Korea's KHNP poised to sign final contract for Czech nuclear project SEOUL, April 28 (AJP) - Korea Hydro & Nuclear Power (KHNP) and Czech utility EDU II are expected to finalize a contract next month for the construction of new reactors at the Dukovany nuclear power plant, after clearing the last major regulatory hurdle, industry sources said on Monday. The Czech Republic’s Office for the Protection of Competition ruled last week that there were no legal grounds to challenge KHNP’s selection as the preferred bidder, dismissing an appeal from rival Électricité de France (EDF). The decision lifts the provisional measures that had delayed the signing process for months. EDF had contested the bidding results since KHNP was named preferred bidder last year, filing a series of objections that temporarily halted progress on the $1.6 billion project. Earlier this month, South Korean Industry Minister Ahn Duk-geun told lawmakers that "the documentation has been completed and legal reviews and board procedures are underway locally," adding that officials aim to conclude the contract by late April or early May, depending on local developments. If finalized, the Dukovany project would mark South Korea’s second major export of nuclear technology, following its 2009 deal to build the Barakah nuclear power plant in the United Arab Emirates. It would also be Korea’s first entry into Europe’s nuclear sector, long dominated by established players such as France’s EDF and Russia’s Rosatom. KHNP is leading a consortium known as “Team Korea,” which includes affiliates of Korea Electric Power Corporation, as well as private companies like Doosan Enerbility and Daewoo Engineering & Construction. While the final contract price remains under negotiation, the Czech government has estimated the cost of Dukovany Units 5 and 6 at approximately 400 billion Czech crowns, or 26 trillion Korean won. Should the project proceed smoothly, KHNP could also gain an advantage in future bids for two additional reactors at the Temelín site, where Czech authorities are considering an expansion. KHNP originally submitted proposals for all four units during the initial bidding phase. The Dukovany project also signals a broader strategic collaboration between South Korea and the United States in the European nuclear market. In January, KHNP and Westinghouse agreed to settle a two-year intellectual property dispute, pledging to cooperate on future projects under the “Team Chorus” alliance — a blend of “Team Korea” and U.S. capabilities. Industry analysts suggest Westinghouse may supply key components for the Czech reactors, following a model similar to the Barakah project, where American firms provided reactor coolant pumps, turbine generators, and digital control systems. 2025-04-28 14:33:35

POSCO, Hyundai Steel report disappointing first-quarter results SEOUL, April 25 (AJP) - South Korea’s top steelmakers, POSCO and Hyundai Steel, posted disappointing first-quarter results as a confluence of weak global demand, Chinese oversupply, and new U.S. tariffs weighed heavily on the industry. POSCO Holdings reported 14.96 trillion won ($11 billion) in revenue from its steel division and an operating profit of 450 billion won ($330 million), according to financial statements released Friday. Hyundai Steel swung to an operating loss of 19 billion won on sales of 5.56 trillion won, following a net profit a year earlier. The company also reported a net loss of 54.4 billion won for the quarter. Though POSCO’s profits rose 32 percent year-on-year — thanks in part to higher product prices and aggressive cost-cutting — they remain significantly below the 1.33 trillion won it posted during the peak of the steel cycle in early 2021. Hyundai Steel, meanwhile, saw its sales fall by 6.5 percent, a stark reflection of the industry's deepening malaise. A steep decline in construction activity, a key driver of steel demand, has hit both companies hard. Residential construction starts in South Korea totaled just 26.9 million square meters last year — roughly 70 percent of average levels — according to the Korea Construction Industry Research Institute. The drop has sharply reduced shipments of rebar and other construction-grade products. At the same time, Chinese steelmakers have flooded the market with low-priced exports, undercutting Korean producers by as much as 30 percent. In response, Hyundai Steel last July filed an anti-dumping petition against Chinese manufacturers of steel plate and hot-rolled coil. “Chinese oversupply is a structural threat to our competitiveness,” a Hyundai Steel official said, requesting anonymity to speak candidly. New U.S. trade policies have further exacerbated the industry’s woes. Under measures enacted in March, the Trump administration imposed a 25 percent tariff on all imported steel and aluminum products. As a result, Korean steel exports to the United States fell 10.6 percent year-on-year last month. Analysts warn the decline may deepen, given the typical lag between export contracts and shipments. Facing mounting pressures, both companies are accelerating overseas investments as a long-term hedge. POSCO is moving forward with a joint venture steel mill in India with JSW Group and has signaled increased collaboration with Hyundai Motor Group in the mobility sector. The company is also planning a co-investment in a U.S.-based steel mill to mitigate the impact of American tariffs. Hyundai Steel, for its part, announced plans last month to build an electric arc furnace integrated mill in Louisiana, with an annual capacity of 2.7 million tons. The plant will supply automotive-grade steel to Hyundai, Kia, and other global automakers. 2025-04-25 16:31:33

LG Electronics weighs US appliance price hikes amid tariff pressures SEOUL, April 25 (AJP) - LG Electronics is weighing potential price increases for U.S.-bound home appliances if tariffs imposed by Washington surpass what the company considers sustainable, according to CEO Jo Joo-wan. Jo said that while the company is striving to offset the impact through operational efficiencies, it is preparing for a range of scenarios — including higher consumer prices. “We will absorb as much as possible through operational efficiencies,” Jo told reporters Thursday ahead of a special lecture at Seoul National University. “But if tariffs rise beyond manageable levels, we may be forced to increase prices.” The remarks come as the United States enforces a universal 10 percent tariff on imports, while reciprocal, country-specific tariffs remain temporarily suspended. However, LG is bracing for the possibility of broader levies and disruptions to its global supply chain. Currently, LG manufactures washers and dryers at its Tennessee plant, while producing refrigerators, cooking appliances, and televisions in Mexico, and additional home appliances in Vietnam. In the face of further tariff escalation, the company is contemplating relocating major production facilities to the United States, utilizing a swing production model to shift output across regions, or raising prices to offset increased costs. “Building a production base in the United States is considered a last resort,” Jo said, noting that price adjustments and production realignment would be prioritized first. “We should follow sequential scenarios.” During its first-quarter earnings call, LG said it had already developed a comprehensive tariff response strategy, including manufacturing cost improvements and customer consultations regarding potential price increases. Jo also indicated that the full financial impact of tariffs is expected to emerge in the second quarter, with minimal front-loading of purchases by U.S. consumers in the first quarter. “Whether performance deteriorates or improves due to tariffs, it will start from the second quarter,” he said. In the first quarter of 2025, LG reported consolidated revenue of 22.74 trillion won ($16.8 billion) and an operating profit of 1.26 trillion won ($930 million). Turning to the company’s plans for an initial public offering of its Indian subsidiary, Jo signaled a cautious approach amid global volatility. “Whether it’s June or later, we want to wait a few months given the significant global uncertainties,” he said. “Our goal is not just to raise capital — we want the company to be properly valued and to enhance shareholder value.” 2025-04-25 15:57:02

SK Telecom to divest entire Kakao stake in $300 million block deal SEOUL, April 25 (AJP) - SK Telecom said Friday it will sell its entire stake in Kakao Corp. through a block deal valued at 413.3 billion won ($300 million). The sale involves 10.8 million shares of the internet company. SK Telecom said the move is aimed at securing funds for the full acquisition of SK Broadband, as well as investments in future growth areas, including artificial intelligence. SK Telecom signed a stock purchase agreement in November to acquire the remaining 24.8 percent stake in SK Broadband held by Taekwang Group and Mirae Asset Group, which own 16.75 percent and 8.01 percent of the broadband provider, respectively. The deal is valued at 1.15 trillion won, with shares priced at 11,511 won apiece. The transaction is expected to close by next month, making SK Broadband a wholly-owned subsidiary. Despite the divestment, SK Telecom said it intends to maintain its strategic partnership with Kakao. The two companies exchanged stakes worth 300 billion won in 2019 and have collaborated on cloud services and joint fund operations. “Close cooperation between the two companies, such as cloud business collaboration and joint fund operation, will remain unchanged,” an SK Telecom official said. 2025-04-25 13:43:12

Korea will negotiate with US to eliminate tariffs SEOUL, April 25 (AJP) - South Korea and the United States have agreed to hold negotiations aimed at eliminating mutual tariffs and item-specific duties before a July 8 deadline, South Korean officials said Friday, following high-level trade talks in Washington. The talks come ahead of the expiration of a 90-day mutual tariff suspension instituted under U.S. President Donald Trump. The two nations now hope to forge a comprehensive agreement — referred to by South Korean officials as a “July package” — that would permanently eliminate the tariffs. Speaking at the South Korean Embassy following a “2+2 high-level trade consultation,” South Korea’s Deputy Prime Minister and Finance Minister, Choi Sang-mok, said the two countries had reached a “consensus” to focus negotiations on four priority areas: tariffs and non-tariff measures, economic security, investment cooperation, and currency policy. Trade Minister Ahn Duk-geun, who met separately with U.S. Trade Representative Jamieson Greer, said he again called for exemptions from all mutual tariffs and other related duties. Additional talks between Ahn and Greer are expected to take place in Seoul on the sidelines of the Asia-Pacific Economic Cooperation (APEC) trade ministers’ meeting, scheduled for May 15–16. Among the issues discussed, the automotive and shipbuilding sectors took center stage. “We focused our explanation particularly on the automotive sector, which would have the most negative effects on our economy,” Choi said. Ahn noted that there was “considerable consensus” on future cooperation in shipbuilding. U.S. Treasury Secretary Scott Bessent, offering a more accelerated timeline, suggested an agreement could come sooner than expected. “We had a very successful bilateral meeting with Korea today,” Bessent told reporters at the White House. “We can move faster than I thought. We will discuss technical conditions as early as next week, and could reach an ‘agreement on understanding’ during next week.” “The Koreans came early,” he added. “They brought their A game, and we will see if they deliver.” 2025-04-25 10:20:43

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