KEPCO, KHNP head to international arbitration over UAE nuclear project SEOUL, May 08 (AJP) - Korea Hydro & Nuclear Power (KHNP) has filed for international arbitration against its parent company, Korea Electric Power Corporation (KEPCO), over a protracted dispute involving more than $1 billion in unsettled construction costs tied to South Korea’s landmark nuclear power project in the United Arab Emirates. According to the KHNP, it has brought the case to the London Court of International Arbitration, citing unresolved payments related to the Barakah nuclear power plant. The dispute stems from cost overruns during the decade-long construction of the facility, which marked South Korea’s first foray into exporting nuclear reactor technology. The Barakah project, valued at approximately 20 trillion won (roughly $15 billion), was initiated in 2009 after KEPCO signed a contract with the Emirates Nuclear Energy Corporation. KEPCO later subcontracted much of the work to KHNP and other domestic partners. But as costs ballooned — due in part to the COVID-19 pandemic and global supply chain disruptions linked to the war in Ukraine — KHNP began seeking reimbursement from KEPCO for the overruns. KHNP formally initiated negotiations in late 2023, though industry officials say the company had been raising concerns over the extra costs since at least 2020. The dispute escalated after Barakah Unit 4, the last of the four reactors, began commercial operations in September of last year. KEPCO, which is grappling with debt exceeding 200 trillion won (around $145 billion), has rejected KHNP’s claims, arguing that it cannot make any additional payments until it receives compensation from its Emirati counterpart. “Settlement cannot be made without receiving additional funds from the client,” the company said in a statement. KHNP has countered that failure to resolve the issue risks undermining trust and jeopardizing future cooperation between the firms. Despite a high-level meeting between the two companies’ presidents in January, the standoff deepened in February when KEPCO’s chief, Kim Dong-chul, told lawmakers he “cannot accept” KHNP’s demands. The clash has drawn attention to long-simmering structural tensions within South Korea’s power sector. Though KHNP is a wholly owned subsidiary of KEPCO, the two have increasingly jostled for leadership in nuclear exports, particularly since the 2001 restructuring that divided the country’s power industry into separate generation entities. Observers say the conflict highlights governance gaps and poor coordination within the state energy apparatus. Critics have also pointed fingers at the Ministry of Trade, Industry and Energy, accusing it of failing to step in as a mediator. “The ministry, which oversees public corporations, should have intervened earlier,” said one former senior official, who spoke on condition of anonymity. “This situation was allowed to fester because no one wanted to take responsibility during the government transition period.” 2025-05-08 14:14:10

SK On accelerates U.S. battery joint venture preparations amid localization push SEOUL, May 07 (AJP) - South Korean battery maker SK On is accelerating its battery joint venture projects in the United States, aligning with the growing emphasis on localization spurred by the United States' trade policies and new tariffs, according to industry officials on Wednesday. SK On, which is collaborating with global automakers on multiple large-scale ventures, is now focusing on expanding its footprint in the North American electric vehicle (EV) market. BlueOval SK, its joint venture with Ford Motor Company, recently completed the installation of exterior signage at its Kentucky Plant 1, bearing the slogan "Electrifying the Future of Mobility." The joint venture is building three factories in total, two in Kentucky and one in Tennessee. The first Kentucky plant is expected to become operational later this year, followed by the Tennessee facility in 2026. In the lead-up to production, groundwork is well underway. BlueOval SK has hired over 1,200 employees, including a team of 350 staff that is recently been deployed to the Tennessee plant. The team is currently preparing for mass production, conducting equipment checks, and operational readiness drills. Town hall meetings are also being held regularly to align employees with the company’s mission and production targets. Meanwhile, SK On’s partnership with Hyundai Motor Group in Bartow County, Georgia, is progressing toward a scheduled launch in the first half of next year. That facility, with an annual production capacity of 35 gigawatt-hours (GWh), is expected to supply batteries for approximately 300,000 electric vehicles. The project represents a $5 billion investment. The joint venture, known as HSAGP Energy, is actively recruiting and training future staff. In April, the company signed a partnership agreement with Georgia Quick Start and Chattahoochee Technical College at the Quick Start Training Complex in Cartersville. Under the program, new hires will receive hands-on and classroom training in production, maintenance, and key areas such as quality control and workplace safety. “SK On’s growing role in these joint ventures, especially after gaining operational experience with SK Battery America, has created strong local expectations,” said one industry official. “As tariffs make localization more urgent, these U.S. factories are set to become critical links in the North American EV supply chain.” 2025-05-07 14:13:02

Coupang posts record Q1 revenue, unveils major share buyback plan SEOUL, May 07 (AJP) - Coupang Inc. reported its strongest-ever first-quarter earnings on Wednesday, pulled by favorable exchange rates and strong customer engagement despite sluggish consumer spending and growing competition in the ecommerce sector. The South Korean e-commerce giant, listed on the New York Stock Exchange, posted 11.5 trillion won ($7.9 billion) in revenue for the January–March period, alongside a 340 percent jump in operating profit to 233.7 billion won. Net income reached 165.6 billion won, swinging back into the black from a 31.8 billion won loss in the same quarter last year. Operating margin improved to two percent from 0.6 percent a year ago, with earnings per share standing at $0.06. In an earnings call, Coupang founder and chairman Kim Bom attributed the performance to long-term investment and operational discipline. “This consistent trend of achieving both solid growth and margin expansion is the result of years of investment and effort to provide the best customer experience by minimizing costs,” he said. He also highlighted a shift in customer behavior, noting that the number of users purchasing from more than nine different product categories jumped by over 25 percent during the quarter. Coupang’s core Product Commerce Division -- which includes its signature Rocket Delivery, Rocket Fresh, Rocket Grocery, and Marketplace services -- continued to drive the business. Revenue from this segment rose 16 percent to 9.98 trillion won, while the number of active customers grew nine percent year-on-year to 23.4 million. Revenue per customer also climbed six percent to 427,080 won. Rocket Delivery and Rocket Fresh, which became household names during the pandemic, remain a staple for busy young professionals and families seeking next-day delivery for groceries and everyday essentials. The company’s growth businesses, including operations in Taiwan, Farfetch, and food delivery service Coupang Eats, saw a 78 percent year-on-year revenue increase to 1.51 trillion won. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) losses in that segment narrowed slightly to 244 billion won. Kim pointed to notable progress in Taiwan, where product variety expanded nearly fivefold following the launch of the premium WOW membership program in March and the rollout of “Coupang Friends,” a local delivery workforce, in April. Coupang also announced a share repurchase program worth up to 1.4 trillion won, nearly six times the size of its buyback initiative last year. “The share buyback is one of several tools we can use,” said CFO Gaurav Anand. “We believe it will allow us to create meaningful returns for shareholders by leveraging current market conditions.” Anand added that the company has not been significantly impacted by newly announced tariffs on U.S. imports and has seen no major shifts in consumer behavior due to global geopolitical developments. 2025-05-07 13:57:32

Kim Moon-soo wins People Power Party presidential nomination with 56.53 percent of vote Kim Moon-soo (right), selected as the People Power Party's presidential candidate, greets the audience at the party's national convention at KINTEX in Goyang, Gyeonggi Province, May 3/ Yonhap SEOUL, May 03 (AJP) - Kim Moon-soo has been selected as the People Power Party's candidate for the upcoming presidential election, securing 56.53 percent of the final vote. The conservative party confirmed its nominee for the 21st presidential election during a national convention held at KINTEX in Goyang, Gyeonggi Province, on Saturday. Han Dong-hoon, who advanced to the final round of the primary, received 43.47 percent of the votes. Kim defeated Han in both party member voting and public opinion polls, receiving 208,525 votes from party members compared to Han's 159,561 votes. In the public opinion survey component of the nomination process, Kim garnered 51.81 percent support while Han received 43.47 percent. The presidential election is scheduled for June 3, following the parliamentary impeachment of former President Yoon Suk Yeol in December 2024. 2025-05-03 16:01:34

SK Telecom employees volunteer for frontline support amid SIM card hacking crisis SEOUL, May 03 (AJP) - Hundreds of SK Telecom employees have voluntarily joined frontline customer service operations to help manage the fallout from the company's recent SIM card information hack, industry sources said on Saturday. Staff from various departments, including those unrelated to mobile communications, developers, and new employees, have been deployed to airports, SK Telecom retail stores, and authorized dealers as more than 3 million overseas travelers are expected during the golden week holiday. Following the hack disclosure on April 22, employees have been sharing their volunteering experiences, tips, and insights on the company's internal bulletin board and the anonymous workplace community platform "Blind." One employee wrote in a post titled "Field support review and mindset tips," explaining that "T World managers have been in business in their neighborhoods for several years, sometimes decades, with many familiar customers and regulars," adding, "We should think of ourselves as 'day laborers' helping the managers." The same employee advised colleagues to let managers and visitors communicate first unless there's a significant customer rush, while volunteers should assist with more labor-intensive tasks. "It's better for people who come in anxious to see a familiar face and talk to them," the post noted, adding that "customers were anxious and angry" about the situation. Another employee who worked at an airport shared that "6-8 a.m. is the busiest time, and the SIM replacement itself doesn't take long, about 2 minutes." An SK Telecom official said, "Many members are voluntarily stepping up to the frontlines as this is a time when we need to mobilize all the company's strength," adding, "We will do our best to restore customer confidence." Some employees have expressed remorse in their posts, with one writing, "I felt too sorry and ashamed seeing long-time loyal customers upset," while another noted that "customers' vague anxiety is the biggest problem regardless of whether they've been affected, and I will go to the field to reassure them with the humblest attitude possible." 2025-05-03 14:25:21

Trump-Kim relations could reset, but U.S. leverage diminished by Russia factor, expert says SEOUL, May 03 (AJP) - U.S. President Donald Trump could reestablish relations with North Korean leader Kim Jong Un at any time, but his negotiating leverage would likely be limited, according to a North Korea expert from a U.S. think tank. Sydney Seiler, senior advisor at the Center for Strategic and International Studies (CSIS), suggested in a CSIS podcast on Saturday that Trump has confidence in his ability to restart North Korea negotiations through his personal diplomacy at the right moment. Seiler added that current conditions appear favorable for a potential relationship reset between Trump and Kim. Seiler explained that Trump's references to Kim as a 'Nuclear Power' aim to signal respect rather than treating North Korea as defeated. However, he emphasized that Russia has significantly reduced U.S. leverage. 'Vladimir Putin and Kim Jong Un have laid a pathway for a protracted period of not needing to talk to the United States,' Seiler said. 'What could Donald Trump give Kim Jong Un that he's not getting from Vladimir Putin? I can't think of much.'" When discussing the impact of South Korea's upcoming June 3 presidential election on U.S.-North Korea relations, Seiler suggested there would be continuity in approach regardless of the election outcome. He highlighted how both the Obama and first Trump administrations prioritized the alliance with South Korea, avoiding "Korea passing" scenarios that could create tensions. Seiler cautioned that while South Korean conservative and progressive administrations differ in their North Korea approach, Pyongyang's behavior likely wouldn't change significantly based on which political camp wins. He warned progressives against expecting a simple return to the diplomatic climate of 2018 to 2019, emphasizing that current challenges in inter-Korean relations stem from North Korea's own decisions rather than the Yoon administration's policies. 2025-05-03 10:59:51

Hair transplant costs vary up to 15-fold across South Korea SEOUL, May 02 (AJP) - The cost of hair transplants in South Korea differs dramatically depending on the region, with prices for a single hair follicle transplant varying as much as 15-fold, according to government data released Friday. Figures obtained by Rep. Kim Mi-ae of the ruling People Power Party from the Health Insurance Review and Assessment Service show that in 2024, Gwangju Metropolitan City recorded the highest average cost per follicle at 21,000 won, or roughly $15.70. In stark contrast, the same procedure cost just 1,400 won, or about $1.05, in Incheon. Hair transplants are not covered under South Korea’s national health insurance, leaving patients to shoulder the full cost — a factor that may contribute to the wide price disparities. In Seoul, the average cost per follicle was 4,223 won, while neighboring Gyeonggi Province reported an average of 3,667 won. Prices in other cities ranged from 8,380 won in Daegu to 1,800 won in Daejeon. Rural areas also exhibited variation: South Gyeongsang Province averaged 2,500 won per follicle, while North Jeolla and North Chungcheong Provinces reported averages of 2,393 won and 1,500 won, respectively. The gap widened further for larger procedures involving 2,000 follicles or more. Seoul had the highest average cost for such transplants at 6.85 million won, followed closely by Busan (6.79 million), Gwangju (6.5 million), and Incheon (6.2 million). At the other end of the spectrum, Sejong reported an average cost of just over 2.13 million won — the only region where such procedures fell below the 3 million won mark. “Hair transplants have become increasingly common, but the wide regional disparities in cost are causing confusion among patients,” said Rep. Kim, a member of the National Assembly’s Health and Welfare Committee. “Even if these procedures are not insured, there needs to be more price consistency to help people make informed decisions. The Ministry of Health and Welfare must implement policies to promote transparency and standardization.” 2025-05-02 15:35:37

Korea's inflation holds steady in April, driven by food prices SEOUL, May 02 (AJP) - Consumer prices in South Korea rose 2.1 percent in April from a year earlier, marking the fourth consecutive month of inflation hovering in the 2 percent range, according to data released Friday by Statistics Korea. The consumer price index (CPI) reached 116.38, based on the 2020 baseline of 100. April’s figure extends a trend that began in January, when inflation climbed back to 2.2 percent after four months of remaining below 2 percent. Processed food prices jumped 4.1 percent, contributing 0.35 percentage points to the overall inflation rate. Officials attributed the uptick to the delayed impact of a weakened won late last year, which has made imported raw materials more expensive. In contrast, petroleum product prices fell 1.7 percent, reflecting recent declines in global oil markets. Prices for agricultural, livestock and fishery goods rose 1.5 percent, with particularly sharp increases in seafood and meat. Core inflation — which excludes food and energy prices in line with the standards of the Organization for Economic Cooperation and Development — rose 2.1 percent, reentering the 2 percent range for the first time in seven months. An alternative core measure, which excludes volatile agricultural and petroleum products, climbed 2.4 percent. Service prices also increased by 2.4 percent. Meanwhile, the fresh food index — a barometer of costs at the dining table — declined 1.9 percent, suggesting some relief in volatile perishable food prices. The living necessities index, which tracks 144 frequently purchased items with a high share of household spending, rose 2.4 percent from a year earlier, unchanged from March. The figure signals persistent price pressure on everyday essentials, outpacing headline inflation. 2025-05-02 14:48:05

Leadership vacuum in S. Korea raises concerns over economic stability SEOUL, May 02 (AJP) - Concerns over South Korea’s economic leadership are intensifying following the abrupt resignation of Deputy Prime Minister and Finance Minister Choi Sang-mok, who stepped down Thursday in a bid to avoid impeachment. His departure threatens to unsettle foreign investors and undermine Seoul’s credibility as it navigates rising domestic uncertainty and mounting trade pressure from the United States. Choi, a key figure in maintaining policy continuity during a period of political turmoil, leaves at a precarious moment. Choi and his economic team had played a central role in assuaging concerns from global finance leaders. He worked to reassure foreign investors, finance ministers, and credit rating agencies that South Korea’s institutions remained intact and functional despite the political upheaval. But Choi’s resignation has reopened questions about Seoul’s ability to sustain that stability. Analysts warn that the move could erode investor confidence and complicate future assessments from rating agencies, which consider political cohesion a key element of economic credibility. S&P had previously cautioned that persistent political fragmentation could weaken the next administration’s ability to implement economic reforms. The implications of Choi’s exit extend beyond financial markets. He had been a leading figure in negotiations with Washington over a wide-ranging framework designed to resolve disputes over tariffs and strengthen cooperation on economic security, investment, and currency policy. The talks, conducted alongside U.S. Treasury Secretary Scott Bessent, were seen as critical to averting a potential trade rift. Although Trade Minister Ahn Duk-geun will continue to lead discussions on trade, observers say Choi's absence could leave Seoul at a disadvantage in the months ahead. In a brief farewell statement, Choi expressed regret over his departure. “I am sorry to the public that I am unable to continue performing my duties at a time when domestic and international economic conditions are so grave,” he said. Kim Beom-seok, the First Vice Finance Minister, will assume Choi’s responsibilities, albeit with less authority. 2025-05-02 13:57:49

Shinsegae reshaping how Koreans shop, dine — and live Editor's Note: This article is the 16th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, May 01 (AJP) - The headquarters of South Korea’s Shinsegae Group, located in Seoul’s Sogong-ro, rises as a monument to nearly a century of retail evolution. Once a single department store, the company has grown into a sprawling lifestyle conglomerate that is redefining how Koreans eat, shop and spend their leisure time. Founded in 1965 by Lee Byung-chul — also the founder of Samsung — Shinsegae can trace its lineage to the country’s first department store, opened in 1930. Today, the company’s reach extends across discount supermarkets, e-commerce, luxury fashion, restaurants and even entertainment. Led by Chairwoman Lee Myung-hee and her daughter, Vice Chairwoman Chung Yoo-kyung, Shinsegae has undergone a transformation that industry observers describe as one of South Korea’s most ambitious corporate reinventions. Under their leadership, the company has evolved from a traditional retailer into what it now calls a “lifestyle platform” — a seamless fusion of online and offline services that aims to anticipate and shape consumer behavior. Its portfolio includes premium department stores, E-mart discount chains, the integrated e-commerce platform SSG.com, and Shinsegae Food’s restaurant and catering services. Shinsegae International, its fashion and beauty arm, oversees a growing roster of domestic and imported brands. In 2024, its flagship Gangnam department store generated annual revenue exceeding 3 trillion won, or roughly $2.2 billion. Shinsegae’s story is one of continual reinvention. Originally known as Donghwa Department Store, it rebranded in 1963 and began importing Western retail innovations such as fixed pricing and credit card acceptance — then revolutionary ideas in Korea. In 1991, the company formally split from Samsung Group, allowing it to double down on retail operations. Two years later, it launched E-mart, the country’s first discount big-box store, ushering in a new era of mass retail. Leadership has been central to its evolution. Lee Myung-hee, daughter of the founder, emphasized trust, integrity and long-term relationships as pillars of the company’s culture. In 2009, her son Chung Yong-jin, now Vice Chairman, took de facto control and steered Shinsegae toward digital transformation. Under Chung, the company has pursued what it calls the “Shinsegae Universe” — a connected ecosystem where online and offline experiences converge. SSG.com, which unites Shinsegae Department Store, E-mart, and Starbucks Korea under a single loyalty program, is a core pillar. Live-stream shopping events with YouTube influencers like Calmdownman have become a popular driver of online sales. In brick-and-mortar retail, Shinsegae has leaned into luxury and experiential shopping. Its Gangnam store, the nation’s top-grossing department store, is undergoing a major renovation to transform its 19,800-square-meter food court into what it claims will be “the world’s largest premium food theme park” by late 2025. Other attractions include “Sweet Park,” an immersive dessert-themed space that drew 12 million visitors in a year, and cultural tie-ins with Netflix’s Squid Game and K-pop groups like Seventeen. While Lotte and Hyundai remain formidable competitors — Lotte still leads in department store market share — Shinsegae holds a strong second with 31.7 percent as of 2024. E-mart, with roughly 160 stores nationwide, remains South Korea’s top discount chain. Its “No Brand” line of affordable private-label goods has proven especially popular amid inflation and economic uncertainty. In Southeast Asia, Shinsegae is expanding No Brand’s presence in countries like Laos. International growth is another key focus. Shinsegae International is pushing K-beauty and fashion brands into Europe and the Middle East. In China, the group is pursuing a strategy of acquiring local firms for easier market entry. Meanwhile, Shinsegae is reportedly exploring a joint venture with Alibaba to boost its global e-commerce reach and considering international expansion for Starbucks Korea, in which it holds a controlling 67.5 percent stake. The road ahead is not without obstacles. Global discount platforms like AliExpress and Temu are intensifying price competition. Korea’s shrinking population and aging demographics pose long-term challenges to domestic growth. And as Shinsegae expands its AI-driven personalization tools, questions around data privacy and cybersecurity have grown more urgent. To mitigate risks and seize new opportunities, Shinsegae is developing blockchain-based security systems and a global iteration of its No Brand offering. By 2035, the group envisions building its own logistics hubs in Southeast Asia and the Middle East, exporting K-culture through immersive “Korean Wave” entertainment complexes abroad, and expanding into healthcare and finance through a unified digital platform. “Our goal is not just to sell products,” Chung said recently. “It’s to innovate until customers are afraid not to shop with us.” If Shinsegae succeeds, it won’t just be South Korea’s top retailer — it may become one of Asia’s most influential cultural forces. 2025-05-02 09:38:55