner for developing the satellite bus. The decision prompted a formal objection from rival bidder Korea Aerospace Industries (KAI) on April 10. The disputed program — officially titled the Geostationary Meteorological and Space Weather Satellite System and Bus Development — is a national R&D initiative backed by 323.8 billion won ($236 million) and scheduled to run through 2031. The selection process prioritized technical capability and project readiness, explicitly excluding cost considerations. Final decisions were reached on April 1 following documentation review and presentations. KAI has challenged the decision, claiming LIG Nex1 lacks core experience in leading satellite systems or bus development and does not possess facilities for satellite assembly and testing. The company also raised concerns about the integrity of the evaluation process, pointing to potential conflicts of interest involving former Korea Aerospace Research Institute (KARI) employees serving on the review panel — some of whom, KAI alleges, may financially benefit from the project through technology transfer fees. The Korea Meteorological Industry and Technology Institute, which oversees the project, confirmed it is currently reviewing the objection. “We need to respond within 30 days of receiving the objection, and we are in the process of review and preparation,” a spokesperson said. “It is difficult to comment further at this time.” Analysts see the dispute as indicative of intensifying competition in South Korea’s space sector. “When selection is determined solely through qualitative evaluation, the potential for disputes grows — especially as the number of large-scale projects increases,” said one industry insider. “As the space industry matures, it’s essential to establish a fair and transparent evaluation framework.” The Chollian Satellite 5 project represents a milestone in South Korea’s space development strategy, with private firms taking on roles traditionally led by government research institutions. 2025-04-22 13:54:26 -
Bank of Korea seeks stronger role in shaping stablecoin regulations SEOUL, April 21 (AJP) - The Bank of Korea plans to take an active role in upcoming legislative deliberations on virtual assets, stressing the need for a distinct regulatory framework for stablecoins due to their potential impact on monetary policy and financial stability. In its report released Monday, the central bank warned that stablecoins — cryptocurrencies typically pegged to a national currency — carry characteristics that differ significantly from other digital assets and could pose systemic risks if left unregulated. “Stablecoins possess inherent payment instrument properties,” the report stated. “If they become widely used as substitutes for legal tender, they could undermine the effectiveness of central bank policies, disrupt financial stability, and pose risks to payment systems. A separate regulatory framework is essential.” As of December 2024, South Korea's five major virtual asset exchanges reported 18.25 million investors holding assets valued at 104.1 trillion won (approximately $76 billion), with an average daily trading volume of 17.2 trillion won. The Bank of Korea attributed the market’s growth to the approval of spot cryptocurrency exchange-traded funds (ETFs) in the United States and Hong Kong, as well as the European Union’s implementation of the Markets in Crypto-Assets (MiCA) Regulation. The central bank also cited a surge in trading activity and investor inflows following the election of U.S. President Donald Trump, who has expressed support for the virtual asset sector. At a press briefing, Lee Byung-mok, director of the BOK’s Financial Settlement Bureau, cautioned that the stability of stablecoins could be threatened by external shocks. “If a stablecoin loses its one-to-one peg with legal tender, investors will rush to redeem, prompting issuers to withdraw substantial reserves,” he said. “Such scenarios could lead to liquidity stress and broader financial disruptions.” Deputy Governor Lee Jong-ryeol also addressed the central bank’s ongoing digital currency initiative, known as Project Hangang, and reassured the public that physical cash would remain in circulation. “Digital payment systems are vulnerable to power outages and communication failures,” Lee said. “Physical currency remains essential, particularly for the elderly and those unfamiliar with digital technologies. To maintain public trust, we will continue to issue physical currency and ensure its interchangeability with digital forms.” 2025-04-21 17:37:43 -
Japan imports Korean rice for first time in decades amid soaring prices SEOUL, April 21 (AJP) - For the first time since official export records began in 1990, Japan has imported South Korean rice for commercial sale, as a deepening domestic rice shortage pushes prices to record highs. According to South Korean agricultural officials, two metric tons of rice from Haenam County in South Jeolla Province cleared Japanese customs on April 8 and began selling in Korean supermarkets across Tokyo on April 10. The rice, marketed under the brand “Ttangkkeut Haetsal” and produced by the Okcheon Agricultural Cooperative, was harvested in 2024 and milled in March of this year. A 10-kilogram bag is priced at 9,000 yen, including tax and shipping — roughly 10 percent cheaper than Japanese rice, despite Japan’s 341 yen-per-kilogram import tariff. The Korea Agro-Fisheries & Food Trade Corporation said that while South Korean rice was previously shipped to Japan as part of disaster relief efforts following the 2011 Great East Japan Earthquake, this marks the first time it has been imported for retail sale. The initial two-ton shipment sold out within 10 days, prompting Korean suppliers to schedule an additional 10-ton shipment for May. Japan’s rice crisis has been driven by a combination of poor harvests, stockpiling triggered by recent earthquakes, and increased consumption from a rebound in foreign tourism. In response, the Ishiba administration released 210,000 tons from national reserves last month and plans to release another 100,000 tons by the end of April. But prices have continued to climb. Japanese media have also pointed to monopolistic behavior among major distributors as a contributing factor to the crisis. “The high domestic prices have made Korean rice competitive, even with import duties,” said a South Korean government official. Officials at the Okcheon cooperative said Japanese retailers are expressing growing interest in expanding Korean imports if price pressures persist. 2025-04-21 15:09:36