Korean business delegation delivers trade concerns in US SEOUL, February 21 (AJP) - A high-profile delegation of South Korean business leaders, led by Chey Tae-won, chairman of SK Group, met with senior White House officials and key congressional leaders this week. The 26-member delegation, organized by the Korea Chamber of Commerce and Industry, convened in Washington on Feb. 19 and 20 to discuss investment and cooperation across a range of strategic industries. Among the executives in attendance were Kim Won-kyung, president of Samsung Electronics, Yoo Jung-joon, vice chairman of SK On, and Sung Kim, president of Hyundai Motor. In a meeting with White House officials on Feb. 19, Chey highlighted the significant contributions of South Korean companies to the U.S. economy. “Over the past eight years, Korean companies have invested more than $160 billion in the United States, primarily in manufacturing, creating over 800,000 jobs — many of them high-quality positions with annual salaries exceeding $100,000,” he said. The delegation proposed enhanced collaboration in six key sectors: shipbuilding, energy, nuclear power, artificial intelligence semiconductors, mobility, and materials. The discussions reflected a broader shift in the Korea-U.S. relationship, which Chey characterized as having evolved from a security alliance into an economic alliance. “Our partnership must now advance into one that leads in advanced technology and future values,” he said at the Korea-U.S. Business Night event, held at the Library of Congress. The gathering drew more than 250 attendees, including U.S. senators, representatives, governors, and former cabinet officials — more than double the anticipated turnout. Among those in attendance was Matt Murray, the U.S. ambassador to the Asia-Pacific Economic Cooperation forum, who emphasized the broader significance of the bilateral relationship. “The Korea-U.S. alliance is not just about trade and investment figures; it is a partnership rooted in shared values,” Murray said. Beyond meetings with lawmakers, the delegation also held discussions with Treasury Department officials, focusing on macroeconomic stability and the investment environment for strategic industries where the two nations could leverage synergies. 2025-02-21 17:29:42

Hyundai Motor, GM to forge supply chain alliance amid tariff concerns SEOUL, February 21 (AJP) - Hyundai Motor Group and General Motors are preparing to announce a comprehensive supply chain alliance as early as next month, industry sources said Friday. The agreement would allow both companies to share global production facilities and potentially mitigate the impact of a proposed 25 percent U.S. auto tariff under the Trump administration. Under the partnership, Hyundai Motor and Kia Corp. would manufacture vehicles at GM’s 11 U.S. facilities using Complete Knock Down (CKD) assembly, while GM would utilize Hyundai’s factories to re-enter European and Indian markets it previously exited. The alliance builds on a memorandum of understanding signed last September in New York between Hyundai Motor Group Chairman Chung Eui-sun and GM CEO Mary Barra. The agreement outlines cooperation in passenger and commercial vehicles, internal combustion engines, eco-friendly energy, and the development of electric and hydrogen technologies. The collaboration comes as legacy automakers face increasing competition from Chinese manufacturers, which accounted for 21 percent of the global market last year and are projected to reach 33 percent by 2030. Chinese brands are expanding beyond ASEAN markets into India and Europe, bringing advanced autonomous driving and electric vehicle technologies. “The cooperation will enhance competitiveness in key global markets,” Chung said at the signing of the MOU, while Barra emphasized “systematic resource allocation.” The partnership is expected to expand both companies’ global manufacturing footprint, with Hyundai’s facilities in the U.S., Mexico, China, Czech Republic, Slovakia, India, Turkey, Vietnam, Indonesia, Thailand, and Brazil complementing GM’s operations in Canada, Mexico, and Egypt. 2025-02-21 15:27:48

SK hynix chief warns of growing AI risks while highlighting semiconductor role SEOUL, February 21 (AJP) - SK hynix President and Korea Semiconductor Industry Association Chairman Kwak Noh-jung emphasized the Korean semiconductor industry's critical role in the expanding artificial intelligence trend, expressing concerns about increasing risks from AI evolution. "As AI continues to evolve, it's clear that risks are growing more than ever," Kwak wrote on his social media after attending SEMICON Korea 2025. "Reflecting on the time spent at SEMICON Korea 2025 makes me realize again the heavy responsibility shouldered by the semiconductor industry." Speaking to reporters after the SEMICON Korea 2025 Leadership Dinner, which gathered 500 global semiconductor leaders, Kwak said, "We've experienced an unprecedented downturn, and now with the arrival of AI, we're facing a big wave, but I think we (Korea) will ride it well." Regarding China's budget AI model Deepseek, he noted that "while it's difficult to comment on specific products, these types of attempts will ultimately serve as a significant stimulus for AI adoption." Max Mirgoli, IMEC's vice president of global strategic partnerships, praised SK hynix on social media, saying "What SK hynix has achieved with innovative technology is truly remarkable," adding that the company's "HBM innovations have enabled Nvidia and AMD's design and operation of massive technology." The comments came as Kwak met with industry leaders including IMEC President and CEO Luc Van den hove, Dutch Economic Affairs Minister Dirk Beljaarts, and former ASML CEO Peter Wennink at the event. 2025-02-21 14:49:31

Temu mandates data sharing for Korean users, raising privacy concerns SEOUL, February 21 (AJP) - Chinese e-commerce platform Temu has updated its privacy policy to require South Korean users to share personal information — including addresses, phone numbers, and text messages — with 27 companies across six countries. Under the revised policy, unveiled Friday, users must consent to data sharing with third-party entities in South Korea, the United States, Singapore, Japan, Australia, and Indonesia as a prerequisite for accessing Temu’s services. The company explicitly states that "users cannot access services if they refuse overseas data transfers." The policy change comes as Temu prepares for a direct market entry into South Korea, but it has also sparked concerns over data protection and regulatory oversight. While South Korean law mandates that foreign companies appoint local representatives to oversee data protection, Temu currently has only one full-time employee among three staff members in its Seoul office, according to data from the Korea Communications Commission. “With artificial intelligence raising concerns about personal data leaks and misuse, some foreign companies have effectively undermined the domestic representative system,” said Park Chung-kwon, a member of the National Assembly. “Urgent legislation is needed to ensure robust enforcement of personal information protection laws.” South Korea’s Personal Information Protection Commission, which last year fined AliExpress 1.9 billion won for violating data transfer procedures, is expected to conclude its investigation into Temu’s practices in the coming months. 2025-02-21 13:53:15

South Korea's growth could sink to 1 percent, British firm warns SEOUL, February 21 (AJP) - A London-based research firm has issued a dire warning about South Korea’s economic outlook, forecasting that the country’s growth rate could fall to just 1 percent this year — a sharp decline that underscores mounting political and financial pressures. In a report, Capital Economics revised its projection for South Korea’s real gross domestic product growth, lowering it from 1.1 percent to 1 percent. The firm cited a deepening political crisis and prolonged stagnation in the real estate sector as key factors dragging down growth. The report noted this is a figure well below market expectations. The firm also predicted that the Bank of Korea (BOK) would slash its benchmark interest rate by a full percentage point this year in response to the slowdown — a move far more aggressive than most analysts anticipate. Such a reduction would bring rates down from the current 3 percent to 2 percent, potentially through a series of four 0.25 percentage-point cuts. The revised outlook places Capital Economics at the low end of global forecasts. The average projection among major international investment banks stands at 1.6 percent, with JP Morgan previously issuing the most pessimistic forecast at 1.2 percent. South Korean institutions have also been lowering their expectations. Earlier this month, the Korea Development Institute cut its 2024 growth forecast from 2 percent to 1.6 percent. The BOK is set to release its own revised economic outlook on Feb. 25. BOK Governor Rhee Chang-yong, addressing lawmakers last week, acknowledged the growing uncertainty. “Beyond political instability, multiple factors — including U.S. economic policies and the Federal Reserve’s interest rate decisions — are influencing the outlook,” he said. When asked about the central bank's previous assumption of 1.6 to 1.7 percent growth, Rhee offered a cautious response. “We are reviewing the situation again,” he said. 2025-02-21 10:07:50

Korean firms eye potential end to China's cultural ban with cautious optimism SEOUL, February 20 (AJP) - South Korea’s business community is warily hopeful amid growing speculation that China may lift its long-standing, unofficial ban on Korean cultural content as early as May. The restrictions, imposed in retaliation for Seoul’s deployment of the U.S. Terminal High Altitude Area Defense (THAAD) system in 2017, dealt a severe blow to industries reliant on Chinese consumers. Among the hardest hit was AmorePacific, a major cosmetics firm, which saw its operating profit plummet by 30 percent that year. Since then, the company has shifted its focus beyond China, with sales in the Americas reaching 524.6 billion won ($393 million) in 2023, surpassing its China sales of 510 billion won. The broader economic impact was also pronounced. Chinese tourist arrivals in South Korea plunged from over 8 million in 2016 to just 4.2 million the following year. While numbers have gradually rebounded — reaching 4.6 million in 2024 following the easing of pandemic restrictions — analysts say a full recovery remains contingent on Beijing’s policy shifts. Industry leaders acknowledge that lifting the ban would reinvigorate sectors ranging from entertainment to retail. “While the resumption of K-pop and K-drama content on official Chinese platforms would provide a significant boost to beauty industry marketing, we remain cautious given our past experiences with China-related risks,” an official at LG Household & Healthcare said. Still, some observers question whether the market will return to its pre-ban levels. “Given the prolonged economic slowdown in mainland China and weakened consumer purchasing power, an immediate surge in sales is far from guaranteed,” a senior cosmetics industry executive noted. A potential policy reversal would particularly benefit duty-free retailers, department stores, and food manufacturers, all of which have struggled in the absence of Chinese group tours over the past eight years. 2025-02-20 17:26:34

HBM market share projected to exceed 30 percent of DRAM by 2028 SEOUL, February 20 (AJP) - High-bandwidth memory (HBM) is poised to capture 30.6 percent of the global DRAM market by 2028, fueled by the rapid expansion of cloud services and growing investments in artificial intelligence data centers, according to Gaurav Gupta, an analyst at Gartner. Speaking at SEMICON Korea 2025, Gupta emphasized the increasing role of HBM in the evolving semiconductor landscape. "As major suppliers refine their technology, the focus will shift toward improving yields," Gupta said. He added that HBM stacking, currently at eight layers, is expected to rise to 16 layers and, eventually, 20 layers. The broader semiconductor industry is projected to reach $705 billion in revenue in 2025, marking a 12.7 percent increase from $626 billion in 2024. Analysts forecast a compound annual growth rate of 9.4 percent through 2028, with the market potentially surpassing $1 trillion in revenue by the turn of the next decade, driven largely by demand for GPUs and AI processors. Clark Tseng, a senior director at SEMI, projected that servers and data centers would account for 34 percent of the total semiconductor market by 2030, underscoring the sector's increasing reliance on high-performance computing. He also anticipated a rebound in memory prices in the latter half of 2025, following a period of weakness in the first quarter. In the foundry sector, Tseng noted that growth is expected to continue through 2026, bolstered by advancements in advanced packaging technologies. However, he cautioned that while TSMC is set to maintain its leadership, competitors such as Samsung Electronics may continue to face significant challenges in the years ahead. 2025-02-20 14:41:10

Mid-sized firms ramp up M&As amid economic slump SEOUL, February 20 (AJP) - Mergers and acquisitions among South Korea’s mid-sized companies are accelerating as firms face a prolonged economic downturn and high interest rates. The number of M&A deals exceeding 100 billion won ($74.7 million) rose 12 percent to 474 cases in 2024. Daemyung Sono Group, which operates 18 hotels and resorts, invested 176 billion won to acquire a 26.77 percent stake in budget carrier T’way Air and is now in negotiations to purchase an additional 30.06 percent stake from majority shareholder Yerimcorp. Hanwha Hotels & Resorts recently signed an 870 billion won agreement to acquire a 58 percent stake in food service company Ourhome, while Woongjin Group secured preferential negotiation rights to acquire Premier Life, Korea’s largest funeral service provider, in a deal estimated at around 1 trillion won. “While the M&A market has yet to fully recover from its downturn in the second half of 2022, mid-sized firms and subsidiaries of large conglomerates are emerging as key buyers as economic risks and interest rates become more predictable,” said Hong Seung-hwan, a partner at Samil PricewaterhouseCoopers. Between 2021 and 2023, 51 percent of 807 M&A transactions involving large, mid-sized, and small companies occurred within related business sectors, according to data from the Ministry of SMEs and Startups. Meanwhile, some firms are opting to divest assets. Hotel Lotte is considering selling its L7 and City Hotel properties, while Mohegan recently lost control of its Inspire Entertainment Resort to Bain Capital after failing to meet loan covenants. 2025-02-20 13:53:24

Samsung weighs fees for mobile payment service SEOUL, February 19 (AJP) - Samsung Electronics is moving to introduce fees for its Samsung Pay mobile payment service this year, following Apple Pay's growing presence in South Korea's digital payments market, according to financial industry sources Wednesday. Samsung Electronics, which has not charged card companies any fees since launching Samsung Pay in 2015, recently met with lawmakers and card companies to discuss implementing service fees. The discussions come as Apple Pay, which charges a 0.15 percent fee through Hyundai Card, expands its partnerships with major Korean card issuers including Shinhan and KB Kookmin. Industry observers expect Samsung's decision on fees to be finalized around August when the company renews its service operations contracts with card companies. A Samsung Electronics official said while "nothing has been confirmed," any fee revenue would be returned to customers and small business owners through marketing benefits. Mobile device payments have surpassed physical card usage in South Korea, accounting for 52.1 percent of transactions in the first half of 2024, according to the Bank of Korea. However, industry experts estimate that if Samsung Pay implements fees similar to Apple Pay's rate, it could add an annual burden of 70 billion won to card companies. 2025-02-19 17:03:56

SK Telecom replaces ChatGPT with in-house AI for call summaries SEOUL, February 19 (AJP) - SK Telecom announced Wednesday it has fully transitioned to its in-house developed A.X artificial intelligence model for call summarization features, completely replacing external models like ChatGPT. "By using our in-house AI model for the call summary service, which handles up to 50 million uses daily, we have significantly reduced API costs previously paid to overseas AI model developers like OpenAI," said Kim Tae-yoon, SK Telecom's vice president. The company began developing Korean-language specialized AI models in 2018 after Google released BERT, creating models like KoBERT and KoGPT-2, which evolved into the current system. The development utilized SK Telecom's supercomputer "Titan," equipped with approximately 1,500 NVIDIA A100 GPUs, training and refining the AI model over three years. Initially, SK Telecom employed a "multi-LLM agent" strategy, using A.X alongside ChatGPT and Claude. The company gradually transitioned to exclusively using A.X for call summaries over the past year. SK Telecom is now expanding A.X as the foundational AI model across SK Group and into B2B and B2G sectors. The company plans to evolve this into a reasoning model that produces human-like results and develop it into a multimodal foundation model capable of understanding document images by the end of the year. "While we initially collaborated with overseas model developers like OpenAI, pursuing both cooperation and self-reliance has become the fundamental axis of our AI strategy," Kim said. 2025-02-19 15:38:53