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Abraham Kwak candicekim1121@ajupress.com

Samsung Electronics posts 4.7 trillion won operating profit in second quarter SEOUL, July 31 (AJP) - Samsung Electronics reported final second-quarter operating profit of 4.7 trillion won on Thursday, slightly above preliminary guidance as the world's largest memory chipmaker navigated persistent industry challenges and China sanctions. Revenue reached 74.6 trillion won, up marginally from the 74 trillion won preliminary estimate released earlier this month. The final results confirmed a 55.2 percent decline in operating profit from the same period last year, when the company earned 10.4 trillion won. Quarter-on-quarter, operating profit fell 30.1 percent from the first quarter's 6.7 trillion won, while revenue declined 5.7 percent from 79.1 trillion won in the previous three months. The Device Solutions division, which includes memory chips and foundry services, posted revenue of 27.9 trillion won and operating profit of 400 billion won. Despite an 11 percent quarterly increase in sales driven by high-value server memory products and expanded foundry client base, operating profit dropped 800 billion won due to inventory provisions in the memory business and sanctions-related costs affecting advanced AI chip production. Samsung's memory business expanded shipments of HBM3E and high-capacity DDR5 products to meet surging AI server demand, while data center SSD sales also grew. However, one-time inventory asset provisions and China sanctions on advanced semiconductors weighed heavily on profitability, underscoring the complex operating environment facing chipmakers. The Device Experience division reported revenue of 43.6 trillion won and operating profit of 3.3 trillion won. Mobile sales declined from the peak first quarter when flagship models launched, but solid smartphone performance drove year-on-year growth in both revenue and operating profit while maintaining double-digit margins through resource optimization. Looking ahead, Samsung expects continued global uncertainty from trade tensions and geopolitical risks but anticipates gradual IT market improvement driven by AI and robotics expansion. The company plans to accelerate its 8th-generation V-NAND transition and strengthen its foundry business with 2-nanometer GAA process technology for mobile applications. 2025-07-31 14:32:40
[[K-Trade]] South Korean deputy PM meets US commerce chief on tariff talks SEOUL, July 30 (AJP) - South Korean Deputy Prime Minister and Finance Minister Koo Yoon-cheol held two hours of trade discussions with the United States Commerce Secretary Howard Lutnick on Tuesday (local time), South Korea's Ministry of Economy and Finance said. The meeting took place immediately after Koo arrived in Washington, D.C., with Trade Minister Kim Jung-kwan and chief trade negotiator Yeo Han-koo. The talks come as South Korea faces a 25 percent U.S. tariff on its exports starting August 1, part of President Donald Trump's "reciprocal" tariff policy affecting multiple countries, including Japan. Trump's 90-day pause on global reciprocal tariffs is set to expire, potentially exposing South Korean products, including automobiles and semiconductors, to steep duties. Upon arrival at Washington's Dulles International Airport, Koo said he came to meet Treasury Secretary Scott Bessent, who makes key decisions in Korea-U.S. trade negotiations. He pledged to conduct "national interest-centered negotiations" while explaining Korea-U.S. economic cooperation projects such as shipbuilding. Koo is scheduled to meet with Bessent on August 1 for what could be crucial talks ahead of the tariff deadline. The urgency has intensified after Japan secured a deal to cap US tariffs at 15 percent, raising concerns in Seoul that it could be left behind in the global round of negotiations. 2025-07-30 16:35:47
[[K-Biotech]] Celltrion to acquire US factory to counter potential drug tariffs SEOUL, July 30 (AJP) - South Korean biopharmaceutical company Celltrion said Tuesday it will invest up to 1.4 trillion won to acquire and expand a US manufacturing facility as a preemptive response to potential drug tariffs threatened by the Trump administration. The company plans to complete the factory acquisition this year and begin local production of drugs sold in the US from the fourth quarter of 2026. Celltrion announced it was selected as the preferred bidder for a US drug substance production facility owned by a global pharmaceutical company. The factory, located in a major pharmaceutical industry cluster, has been producing cancer and autoimmune disease treatments for several years. Contract details will be disclosed in October when the final agreement is signed. Chairman Seo Jung-jin said the acquisition and operation of the production facility will require about 700 billion won, with additional expansion costing between 300 billion and 700 billion won. The expanded facility could reach up to 1.5 times the production capacity of Celltrion's Songdo plant in Incheon, which has a 90,000-liter capacity. The acquisition includes a multi-billion won contract manufacturing agreement that will allow Celltrion to generate immediate revenue. Under the five-year deal, Celltrion will exclusively produce biopharmaceuticals for the selling company using half of the facility, while the other half will manufacture Celltrion's own products starting in the fourth quarter of 2026. Celltrion currently sells 11 biosimilar products in the US market, with plans to expand to 41 products by 2033. Seo said the company had stockpiled two years' worth of inventory in the US to provide time for setting up local production, while non-US sales will continue to be manufactured in South Korea. 2025-07-30 13:48:57
Samsung chief heads to Washington as tariff talks deadline with US looms SEOUL, July 29 (AJP) - Samsung Electronics Chairman Lee Jae-yong left for the U.S. on Tuesday to lend a hand in ongoing tariff negotiations between Seoul and Washington, according to industry sources. Lee's trip comes just a couple of days before the tariff deadline set by U.S. President Donald Trump looms later this week. Industry watchers expect Lee may offer Samsung's commitment to expanding investment in the semiconductor sector, as well as deepening cooperation in artificial intelligence-related technologies with the U.S. It also coincided with Samsung's signing of a record 23 trillion won contract for foundry supply with American electric vehicle giant Tesla the previous day. Under the deal, Samsung will produce Tesla's next-generation AI6 autonomous driving chips using 2-nanometer manufacturing processes at its facility in Taylor, Texas starting next year. Calling it a "key milestone for Samsung’s foundry business amid fierce market competition," Tesla CEO Elon Musk expressed his expectations on X, praising the partnership as a way to help Tesla maximize manufacturing efficiency. He added he would personally inspect production lines to accelerate progress in the partnership between the two companies. Market analysts believe the deal will create a favorable atmosphere for the tariff negotiations. Samsung is currently expanding its American operations with a mega factory under construction in Taylor, in addition to its existing foundry facility in Austin, also in Texas. 2025-07-29 18:10:15
Korean shipbuilders gain market share as US sanctions target China SEOUL, July 29 (AJP) - South Korean shipbuilders saw their global market share recover to over 20 percent in the first half of 2025, benefiting from the United States sanctions on Chinese maritime industries, according to data released Tuesday by the Korea Development Bank's overseas economic research institute. South Korea's order share reached 25.1 percent in the January-June period based on compensated gross tonnage, up 8 percentage points from 17.2 percent a year earlier. The gap with top-ranked China narrowed from 51.0 percentage points to 26.7 percentage points as Korean yards capitalized on container ship orders shifting away from Chinese competitors. The rebound was driven by the US Trade Representative's decision to impose port fees on Chinese shipping companies and operators of Chinese-built vessels entering US ports. Container ships accounted for 53.3 percent of Korea's 4.87 million CGT in orders during the first half, compared to just two medium and large container ships ordered in the same period last year. However, the overall global shipbuilding market contracted sharply amid economic uncertainties. Global orders fell 54.5 percent to 19.39 million CGT in the first six months, with liquefied natural gas vessel orders - a Korean specialty - plunging 82.9 percent to 1.05 million CGT. The research institute warned that South Korean shipbuilders should use this temporary advantage to strengthen fundamental competitiveness rather than becoming complacent. The report noted that the market share recovery represents "fisherman's profit" from US-China tensions and urged companies to focus on widening quality gaps with Chinese rivals while the government provides active support given the industry's national security importance. 2025-07-29 16:06:43
[[K-Tech]] Older DDR4 chip prices rebound after Samsung, SK hynix raise contract rates SEOUL, July 28 (AJP) - Spot prices for older-generation DDR4 memory chips have staged a modest recovery after a lull earlier this month, driven by price hikes from major South Korean suppliers amid continued supply shortages, according to market research firm TrendForce. In its latest report, TrendForce said DDR4 prices climbed across several key models during the week of July 16–22, reversing a brief cooling trend that began in early July. The gains follow upward revisions to fixed contract prices by Samsung Electronics and SK hynix, two of the world’s largest memory chipmakers, as constrained supply continues to ripple through the consumer electronics market. “The rebound is primarily driven by supplier-side pricing actions, not a fundamental shift in demand,” TrendForce noted in a July 23 commentary. The firm cited significant hikes in fixed contract rates by both Samsung and SK hynix as contributing to renewed upward momentum in the spot market. 2025-07-28 15:11:09
S. Korea scrambles to avert tariffs as US seals trade deals with Japan, EU SEOUL, July 28 (AJP) - With the United States locking in trade agreements with Japan and the European Union, South Korea is making a last-ditch effort to avoid steep tariffs that could further strain its slowing economy. Deputy Prime Minister and Finance Minister Koo Yoon-cheol will travel to Washington this week for a face-to-face meeting with U.S. Treasury Secretary Scott Bessent on Friday, officials said Monday. The talks will take place on the final day of a temporary tariff grace period, and are widely seen as Seoul’s last opportunity to stave off a potential 25 percent levy on its exports. The urgency of the mission has intensified in recent days. On July 22, U.S. President Donald Trump announced a breakthrough agreement with Japan that sets a 15 percent tariff rate on Japanese exports to the United States and includes a $550 billion investment pledge from Tokyo. Five days later, a similar deal was reached with the European Union, establishing matching tariff terms and $600 billion in new European investments. South Korea, by contrast, remains on the outside looking in. Talks between Seoul and Washington have dragged on for months, and a previously planned “2+2” trade consultation was abruptly canceled earlier this month. Minister Koo was already en route to the U.S. when he was ordered to turn back at Incheon International Airport. Friday’s meeting is now expected to serve as final coordination before the tariff decision deadline. Korean officials warn that the imposition of mutual 25 percent tariffs would deal a heavy blow to Korea’s key manufacturing exporters, already reeling from U.S. steel and auto tariffs. The finance ministry has flagged a risk of “snowballing economic damage,” with additional levies potentially pushing South Korea’s growth trajectory deeper into stagnation. To break the impasse, Seoul is preparing a fresh set of negotiating offers. These include expanded industrial cooperation in shipbuilding — a sector that Trump has cited as strategically important — as well as a possible revision of South Korea’s “$100 billion” investment plan in the U.S. market. The move comes after Tokyo’s $550 billion commitment raised expectations for other allies to follow suit. Notably, South Korean officials have also confirmed that agricultural products are now on the negotiating table, raising speculation that the government may consider concessions on politically sensitive imports such as rice and beef — long regarded as untouchable due to strong domestic opposition. Trade experts caution that while Seoul faces pressure to align with the U.S. amid shifting global trade alignments, any deal must also protect core domestic industries already weakened by sluggish exports and thinning profit margins. 2025-07-28 14:11:52
[[K-Tech]] Samsung Electronics secures $16.5 billion Tesla chip contract SEOUL, July 28 (AJP) - Samsung Electronics announced on Monday that it has secured one of the largest chip supply contracts in its history — a deal worth 22.8 trillion won, or approximately $16.5 billion — with what the company described as a “major global customer.” While Samsung declined to name the buyer, Tesla CEO Elon Musk revealed shortly after that the contract involves the production of the automaker’s next-generation AI chipset. The agreement, which spans from July 24 through the end of 2033, runs more than eight years and accounts for 7.6 percent of Samsung’s projected 2024 revenue. Analysts see the deal as a major step forward in the South Korean firm's bid to revitalize its struggling foundry business and narrow the gap with industry leader Taiwan Semiconductor Manufacturing Company (TSMC). “This is a critical turning point for Samsung’s foundry operations,” said Lee Min-woo, a semiconductor analyst at NH Investment & Securities. “Not only is the size of the contract significant, but it also signals that top-tier customers are increasingly willing to diversify away from TSMC.” Samsung’s foundry division, which manufactures custom chips for clients, has reported a string of losses in recent quarters as it struggled to keep pace with TSMC’s dominance in advanced chipmaking. The Taiwanese rival holds a commanding lead in the production of high-performance chips used in artificial intelligence, mobile devices, and automotive applications. Samsung's shares closed at 70,400 won on Monday, climbing 4,500 won, or 6.83 percent, from the previous trading day. It was the first time Samsung's stock had finished above 70,000 won in roughly 11 months since Sept. 4 of last year, when its closing price was exactly 70,000 won. The identity of Samsung’s client had been withheld for confidentiality reasons, but Musk confirmed on his social media platform X (formerly Twitter) that Samsung will manufacture Tesla’s upcoming “AI6” chip at its new Texas facility. “Samsung’s giant new Texas fab will be dedicated to making Tesla’s next-generation AI6 chip,” Musk wrote. “The strategic importance of this is hard to overstate.” Tesla currently relies on Samsung for production of its AI4 chip, while the AI5 — which Musk said just completed design — will be fabricated by TSMC, initially in Taiwan and later at its Arizona plant. The AI6, expected to debut between 2027 and 2028, is aimed at delivering up to 6,000 trillion operations per second (TOPS), more than double the peak performance of AI5. Musk added that Tesla would be closely involved in optimizing manufacturing at Samsung’s U.S. fab. “Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency. This is a critical point, as I will walk the line personally to accelerate the pace of progress,” he said. “And the fab is conveniently located not far from my house.” Beyond Tesla vehicles, the AI6 chip is expected to play a central role in a broader range of Tesla products, including its autonomous robots, such as the Optimus humanoid. Industry observers say the deal not only bolsters Samsung’s credentials in the race for next-generation AI chips, but also reflects a growing push by companies to diversify their supply chains amid rising geopolitical uncertainty and capacity constraints in Taiwan. 2025-07-28 10:56:58
Heat wave claims over 1 million livestock, elevates human casualties SEOUL, July 27 (AJP) - A relentless heat wave gripping South Korea has led to a surge in heat-related deaths, claiming over a million livestock and a growing number of human lives. Heatwave warnings were in effect across the nation on Sunday. According to the Ministry of Interior and Safety, a total of 1,011,243 livestock animals have perished this year as of July 25. The ministry noted a sharp escalation in these numbers recently, directly attributing it to the sweltering temperatures. This year's tally represents more than a 10-fold increase compared with the same period last year, the ministry said. On July 24 alone, 13,842 livestock animals succumbed to the heat, including 209 pigs and 13,633 poultry such as chickens and ducks. The human toll has also escalated significantly. The number of individuals suffering from heat-related illnesses has reached 2,183 this year, marking a 2.5-fold increase over the 871 cases reported during the same period last year. On July 25, a man in his 50s was discovered collapsed on a street in Seongnam, Gyeonggi Province, around 2:20 p.m., bringing the total number of heat-related fatalities this year to 11. The Korea Meteorological Administration has cautioned that the extreme conditions are expected to persist. Daytime temperatures are forecast to remain around 35 degrees Celsius across the country for the time being, with many areas also experiencing "tropical nights," where temperatures do not drop below 25 degrees Celsius. 2025-07-27 15:01:03
Shipbuilding emerges as key leverage for Seoul in trade talks with Washington SEOUL, July 27 (AJP) - As the clock ticks down to the Aug. 1 deadline for tariff exemptions, South Korea is intensifying its push for a comprehensive trade agreement with the United States. High-level talks are scheduled for this week, with key officials from both nations expected to hold separate meetings to finalize negotiations. South Korea's Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol is slated to meet with his American counterpart, Scott Bessent, the treasury secretary, for a critical round of last-minute discussions. Simultaneously, South Korea's Foreign Minister Cho Hyun will hold a separate meeting with Marco Rubio, the U.S. secretary of state, this week. South Korea's presidential office held emergency meetings on trade relations with the United States on July 25 and 26. These sessions served to update officials on the ongoing high-level negotiations and to reiterate Seoul’s commitment to dedicating full effort to the talks until the August 1 deadline. In a statement released on July 26, the presidential office affirmed, "As Deputy Prime Minister Koo and Minister Cho are scheduled to meet with Treasury Secretary Bessent and Secretary of State Rubio, respectively, in the coming week, the government has decided to exert full effort in trade negotiations with the U.S. before Aug. 1." It was also noted that the American side had already communicated the specific date for Koo and Bessent’s meeting. During the emergency discussions, Minister of Trade, Industry and Energy Kim Jung-kwan reported on the outcome of his late-night meeting on July 25 with Howard Lutnick, the U.S. secretary of commerce, in the United States. The presidential office indicated that "our side confirmed the U.S. side's strong interest in the shipbuilding sector, and we have agreed to work towards mutually agreeable solutions, including cooperation in shipbuilding between the two countries." The South Korean government has laid a broad array of proposals on the negotiating table with the United States, including pledges of large-scale investments in the U.S., cooperation in strategic industries, and discussions on non-tariff issues such as agriculture, livestock, and digital trade. Security cooperation has also been a consistent component of these ongoing discussions. However, a renewed focus by the United States on its shipbuilding industry is now shifting the dynamics of the talks. This has significantly increased the likelihood that South Korea's robust shipbuilding capabilities could become a crucial negotiating leverage. The United States has identified both South Korea and Japan as potential partners in its efforts to revitalize its domestic shipbuilding sector. Analysts suggest that South Korea, benefiting from its advanced technology and superior production capacity, has most likely put forth concrete proposals. These could encompass the establishment of shipyards within the United States, equity investments, or offering technological and human resource support to the American shipbuilding industry. 2025-07-27 10:59:47