Samsung wins trademark lawsuit against Chinese firm TCL in Germany SEOUL, March 12 (AJP) - Samsung Electronics has secured a preliminary injunction against Chinese home appliance maker TCL in a trademark infringement lawsuit in Germany, a ruling that could set a precedent in disputes over alleged "copycat" practices by Chinese companies. The District Court of Dusseldorf ruled in favor of the South Korean tech giant last month, approximately three months after Samsung initiated legal proceedings in November 2024, according to industry officials on Wednesday. At the center of the dispute was TCL's "NXTFRAME" television, introduced at IFA 2024, Europe's largest consumer electronics trade show, in September. Samsung argued that the product name infringed upon its "The Frame" TV trademark, which has been sold in European markets since 2017. In its ruling, the Dusseldorf court asserted that "Frame is not a general shape of a TV, making it difficult to view it as a descriptive trademark that can immediately perceive a TV." Following the court’s decision, TCL’s German subsidiary has rebranded the product as the A300 in European markets, including Germany and Austria, and has removed the original trademark from both online and offline marketing channels. While a final verdict in the case is expected in the second half of the year, TCL has already taken precautionary measures. This case marks the first instance in which Samsung has pursued trademark litigation against a Chinese company over television branding. 2025-03-12 16:33:40

Soaring debt, housing slump threaten Korean construction industry SEOUL, March 12 (AJP) - Anxiety is mounting among small and mid-sized construction firms in South Korea as a wave of bankruptcies sweeps through the industry. At least seven companies, including Shindonga Construction and Sambu Construction, have filed for court receivership this year, underscoring the financial distress gripping the sector. According to data from the Ministry of Land, Infrastructure and Transport, 109 construction firms shut down by February 28 this year — an average of 1.8 per day. That figure marks the highest rate of closures since 2011, reflecting mounting pressures on the industry. The downturn in South Korea’s real estate market, coupled with soaring construction costs, high interest rates, and a growing inventory of unsold homes, has created a punishing environment for builders. Particularly concerning are units that remain vacant even after completion. In February, their number reached 22,872, the highest level in more than 11 years and a 6.5 percent increase from the previous month, according to government housing statistics. Compounding the crisis, debt levels across the construction industry have soared past critical thresholds. Data from the Financial Supervisory Service shows that as of the end of 2023, Daewoo Shipbuilding & Marine Engineering Construction held a staggering debt ratio of 838.8 percent, while Sambu Construction stood at 838.5 percent and Shindonga Construction at 428.8 percent. These figures far exceed the 200 percent threshold widely regarded as the industry’s danger zone. Other firms facing alarming debt burdens include Hanyang Industrial Development (820 percent), Isu Construction (817 percent), Daebang Industrial Development (513 percent), and Dongwon Construction (344 percent). “The construction industry is teetering on the brink of collapse as the housing and real estate markets fail to rebound,” said Na Kyung-yeon, director of the Economic Finance and Urban Research Office at the Korea Construction Industry Research Institute. “Declining sales and profits are forcing an increasing number of firms out of business.” Na warned that without systemic reforms, the industry’s viability remains in jeopardy. “For the sector to be sustainable, there must be legal mechanisms ensuring that project owners account for appropriate construction costs,” he said. “Institutional safeguards should also be introduced to accommodate price fluctuations." 2025-03-12 15:45:13

US bill targeting Chinese batteries may open opportunities for Korean firms SEOUL, March 12 (AJP) - The U.S. House of Representatives on Monday approved the "Reducing Dependency on Foreign Adversary Batteries Act," marking a significant shift in U.S. policy by establishing the first non-tariff barrier against Chinese battery manufacturers. The legislation, which now heads to the Senate, would prohibit the use of batteries from six leading Chinese companies in projects involving the Department of Homeland Security (DHS) or funded by the agency. The bill specifically targets CATL, BYD, Envision Energy, EVE, Hithium Energy, and Gotion High-Tech. If enacted, the law would take effect in October 2028, barring these companies from DHS-related projects and closing potential loopholes that might allow circumvention through third countries. Given bipartisan support in the House and growing momentum for stronger measures against China, the bill is widely expected to pass the Senate. The United States already imposes a 45 percent tariff on Chinese batteries and bans electric vehicle imports from China. Some Chinese firms have sought to bypass tariffs by establishing local production facilities for energy storage systems (ESS) and other battery applications. However, this legislation could neutralize those efforts by specifically prohibiting batteries from the named companies. While the regulatory authority falls under DHS rather than the Department of Energy, which oversees most battery projects, this marks the first direct U.S. government restriction on Chinese battery purchases and could pave the way for further non-tariff barriers. "If the U.S. strengthens non-tariff barriers against Chinese batteries, private American companies will inevitably shift away from Chinese products to mitigate risks," said a source from South Korea’s battery industry. The decision is expected to have immediate implications for the U.S. energy storage market, potentially redirecting orders to South Korean manufacturers such as LG Energy Solution, Samsung SDI, and SK On, as well as Japan’s Panasonic. LG Energy Solution has already begun mass production of lithium iron phosphate (LFP) batteries for ESS, while Samsung SDI and SK On are preparing to launch their own LFP production lines. 2025-03-12 13:51:56

Antitrust watchdog probes whether pharmacists blocked low-cost health products at Daiso SEOUL, March 11 (AJP) - South Korea’s Fair Trade Commission has opened an inquiry into Ilyang Pharmaceutical’s sudden withdrawal of health supplements from Daiso stores, amid concerns that the country’s pharmacists’ association may have played a role in the decision, industry sources said Tuesday. The antitrust regulator is investigating whether the association’s involvement, if confirmed, constitutes a violation of fair trade laws. Ilyang Pharmaceutical introduced nine types of health supplements at Daiso on Feb. 24, packaging them in smaller, one-month portions—significantly less than the conventional three-to-six-month supply—and pricing them between 3,000 and 5,000 won ($2.30–$3.85), roughly one-sixth the cost of similar products sold through the company’s own distribution channels. Daewoong Pharmaceutical and Chong Kun Dang Health also launched similarly priced supplements at Daiso, reportedly reducing costs by limiting secondary ingredients and streamlining packaging. While consumers welcomed the affordable products, pharmacies reacted strongly against the move, threatening product returns and boycotts. In response, Kwon Young-hee, the president-elect of the Korean Pharmaceutical Association, met with executives from the three pharmaceutical companies on Feb. 26 and 27 to demand changes. Just five days after the launch, Ilyang pulled its products from Daiso shelves on Feb. 28, prompting consumer complaints over what they viewed as interference with purchasing choices. Critics have suggested that the pharmacists’ actions may run afoul of Article 45 of the Fair Trade Act, which prohibits businesses from unfairly using their market position to interfere with another company’s activities. If pharmacist groups exerted pressure to block Ilyang’s sales at Daiso, such actions could be deemed an abuse of trading power, according to industry observers. The allegations have prompted a review by South Korean fair trade authorities. 2025-03-11 13:30:16

Korea slips to seventh in global auto production due to weak domestic demand SEOUL, March 10 (AJP) - South Korea’s auto industry slipped to seventh place in global vehicle production last year, as sluggish domestic demand outweighed modest gains in exports, according to a report released Monday by the Korea Automobile & Mobility Industry Association (KAMA). The country produced 4.13 million vehicles in 2024, marking a 2.7 percent decline from the previous year. Domestic sales fell to their lowest level since 2013, dropping 6.5 percent year-on-year to 1.635 million units. While exports edged up 0.6 percent, they were not enough to offset weakening local demand. China, the United States, Japan, India, Germany, and Mexico all outpaced South Korea in auto production. China remained the world’s leading automobile manufacturer for the 16th consecutive year, producing 31.28 million vehicles — an increase of 3.7 percent — buoyed by government policies aimed at stimulating domestic consumption and promoting exports. Overall, global automobile production declined by 0.5 percent in 2024 to 93.95 million units, marking the first downturn since the pandemic-related slump of 2020, when output dropped by 15.4 percent. The global decline was driven in large part by Japan, where production fell 8.5 percent due to quality certification issues at Toyota, Honda, and other manufacturers. The KAMA report warned that South Korea’s automotive sector faces mounting challenges, including a limited domestic market and intensifying global competition. The association pointed to U.S. tariff policies as a key factor pushing Korean automakers to increase overseas production and investment. 2025-03-10 16:51:09

Falling freight rates pressuring South Korean shipping, aviation sectors SEOUL, March 10 (AJP) - Global cargo freight rates are tumbling as U.S. tariff policies dampen trade flows, prompting South Korean shipping and aviation companies to recalibrate their business strategies. The Shanghai Container Freight Index (SCFI), a key barometer of shipping costs, fell to 1,436.3 on March 7, a decline of 42.7 percent since the start of the year and 61.5 percent from its peak in July 2024, according to the Shanghai Shipping Exchange. The index, which tracks freight rates across 15 major routes, has now reached its lowest level in 14 months. The downturn extends beyond maritime shipping. Air cargo rates have followed a similar path, with the Baltic Air Index dropping 21.8 percent to 2,034.0 since December, according to data from Hong Kong’s TAC Index. Analysts largely attribute the slump to trade policies enacted by the United States, particularly the additional 10 percent tariff on Chinese imports imposed on March 4, following an initial round in February. “It is difficult to predict whether freight rates will continue to decline or rebound, creating uncertainty for businesses,” said an official from the Korea International Trade Association. “The trajectory of freight rates will depend on factors such as U.S. port fees on Chinese vessels, the final tariff structures, and the timeline of their implementation.” The repercussions are reverberating through South Korea’s logistics sector. Korean Air, which generated 4.4 trillion won ($3.3 billion) in cargo revenue last year — accounting for a quarter of its 16 trillion won in total revenue — faces mounting challenges. A company spokesperson said Korean Air is seeking to “diversify its portfolio by developing new export destinations with shippers.” Similarly, Asiana Airlines plans to trim cargo routes in regions experiencing declining volumes while adjusting cargo pricing strategies in select markets. HMM, South Korea’s largest container shipping company, is also pivoting. With 85 percent of its revenue tied to container ships, the company is ramping up its bulk carrier fleet, aiming to expand from 36 to 110 vessels by 2030. It has also announced plans to acquire SK Shipping’s bulk carrier division, a move that could bolster its position in the more stable bulk shipping market, which relies on long-term contracts for raw materials transport. While the falling freight rates offer some relief to South Korean exporters — who last year struggled with soaring logistics costs — the broader implications are less reassuring. Samsung Electronics spent 2.15 trillion won on logistics in the first three quarters of 2024, nearly one trillion won more than in the same period the previous year. LG Electronics, meanwhile, cited logistics expenses as a major factor in its fourth-quarter operating profit plummeting by half compared to the previous year. 2025-03-10 16:03:12

Impeached South Korean president released from detention after court ruling SEOUL, March 08 (AJP) - Impeached President Yoon Suk Yeol was released from the Seoul Detention Center on Saturday, 52 days after being detained on charges of inciting an insurrection related to his failed attempt to impose martial law in December. Yoon's release came after a court ruled on Friday that he could stand trial without physical detention. The court approved Yoon's release request after determining that his Jan. 26 indictment, which extended his detention, had come hours after the initial detention period had already expired. Prosecutor General Shim Woo-jung decided not to appeal the court's ruling, allowing for Yoon's release, though both impeachment and criminal trials against him will continue. "I appreciate the court's courage and determination in correcting the illegality," Yoon said in a statement after arriving at his official residence in central Seoul on Saturday evening. Meanwhile, Yoon's legal team criticized prosecutors for delaying his release, which came 27 hours after the court's decision. The ruling People Power Party welcomed the development, calling it "a just decision" and expressing hope it would "serve as an opportunity to correct the distorted rule of law." The opposition Democratic Party strongly criticized the prosecution's decision and called for the Constitutional Court to formally remove Yoon from office in its upcoming decision. The top court is expected to rule on whether to remove Yoon from office or reinstate him later this month after concluding hearings on Feb. 25. 2025-03-08 20:32:09

Prosecutors divided over President Yoon's release order after court decision SEOUL, March 08 (AJP) - South Korea's prosecution leadership and the special investigation team are at odds over whether to comply with a court decision to cancel President Yoon Suk Yeol's detention, sources said Saturday. The Supreme Prosecutors' Office leadership has instructed the investigation team to issue orders for Yoon's release following the court's decision, according to legal sources. However, the Special Investigation Headquarters for Martial Law, led by High Prosecutor General Park Se-hyun, has reportedly opposed this directive, arguing that the prosecution should appeal the court's decision to a higher court. According to legal circles, Prosecutor General Sim Woo-jeong and other top officials held a meeting after the court's decision to cancel Yoon's detention and reached a consensus that directing his release would be appropriate. The meeting reportedly included Prosecutor General Sim, Deputy Prosecutor General Lee Jin-dong, and six other senior prosecutors at the rank of chief prosecutor or above. All participants unanimously agreed that directing Yoon's release and forgoing an immediate appeal was appropriate, and this unanimous opinion was conveyed to the special investigation team. However, the special investigation team reportedly disagreed with the leadership's position, maintaining that the court's detention cancellation decision should be challenged through an immediate appeal. As a result, the Supreme Prosecutors' Office and the special investigation team continued discussions into Saturday afternoon without reaching a conclusion on whether to direct President Yoon's release. 2025-03-08 17:20:50

Trump says Taiwan took most U.S. chip business, "a little bit" went to South Korea SEOUL, March 08 (AJP) - U.S. President Donald Trump claimed on Saturday that the United States has lost its semiconductor industry primarily to Taiwan, while also mentioning South Korea's role in the global chip sector. "We gradually lost the chip business, and now it's almost exclusively in Taiwan. They (Taiwan) stole it from us. They took it from us" Trump said. "We had the chip business, and now it’s all in Taiwan, almost exclusive… a little in South Korea, but mostly in Taiwan." he continued. The president stressed the critical role of semiconductors in modern technology, describing them as essential components in virtually all electronic devices. Referring to Taiwan Semiconductor Manufacturing Company's (TSMC) recent announcement of major U.S. investment plans, Trump said, "We will bring back a large part of the semiconductor industry." He again criticized the CHIPS and Science Act passed during the Biden administration as "just a waste of money." The legislation provides $52.7 billion in subsidies over five years to companies investing in the U.S. semiconductor industry. Both Samsung Electronics and SK hynix had signed agreements with the Biden administration to receive subsidies under this act. Trump has maintained that rather than providing subsidies, imposing tariffs would force companies to produce semiconductors in the United States. He reiterated this position during his congressional address on March 4, urging the repeal of the CHIPS Act. During Saturday's remarks, Trump also claimed that companies face significant difficulties receiving subsidies under the CHIPS Act because they must meet race and gender requirements, apparently referring to the act's provisions for underrepresented groups. The Republican party has opposed such Diversity, Equity, and Inclusion (DEI) policies, arguing they place unnecessary burdens on businesses and discriminate against white Americans. 2025-03-08 14:16:21

GM Korea labor and management to visit U.S. headquarters amid tariff concerns SEOUL, March 08 (AJP) - Labor and management representatives of GM Korea will visit General Motors' U.S. headquarters next week to address concerns about the company's future in South Korea amid fears of withdrawal triggered by President Donald Trump's tariff threats. According to the Korean Metal Workers' Union GM Korea branch on Saturday, the delegation will visit GM's headquarters in Michigan and several local factories from March 15 to 22. CEO Hector Villarreal and Vice President of Labor Relations Robert Trim will represent management, while union branch chairman Ahn Kyu-baek and Changwon chapter head Kim Jong-soo will join from the labor side. The joint delegation plans to meet with GM executives to discuss the impact of GM's global strategy on its Korean operations and future vehicle production plans. The union has consistently raised concerns about unclear production schedules and has demanded electric vehicle production allocation for Korean plants. The union stated it will seek strategies to address uncertainties triggered by President Trump's announced automotive tariffs. Senior GM executives expected to attend the meeting include Jenson Peter Clausen, GM's Global Manufacturing Vice President, and Shilpan Amin, President of GM's International Operations. The delegation will also tour three to four GM factories in Michigan to observe electric and internal combustion engine vehicle facilities and study production technologies. Planned visits include GM's Romulus Engine plant, Factory ZERO assembly center, and Lansing Delta Township. Union representatives will also meet with United Auto Workers (UAW) President Shawn Fain and other UAW officials to discuss building a global GM labor union network. Separately, the union will hold a policy forum on March 13 at the Bupyeong plant titled "Trump 2.0 Automobile Industry Tariff Bomb and Its Impact on GM Korea." Lawmakers from various political parties including the Democratic Party, Rebuilding Korea Party, and Progressive Party will participate alongside academic experts. GM Korea, which exports 85 percent of its production to the United States, faces significant challenges from Trump's threatened 25 percent automotive tariff, leading to speculation about a possible withdrawal from South Korea. "Through meetings with GM executives, we will assess the specific situation and work with management to develop crisis response strategies," a union official said. 2025-03-08 09:48:00