US bill on naval ship construction could open doors for Korea's shipbuilders SEOUL, February 14 (AJP) - South Korea’s shipbuilding industry is expressing cautious optimism following the introduction of a bill by Republican U.S. senators that would permit naval vessels to be built by allied nations. Since 1965, U.S. law has required all military ships and key components to be constructed domestically by American workers. However, the proposed legislation would allow the U.S. to contract naval shipbuilding to nations with which it has a mutual defense treaty or to NATO member states, potentially opening the door for South Korea’s entry into the U.S. naval shipbuilding market. The push to amend this 60-year-old law comes as Washington seeks to counter China’s expanding maritime power. In 2020, China’s naval fleet surpassed that of the U.S., with 350 warships compared to 293. Meanwhile, the U.S. shipbuilding industry has declined, producing just 100,000 gross tons (GT) of vessels annually — a stark contrast to China’s 23.25 million GT. With this gap expected to widen, U.S. policymakers are looking to allied nations for assistance, presenting a significant opportunity for South Korea’s shipbuilding sector. "To maximize national interests, the South Korean government must deploy diplomatic efforts while fostering a coordinated public-private strategy," an industry source said. Among U.S. allies, only South Korea and Japan possess the capacity to build warships efficiently while maintaining cost-effectiveness. The U.S. has outlined plans to invest $1.075 trillion by 2054 to construct 364 new warships. The strategic importance of shipbuilding cooperation was underscored by President Donald Trump, who, shortly after his election, emphasized bilateral collaboration in this sector during a call with South Korean President Yoon Suk Yeol. Despite the promising outlook, experts warn that the bill has yet to pass and may face resistance, as similar legislation introduced in 2021 was ultimately abandoned due to opposition from lawmakers representing shipbuilding districts. Expanding the U.S.-South Korea alliance beyond security to economic domains — including shipbuilding, alongside semiconductors and nuclear energy — could mark a significant milestone, a lawmaker from the Democratic Party said. "Moreover, deepening economic ties could provide South Korea with leverage in negotiations over tariffs and the U.S. military presence in the country." 2025-02-14 14:35:42

Korean shipbuilder unveils nuclear-powered container ship design SEOUL, February 14 (AJP) - HD Korea Shipbuilding & Offshore Engineering has unveiled its first design for a nuclear-powered container ship, incorporating Small Modular Reactor (SMR) technology, at the Houston Maritime Nuclear Summit. The vessel, which has received an approval from the American Bureau of Shipping, eliminates the need for internal combustion engines and fuel tanks, repurposing the traditional engine room space for additional container storage. The design also features a double-tank marine radiation shielding system to enhance safety. As part of its efforts to advance nuclear-powered maritime technology, the company plans to establish demonstration facilities at its Future Technology Test Center in Yongin, South Korea, to evaluate safety measures. The firm is collaborating with the U.S.-based SMR specialist TerraPower and, in December 2024, secured an order to manufacture key components for TerraPower’s sodium reactor project in Wyoming. "HD Korea Shipbuilding is strengthening its partnerships with major classification societies and international regulatory bodies to help establish the global framework needed for nuclear-powered vessel commercialization," a company official said. "Starting with land-based SMR reactor manufacturing, we aim to complete the development of a maritime nuclear business model by 2030." 2025-02-14 13:32:50

Social media linked to surge in overseas shopping fraud SEOUL, February 14 (AJP) - A sharp rise in online shopping fraud linked to overseas direct purchases has been reported by South Korea’s consumer watchdog, with a majority of cases originating from social media advertisements. The Korea Consumer Agency said Friday it found that 82.3 percent of fraud victims accessed fraudulent shopping sites through social media content or targeted advertisements. Instagram was the most common platform associated with these scams, accounting for 41.8 percent of cases, followed by YouTube at 25.3 percent. Together, the two platforms represented 67.1 percent of all reported incidents. The agency analyzed 2,064 fraud-related consultations received between 2021 and 2023, revealing a dramatic surge in cases — from 251 in 2021 to 1,372 in 2023. Brand impersonation was the most prevalent form of fraud, comprising 47.1 percent of cases. Scammers posed as well-known fashion brands, collected payments, and then ceased all communication without delivering the promised goods. Complaints about receiving poor-quality products followed closely at 46.5 percent. In one instance, a consumer purchased what appeared to be a luxury brand item for $82.95 via an Instagram advertisement but never received the product. A separate survey of 1,000 Instagram and YouTube users conducted by the agency highlighted significant gaps in consumer awareness. More than 42 percent of respondents were unaware of self-regulatory measures in place on these platforms, and nearly 60 percent did not know how to report illegal content. In response to the surge in scams, the agency is collaborating with the Korea Communications Standards Commission to block access to fraudulent shopping sites. It has also urged Meta, Instagram’s parent company, and Google, which owns YouTube, to strengthen measures against deceptive advertisements and illicit content. 2025-02-14 11:05:17

Acting president signals willingness to discuss extra budget SEOUL, February 13 (AJP) - Acting President Choi Sang-mok said Thursday that the government is open to discussions on a proposed supplementary budget, as concerns grow over economic uncertainty. “With a national policy consultation meeting on the agenda, it would be useful to discuss the fundamental principles of the supplementary budget,” Choi, who also serves as deputy prime minister and minister of economy and finance, said during a National Assembly session on economic affairs. His remarks came after the main opposition Democratic Party proposed a 35 trillion won ($26.2 billion) spending package, aimed at bolstering economic growth and providing relief to struggling households. Of that amount, 24 trillion won is earmarked for public welfare initiatives, while 11 trillion won is designated for economic support. The proposal exceeds the 30 trillion won plan outlined by party leader Lee Jae-myung in a parliamentary speech days earlier. The government and ruling party, however, are considering a far more modest package of roughly 15 trillion won — less than half of the opposition’s proposal. The Bank of Korea has suggested a compromise figure between 15 trillion and 20 trillion won. “The government recognizes the difficulties facing the public and the uncertainties in global trade,” Choi said. “We are prepared to engage in discussions.” 2025-02-13 16:08:35

Trump's tariff war threatens South Korea's economic backbone SEOUL, February 13 (AJP) - U.S. President Donald Trump’s escalating trade war is sending shockwaves through South Korea’s export-driven economy, as tariffs now extend beyond steel and aluminum to key industries such as automobiles and semiconductors. Trump announced Sunday that the United States would impose a 25 percent tariff on all steel and aluminum imports from March 12, without exception. He also signaled that additional tariffs on automobiles, semiconductors, and pharmaceuticals were under consideration. South Korea faces significant economic repercussions. The five sectors already hit or under threat of tariffs accounted for $52.3 billion in exports to the United States last year — 41 percent of the country’s total exports to the U.S. market. The steel industry is particularly vulnerable, as the United States ranks as its largest export market by value and third by volume. Previously, South Korean steel producers operated under a quota system that limited their exports but exempted them from tariffs. Now, a universal 25 percent tariff threatens their price competitiveness. Even more troubling is the prospect of tariffs on automobiles and semiconductors, pillars of South Korea’s economy. "Unlike steel, tariffs on these industries could cause economic tremors on an entirely different scale. Automobiles and semiconductors are the nation’s top two exports to the United States, accounting for more than a third of total shipments," an analyst said on condition of anonymity. Half of all South Korean auto exports are destined for the U.S., while semiconductor sales there surpassed $10 billion for the first time last year, fueled by the artificial intelligence boom. The global credit rating agency S&P recently warned that a 20 percent tariff on South Korean automobiles could slash Hyundai Motor and Kia’s operating profits by as much as 19 percent. As the White House presses ahead with its aggressive trade stance, countries worldwide are scrambling to secure exemptions. Australia successfully negotiated a steel and aluminum tariff exemption through direct communication between top leaders. Taiwan, concerned about semiconductor tariffs, plans to send senior economic officials to Washington. Experts say South Korea must move swiftly to engage in high-level negotiations. "During Trump's first term, South Korean companies created 830,000 jobs in the United States, making the country one of America’s largest foreign employment contributors," said a researcher from a state-run institute. "Seoul must highlight this record, emphasizing its role as a key partner in U.S. manufacturing resurgence." Additionally, expanding imports of American energy and proposing mutually beneficial deals in industries such as shipbuilding, defense, nuclear energy, and semiconductors — sectors where the Trump administration has strategic interests — could help South Korea negotiate favorable terms, the researcher said. 2025-02-13 14:55:03

White House touts Hyundai Steel's potential US investment in levying steel tariffs SEOUL, February 13 (AJP) - A day after U.S. President Donald Trump imposed a sweeping 25 percent tariff on imported steel and aluminum, the White House highlighted Hyundai Steel’s potential investment in the United States, framing it as a step to bolster American manufacturing. In a fact sheet, the White House stated that Trump’s decision to eliminate loopholes and exceptions would “strengthen the U.S. steel and aluminum industries.” The statement also noted that Hyundai Steel had recently announced it was “actively considering” building a steel plant in the U.S. The administration emphasized that during Trump’s first term, his initial tariffs on steel and aluminum had led to a nearly one-third reduction in related imports by 2020, compared with four years earlier. The White House also claimed that the tariffs had prompted more than $10 billion in new factory investments across the country, citing Hyundai Steel as an example of the policy’s impact. Hyundai Steel, one of South Korea’s largest steelmakers, is reviewing plans to establish a production plant in the U.S. to supply automotive steel sheets to the North American market. According to company officials, Hyundai Steel is considering finalizing a site, and the plant set for completion around 2029. The company is still weighing factors such as production methods — whether to use an electric arc furnace or a hydrogen-based reduction furnace — as well as cost, scale and location. In a New Year’s address, Seo Kang-hyun, Hyundai Steel’s chief executive, underscored the need to strengthen export competitiveness amid growing trade restrictions. “With trade bloc formation and supply chain regulations on the rise, it is essential to enhance our competitiveness and establish a local sales system,” Seo said. “Securing global business hubs will be a key factor in differentiating ourselves from competitors.” Trump signed a proclamation on Saturday formalizing the new tariffs, which are set to take effect on March 12. Unlike previous measures, the latest round of duties offers no exemptions. During his first term, Trump imposed similar tariffs in 2018 under Section 232 of the Trade Expansion Act, levying a 25 percent duty on steel and a 10 percent duty on aluminum. At the time, South Korea negotiated an exemption by agreeing to cap its steel exports to the U.S. at 70 percent — about 2.63 million tons — of its average shipments from 2015 to 2017. With the latest decision, however, both the tariff exemption and the quota system are set to expire. 2025-02-13 11:06:59

LG Electronics stakes its future on premium tech, global expansion Editor's Note: This article is the sixth installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, February 12 (AJP) - For more than a decade, LG Electronics has held its position as the world’s leading OLED television manufacturer, a distinction it has maintained for 11 consecutive years. But beyond its dominance in consumer electronics, the South Korean company is making strides in the automotive sector, particularly in telematics, where it commands a 23.8 percent share of the global market as of the third quarter of 2024. Its influence is especially pronounced in North America and Europe, where OLED televisions account for more than 62 percent of the premium TV segment. Founded in 1958 as GoldStar, LG Electronics began its journey with the production of Korea’s first radio, later expanding into a range of consumer electronics. The company has a storied history of firsts in the Korean market, including the introduction of transistor radios, electric fans, automatic telephones, and black-and-white televisions. These innovations helped lay the foundation for South Korea’s emergence as a global technology powerhouse. Today, LG operates through four main business divisions: Home Appliance & Air Solution (H&A), Home Entertainment (HE), Vehicle Component Solutions (VS), and Business Solutions (BS). Each unit maintains a distinct strategic focus, with H&A, for instance, emphasizing both traditional home appliances and a growing line of built-in solutions tailored to European markets. As part of its broader global expansion, LG is making significant investments in subscription-based services across Asia, aiming to triple revenue in this segment by 2030. The company has already launched subscription offerings in Malaysia, Thailand, Taiwan, India, Singapore, and Hong Kong. Despite fierce competition from industry rival Samsung Electronics, LG has carved out a stronghold in OLED technology. Its focus on premium products and cutting-edge innovation has helped sustain its competitive edge. “The company has shown positive results in transforming business models and innovating in areas such as home appliance subscriptions and the webOS advertising and content business,” said Cho Joo-wan, LG Electronics’ chief executive. “However, given the unprecedented market uncertainties and competitive environment, we need a different level of consideration and more sophisticated execution strategies.” LG’s prominence was on full display at CES 2025 in Las Vegas, where the company’s $2 million booth showcased its latest innovations, including high-definition wireless window displays. Among the notable visitors was music legend Stevie Wonder, who toured the exhibit with interest, particularly in the immersive audio zone developed in collaboration with Black Eyed Peas founder will.i.am. Visitors commonly said the high-definition wireless window decorations were astounding, and the scale and resolution were impressive. Will.i.am himself made an unexpected appearance at LG’s press conference, drawing applause as he introduced the LG Xboom wireless audio brand, which he personally helped tune. “Joining the LG family represents an exciting future,” he said. “I focused on finding inspiration and ideas, like applying AI to Radiophie, rather than replicating previous series.” LG’s international expansion efforts also include the launch of a virtual production studio featuring its Magnit microLED displays at its North American headquarters in New Jersey and the introduction of customized HVAC solutions at the AHR Expo 2025 in Orlando, Florida. With an eye on the future, LG Electronics plans to invest more than 50 trillion won (approximately $37 billion) by 2030 in portfolio transformation and long-term growth initiatives. Through these investments, the company aims to further solidify its global presence while continuing to drive innovation across its diverse business sectors. 2025-02-13 10:01:10

Hanwha Hotels & Resorts to acquire Ourhome for 8.7 trillion won SEOUL, February 12 (AJP) - Hanwha Hotels & Resorts announced Wednesday it will acquire a 58.62 percent stake in South Korean food service company Ourhome for 8.7 trillion won ($6.5 billion). The company said in a regulatory filing that it will initially acquire 50.62 percent of shares from major shareholders, including former Vice Chairman Koo Bon-sung and Chairwoman Koo Mi-hyun. The remaining 8 percent owned by Koo Bon-sung will be purchased through a third party, it said. To facilitate the acquisition, Hanwha will establish a special purpose company called Woori Home F&B. The company plans to secure 2.5 trillion won through its cash reserves and external borrowing, with the remainder to be funded through financial investors and acquisition financing. The deal marks Hanwha Hotels' return to the food service market after five years, following the sale of its catering business Foodist in 2020. However, the acquisition faces potential hurdles as former Vice Chairwoman Koo Ji-eun, who holds 20.67 percent of Ourhome shares, opposes the sale and holds the right of first refusal. "We are participating in this acquisition to create new growth engines by targeting the growing food industry, including group catering and food distribution, and to provide high-quality F&B services," a Hanwha Hotels official said. "We will lead the domestic and international food markets through various synergies between Hanwha's distribution service sector and Ourhome." The transaction is scheduled to close on April 29. 2025-02-12 17:00:21

South Korea launches tax probe into wedding studios, postnatal centers SEOUL, February 12 (AJP) - The National Tax Service has opened investigations into 46 businesses suspected of tax evasion, including 24 wedding service providers, 12 postnatal care centers, and 10 English-language kindergartens, the office said Tuesday. The probe targets businesses that allegedly concealed income by directing customers to make additional payments beyond basic contract fees through multiple accounts held under borrowed names. One prominent photo studio was found to have used unreported earnings to acquire real estate and stocks worth 10 billion won. “Some wedding service providers registered their businesses under children studying abroad and used the proceeds to purchase real estate in their children's names,” an NTS official said. Postnatal care centers, which charge upwards of 10 million won for services, reportedly offered discounts to clients who agreed not to request cash receipts. Some facilities recorded artificial losses while acquiring high-value real estate, with one charging double the market rate for rent to finance overseas travel and luxury purchases. Private English-language kindergartens were found to have received unreported cash payments for textbooks, after-school programs, and educational materials. Some institutions established family-run textbook supply companies to fabricate expenses and reduce tax liabilities. The businesses under investigation, primarily located in Seoul and the surrounding metropolitan area, are suspected of evading taxes on a combined income of 200 billion won. 2025-02-12 11:13:58

Coupang tightens grip on online grocery shopping in South Korea SEOUL, February 11 (AJP) - About 55 percent of South Korean consumers primarily use Coupang for online grocery shopping, according to a new market research report, released Tuesday. A survey conducted by Open Survey of 1,285 adults aged 20 to 59 found that 55.4 percent primarily use Coupang for online grocery purchases. Market Kurly followed at 8.6 percent, with Naver Shopping at 8.4 percent and Homeplus Mall at 5.6 percent. Coupang’s market share has surged by 15.3 percentage points from 40.1 percent in 2023, while most competitors have seen declining usage. When factoring in all grocery purchases made in the past three months, Coupang’s usage rate soared to 73.7 percent - well ahead of Naver Shopping at 38.1 percent and Market Kurly at 27.2 percent. “Online grocery shopping is increasingly concentrating on Coupang,” Open Survey reported, adding that “even consumers who mainly buy groceries offline at marts and supermarkets also use Coupang alongside them.” The platform also leads in monthly purchase frequency, with users shopping 3.72 times per month on average. In comparison, Emart/SSG.com users buy 2.84 times per month, and Market Kurly users 2.66 times. However, Emart/SSG.com leads in spending per purchase at 59,400 won ($44.30) and total monthly spending at 168,696 won ($125.80), compared with Coupang’s 35,400 won ($26.40) per purchase and 131,688 won ($98.30) per month. In terms of customer satisfaction, Market Kurly received the highest ratings, with 85.5 percent of users expressing satisfaction, followed by Naver Shopping at 82.5 percent. Coupang and SSG.com each recorded satisfaction rates of 80.5 percent. 2025-02-11 14:50:54