South Korea unveils $10.2 billion emergency support for tariff-hit exporters SEOUL, September 03 (AJP) - The South Korean government on Wednesday announced a sweeping 13.6 trillion won ($10.2 billion) relief package aimed at helping exporters weather U.S. tariffs, while expanding trade financing to a record 270 trillion won ($203 billion). The measures, unveiled during a joint meeting of economic ministers and industry officials, are designed to offset the burden of recently negotiated tariffs with Washington. Under the agreement, South Korea and the United States reduced planned mutual tariffs from 25 percent to 15 percent. Automotive tariffs were also cut to 15 percent from 25 percent, but officials warned that the new rates still weigh heavily on Korean exporters. The plan centers on expanded access to credit and lower borrowing costs. Korea Development Bank will raise lending limits tenfold for affected companies, lifting the cap for small businesses from 3 billion won to 30 billion won and for mid-sized firms from 5 billion won to 50 billion won. Interest rates will be reduced by an additional 0.3 percentage points from current levels of 2 to 3 percent. The Export-Import Bank of Korea will broaden its crisis lending program to include firms with weaker credit ratings. Targeted relief is also planned for companies in steel, aluminum, copper and related industries, which face tariffs as high as 50 percent. The government pledged 570 billion won in support, including 150 billion won in subsidized loans, with interest rate reductions of up to two percentage points for small and mid-sized firms. Trade insurance coverage will be expanded by 14 trillion won to 270 trillion won, the largest on record, to help ensure liquidity for exporters. Fee discounts of up to 90 percent will be extended for small firms with less than $1 million in overseas sales. Other measures include 420 billion won in tariff-related export vouchers, higher subsidies for logistics and consulting costs, and the creation of a 100 trillion won National Growth Fund to spur domestic investment. Industry Minister Kim Jung-kwan said the plan would be rolled out quickly to help exporters adapt to shifting trade conditions. “Our goal is not only to minimize tariff damage but also to create new opportunities for Korean industry,” he said. 2025-09-03 10:58:42

Korea's chaebol families add nearly $25 billion in wealth in first half of 2025 SEOUL, September 02 (AJP) - The fortunes of South Korea’s largest business dynasties swelled in the first half of the year, buoyed by rising share prices in their sprawling corporate empires, according to data released Tuesday. Combined assets held by the owner families of the country’s 50 biggest conglomerates rose by nearly 33 trillion won, or about $24.8 billion, between January and August, research firm Leaders Index said. Their holdings were valued at 144.4 trillion won ($108.6 billion) as of late August, based on the firm’s analysis of 623 family members with equity stakes in affiliated companies. Samsung heirs were the biggest beneficiaries. Samsung Electronics Chairman Lee Jae-yong saw his wealth climb 4.7 trillion won to roughly 16.6 trillion won, largely driven by a 48 percent surge in Samsung C&T shares. His stake in the company rose in value by 1.8 trillion won. Lee's sister, Lee Boo-jin, who runs Hotel Shilla, gained 1.9 trillion won, while their mother, Hong Ra-hee, honorary director of the Leeum Museum of Art, added 1.7 trillion won. Altogether, the Samsung family’s wealth grew by 10 trillion won, accounting for about one-third of the total gains among chaebol families. Outside Samsung, Hyosung Group Chairman Cho Hyun-joon’s assets rose by 2 trillion won to 3 trillion won, partly through stake transfers and family share exchanges after the death of former honorary chairman Cho Seok-rae. Hyundai Motor Group’s Chairman, Chung Eui-sun, added 1.8 trillion won, lifted by stock splits and share price increases across affiliates, including logistics arm Hyundai Glovis. Not all saw gains. Kyobo Life’s Chairman, Shin Chang-jae, lost nearly 800 billion won as his assets fell 25 percent to 2.5 trillion won, dragged down by declines in his company’s share value. Yoo Jung-hyun, chairwoman of NXC and widow of Nexon founder Kim Jung-ju, also shed more than 200 billion won after selling part of her stake and as the company’s per-share valuation dropped. 2025-09-02 16:43:07

LG Electronics partners with Britain's Octopus Energy to push heat pumps in Europe SEOUL, September 02 (AJP) - LG Electronics said Tuesday it had signed an agreement with Octopus Energy, Britain’s largest electricity supplier, to expand clean technology solutions in European markets. The memorandum of understanding, signed last week, calls for combining LG’s heat pump systems with Octopus’s artificial-intelligence energy management platform, known as Kraken. The companies plan to roll out the integrated offering in Britain, Germany and other major European markets, targeting households looking for more affordable heating options amid volatile energy prices. Founded in 2016, Octopus has grown rapidly into a multinational company operating in more than 30 countries. Its Kraken platform, which manages real-time renewable energy pricing and distribution, now serves about 10 million customers. The firm has also been a vocal proponent of replacing traditional gas boilers with heat pumps as part of Europe’s efforts to cut carbon emissions. LG said its heat pump systems use waste heat and untapped thermal sources to reduce reliance on fossil fuels. The company’s technology incorporates inverter scroll compressors designed to improve efficiency, durability and stability. Greg Jackson, Octopus Energy’s chief executive and founder, said in a press release the partnership would help consumers cut heating costs while reducing environmental impact. Yoon Tae-bong, who oversees global sales at LG Electronics, said the collaboration would accelerate the company’s clean technology growth in Europe and create new opportunities in the sustainable energy market. 2025-09-02 15:21:31

TSMC widens lead over Samsung in foundry business SEOUL, September 02 (AJP) - Taiwan Semiconductor Manufacturing Company tightened its grip on the global chipmaking business in the second quarter of 2025, surpassing 70 percent market share and leaving rivals, including Samsung Electronics, further behind, according to new industry data. Worldwide foundry revenue reached a record $41.7 billion in the quarter, up 14.6 percent from the previous three months, research firm TrendForce reported Monday. TSMC accounted for 70.2 percent of the total, an increase from 67.6 percent in the first quarter, aided by rising demand for artificial intelligence processors, smartphones and notebook computers, as well as higher average selling prices. Samsung, the second-largest contract chipmaker, slipped to 7.3 percent of the market from 7.7 percent in the prior quarter. That left the gap between TSMC and Samsung at nearly 63 percentage points, up from about 60 points three months earlier. China’s Semiconductor Manufacturing International Corporation, the third-largest player, fell to a 5.1 percent share from 6 percent. TrendForce attributed the decline to shipment delays and weaker prices, even as Beijing’s subsidies and U.S. tariffs encouraged more domestic chip demand. The strong overall growth reflected a wave of inventory building in China, spurred by consumer subsidy programs, and anticipation of new smartphones, laptops and servers set to launch in the second half of the year. Samsung continued to benefit from smartphone orders and production of the Nintendo Switch 2, but those gains were not enough to narrow the gap with its Taiwanese rival. 2025-09-02 11:03:07

Samsung Electronics retains lead in India's TV market SEOUL, September 01 (AJP) - Samsung Electronics strengthened its grip on India’s television market in the first half of 2025, holding a 23.8 percent share by shipment volume and extending its run as the top seller for a ninth consecutive year, according to data released Monday by the research firm Omdia. Samsung first captured the No. 1 spot in India in 2017 and has kept it ever since, fending off challenges from both domestic and Chinese competitors. LG Electronics ranked second with a 16.5 percent share, while Xiaomi — once a formidable rival — slipped to third at 7.9 percent, less than half its 2020 level of 18 percent. By revenue, however, LG has been outperforming its Korean rival. Data from the market tracker GfK showed LG leading in sales-based share at 27.5 percent, up from 25.8 percent a year earlier, marking its second straight year at the top by that measure. The divergence highlights the split between unit shipments, where Samsung dominates, and sales value, where LG has found strength in higher-priced models. India, with its 1.4 billion people and rising appetite for advanced consumer electronics, has become one of the world’s largest television markets, reaching 11.29 million units annually in 2024. Samsung has leaned on its premium lineup — including Neo QLED 8K sets with third-generation AI processors, OLED models with anti-glare technology, and its Samsung TV Plus streaming service, which offers more than 100 local channels in 14 Indian languages alongside global and Korean content. LG has similarly bet on premium positioning, expanding its OLED portfolio while rolling out its own free streaming service, LG Channels, in India last year. The platform delivers content in 10 regional languages, from Hindi and Punjabi to Tamil and Bhojpuri, part of a broader localization strategy in the diverse Indian market. For both Korean companies, India has become a crucial proving ground in the global television race — a market large enough to reward premium strategies, but competitive enough to keep even dominant players under pressure. 2025-09-01 15:08:58

US tightens grip on Korean chipmakers' China operations SEOUL, September 01 (AJP) - For years, Samsung Electronics and SK hynix, the two South Korean giants that dominate the global memory chip market, operated their Chinese factories with a special privilege. A designation from Washington allowed their plants to import the American equipment essential for advanced semiconductor production without the usual licensing hurdles, insulating them from the turbulence of U.S.-China trade disputes. That privilege is about to vanish. On Saturday, the Commerce Department said it would revoke so-called Validated End User, or VEU, status for the Chinese subsidiaries of Samsung, SK hynix and Intel, requiring them to obtain individual permits for every shipment of U.S. machinery starting early next year. The decision, set to be published in the Federal Register on Sept. 2, will take effect 120 days later. Its implications are sweeping. Samsung’s Xian NAND flash factory and SK hynix’s DRAM and NAND plants in Wuxi and Dalian account for a large share of global memory chip output. Industry officials fear the new licensing regime could stall technology upgrades, deter fresh investment and inject uncertainty into an already fragile supply chain. “The VEU system gave stability for equipment imports,” one industry executive said. “Without it, even routine upgrades will be difficult.” The Commerce Department estimates the shift will generate about 1,000 additional export license applications each year. Washington has signaled it will continue to approve equipment necessary to sustain current production, a move that may prevent immediate shutdowns. But the broader message is clear: The United States is tightening oversight of how foreign companies operate inside China’s semiconductor sector. The timing raised eyebrows in Seoul. The announcement came just days after President Trump met South Korean President Lee Jae Myung in Washington, a summit that touched on trade, economic security and technology policy but ended without concrete agreements. Some analysts see the revocation as a pointed reminder that America expects allies to align with its strategy to curtail China’s access to advanced chipmaking. South Korea’s Ministry of Trade, Industry and Energy said it would continue talks with Washington to reduce the fallout. “Stable operations at Korean semiconductor facilities in China are crucial for global supply chain stability,” a ministry spokesman said. Samsung and SK hynix face a delicate balancing act. Both companies rely heavily on Chinese facilities for production, while also depending on American technology to run them. The United States, meanwhile, is pursuing a dual strategy: easing some trade tensions with Beijing — extending a tariff cease-fire and partially loosening semiconductor export curbs — while quietly erecting new barriers to prevent what it calls the leakage of critical technologies. 2025-09-01 11:16:47

South Korea, Japan agree to launch joint response body for common challenges President Lee Jae Myung and Prime Minister Ishiba Shigeru shake hands after a press release/ Yonhap SEOUL, August 23 (AJP) - South Korean President Lee Jae Myung and Japanese Prime Minister Ishiba Shigeru agreed Saturday to establish a bilateral consultative body to address shared challenges including low birth rates, aging populations, and disaster management following their summit meeting in Tokyo. The leaders also committed to close coordination on North Korea policy and strengthening trilateral cooperation with the United States, according to a joint statement released after the talks. Lee emphasized that both leaders recognized the critical importance of unwavering Korea-Japan and Korea-U.S.-Japan cooperation frameworks with Washington. The summit covered extensive discussions on Korean Peninsula denuclearization, economic cooperation in hydrogen and artificial intelligence sectors, and various social policy challenges. Lee said the talks addressed common issues facing both nations including low birth rates, metropolitan area concentration, agriculture, and disaster safety management through the proposed joint consultative mechanism. On security matters, both leaders reaffirmed their commitment to complete denuclearization of the Korean Peninsula and building lasting peace. They agreed to maintain close coordination on North Korea policies while supporting successful hosting of the Asia-Pacific Economic Cooperation summit in Gyeongju in October and the Korea-Japan-China trilateral summit chaired by Japan. Lee highlighted the historic nature of his visit, noting he became the first South Korean president to choose Japan as the initial bilateral destination after taking office since diplomatic normalization in 1965. The joint document release marked the first such announcement following a Korea-Japan summit in 17 years, demonstrating the countries' commitment to relationship development. The leaders agreed to resume shuttle diplomacy between the two nations and expand youth exchanges through increased working holiday program participation. Lee described the summit as launching a new journey toward building genuine trust between the two countries and their peoples. Lee characterized both nations as optimal partners for mutually beneficial cooperation across social, cultural, and environmental sectors. He emphasized his administration's commitment to practical diplomacy centered on national interests while pursuing future-oriented win-win cooperation pathways with Japan. 2025-08-23 20:44:17

Lee pledges support for Korean diaspora during Tokyo visit SEOUL, August 23 (AJP) - South Korean President Lee Jae-myung held his first official meeting with Korean residents in Japan at a Tokyo hotel luncheon on Saturday, praising their contributions to Korea-Japan relations and promising expanded government support. The president described their historical struggles as foundational to both countries' development, citing their perseverance through colonial rule, national division, and life as overseas residents. Lee acknowledged the role of Korean diaspora in creating what he called a "new history" of bilateral relations, pointing to cultural exchange successes in districts like Shin-Okubo and Osaka's Ikuno Korea Town, which attracts 2 million annual visitors. He credited Korean residents with fostering trust between the two nations through cultural bridges including Korean food, K-beauty, and K-pop. The president formally apologized for historical injustices against Korean residents in Japan, specifically referencing spy fabrication cases during South Korea's democratization period. Lee stated that Korean diaspora members were "unfairly victimized" by state violence and expressed official condolences to affected families and victims. Lee emphasized his administration's commitment to protecting overseas Korean nationals' safety and rights, describing it as a fundamental government duty. He pledged to expand support for diaspora communities and promised to build a Korea that enhances their pride and confidence in their homeland. 2025-08-23 17:32:02

South Korea's Lee departs for Japan-US diplomatic tour SEOUL, August 23 (AJP) - South Korean President Lee Jae Myung departed Seoul Airport on Saturday morning for a six-day diplomatic visit to Japan and the United States, accompanied by First Lady Kim Hea Kyung. The tour includes summit meetings with Japanese Prime Minister Shigeru Ishiba and U.S. President Donald Trump as part of Lee's "national interest-centered practical diplomacy" centered on the Korea-U.S.-Japan alliance. Lee arrived in Tokyo on Saturday morning and began his official schedule with a luncheon meeting with Korean residents in Japan. He will hold talks with Prime Minister Ishiba to discuss bilateral relationship development, followed by a friendship dinner. The meetings aim to strengthen ties between the two neighboring countries. On Sunday morning, Lee will meet with Japanese political figures from the Japan-Korea Parliamentary League before departing for the United States, arriving in Washington D.C. the same afternoon local time. The Korea-U.S. summit, described as the tour's highlight, is scheduled for Monday morning and will cover detailed discussions on the recent tariff agreement reached last month. The summit agenda includes broad security discussions on issues such as the flexibility of U.S. forces in Korea. Lee will also participate in a business roundtable with Korean and American business leaders and deliver a speech at the Center for Strategic and International Studies think tank during his packed Washington schedule. On the final day Tuesday, Lee will travel to Philadelphia, Pennsylvania, to visit the Philly Shipyard acquired by Hanwha Ocean and other facilities. The president is scheduled to return to Seoul Airport early Thursday morning, concluding the diplomatic tour aimed at reinforcing trilateral cooperation frameworks. 2025-08-23 10:43:41

South Korea revives military service exemptions to keep AI talent at home SEOUL, August 22 (AJP) - South Korea said Friday it would revive a military service exemption program for specialists in artificial intelligence, part of a broader effort to accelerate what officials are calling a national “AI transition” and to prevent the outflow of top talent abroad. The plan, announced in the government’s new economic growth strategy, comes as countries around the world race to secure expertise in artificial intelligence — a field that is increasingly seen as a determinant of economic strength and national security. Beginning next year, graduate students pursuing master’s and doctoral degrees in AI will be given priority placement as “special research personnel.” The designation allows certain science and engineering graduates to complete their military service obligations by working in private-sector research institutes or universities rather than in uniform. Officials said they would amend existing regulations, which currently favor researchers in semiconductors, industrial components and other strategic technologies, to include AI. “AI is no longer a sectoral issue. It is the foundation of competitiveness across all industries,” the Ministry of Economy and Finance said in a statement. South Korea maintains one of the world’s strictest conscription systems, requiring almost all able-bodied men to serve 18 to 21 months in the military, depending on the branch. The “special research personnel” program was introduced in the 1970s to help secure expertise in science and technology at a time when South Korea was still an emerging economy. The system has produced some of the country’s most prominent technology leaders, including Kim Jung-ju, the late founder of the gaming giant Nexon, and Kim Taek-jin, the chief executive of NCSoft. But the program has also drawn criticism for being overly generous and unequal. In 2022, the government moved to scale it back, narrowing eligibility and limiting the number of positions. Critics argued that the exemptions allowed privileged students to avoid military service while ordinary conscripts bore the burden. Calls for revival, however, have grown louder in recent years as South Korea has sought to position itself as a leader in artificial intelligence, competing not only with the United States and China but also with smaller, nimble players like Singapore and Israel. Business groups have warned that without new incentives, many of South Korea’s brightest AI minds will choose to study or work overseas, where they face no military obligations. At a parliamentary hearing in February, Park Sung-ho, chairman of the Korea Internet Corporations Association, urged lawmakers to restore the program, saying it was “vital to prevent the country’s most promising AI researchers from leaving.” He added that the policy could help attract foreign talent as well, if South Korea signaled that it was willing to create favorable conditions for innovation. AI has become a particularly urgent priority in Seoul, where policymakers see the technology as critical to boosting productivity in a rapidly aging society and to strengthening defense capabilities against North Korea. The government has pledged billions of dollars in investments to develop domestic AI chips, build large-scale language models and expand AI education at universities. 2025-08-22 16:43:23