Forum highlights surging data center demand powered by AI boom SEOUL, March 07 (AJP) - Industry leaders gathered in Seoul on Thursday to discuss the rapid evolution of data centers, as artificial intelligence infrastructure fuels unprecedented power demands across the country. "Despite land and power constraints, data center capacity in the Greater Seoul Area reached 520 megawatts in the second half of 2024, marking a 15 percent year-on-year increase," said John Pritchard, head of Cushman & Wakefield’s data center advisory group in Korea. "With 638 megawatts currently in the development pipeline, total capacity in the region is expected to surpass 1 gigawatt in the near future." Seoul's data center vacancy rate has fallen to just 6 percent, with the southwestern Seoul cluster accounting for 26 percent of the city’s total capacity. Pritchard noted that while South Korea has a population of 51 million, its total data center capacity stands at just 697 megawatts — significantly lower than Singapore’s 1,000 megawatts, despite the city-state having only 6 million residents. The power requirements of data centers are evolving at an unprecedented pace. Hong Ji-won, director at Empyrion Digital, highlighted the shift: "Traditional data centers required just a few kilowatts per rack. But as companies like Amazon, Naver, and Kakao entered the market, demand rose to around 10 kilowatts per rack. AI data centers now require 40, 60, or even over 130 kilowatts per rack." This surge in energy consumption is driving a shift from traditional air cooling to more efficient liquid cooling solutions. "Water is approximately 3,500 times more effective at absorbing heat than air in the same volume," Hong explained. Empyrion Digital is preparing to launch its AI-ready data center in Seoul’s Gangnam area in August 2025. CEO Mark Fan emphasized the company's customer-focused approach, noting that the new facility will offer a total capacity of 40 megawatts, including 29.4 megawatts dedicated to IT load. "Each floor will provide 4.2 megawatts of capacity, with ceiling heights exceeding 7 meters on standard floors and 8.25 meters on AI-specialized floors," Hong added. "This is significantly higher than competitors’ ceilings, which range between 6 and 6.5 meters, enabling better heat management." 2025-03-07 14:22:16

South Korea posts current account surplus for 21st straight month in January SEOUL, March 07 (AJP) - South Korea posted a current account surplus for the 21st consecutive month in January, even as exports declined for the first time in 16 months, the central bank reported on Friday. The surplus reached $2.94 billion in January, closely aligning with the $3.05 billion recorded a year earlier but sharply lower than December’s $12.37 billion, according to preliminary data from the Bank of Korea. "In January, customs-based exports typically contract due to the base effect of concentrated shipments at the end of the previous year. This year, the surplus narrowed further because of fewer working days during the Lunar New Year holiday," said Song Jae-chang, head of the central bank’s financial statistics department. "While the current account surplus declined from December due to seasonal factors, the trend of consistent surpluses has persisted for 21 months," he added. The goods account surplus stood at $2.5 billion in January, down from $4.36 billion a year earlier and $10.43 billion in December. The decline was primarily attributed to a reduced number of working days during the Lunar New Year holiday. Exports dropped 9.1 percent year-on-year to $49.81 billion, marking their first decline since September 2023, when they fell 1.6 percent. Information technology products, including computers (up 14.8 percent) and semiconductors (up 7.2 percent), continued to post gains, but non-IT sectors such as petroleum products (down 29.2 percent) and passenger cars (down 19.2 percent) saw steeper losses. Imports also fell 6.2 percent to $47.31 billion. Raw material imports declined 9.8 percent, with coal down 35.5 percent, gas 20.2 percent, and crude oil 5.5 percent, reflecting lower energy prices. 2025-03-07 11:15:49

Battle of weight-loss drugs heats up in South Korea SEOUL, March 06 (AJP) - A high-stakes competition in the weight-loss drug market is set to unfold in South Korea this year as Eli Lilly prepares to launch its GLP-1 medication, Mounjaro, a treatment that has demonstrated stronger weight-reduction effects than Novo Nordisk’s Wegovy, which debuted in the country late last year. According to medical sources, Eli Lilly is poised to introduce Mounjaro in its “single-dose vial” form as early as the first half of this year. The drug, a once-weekly injectable treatment for obesity and diabetes, has already secured regulatory approval in South Korea for its “prefilled pen” version — receiving authorization as a diabetes treatment in June 2023 and as an obesity treatment in August 2024. However, due to supply constraints, the prefilled pen is not expected to be available until November 2025. In an effort to expedite its market entry, Eli Lilly plans to first roll out the single-dose vial and the “QuickPen” version, which contains a month’s supply — four doses — in a single pen. “We applied for marketing approval for the single-dose vial and QuickPen at the end of last year,” an Eli Lilly representative said. “Launch timing will depend on the approval status of each product.” Since Novo Nordisk introduced its earlier GLP-1 weight-loss drug, Saxenda, to the South Korean market in 2018, the country’s prescription weight-loss drug sector has nearly doubled in value, growing from 96.8 billion won to 178 billion won in 2023. Novo Nordisk followed up by launching Wegovy in October 2024, touting superior efficacy and convenience over Saxenda. While Saxenda demonstrated an average weight reduction of 7.5 percent over 56 weeks in clinical trials, Wegovy showed a 14.9 percent reduction over 68 weeks. Mounjaro, however, has delivered even more striking results, achieving a 22.5 percent weight reduction in 72-week clinical trials and 26.6 percent in 84-week trials — making it the only drug to surpass the highly sought-after 20 percent threshold. This reputation has driven some patients to seek the drug through illegal imports from countries such as Japan while awaiting its official release in South Korea. Pricing remains a key factor in the competition. In South Korea, the monthly wholesale price of Wegovy is set at 372,025 won, with patients typically paying between 400,000 and 600,000 won. While Eli Lilly has yet to disclose Mounjaro’s price in South Korea, its highest-dosage prefilled pen (15mg) costs roughly 450,000 won per month in Japan and approximately 1.5 million won in the United States. However, the introduction of the vial version in the U.S. led to a price drop to about 730,000 won. Industry observers expect the Korean vial version to be priced lower than Japan’s prefilled pen and potentially undercut Wegovy’s price. Eli Lilly is also aiming to secure national health insurance coverage for Mounjaro as a diabetes treatment, recently submitting an application to South Korea’s Health Insurance Review and Assessment Service. “If a drug first enters the relatively high-priced, non-covered market, obtaining subsequent insurance coverage becomes more difficult,” said Park Tae-sun, a professor of endocrinology and metabolism at Jeonbuk National University Hospital. “For low-income patients with diabetes and obesity, it is crucial to include the treatment in health insurance coverage as soon as possible.” 2025-03-06 11:32:01

HD Hyundai rides shipbuilding super cycle with strategic moves Editor's Note: This article is the ninth 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 06 (AJP) - HD Hyundai Heavy Industries, a dominant force in global shipbuilding, recently secured a $314 million contract with Malaysia’s MISC for two Very Large Ethane Carriers (VLECs), reinforcing its leadership in high-value vessel construction. The deal underscores the South Korean shipbuilder’s continued strength in specialized ship manufacturing. Founded in 1972, HD Hyundai has evolved into an industrial giant, employing 15,000 workers across its 6.8 million-square-meter facility in Ulsan. The company ranks second worldwide in order backlog as of early 2025, strategically prioritizing high-value ships such as liquefied natural gas (LNG) carriers, petroleum product tankers, and eco-friendly vessels. Within South Korea, HD Hyundai commands an overwhelming 80.3 percent market share by vessel weight, far outpacing rivals Samsung Heavy Industries (11.9 percent) and Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) at 5.4 percent. The competitive landscape is evolving, however, as HD Hyundai and Hanwha Ocean have set aside years of fierce rivalry to form a strategic partnership in naval vessel exports. Under this collaboration, HD Hyundai will lead surface vessel sales while Hanwha Ocean will focus on submarines, following a joint setback in 2024 when both firms lost a major Australian frigate contract to Japanese and German competitors. As the shipbuilding industry rides a cyclical upswing, HD Hyundai has focused on securing contracts for high-value ships while maintaining financial stability, investing in technological innovation, and diversifying into defense projects. The company remains at the forefront of green shipping technology, delivering the world’s first methanol-powered container ship, "Laura Maersk," in September 2024, and securing orders for the world’s first ammonia-powered vessels a month later. Additionally, HD Hyundai has pioneered high-pressure direct injection ammonia dual-fuel engines and is spearheading technology verification for hydrogen carriers, slated for 2026. Autonomous navigation is another frontier where HD Hyundai is advancing rapidly. In 2024, its subsidiary, HD Hyundai Samho Heavy Industries, delivered the world’s first vessel equipped with an artificial intelligence-based engineer system for real-time monitoring of critical equipment. Meanwhile, its navigation technology subsidiary, Avikus, successfully developed an autonomous navigation assistance system for large commercial vessels and achieved a historic autonomous ocean crossing in June 2024. HD Hyundai's 2024 financial performance has been robust, with orders for 36 vessels securing a stable three-year production pipeline. The company’s emphasis on LNG carriers has been particularly lucrative, driving a fourfold increase in operating profit to 705.2 billion won ($525 million). Affiliate companies HD Hyundai Samho and HD Hyundai Mipo have also bolstered their order books, securing contracts for 43 and 97 vessels, respectively. Despite its success, HD Hyundai faces challenges, including rising raw material costs and supply chain vulnerabilities. The price of steel plates, a critical shipbuilding component, doubled in 2022 and remains volatile, pressuring profitability. Additionally, supply chain dependencies on Chinese materials create potential risks amid shifting international trade dynamics. Any downturn at major shipbuilders like HD Hyundai could have cascading effects on smaller suppliers and subcontractors. Looking ahead, HD Hyundai is expanding its global partnerships, working with Shell on liquid hydrogen carrier development with an eye toward commercialization by 2030. Its parent company, HD Korea Shipbuilding & Offshore Engineering, is leading research into large liquid hydrogen tanks and cargo management systems, while HD Hyundai focuses on hydrogen engine development and vessel design. Digital transformation remains a key pillar of HD Hyundai’s strategy. HD Hyundai Global Service has partnered with Singapore’s Eastern Pacific Shipping to enhance maritime digitalization through AI-driven operational efficiency systems designed to reduce carbon emissions. The company is also collaborating with Woodside Energy, Hyundai Glovis, and Japan’s MOL on developing liquid hydrogen transportation infrastructure. 2025-03-06 09:16:25

Oasis applies to become Tmon's conditional preferred bidder SEOUL, March 05 (AJP) - Fresh food delivery company Oasis has emerged as the leading bidder to acquire the e-commerce platform Tmon, which is currently undergoing debt rehabilitation. According to industry sources on Wednesday, Tmon filed an application with a Seoul court on Tuesday, requesting that Oasis be designated as its conditional preferred bidder in the ongoing acquisition process. Tmon and WeMakePrice — collectively known as "Timef" — have been engaged in discussions with multiple potential buyers since entering rehabilitation proceedings in July 2024, following a major settlement default. The companies aimed to finalize a sale before securing approval for their rehabilitation plan, with a deadline set for March 7. Oasis has reportedly agreed to acquire only Tmon, with both parties recently reaching a consensus on price terms. The sale is being conducted through a "stalking horse" process, in which a conditional preferred bidder is selected while a public competitive bidding process continues simultaneously. This method allows other interested buyers to submit offers. EY Hanyoung, the lead manager for the sale, is expected to sign a "conditional investment agreement" with Oasis around March 6, pending court approval. A public sale notice is set to be issued next week, followed by an open bidding process, with the final buyer expected to be determined next month. While Oasis’s proposed acquisition price has not been disclosed publicly, it will be shared with participating companies under confidentiality agreements to ensure the selection of the highest bidder. If no competing bids exceed Oasis’s offer, the company will be confirmed as Tmon’s buyer. Even if higher bids emerge, Oasis retains the "right of first refusal," allowing it to match the best offer. Meanwhile, EY Hanyoung continues to seek a separate buyer for WeMakePrice. 2025-03-05 15:43:48

Korea's per capita income rises to $36,624 in 2024 SEOUL, March 05 (AJP) - South Korea’s per capita gross national income (GNI) edged up 1.2 percent in 2024 to reach $36,624, the Bank of Korea reported on Wednesday. In local currency terms, per capita GNI stood at 49.96 million won, marking a 5.7 percent increase from 47.25 million won in the previous year. The nation’s nominal gross domestic product (GDP) expanded to 2,549.1 trillion won, or approximately $1.87 trillion, reflecting gains of 6.2 percent in won terms and 1.6 percent in dollar terms. The discrepancy between these growth rates was attributed to the won’s depreciation against the dollar over the past year. South Korea’s dollar-denominated per capita GNI first surpassed the $30,000 threshold in 2014, peaking at $37,898 in 2021 before retreating to the $35,000 range in 2022 due to a sharp currency devaluation. Despite moderate growth of 2.7 percent in 2023 and 1.2 percent in 2024, it remains within the $36,000 range. The GDP deflator, a key measure of inflation that accounts for price changes in goods and services, including exports and imports, rose by 4.1 percent compared with 2023. The final estimate for South Korea’s annual real GDP growth in 2024 remained unchanged at 2.0 percent, consistent with preliminary projections. Fourth-quarter growth also held steady at 0.1 percent quarter-on-quarter. Export growth was adjusted upward to 0.8 percent, an increase of 0.5 percentage points from initial estimates. Government consumption and imports were also revised upward to 0.7 percent and 0.1 percent, respectively. By industry, manufacturing posted a modest 0.2 percent gain, while services expanded by 0.4 percent. In contrast, construction output contracted by 4.1 percent, and the agriculture, forestry, and fisheries sector shrank by 3.4 percent. 2025-03-05 14:05:25

Homeplus seeks court's protection in dealing with debts SEOUL, March 04 (AJP) - Homeplus, one of South Korea’s leading retail chains, filed for a court-supervised debt rehabilitation program on Tuesday, citing concerns over short-term liquidity following a recent credit rating downgrade. The company submitted its application to the Seoul Bankruptcy Court in what it described as a “preemptive” measure to stabilize its financial standing. A Homeplus spokesperson said that despite growth in both online and offline sales, a recent credit evaluation failed to adequately reflect improvements in the company’s financial health, including a reduced debt ratio. As a result, its credit rating was downgraded. “The downgrade raises the possibility of short-term liquidity issues,” the spokesperson said. “To alleviate the burden of immediate debt repayments, we decided to file for rehabilitation.” Homeplus emphasized that all business operations — including its large-format supermarkets, Homeplus Express stores, and e-commerce platform — would continue without disruption. Under the court-supervised restructuring, repayments on financial debt will be temporarily suspended. However, obligations to suppliers and other business partners will be honored in full, the company said. Employee salaries will also be paid as usual. Executives expressed confidence that the process would ease financial pressures and improve cash flow. Homeplus estimates its actual financial debt, excluding lease liabilities, at approximately 2 trillion won (about $1.5 billion). The company also holds real estate assets valued at 4.7 trillion won ($3.5 billion), a factor it believes will facilitate negotiations with creditors. The retailer has faced mounting challenges in recent years. It has struggled against regulatory restrictions on large retail chains, a consumer shift toward online shopping accelerated by the pandemic, and the rapid expansion of e-commerce giants such as Coupang. 2025-03-04 17:30:23

SK hynix US sales more than double in 2024 on strong HBM demand SEOUL, March 04 (AJP) - SK hynix more than doubled its U.S. sales in 2024, propelled by surging demand for high-bandwidth memory (HBM) chips from major American technology firms. According to a company disclosure on Tuesday, SK hynix America posted sales of 33.49 trillion won ($24.5 billion) last year, marking a sharp increase from 12.54 trillion won in 2023. Net profit for the U.S. unit reached 104.9 billion won. The United States accounted for 58 percent, or 27.31 trillion won, of SK hynix’s total global sales through the third quarter of 2024. Industry analysts attribute this growth to the expansion of artificial intelligence and data center investments by U.S. technology companies. “Unlike China, where demand is concentrated in mobile devices, the U.S. is home to major technology firms that purchase server products, particularly AI-focused memory,” an industry source said. “When demand for AI servers increases, U.S. sales follow suit.” Looking ahead, SK hynix has already sold out its HBM chip allocation for 2025. The company plans to prioritize production of its fifth-generation HBM3E 12-layer chips this year while introducing a 16-layer version in the first half. It is also preparing for the full-scale supply of its next-generation HBM4 chips in the second half of the year. During its latest earnings call, the company projected HBM sales to more than double in 2025, citing robust customer demand. “We expect strong growth in HBM sales this year, with demand for ASIC-based HBM products also rising significantly,” a SK hynix official said. ASIC, or application-specific integrated circuits, are increasingly being developed by global technology firms, including OpenAI and Broadcom, as they seek to reduce their reliance on Nvidia, the dominant player in AI chips. 2025-03-04 16:28:19

Korea seeks trilateral partnership with US, Japan for Alaska gas project SEOUL, March 04 (AJP) - South Korea has expressed interest in joining Alaska’s natural gas development project, seeking a trilateral partnership with the United States and Japan, according to government sources familiar with the discussions, Tuesday. Industry Minister Ahn Duk-geun conveyed South Korea’s interest during meetings with U.S. Commerce Secretary Howard Lutnick and Doug Burgum, chairman of the White House National Energy Council, in Washington, D.C., from Jan. 26 to 28, officials said. The Alaska LNG project aims to transport natural gas from the Prudhoe Bay gas field on Alaska’s North Slope to Nikiski, near Anchorage, via a 1,300-kilometer pipeline, where the gas would be liquefied for export. The initiative carries an estimated price tag of at least $45 billion. U.S. President Donald Trump has made the development of Alaska’s natural gas resources a priority in his second term, signing an executive order to lift restrictions on energy development in the state. The move is part of a broader effort to bolster U.S. energy production. Japan has already signaled strong interest in the project. During a visit to Washington last month, Japan's Prime Minister Shigeru Ishiba discussed the initiative with Trump, who later highlighted it in a joint press conference. “The United States needs Korea’s participation because Japan alone cannot provide sufficient demand,” a senior South Korean government official said. “Korea has key technological advantages, from ice-breaking vessel construction capabilities to steel production, which are crucial for pipeline construction." South Korea and Japan rank as the world’s second- and third-largest importers of liquefied natural gas, following China. The U.S. share of South Korea’s LNG imports rose from 0.1 percent in 2016 to 18.5 percent in 2021, though it declined to 12.2 percent last year. The South Korean government is expected to assess the project’s viability carefully, weighing potential risks against opportunities for the country’s steel, shipbuilding, and construction industries. “The Alaska gas project is a key initiative for the U.S. government, as evidenced by the executive order,” the South Korean official said. “If we move forward in partnership with Japan, the project could become more viable. We plan to establish a working-level consultation channel with the United States to explore this further.” 2025-03-04 15:29:23

Ilyang pulls health supplements from Daiso stores amid pharmacist backlash SEOUL, March 04 (AJP) - Ilyang Pharmaceuticals has withdrawn its health supplements from Daiso stores just five days after launch, following fierce opposition from pharmacists who argued that the discounted prices undercut traditional pharmacies. The decision to pull the products disappointed many consumers, who had welcomed the opportunity to purchase affordable supplements at a widely accessible discount retailer. Daiso confirmed that it would not restock Ilyang’s nine health supplement products beyond the initial inventory. The retailer had begun selling items such as vitamin C chewable tablets and saw palmetto supplements on Feb. 24. Other pharmaceutical companies that introduced similar products at Daiso, including Daewoong Pharmaceutical and Chong Kun Dang Health, have not announced plans to withdraw their offerings. The Korean Pharmaceutical Association and other pharmacy groups strongly objected to the sales, contending that the significantly lower prices eroded competition. By reducing secondary ingredients and minimizing packaging costs, manufacturers had priced their products at Daiso between 3,000 won ($2.20) and 5,000 won ($3.65) — about one-sixth the price of the same items sold through traditional pharmacy channels. “The price of Daiso’s private-brand health supplements is at a level we could never have imagined, undercutting what pharmaceutical companies have been supplying to pharmacies,” the pharmacist group Association Preparing for the Future of Pharmacists said in a statement on Feb. 27. Meanwhile, convenience store chain CU’s operator, BGF Retail, has begun discussions with pharmaceutical companies about selling health supplements. A company representative noted that talks remain in the early stages. 2025-03-04 13:23:21