Food, restaurant chains raise delivery prices despite lower app fees SEOUL, March 18 (AJP) - A growing number of South Korean restaurants are charging higher prices for delivery orders than for in-store purchases, despite recent changes in commission rates by major food delivery platforms. Industry sources said Tuesday that several major chains, including Ediya Coffee, Mom's Touch, and Gupne Chicken, have adopted dual pricing structures for delivery orders. Ediya Coffee, which operates approximately 3,000 stores nationwide, announced that starting Tuesday, it would introduce "delivery-exclusive pricing." The new policy raises prices by 300 won for beverages — excluding Americanos — and by 500 won for bakery items and ready-to-drink products on external delivery platforms. The company cited increased delivery fees and shifting market conditions as key factors, with one representative noting, “Even when selling 10,000 won worth of products through delivery orders, 4,000 won is taken in fees, so many store owners requested higher delivery prices.” Some chicken and burger chains have seen individual franchisees implement higher delivery prices, despite hesitation from their corporate headquarters. At Mom's Touch, 48 franchisees have recently raised delivery prices by about 15 percent, though company executives have discouraged the practice, fearing a decline in sales. Meanwhile, Gupne Chicken franchisees in Seoul and Gyeonggi Province have increased delivery prices by 1,000 to 3,000 won, with the price of the chain’s signature "Spicy Basasak" chicken rising from 19,900 won to 21,900 won in certain locations. The trend persists despite a recent shift in commission structures by Baemin, South Korea’s largest food delivery app. On Feb. 26, Baemin lowered its commission rates from a flat 9.8 percent to a tiered system ranging from 2.0 percent to 7.8 percent (excluding VAT). Under the new framework, restaurants in the top 35 percent of sales pay 7.8 percent, those in the 35-80 percent range pay 6.8 percent, and the bottom 20 percent pay just 2.0 percent. Coupang Eats plans to introduce a similar commission system next month. 2025-03-18 16:18:05

Memory chip market shows signs of recovery SEOUL, March 18 (AJP) - The global memory semiconductor market is exhibiting signs of a long-awaited recovery, as industry forecasts indicate a reversal in price trends for DRAM and NAND flash chips. Analysts suggest that Samsung Electronics, after enduring a prolonged downturn, may experience an earlier-than-expected resurgence. According to TrendForce, a market research firm, the first-quarter price forecast for PC DRAM, specifically DDR5 16Gb chips, has been revised upward from $3.50 to $3.80. While prices remain lower compared to the previous quarter, the rate of decline is expected to slow from 11.4 percent to 4.2 percent. A price rebound is anticipated beginning in the second quarter, with DDR5 prices projected to rise 3 percent to $3.90, followed by an increase to $4.20 in the third quarter — a 29 percent upward revision from an earlier February estimate of $3.30. The firm expects supply-demand imbalances to be resolved in the latter half of the year. The optimistic outlook comes amid a recovery in DRAM spot prices that began in early March and is expected to persist through the remainder of 2024. Currently, the DDR5 spot price stands at $5.088, marking a more than 7 percent increase from $4.74 on Feb. 12. TrendForce attributes the price adjustments to production cuts by major semiconductor manufacturers, reduced customer inventory levels, and surging demand fueled by the artificial intelligence boom. A resurgence in DRAM prices is being driven in part by increased orders from key consumer markets, particularly smartphones and personal computers. Notably, China’s expanded subsidy programs aimed at replacing outdated devices with new ones have significantly bolstered IT consumption in the region. Meanwhile, the NAND flash market is showing similar signs of recovery. SanDisk, a U.S.-based NAND flash manufacturer, has announced plans to raise prices by more than 10 percent starting April 1. Other industry players, including Micron and China's Yangtze Memory Technologies Co. (YMTC), have followed suit with similar pricing adjustments. 2025-03-18 14:20:56

Lee Jae-yong urges focus on technology, saying Samsung faces 'life-or-death' crisis SEOUL, March 17 (AJP) - Samsung Electronics Chairman Lee Jae-yong has called on the company’s executives to tackle mounting internal and external challenges, warning that the firm faces a “life-or-death survival problem." Lee delivered this message via a video presentation at a forum attended by approximately 2,000 executives across Samsung affiliates. The chairman underscored the necessity of introspection among the leadership, urging them to prioritize long-term investments over short-term financial gains. “The management team must reflect thoroughly,” Lee said in his three-minute address. He reiterated his long-held belief in the primacy of technology, stating, “The first is technology, the second is technology, the third is technology.” He emphasized that maintaining Samsung’s tradition of investing in innovation is critical to the company’s future. Samsung Electronics has seen its market share decline across key business segments. The company’s share of the DRAM market slipped from 42.2 percent in 2023 to 41.5 percent last year. Its smartphone market share dropped from 19.7 percent to 18.3 percent, while its TV market share fell from 30.1 percent to 28.3 percent. Compounding these challenges, Samsung has faced delays in entering the high-bandwidth memory (HBM) market, a critical sector for AI semiconductors. The company plans to supply redesigned HBM3E 8-layer products to Nvidia by the end of March, with mass production of HBM4 products expected in the latter half of the year. In response to these headwinds, Samsung established a Management Diagnosis Office under its research arm, Samsung Global Research, in late 2024. The office, led by President Choi Yoon-ho, aims to spearhead diagnostic and innovation efforts across the conglomerate. Additionally, the company has restructured its Device Experience (DX) division, transitioning the “New Business Task Force” into a permanent New Business Team. This unit will oversee future business investments, including medium- and long-term mergers and acquisitions. 2025-03-17 16:11:12

Fashion brands open cafes in Seoul's prime shopping districts SEOUL, March 17 (AJP) - Spanish fashion firm Zara is set to debut its in-house cafe brand, Zacaffe, at its Myeong-dong store in Seoul this May, according to industry sources. The venture marks the retailer's third global location following openings in Madrid last November and Nanjing, China. The cafe will offer coffee, desserts, and a selection of branded merchandise, including tumblers, hats, eco-bags, and t-shirts. Zara joins a growing list of fashion brands leveraging the cafe model to strengthen their retail experience. Ralph Lauren entered the South Korean market with Ralph’s Coffee in September 2024, launching its first location in the bustling Garosu-gil district of Sinsa-dong. The cafe has since drawn steady crowds, with long lines forming even on weekdays. Ralph Lauren, which opened its first cafe in New York in 2014, also introduced a temporary pop-up at The Hyundai Seoul in Yeouido. Maison Kitsune, operated locally by Samsung C&T’s fashion division, has steadily expanded its Cafe Kitsune chain since its 2018 debut in Garosu-gil. The brand now operates in multiple department stores, with its Centum City branch in Busan reporting an average of over 400 customer groups per weekend. Japanese homewear label Gelato Pique has also embraced the trend, launching Pique Cafe on the first floor of its Hannam-dong store in September 2024. Specializing in desserts like crepes and gelato, the café has proven to be a strong draw. "Given Hannam-dong's pedestrian-friendly shopping environment, the response has been overwhelmingly positive," said a company spokesman. "On weekends, all seats are occupied, and demand is so high that some visitors have to be turned away." Industry experts suggest that the rise of fashion-brand cafes reflects an effort to reinforce brand identity in an era dominated by e-commerce. "As online shopping becomes the norm, fashion brands face increasing challenges in showcasing their unique aesthetics," said one industry analyst. "Cafes provide an opportunity to engage customers in a more immersive brand experience while offering branded merchandise." 2025-03-17 14:15:19

LG, Samsung refrigerators top US Consumer Reports ratings SEOUL, March 17 (AJP) - LG Electronics and Samsung Electronics have secured top spots in Consumer Reports’ latest ranking of top-freezer refrigerators for 2025. The two South Korean firms dominated the list, with LG models claiming the top position in both the 30-inch and 33-inch categories. In the 21- to 28-inch category, Samsung took first place, while LG followed closely in second. Consumer Reports conducted extensive testing, placing temperature sensors inside the refrigerators for over a month and collecting more than 5.4 million data points to assess storage performance. The organization also factored in brand reliability and customer satisfaction scores based on surveys of thousands of members. LG’s 30-inch model received a score of 76, earning top marks for temperature control and energy efficiency. Its 33-inch model also scored 76, with particularly strong ratings for energy efficiency. In the 21- to 28-inch category, Samsung’s 28-inch model led with 78 points, achieving the highest scores for temperature control, uniformity, and energy efficiency. LG’s 28-inch model followed closely with a score of 77, excelling in energy efficiency and temperature control. Top-freezer refrigerators, known for their straightforward design, lower risk of malfunction, and affordability, remain a cost-effective choice for consumers, according to Consumer Reports. Market research firm Trackline reports that Korean manufacturers, including Samsung and LG, command a combined 47.7 percent share of the U.S. refrigerator market by revenue. Their latest success follows earlier recognition from Consumer Reports in its evaluation of the “Best Washer and Dryer Sets.” In that assessment, LG secured the top ranking in two categories — drum washer-dryer sets and agitator washer-dryer sets — while Samsung led in another agitator washer-dryer category. 2025-03-17 13:51:07

US imports eggs from S. Korea for first time to help relieve severe domestic shortage SEOUL, March 14 (AJP) - South Korea has begun exporting eggs to the United States for the first time, as a severe shortage drives American consumers to pay record prices, sometimes exceeding $10 a dozen. Gyerim Farm, an agricultural company based in Ansan, shipped 20 tons of eggs, or 335,160 individual eggs, to Georgia on March 7, marking a historic first in trade relations between the two countries, local officials said. The United States, grappling with an egg shortage that has pushed prices to unprecedented levels, has been actively seeking international suppliers. According to Bloomberg News, American officials have reached out to poultry associations in Poland, France, Indonesia, and other nations to explore potential imports. Consumer egg prices in the U.S. surged 53 percent year-over-year in January, with an additional 15 percent increase in the past month alone. The crisis has prompted restaurants to impose surcharges for dishes containing eggs and has contributed to broader inflation concerns. During a recent congressional address, former President Donald Trump, who has pledged to lower food prices, attributed the price increases to the previous administration, stating that “former President Joe Biden made egg prices uncontrollable.” Industry experts estimate that the U.S. needs to import between 70 million and 100 million eggs within the next one to two months to alleviate the shortage. While South Korea has joined the ranks of new suppliers, other countries are also being courted. Indonesia has indicated it could export 1.6 million eggs monthly to the U.S., and Turkey plans to sell 15,000 tons by July, though it has introduced export taxes to manage domestic prices ahead of Ramadan. However, the global nature of the shortage is evident. Europe, facing its own egg supply challenges due to avian influenza, has seen E.U. wholesale egg prices reach a two-year high. “There is no available supply in France and almost none in Europe,” Thomas Bartillet, secretary general of the French egg industry group SNIPO, told Bloomberg News. 2025-03-14 15:13:38

Korean banks report record profits SEOUL, March 14 (AJP) - South Korean banks posted a record net profit of 22.4 trillion won ($16.5 billion) in 2024, a 5.5 percent increase from the previous year, according to data released on Friday by the Financial Supervisory Service (FSS). The regulator attributed the profit surge to a 3.1 trillion won reduction in loan-loss provisions, which offset expanded operating losses, including 1.4 trillion won in compensation costs tied to equity-linked securities. Interest income rose slightly to 59.3 trillion won, but the pace of growth slowed significantly to 0.2 percent from 5.8 percent the previous year. Non-interest income climbed 2.9 percent to 6 trillion won, buoyed by increased securities-related gains as market interest rates declined. On the expense side, selling and administrative costs rose 3.2 percent to 27.4 trillion won, while loan-loss provisions fell sharply by 30.9 percent to 6.9 trillion won. Despite the record earnings, key profitability metrics showed mixed results. Return on assets (ROA) remained unchanged at 0.58 percent, while return on equity (ROE) dipped slightly by 0.08 percentage points to 7.80 percent. The FSS cautioned that growing domestic and international uncertainties — ranging from heightened U.S. protectionism to concerns over expanding credit risks in vulnerable sectors — pose challenges ahead. "As these risks intensify, we will continue to encourage banks to secure sufficient loss absorption capacity to ensure stable financial intermediation, even in times of economic distress," the agency said in a statement. 2025-03-14 10:35:13

HD Hyundai partners with Bill Gates' TerraPower for nuclear reactor business SEOUL, March 13 (AJP) - HD Hyundai Heavy Industries, a subsidiary of HD Hyundai, has signed an agreement with TerraPower, a U.S.-based small modular reactor (SMR) company, to enhance the manufacturing supply chain for sodium-cooled reactors, the company announced on Thursday. The signing ceremony was attended by Chung Ki-sun, vice chairman of HD Hyundai; Won Kwang-sik, head of HD Hyundai Heavy Industries’ Ocean Energy Business Division; Bill Gates, founder of TerraPower; and Chris Levesque, the company’s chief executive. The sodium-cooled fast reactor, a fourth-generation nuclear technology developed by TerraPower, generates electricity by using fast neutron fission to produce heat, which is then cooled by liquid sodium. The reactor is noted for its high safety standards and advanced technology, producing roughly 40 percent less nuclear waste than conventional reactors, according to the company. Under the terms of the agreement, HD Hyundai will leverage its manufacturing capabilities to support TerraPower’s efforts to expand the supply of sodium-cooled reactors. The South Korean company will research manufacturing technologies to supply key reactor components, which will be installed on land-based power generation facilities. TerraPower is also developing another type of SMR, the Molten Chloride Fast Reactor (MCFR), designed for maritime applications. HD Hyundai aims to develop a ship-based SMR model using MCFR technology by 2030, as part of its broader strategy to transition from traditional maritime fuels — such as bunker C oil and liquefied natural gas — to next-generation nuclear propulsion systems. “This collaboration will enable us to expand our supply chain to meet growing energy demands and successfully build MCFRs,” Levesque said. 2025-03-13 16:29:29

KT evolves from telecom company to global digital powerhouse Editor's Note: This article is the 10th 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 13 (AJP) - South Korean telecommunications company KT Corp. has undergone a remarkable transformation from a state-owned telephone company into a diversified digital platform player. As it expands across Asia and beyond, KT is navigating an increasingly competitive global technology landscape while redefining its role in the digital economy. Established in December 1981 as Korea Electric Communication Corp., KT was tasked with modernizing the country's outdated communication systems amid severe telephone shortages. In its early years, the company introduced pioneering services such as wireless paging in 1982 and international direct dialing in 1983. By 1984, it had developed electronic switching systems, laying the groundwork for the nation's modern telecommunications infrastructure. The company’s trajectory shifted significantly in 2002 when it fully privatized, allowing greater operational flexibility and market-driven strategies. The transition ushered in a series of technological advancements, including the launch of VDSL service in 2002, gigabit internet in 2014, and 10-gigabit internet in 2018. KT also played a pivotal role in popularizing IPTV services, transforming media consumption in South Korea. Shift to digital platforms Over the past decade, KT has repositioned itself as a "Digico," a digital platform company extending beyond traditional telecommunications. This shift has seen the firm venture into artificial intelligence, cloud computing, big data analytics, and industry-specific digital transformation solutions. Through its B2B brand, "KT Enterprise," the company provides comprehensive digital services to clients across healthcare, finance, and media sectors. On the global front, KT has pursued strategic infrastructure projects to bolster its international footprint. A flagship initiative, the "Asia Link for Advanced Performance of High-speed Access" (ALPHA) project, aims to enhance connectivity in the Asia-Pacific region through a new undersea fiber-optic cable network linking South Korea with Japan, the Philippines, Indonesia, Malaysia, Singapore, and Vietnam. The company’s satellite arm, KT SAT, recently launched Koreasat-6A in 2024. The geostationary satellite, set to commence operations in 2025, will provide communication services for government, military, and broadcasting sectors, reinforcing KT's position in multi-orbit satellite services. KT has also demonstrated its technological prowess through global projects such as the "Global GiGA Island" initiative in Bangladesh, which increased internet speeds on Moheshkhali Island from 0.2 Mbps to 100 Mbps, benefiting 320,000 residents. Additionally, KT has provided free public WiFi in national parks in Phnom Penh, Cambodia, and plans to introduce AI-powered K-Box solutions in local elementary schools. In the Middle East, KT has expanded its presence through a memorandum of understanding with Hyundai E&C and STC Group to develop smart city infrastructure under Saudi Vision 2030. The partnership includes building data centers and IT systems to support autonomous driving and digital transformation initiatives in Saudi Arabia. As artificial intelligence reshapes industries, KT is making strategic investments. The company is collaborating with Databricks to drive AI advancements in Korea, particularly in regulated industries. KT also plans to launch a "Korean AI" model in the second quarter of 2025, designed to capture the nuances of Korean culture, language, and historical perspectives. CEO Kim Young-shub's strategy includes reducing the company's reliance on telecommunications revenue (currently 95 percent) and expanding AI-driven business to 12 percent by 2025. This includes the creation of an AI Transformation Delivery Expert Center staffed with 300 specialists and a collaboration with Microsoft to launch a Korean AI model by mid-2025. Domestically, KT faces stiff competition, holding a 27.3 percent market share against SK Telecom’s 33.6 percent and LG Uplus’s 22.7 percent. While KT has strong coverage in rural areas, improving 5G performance remains a priority to challenge SK Telecom's dominance. As KT navigates evolving industry dynamics, its commitment to technological advancement and strategic partnerships positions it as a key player in the global digital economy. By leveraging its expertise in 5G, AI, and digital transformation, KT is shaping its future as a global digital platform leader. 2025-03-13 15:21:33

Demand for smaller vehicles rises as women, older drivers shape market SEOUL, March 13 (AJP) - The demand for small and medium-sized vehicles in South Korea is expected to climb as women and elderly drivers account for a growing share of the nation’s auto market, according to a report released Thursday by the Korea Automotive Research Institute. The report, titled “Population and Social Structure Changes and the Domestic Automobile Market,” highlights a significant shift in vehicle ownership patterns over the past decade. Between 2015 and 2024, the per capita vehicle registration growth rate for women stood at 2.8 percent, surpassing the 1.0 percent growth rate for men. Women exhibited higher per capita registration growth across all age groups except for those in their 80s. As a result, the ratio of female to male per capita vehicle registrations has steadily risen, from 32.4 percent in 2015 to 34.2 percent in 2020 and 37.3 percent in 2024. Older drivers have also emerged as a major force in the market. Vehicle registrations among individuals in their 60s and 70s grew by 6.7 percent over the past decade, while registrations for those in their 80s increased by 5.5 percent. These figures far exceed the national average vehicle registration growth rate of 2.3 percent. By contrast, registrations for drivers in their 30s declined by 0.4 percent, while those in their 40s saw only marginal growth of 0.1 percent. “Rather than changes in purchasing tendencies, the impact of population growth appears to be more significant for the elderly,” said Lim Hyun-jin, a senior researcher at the institute. As of the end of 2023, South Korea’s total registered vehicle count stood at 26.3 million, marking a 1.3 percent increase from the previous year. However, long-term trends indicate a steady decline in the growth rate, which stood at 27.6 percent in 1990, 8.0 percent in 2000, 3.6 percent in 2010, and 2.9 percent in 2020. 2025-03-13 11:05:44