Embattled Korean food mogul apologizes to shareholders over controversies SEOUL, March 28 (AJP) - Celebrity chef and CEO of Theborn Korea, Baek Jong-won, apologized to shareholders Friday for recent controversies surrounding his restaurant franchise. Speaking at the company's first meeting with shareholders since being listed on South Korea's main stock exchange in November, Baek said he was reflecting on his failure to manage the business more thoroughly. The apology comes as Theborn Korea has faced a string of problems in recent months. These include allegations of mislabeling the origin of ingredients in its own products like soybean paste, and reports of a "staff blacklist" on an online cafe for its Saemaeul Restaurant brand. The company also dealt with a quality issue concerning its "Baek Ham" product earlier this year. "I sincerely apologize for causing concern and disappointment to our shareholders due to the recent issues surrounding the origin labeling," Baek told shareholders. Following the meeting, Baek told reporters that the company was re-examining its internal systems from the ground up. "We will strengthen the origin management system, collaborate with external experts to enhance transparency, and establish an effective internal monitoring system," he said. Baek admitted that his initial approach to managing the company after it went public was too "simplistic." "I mistakenly thought that if we just continued to increase sales, grow the company, increase profits, and try to reduce the burden on store owners, like we did before going public, everything would be fine," he said. "There were many mistakes in that simple thinking." Looking ahead, Baek pointed to the company's global expansion plans as a way to boost the stock price. "We are actively expanding our overseas business," he said, adding that the company would focus on promoting Korean food globally and improving its financial performance. 2025-03-28 15:42:59

Hyundai expands US production capacity to 1.2 million vehicles SEOUL, March 28 (AJP) - Hyundai Motor Group has formally inaugurated its newest manufacturing facility in the United States , establishing an annual production capacity of 1 million vehicles across its American operations. The new plant, Hyundai Motor Group Metaplant America (HMGMA), is located in Ellabell, Georgia, and is the centerpiece of the South Korean automaker’s ambitious strategy to expand its footprint in the U.S. electric vehicle market. The $8 billion facility, which spans more than 11.7 million square meters is designed to produce 300,000 electric and hybrid vehicles annually. It joins existing Hyundai and Kia plants in Montgomery, Ala., and West Point, Ga., which have respective capacities of 360,000 and 340,000 vehicles per year. “We are not simply here to build a factory. We are here to put down roots,” said Chung Eui-sun, Hyundai Motor Group’s chairman, addressing attendees at the opening ceremony. “We don't just invest in technology and cars. Above all, we invest in relationships.” In addition to full vehicle assembly, the Ellabell site will include component production facilities and a joint venture for battery cell manufacturing, reinforcing Hyundai’s efforts to localize its electric vehicle supply chain in response to U.S. policy incentives favoring domestic production. The company also announced plans to expand the Georgia plant’s output by 200,000 units with the construction of an additional facility adjacent to the current site. Once the expansion is complete, Hyundai’s total U.S. production capacity will rise to 1.2 million vehicles annually. That would enable the company to manufacture approximately 70 percent of its American sales volume domestically. Hyundai and its affiliates sold 1.71 million vehicles in the United States last year. Industry analysts view Hyundai’s manufacturing expansion as a strategic move that strengthens its ability to compete with American auto giants as the electric vehicle market continues to evolve. 2025-03-28 14:22:56

As sellers go unpaid, questions mount around luxury platform Balaan's finances SEOUL, March 28 (AJP) - Balaan, a South Korean luxury goods platform, is facing mounting scrutiny over its financial stability after reports emerged of delayed payments to sellers and increasing concerns over the company’s liquidity. Tensions flared on Thursday when a group of sellers gathered at Balaan’s headquarters in Gangnam, Seoul, demanding overdue payments. The protest follows a series of unsettling developments that have led some industry analysts to draw parallels to the collapse of other e-commerce platforms, including the high-profile Timef incident in 2024. Balaan first acknowledged payment delays on Monday, citing the need to “verify past transactions and settlement details during the financial verification process.” Balaan added that it would proceed with payments after completing internal audits. However, concerns have intensified in recent days after Balaan implemented a sudden company-wide shift to remote work on March 26, a move it attributed to unspecified “internal repairs.” Multiple reports suggest that Chief Executive Choi Hyung-rok and other senior executives have since been unreachable. “The signs are troubling,” said one industry analyst, speaking on the condition of anonymity. “The opacity, the sudden remote work, the silence from leadership — it echoes the early stages of the Timef collapse.” In that case, Timef initially blamed “system errors” for delays in merchant payments. The issue escalated into a full-blown liquidity crisis, culminating in widespread non-payments and the company’s effective shutdown. Like Timef, Balaan has yet to report a profit since its founding in 2015. In 2023, the company posted an operating loss of approximately 10 billion won, or about $7.5 million. The distribution sector is watching Balaan’s situation closely, wary of further instability in a market that has already seen several high-profile collapses. For now, questions remain about whether Balaan can stabilize its operations — and whether it is willing or able to provide clarity on its financial condition. 2025-03-28 10:48:15

Firms pledge donations to support wildfire recovery efforts SEOUL, March 27 (AJP) - An increasing number of South Korean companies have pledged significant donations to support recovery efforts after a series of wildfires ravaged communities. Samsung Group said it would contribute 3 billion won, or about $2.2 million, through the Korean Red Cross. The funds, pooled from eight of its affiliates — including Samsung Electronics, Samsung Display, and Samsung Life Insurance — will go toward relief and reconstruction in the hardest-hit regions, such as Sancheong and Hadong in South Gyeongsang Province, Uiseong in North Gyeongsang Province, and Ulju in Ulsan. In addition to the financial support, Samsung will distribute 1,000 emergency relief kits containing daily necessities and supply 600 residential tents for displaced residents. “Samsung has actively participated in social efforts to overcome crises whenever large-scale natural disasters occur at home and abroad,” the company said in a statement. LG Group also announced a donation of 2 billion won, which it is channeling through the Community Chest of Korea. The funds will aid recovery operations and provide support for those who lost their homes. “We hope to help those suffering from the sudden disaster to return to their normal lives as soon as possible,” an LG spokesperson said. Several of LG’s affiliates are offering additional aid: LG Electronics has deployed mobile service centers to repair damaged appliances free of charge, LG Household & Health Care is donating 500 million won worth of daily necessities, and LG Uplus is providing temporary Wi-Fi services and charging stations in affected areas. AmorePacific Holdings joined the relief effort with a contribution of 200 million won via the Community Chest of Korea. “We hope this will help the victims suffering from the sudden large-scale wildfires and the relief personnel dedicated to the scene,” said Lee Sang-mok, the company’s chief executive. He added that AmorePacific “sincerely hopes for prompt recovery of the damage and restoration of the victims’ daily lives.” 2025-03-27 11:33:31

Homeplus extends discount events amid cash flow concerns SEOUL, March 27 (AJP) - Homeplus, a major South Korean retail chain currently under court-managed restructuring, has announced a new weeklong sales event — its third in a month — as it seeks to stabilize operations and reassure customers amid mounting financial pressure. Branded the "Founding Customer Appreciation Festival," the promotion will run from March 27 to April 2 and follows two earlier discount campaigns: the annual “Homerun is Back” sale from Feb. 28 to March 12 and the “Encore! Homerun is Back” event from March 13 to 26. The new campaign includes discounts on fresh produce and other staples, such as a 5,000-won discount on domestically grown watermelons for customers using select credit cards, and green onions at half price for 2,490 won. Industry observers view the sales push as a sign of the company’s urgent need for liquidity following its recent filing for court receivership, which effectively cut off access to short-term bank financing. In documents submitted to the court, Homeplus projected a cash shortfall of 739.5 billion won (approximately $552 million) by the end of May. However, the company estimated that under certain conditions — including suspending interest payments on financial debt, deferring repayment of operating loans, and delaying payments on pre-filing commercial obligations — it could turn that deficit into a surplus of 277.9 billion won. Yet, Homeplus has already made substantial payments to vendors to secure continued product supply and announced plans to fully repay 460 billion won in asset-backed securities, a move seen as an effort to maintain public trust. The company’s predicament deepened last week when Seoul Milk, the nation’s largest dairy supplier, halted deliveries to Homeplus for seven days over concerns about delayed payments. Dairy products are traditionally among the top five revenue-generating categories in supermarkets, making the interruption particularly costly. 2025-03-27 11:02:13

Trump announces 25% tariff on imported cars, raising concerns for Korean automakers SEOUL, March 27 (AJP) - The United States will impose a 25 percent tariff on all imported vehicles not manufactured domestically, a measure that could have significant ramifications for South Korean automakers, particularly Hyundai Motor Group. “What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” U.S. President Donald Trump said during a press conference in the Oval Office. “If they are made in the United States, there is absolutely no tariff.” The tariff, set to take effect on April 2, is the second major commodity-specific duty announced by the Trump administration, following earlier levies on imported steel and aluminum. The move underscores Trump’s continued focus on reshaping U.S. trade relationships and bolstering domestic manufacturing. Industry analysts say the new tariffs could dampen the competitiveness of imported vehicles and pose new challenges for international automakers seeking to navigate an increasingly protectionist U.S. trade environment. The policy is expected to hit South Korea especially hard. Automobiles are the country’s top export to the United States, with Korean automakers shipping $34.74 billion worth of vehicles last year, according to government figures. That figure accounts for nearly half of South Korea’s total global auto exports of $70.79 billion. The announcement came just two days after Hyundai Motor Group Chairman Chung Eui-sun joined Trump at the White House to unveil the company’s plans to invest $21 billion in the United States over the next four years. Hyundai, which currently exports approximately 970,000 vehicles annually to the U.S., has positioned its investment as a commitment to expanding its American footprint. 2025-03-27 10:20:24

Sony evolves from post-war repair shop to global entertainment empire Sony headquarters in Tokyo/ Reuters-Yonhap Editor's Note: This article is the 12th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, March 26 (AJP) - In the decades since its humble beginnings amid the rubble of postwar Japan, Sony has grown into a sprawling multinational force that sits at the crossroads of technology, entertainment, and gaming. The company’s reach today spans image sensors and semiconductors to blockbuster movies and best-selling consoles — a testament to its relentless drive for innovation. Founded in May 1946 by Masaru Ibuka and Akio Morita as Tokyo Telecommunications Engineering Corporation, the company launched with just 20 employees and a modest capital of 190,000 yen. Initially focused on repairing damaged radios and other war-ravaged electronics, Sony’s first commercial attempt — an electric rice cooker — fizzled. But by 1950, the company had found its stride with Japan’s first domestically produced tape recorder, signaling its shift from repair to manufacturing. The breakthrough came in 1955 with the TR-55, Japan’s first commercially available transistor radio. The device’s compact, portable form — enabled by a costly $25,000 license from Bell Labs and Morita’s innovative use of phosphorus-doped germanium transistors — positioned Sony as a pioneer in consumer electronics. It was the beginning of a decades-long streak of transformative products. From the 1968 launch of the Trinitron — a leap forward in color television technology — to the 1979 debut of the Walkman, which changed the way people listened to music on the go, Sony helped define modern consumer tech. In 1989, Sony made headlines again with its $3.4 billion acquisition of Columbia Pictures Entertainment, then the largest U.S. purchase by a Japanese firm. The deal, which included Columbia, TriStar Pictures, and a vast library of film and television assets, marked Sony’s aggressive push into content creation — a strategy to merge hardware with storytelling. That synergy came into full view in 1994 with the arrival of the PlayStation. Developed under engineer Ken Kutaragi, the console ushered in an era of immersive 3D gaming. It sold over 10 million units in its first three years, and its successor, the PlayStation 2, remains the best-selling console of all time with 155 million units sold. Today, the PlayStation 5 continues to outperform expectations, with cumulative sales reaching 59.2 million units and strong momentum in the U.S. market. Sony's core identity has continued to evolve. It now derives around 60 percent of its revenue from entertainment sectors — including music, film, and gaming. Its leadership in imaging technology, particularly CMOS sensors used in smartphones and autonomous vehicles, has further expanded its technological footprint. In music, Sony remains a global powerhouse. Its acquisition of EMI Music Publishing in 2018 for $2.3 billion solidified its dominance, while streaming has fueled robust double-digit revenue growth. In 2022, Sony made another bold move, acquiring game developer Bungie — the studio behind Destiny and Halo — for $3.7 billion, bolstering its content arsenal in the fiercely competitive gaming landscape. At the helm today is Kenichiro Yoshida, who assumed the role of chairman and CEO in 2018. Under his leadership, Sony has leaned into its entertainment identity, overseeing a corporate restructure that emphasized synergy across business segments. Sony’s recent financial performance reflects the success of this integrated approach. For fiscal year 2023, the company reported record-high consolidated sales of 13 trillion yen (approximately $90 billion), buoyed by strong showings in gaming and music. However, challenges persist. Its TV division struggles against aggressive pricing and innovation from rivals like Samsung, and its mobile phone market share remains limited, even in its home country. Meanwhile, the competitive pressures are intensifying. Apple, Samsung, and Microsoft remain formidable rivals, each with distinct strengths. Apple’s tightly woven ecosystem challenges Sony’s consumer electronics ambitions. Samsung leads in display technology. And in gaming, Microsoft's Xbox ecosystem, particularly its Game Pass subscription model, is changing how players access content — posing a strategic challenge to Sony’s premium console model. Still, Sony is not standing still. The company is investing heavily in artificial intelligence and immersive media. Its AI division has produced GT Sophy, a cutting-edge racing game agent, and is exploring reinforcement learning systems capable of mastering complex environments. Sony is also developing 3D modeling and photorealistic digital humans, hinting at the future of interactive storytelling. In its partnership with Honda, Sony has entered the electric vehicle race. The Afeela 1 sedan — unveiled with much fanfare — is now available for reservation, priced between $89,900 and $102,900 depending on trim. In imaging, the forthcoming Sony A7 V is expected to launch in 2025 with a 44-megapixel sensor and AI-enhanced autofocus, further reinforcing Sony’s edge in digital photography. Looking ahead, the company is rumored to be working on the next-generation PlayStation, with early speculation pointing to a 2028 release and possibly two distinct hardware variants. It’s a sign that even as the entertainment landscape shifts, Sony intends to remain at its center. 2025-03-27 09:14:13

LG Electronics ready to expand US production if Mexico faces tariffs SEOUL, March 26 (AJP) - LG Electronics is prepared to swiftly scale up production at its U.S. manufacturing facilities should the Trump administration impose new tariffs on Mexico, a key manufacturing base for the South Korean electronics giant, its CEO said. “As a last resort against tariffs, we have prepared the Tennessee factory site to produce everything from refrigerators to ovens,” said Jo Joo-wan, LG’s chief executive, during the company’s annual shareholder meeting in Seoul. “We are already proceeding with site preparation and putting up temporary buildings, and will act without delay if tariffs take effect.” The U.S. government has announced plans to impose reciprocal tariffs on a broad group of nations — including Mexico, the European Union, Canada, Russia, Vietnam and others — beginning April 2. LG, which currently manufactures many of its home appliances for American consumers in Mexico, has previously indicated it would consider shifting more production to the United States in response to trade barriers. At the meeting, Jo also unveiled a new strategic emphasis on regional expansion, particularly in emerging markets. He pointed to opportunities across the so-called Global South — including India, Latin America, and the Middle East and Africa. India, in particular, will be a focal point. LG is preparing an initial public offering for its Indian subsidiary, a unit the company estimates is valued at approximately $15 billion. Proceeds from the IPO would be directed toward expanding LG’s manufacturing footprint in the country. The company also plans to bolster its business-to-business operations, especially in heating, ventilation and air conditioning (HVAC), smart factory solutions, and automotive electronics. As part of that effort, Jo is set to meet with Satya Nadella, Microsoft’s chief executive, who is visiting South Korea for the Microsoft AI Summit. “You can consider it confirmed that we will jointly develop an AI agent with Microsoft,” Jo said. “LG Electronics chillers will also be installed in Microsoft data centers.” 2025-03-26 16:24:15

MBK, Homeplus, Lotte Card under FTC probe SEOUL, March 26 (AJP) - The Fair Trade Commission has launched an investigation into MBK Partners, Homeplus, and Lotte Card over allegations of unfair internal transactions, sources said Wednesday. Regulators dispatched investigators to the offices of the three companies on Tuesday to collect documents and other materials potentially related to violations of the country’s fair trade laws. At the center of the inquiry is whether Lotte Card offered preferential corporate card terms and credit limits to Homeplus, a major retail chain. Both companies are backed by MBK Partners, a private equity firm which owns Homeplus. The commission is also reviewing whether more than 100 billion won (about $75 million) in annual interest payments from Homeplus to MBK Partners, tied to redeemable convertible preferred shares, constitute an improper internal transaction. MBK acquired Homeplus in 2015 for 7.2 trillion won, financing roughly 5 trillion won of the deal through debt taken on in Homeplus’s name. That included 700 billion won in preferred shares issued to Korea Retail Investment, a special-purpose vehicle created by MBK to facilitate the acquisition. During a National Assembly session on March 18, FTC Chairman Han Ki-jeong addressed lawmakers' concerns, stating that the commission would “verify the specific facts” of the arrangement. An FTC spokesperson declined to comment on the ongoing investigation, saying only, “We cannot confirm anything related to cases under investigation.” 2025-03-26 12:49:32

Samsung's Lee Jae-yong visits BYD, signaling renewed China outreach SEOUL, March 25 (AJP) - Samsung Electronics Chairman Lee Jae-yong visited the headquarters of Chinese electric vehicle maker BYD in Shenzhen on Monday, stepping up his recent outreach in China just days after meeting with Xiaomi founder Lei Jun. BYD Chairman Wang Chuanfu personally welcomed Lee at the company’s offices, a BYD spokesperson confirmed, though declined to elaborate on their discussions. The visit highlights the growing strategic interest between the world’s largest electric vehicle manufacturer and one of the globe’s leading chipmakers. BYD, which overtook Tesla in global EV sales last year, officially entered the South Korean market in January and has been accelerating its global expansion. Analysts say the two companies have ample room for collaboration, especially as electric vehicles require a significantly higher number of semiconductor components compared to traditional combustion engine cars. “There are many business cooperation opportunities between BYD and Samsung because so many semiconductors go into electric vehicles,” said one industry source, speaking on condition of anonymity. “Collaboration could span everything from power management chips to advanced semiconductors that improve energy efficiency.” Lee’s visit marks his second trip to Shenzhen since 2018, when he also met with executives from BYD and Tencent. Samsung previously invested approximately 530 billion won (about $360 million) in BYD in 2016, aiming to collaborate on automotive chips and electric vehicle batteries. That stake was sold in 2023 following limited progress. Now, with BYD rising as a dominant force in global EV markets and Samsung seeking to bolster demand for its chips across sectors, the potential for renewed strategic alignment is drawing fresh interest. Analysts point to additional synergies with Samsung subsidiaries, including Harman (automotive technology), Samsung Display (vehicle screens), and Samsung SDI (batteries). “Samsung needs anchor customers to drive its semiconductor business forward, and BYD could be one of them,” said a South Korean industry analyst. “This is a calculated move by Lee to rekindle old ties at a time when the EV market is becoming more critical to Samsung’s future.” 2025-03-25 14:06:11