HBM4 becomes the new battleground in Nvidia–Google chip war SEOUL, December 03 (AJP) - The real battle between Nvidia’s GPU-led ecosystem and Google’s rapidly expanding tensor processing unit (TPU) platform and the outcome hinges on how quickly and at what scale the world's top memory makers based in South Korea can keep up in the rollout of next-gen high-bandwidth memory dubbed HBM4. Samsung Electronics that had been laggard in the early-stage HBM race is positioned for an unexpected leap as it accelerates the conversions to feed the surging demand for memory tied to next-generation AI accelerators. The rollout schedules for Nvidia’s Rubin GPU and Google’s Ironwood TPU signal a broader shift inside the AI hardware stack: memory—rather than compute silicon—is increasingly determining speed, scale and deployment timelines across the sector. Nvidia’s Rubin platform, slated for mass production in 2026, is built around HBM4 and aims for up to 288 gigabytes of memory per superchip, allowing larger models and faster training cycles. Google’s Ironwood TPU, still paired with HBM3E, is widely expected to migrate to HBM4 as inference workloads balloon and energy efficiency become a bigger priority. Other hyperscalers are moving the same direction. Amazon’s Trainium2 and Microsoft’s Maia accelerators are already standardized on HBM-based designs, reinforcing the industry consensus that memory bandwidth—not transistor counts or core architectures—is now the binding constraint. Most new accelerators integrate six to 12 HBM stacks each, meaning chip rollout is only as fast as memory suppliers can expand output. That has put Samsung and SK hynix in the middle of the AI arms race. Samsung recently completed internal production readiness approval for HBM4, signaling it has cleared key development milestones and is prepared to shift quickly into mass production once customer specifications lock in. SK hynix, the current leader in the HBM segment, finished its HBM4 development earlier this year and has already begun sample shipments to large hyperscaler customers, cementing its early advantage. But supply, not just technology, may determine the next phase of competition. By late 2025, Samsung’s monthly HBM wafer capacity is projected at roughly 170,000 wafers, slightly above SK hynix’s estimated 160,000 wafers, while Micron trails at less than one-third of Samsung’s expected level. Samsung is pushing that advantage by converting portions of its P3 and P4 facilities in Pyeongtaek into 1c-class DRAM lines geared for HBM production, while racing ahead with structural construction of the P5 plant. The strategy leans on Samsung’s vast legacy DRAM footprint, which it can retool faster than it can build new fabs. SK hynix is taking the opposite approach: speeding the ramp-up of new facilities, including boosting utilization at the M16 fab in Icheon and accelerating integration of the Cheongju-based M15X fab. Once M15X is fully operational, SK hynix is expected to narrow Samsung’s capacity edge. For hyperscalers, these diverging capacity paths are prompting a diversification of processor architectures and memory sourcing. Nvidia remains the largest consumer of HBM as GPUs dominate AI training workloads, but Google’s growing TPU deployments create a parallel demand stream that strengthens memory makers’ leverage without undermining Nvidia’s consumption. The result is a split but mutually reinforcing ecosystem: SK hynix remains deeply tied to Nvidia’s GPU roadmap, while Samsung is broadening across both GPU and TPU platforms, supplying memory for Nvidia, Google and Broadcom-linked TPU designs. Despite the differing strategies behind GPUs, TPUs and custom AI chips, all major platforms converge on the same bottleneck: memory bandwidth and availability. The industry’s push toward HBM4 underscores how high-performance memory has quietly become the defining resource of AI infrastructure. For all the attention paid to chip architectures, the Nvidia–Google rivalry may ultimately be determined by which ecosystem secures stable, scalable access to next-generation HBM—and which memory supplier can expand capacity fast enough to keep the AI boom fed. 2025-12-03 16:08:27

Made-in-Korea brands epitomise the rise of Asia's integrated value chain SEOUL, December 02 (AJP) - A Samsung Galaxy phone can no longer be described as “made in Korea” in any literal sense. Battery materials mined in Indonesia, memory chips manufactured in Korea, components sourced from Japan and final assembly in Vietnam or India all feed into a device that takes weeks to complete and crosses multiple borders before reaching a consumer. The smartphone illustrates how Samsung Electronics has secured its position at the premium end of the global market. Rather than relying on domestic production, the company has stitched together a regional value chain that balances cost pressures with technological quality — and reflects the increasingly interdependent nature of Asian manufacturing. Korean companies, once squeezed by the swift ascent of China’s state-backed industries, have instead leaned into the strengths of neighboring economies. The result is not a retreat of Korean competitiveness but its reinvention through a wider Asian production system. One smartphone, many countries: the reality of “Made by Asia” In an era of geopolitical contest, the notion of a single “country of origin” has become increasingly anachronistic. It also explains why trade restrictions aimed at one country generate outsized uncertainty for global producers. A high-end Korean smartphone today is a composite of the region’s industrial capacities. The application processor is developed through advanced foundries in Korea and Taiwan; memory is produced in Korean cleanrooms; Indonesia supplies key battery minerals; displays are engineered using Korean technology but assembled overseas; and the final product is put together largely in Vietnam and India. Samsung now manufactures roughly 80 per cent of its smartphones outside Korea, with Vietnam as its largest base and India expanding rapidly as a second hub. According to Kyung-hyun Koo, a researcher at the Korea Institute for International Economic Policy (KIEP), this overseas production structure has long been central to Korea’s industrial success. “This is not a recent phenomenon but has been the core success formula of Korea’s key industries since the 2000s,” Koo said. “Korean firms have expanded production networks to overseas locations where low-cost manufacturing is possible, while focusing domestically on higher value-added processes. Given Korea’s limited resources and production capacity, building production partnerships abroad and making efficient use of global networks has been an inevitable and important strategy — and one that remains essential going forward.” He added that heavy concentration in a single production base inevitably carries risks. “It is difficult to quantify precisely, but if production in Vietnam were to be completely disrupted, the impact would be very significant,” Koo said. “From that perspective, excessive reliance on one country carries inherent risks, which is why continuously expanding and diversifying production networks is so important.” No longer “Made in Korea”: TVs follow a similar trajectory Korea’s television industry underscores the same shift. Samsung and LG continue to dominate the upper tier of the global market, yet few of their high-end sets are produced onshore. Core display panel production has moved offshore, while assembly lines are concentrated in Vietnam, Mexico and elsewhere in Southeast Asia. Koo said this should be understood as a structural reorganization rather than industrial decline. “Without such a shift, it would be difficult to maintain price competitiveness,” he said. “The real challenge lies in how Korea continues to secure higher value-added processes domestically. The idea that everything must be produced in Korea belongs to the past, and building and effectively utilizing overseas production networks will remain a long-term task for Korean industries.” Korea and Japan: from industrial rivals to research partners Perhaps the sharpest illustration of Asia’s evolving industrial architecture lies in the changing relationship between Korea and Japan. The two were once fierce competitors in semiconductors and displays. Today, their supply chains are increasingly intertwined. Japanese strengths in foundational materials and specialized components now complement Korea’s expertise in mass production, system integration and chip design. Recent government-backed initiatives have accelerated joint work in next-generation semiconductors, AI-related technologies and advanced materials — areas both countries view as critical for maintaining technological relevance. ASEAN and India: from low-cost bases to strategic pillars Southeast Asia has moved well beyond its reputation as a low-cost manufacturing zone. Vietnam alone accounts for an estimated 14 per cent of Korea’s total exports, thanks largely to Samsung’s vast operations. Indonesia, meanwhile, has become a crucial supplier of nickel and other battery minerals vital to Korea’s EV and energy-storage ambitions. India is emerging as both an alternative production base to China and a major consumer market. Korean companies that once looked primarily to Nasdaq are now weighing Indian IPOs, while expanding their local footprints to tap long-term demographic and digital growth. Koo noted that ASEAN countries are also seeking to move beyond low value-added production. “ASEAN economies are themselves recognizing the limits of remaining in low value-added manufacturing and are aiming to upgrade,” he said. “There are areas where the needs of both sides align, even as challenges related to workforce skills and industrial infrastructure remain.” On India, he added, “many major Korean companies now view India as one of their most promising export markets going forward,” Koo said. “Given its large population and stage of industrial development, it is a market Korea cannot afford to overlook, even though challenges remain.” Asia as a coherent production bloc, not fragmented economies With the US and China erecting new barriers across trade and technology, Korea’s competitiveness increasingly depends on the strength of its regional partnerships. What is emerging is not a set of isolated players but an integrated Asian production bloc — one in which supply chains, investment flows and technological capabilities reinforce one another. “Made in Korea” has become less a territorial label than a shorthand for an industrial ecosystem rooted in Asia’s collective strength. “As Asia’s overall economic value increases, the roles played by different parts of the region are also expected to grow,” Koo said. “What matters most going forward is a strategic approach in which each country identifies areas of comparative advantage, focuses its investments accordingly and builds long-term partnerships rather than seeking quick gains.” 2025-12-01 20:16:06

LG Electronics named best TV brand in Europe SEOUL, December 01 (AJP) - LG Electronics said on Monday it was selected as best TV brand at the Euroconsumers Awards 2025, an honor determined by expert testing and consumer satisfaction surveys across Europe. The awards are jointly hosted by consumer media outlets from Belgium, Portugal, Spain, Italy and Brazil, all members of ICRT, an alliance of 37 consumer organizations including U.S.-based Consumer Reports and UK-based Which?. This marks the first year the seven-year-old awards selected winners by product category. LG scored highly in expert product tests conducted in labs and in consumer satisfaction and reliability surveys conducted across Europe, including the Netherlands, Czech Republic, Denmark, Austria, Slovenia and Hungary beyond the five host countries. The recognition is attributed to LG's OLED TV, which the company first commercialized in 2013. Cumulative OLED TV sales in Europe surpassed 10 million units this year, doubling at twice the previous pace after reaching five million units in 2021. European consumers favor high-quality content and value OLED TV's infinite contrast ratio and color reproduction. The thin design without backlighting appeals as an interior element in Europe's living room-centered culture. The TV's fast response time and high refresh rate provide optimal viewing for sports broadcasts popular in Europe. In North America, LG OLED TV swept Consumer Reports' rankings across all screen size categories where OLED TVs are available, including over 70 inches, 65 inches, 55-60 inches, 46-52 inches and 39-43 inches. "This is recognition of strong leadership in Europe, a representative premium TV market," said Lee Chun-kook, executive vice president and head of LG Electronics Europe. "We will deliver the best viewing experience to customers worldwide with self-emissive high-quality picture and thin, simple design of LG OLED TV." 2025-12-01 18:05:36

Korean memory makers set to benefit whoever wins in GPU vs TPU SEOUL, December 01 (AJP) - As Google’s tensor processing unit (TPU) rises as a formidable challenge to Nvidia’s near-monopoly in AI computing, the clearest signals of how the rivalry is unfolding may not be found in the chips themselves, but in the earnings and order books of Korea’s two memory giants: Samsung Electronics and SK hynix. Samsung is said to have supplied more than 60 percent of the high-bandwidth memory (HBM) used in Google’s TPU designs through Broadcom, Google’s chip-design partner, and is expected to expand its share next year with sixth-generation HBM4. Until the first half of this year, SK hynix had been the primary supplier of HBM3E chips for Google’s Ironwood TPU, but that dynamic may shift in the second half and into next year, analysts say. Each TPU, typically equipped with six to eight HBM stacks, is also believed to come at up to 80 percent lower cost than Nvidia’s H100 GPU — a key reason hyperscalers are accelerating adoption. A structural shift beneath the GPU–TPU rivalry Behind the GPU-versus-TPU debate lies a broader transformation in how artificial intelligence infrastructure is being built. According to Kyung Hee-kwon, a senior researcher at the Korea Industrial Research Institute, the global AI transition is increasingly being shaped not by chipmakers, but by big tech platforms designing computing systems around their own data and workloads. “AI today is being led by platform companies — what many refer to as the Magnificent Seven,” Kyung said. “These firms are focused on agentic AI that enables large-scale automation, rather than fully autonomous human-like intelligence.” For years, Nvidia’s GPUs were seen as indispensable for AI computation. But semiconductors, Kyung noted, are tools — not ends in themselves. “If a chip delivers better power efficiency and performance for a specific purpose, there is no inherent reason it must be a GPU,” he said. Google’s TPU, developed over several years and now deployed at scale in its data centers, exemplifies this shift. Unlike Nvidia, Google is not bound by the CUDA software ecosystem and instead operates a vertically integrated stack, allowing TPU accelerators to demonstrate efficiency gains in targeted workloads. Kyung emphasized that TPUs and GPUs serve complementary roles. “This is not about GPUs being replaced altogether. GPUs remain critical for training and general-purpose computing. What we are seeing is the emergence of alternative accelerators — especially where power efficiency and supply constraints matter.” Supply bottlenecks push platforms toward custom silicon With global foundry capacity stretched and delivery lead times extending into years, hyperscalers are increasingly unwilling to wait for GPUs. “AI has become a technology tied to national competitiveness and security,” Kyung said. “If GPU supply cannot meet immediate demand, companies will seek viable alternatives that can be deployed now.” This pressure has accelerated a wave of custom-silicon development far beyond Google, including Amazon’s Trainium, Microsoft’s Maia, and in-house AI accelerators at Tesla and other platforms. Memory remains the constant, regardless of who wins For Korea’s memory makers, the implications are structurally favorable regardless of which accelerator architecture gains ground. “Whether computing shifts from GPUs to custom accelerators, Korea’s role fundamentally remains the same,” Kyung said. “High-bandwidth memory, advanced mobile DRAM and graphics memory are essential across all AI architectures. What changes is the route to market, not the underlying demand.” This explains why Samsung Electronics and SK hynix sit at the center of both GPU- and TPU-driven ecosystems — and why their contrasting exposures offer a clearer lens into the AI race than any single chip announcement. According to Park Yu-ak, an analyst at Kiwoom Securities, Samsung’s growing presence in custom accelerators reflects its broader footprint across memory and foundry, while SK hynix continues to anchor the high-end GPU market through its HBM leadership. Analysts say Samsung’s relative composure also reflects expectations of a sharp earnings rebound beyond the current cycle. KB Securities projects Samsung Electronics’ operating profit to reach 64 trillion won in 2026- more than double 2024 levels — driven by tighter memory supply conditions and rising demand for high-bandwidth memory as AI infrastructure expands. 2025-12-01 17:23:15

Samsung Electronics moves HBM team back under DRAM division after one year SEOUL, November 27 (AJP) - Samsung Electronics announced on Thursday it is dissolving its standalone high bandwidth memory development team created last year and moving related personnel back under the DRAM development division. The HBM development team will be absorbed into the design team under the DRAM development division, with Vice President Son Young-soo, who led the HBM team, appointed as head of the design team. Samsung created the dedicated HBM development team in July 2024, about a month after Executive Vice President Jun Young-hyun was appointed head of the Device Solutions division. The move came as Samsung lost ground to SK Hynix in the HBM market. The reorganization after about one year suggests confidence in securing technology for next-generation HBM products including HBM4. HBM team personnel will continue developing HBM4 and HBM4E products under the design team. Samsung has recently built partnerships with major tech companies including Nvidia, AMD, OpenAI and Broadcom in HBM. The company ranked third in the HBM market in the second quarter this year. Market research firm TrendForce expects Samsung to achieve more than 30 percent market share in the global HBM market in 2026 based on expanded HBM4 supply. Samsung plans to complete the reorganization this week and hold a global strategy meeting in early December to review next year's business plans. 2025-11-27 17:38:07

Nvidia-Google rivalry translates to bigger AI chip pie for Korean memory foundries SEOUL, November 27 (AJP) - Expectations that Google’s in-house tensor processing units (TPUs) will challenge Nvidia’s near-monopoly in AI accelerators are translating into a bigger market for memory giants Samsung Electronics and SK hynix in Korea and Micron Technology in the United States. Nvidia still commands an overwhelming share of the global AI accelerator market. But growth of application-specific integrated circuits (ASICs) and neural processing units (NPUs) — including Google’s TPU — is expected to far outpace GPUs in 2026. TrendForce projects the ASIC/NPU segment to grow 44.6 percent next year versus 16.1 percent for GPUs, signaling a structural shift in AI infrastructure spending. Nvidia’s strength remains anchored in its CUDA software ecosystem and rapid hardware-refresh cadence, which allow its GPUs to handle virtually all AI models with broad compatibility. But custom silicon is gaining appeal among hyperscalers seeking lower power consumption, tighter system-level integration and reduced long-term costs — priorities that grow more acute as AI data centers expand. Google’s seventh-generation TPU, codenamed Ironwood, marks a significant inflection point. The chip delivers FP8 performance nearly on par with Nvidia’s flagship Blackwell B200 GPU and matches its 192-gigabyte HBM3E memory capacity. Google also highlights the TPU’s ability to scale across pod-based clusters of more than 9,000 chips — a configuration suited for long-context inference and sustained workloads. External adoption is strengthening TPU’s credibility. Anthropic has committed to using up to one million TPUs under a multibillion-dollar cloud agreement, while Meta, OpenAI and Apple are reportedly testing or negotiating access to Google’s AI hardware. Such momentum has fueled concerns that Nvidia’s dominance, while intact for now, could gradually narrow as cloud providers diversify their compute stacks. The stakes are rising alongside AI investment. Combined capital expenditure by major hyperscalers is forecast to reach $602 billion in 2026, up 36 percent from this year, with roughly three-quarters of that spending tied to AI-related infrastructure. As custom silicon captures a larger share of these budgets, competition among chip architectures is intensifying. The most immediate ripple effect is in the memory market, where the AI boom largely benefit the memory oligopolies SK hynix, Samsung Electronics and Micron Technology High-bandwidth memory (HBM) — critical for both GPUs and custom accelerators — is projected to grow 77 percent in 2026 and 68 percent in 2027, according to TrendForce. As of the second quarter of 2025, SK hynix led the HBM market with a 62 percent share, followed by Micron at 21 percent and Samsung at 17 percent. Surging demand from U.S. hyperscalers tightened the DRAM race further as Micron climbed to 22 percent while the Korean makers held shares in the 30-percent range in DRAM that includes HBM. Shares of Samsung Electronics jumped 9 percent this week under Google-driven effect, while SK hynix shares gained 4.4 percent. Supply is already tight. Both SK hynix and Micron say most of their 2026 HBM output has been allocated, while next-generation products such as HBM4E are expected to dominate by 2027. Nvidia’s own roadmap underscores the mutual dependence between chip designers and memory suppliers. SK hynix is the primary HBM partner for Nvidia’s upcoming Rubin GPU platform, while Samsung and Micron are racing to secure larger roles in future generations through yield gains and customized solutions. Beyond market share shifts, geopolitics and energy constraints are reshaping the landscape. Stricter U.S. export controls on advanced AI chips, surging electricity demand at data centers, and government pushes to localize semiconductor supply chains are all nudging cloud companies toward more efficient, tailor-made hardware. For South Korea, the changing balance presents both opportunity and risk. The intensifying AI-chip race is driving unprecedented demand for HBM — benefiting all three major memory makers — but also exposing them to sharper policy swings, higher customer concentration and the strategic whims of hyperscalers increasingly committed to designing their own silicon. As the era of one-size-fits-all AI hardware gives way to a more fragmented, power-conscious ecosystem, the rivalry between Nvidia’s GPUs and Google’s TPUs is set to shape not only the future of compute but the next chapter of global memory competition. 2025-11-27 17:00:11

Korean Inc.'s USD hoarding is inevitable as U.S. trade and FDI footprints deepen SEOUL, November 26 (AJP) - South Korea’s finance minister signaled the government had even asked major exporters for help in propping up the won — a reversal of the usual dynamic that underscores the urgency on the FX front. But expectations for meaningful action remain low, as companies tied to massive U.S. investment commitments have little incentive to part with their dollar reserves. The won’s annual average has already exceeded 1,400 per dollar this year, surpassing the 1997 Asian financial crisis level of 1,398.88, according to market data. The currency’s depreciation has coincided with Korean firms accelerating overseas investment, especially in the United States, while delaying dollar conversions amid deepening uncertainty over the dollar’s trajectory. Data from the Bank for International Settlements (BIS) shows Korea’s real effective exchange rate (REER) slid to 89.09 at the end of October — its lowest since August 2009. A REER below 100 signals an undervalued currency, reflecting broad weakness against major trading partners. The index is expected to fall further in November as the dollar has strengthened more than 3 percent over the past month. A weaker won traditionally boosts export competitiveness, but today’s environment is anything but typical. Korea’s biggest exporters are generating large dollar inflows while committing to multiyear overseas investments denominated in dollars — leaving them with few reasons to repatriate foreign currency. “Companies are hoarding dollars simply because they don’t expect the dollar to weaken,” said Jang Bo-seong, senior researcher at the Korea Capital Market Institute. “It is common sense to avoid a money-losing practice.” Jang noted that exporters naturally hedge by holding dollars, since payments for overseas investments, equipment and raw materials are often settled in dollars. “Without a clear signal that the dollar will weaken, holding dollar assets is seen as the safer choice.” Chipmakers — responsible for roughly a quarter of Korea’s exports — epitomize the mixed effects. A strong dollar boosts revenue on U.S.-denominated sales but simultaneously raises import costs for equipment and materials while inflating the won value of massive overseas investments. SK hynix, whose U.S. exposure is particularly large with about 70 percent of sales linked to American customers, says its FX posture hinges primarily on its investment cycle rather than daily market moves. “Dollar inflows from exports are managed in line with overseas investment, procurement and payment schedules,” a company official said, adding that hedging strategies are used to reduce volatility. Samsung Electronics, Hyundai Motor and LG Electronics either did not respond to requests for comment or declined to discuss their foreign-currency management. The corporate preference for holding dollars is now directly shaping FX market dynamics. “Foreign exchange markets are ultimately driven by supply and demand,” Jang said. “When large corporates hold onto dollars instead of converting them, it inevitably tightens dollar supply in the domestic market.” This imbalance is magnified by Korea’s massive overseas investment pledges. Korean companies have committed more than $350 billion to U.S. projects as they seek to hedge geopolitical risks and secure access to advanced manufacturing ecosystems. A persistently weak won raises the won-denominated cost of those investments, further reinforcing incentives to stockpile dollars. For now, authorities have little choice but to hope for a retreat in the dollar. “If the dollar index begins to decline meaningfully, companies may reassess their currency positions,” Jang said. “For the time being, however, holding dollars remains rational from a corporate risk-management perspective.” As the won tests levels unseen even during past crises, policymakers and markets alike are closely watching whether corporate dollar hoarding — once viewed as a cyclical defensive move — is becoming a structural feature of Korea’s FX landscape. 2025-11-26 18:02:56

Musinsa posts record profit for second straight year despite fashion industry downturn SEOUL, November 25 (AJP) - South Korean fashion platform Musinsa announced on Tuesday its cumulative operating profit through the third quarter rose more than 20 percent from a year earlier to surpass 70 billion won ($50 million), while revenue increased by double digits. Third-quarter operating profit on a consolidated basis increased 7.3 percent from a year earlier to 11.8 billion won, while revenue expanded 11.8 percent to 302.4 billion won. Cumulative operating profit through the third quarter reached 70.6 billion won, up 20.1 percent from 58.8 billion won a year earlier. Cumulative revenue reached 973 billion won, up more than 153 billion won from 819.6 billion won in the same period. The company opened new stores during the third quarter including Musinsa Standard locations in Gangdong and Ilsan, and 29CM stores in Seongsu. Musinsa Trading, the company's brand distribution subsidiary, also launched offline stores for global brands including Undercover and Y-3. Musinsa opened a Musinsa Standard flagship store on China's Tmall in September and a Musinsa Store official mall in October, participating in the Singles Day shopping festival. The company plans to open its first overseas Musinsa Standard store and a Musinsa Store Shanghai multi-brand shop in December. In Japan, Musinsa operated a three-week pop-up store in Tokyo's Shibuya in October featuring more than 80 domestic brands and expanded collaboration with local fashion e-commerce platform Zozotown. Cumulative fashion exports through the third quarter increased more than threefold from a year earlier. "The third quarter was a period focused on building inventory for the fall-winter season ahead of the year-end shopping peak season and investing in preparation for global market entry," CEO Park Jun-mo said. A Musinsa official added, "Next year we will expand our offline presence overseas in earnest, and naturally there will be investment costs as we deploy resources." 2025-11-25 16:43:05

Asia leans online while US clings to doorbuster ritual in yearend shopping season SEOUL, November 25 (AJP) - The final three months of the year are the busiest for global retailers, with brands competing for visibility through discounts, clearance deals and year-end promotions. Korea’s “Sale Festa”—the nationwide bargain season running from late October to mid-November—remains modest in scale compared to America’s Black Friday and China’s Singles’ Day, but global reach is widening, powered by the strong performance of Korean appliances, beauty brands and increasingly influential fashion platforms. According to Jinkyung Goo, director at the Korea Institute for Industrial Economics and Trade (KIET), the differences stem from market structure: “The U.S. model originated from clearing year-end inventory across a vast territory with high logistics cost, while Korea and China adopted the season more as a consumption-activating tool driven by online retail ecosystems.” Industry estimates show that 2025 Sale Festa sales are projected to reach 9.5 trillion to 10 trillion won, up from roughly 8.7 trillion to 9 trillion won in 2024 and 7.6 trillion to 8 trillion won in 2023, driven almost entirely by platform-led promotions and rising cross-border demand. Unlike the United States, where shoppers still camp outside stores for doorbuster deals, Korea and China rarely see such scenes. The retail dynamics in both markets are now dominated by online ecosystems, with platforms aggressively capitalizing on user traffic spikes rather than clearing inventory. Goo adds that “Korea’s online penetration has become so strong that promotions naturally center on e-commerce rather than physical stores. Companies see bigger promotional effects online, so the season evolved digitally rather than through brick-and-mortar.” In Korea, platforms such as Olive Young, Musinsa, SSG, Coupang and LotteON rely on the Sale Festa brand to boost year-end revenue. They use app push notifications, flash deals, roulette-style coupons and tiered discount tools to convert user engagement into purchases. A Musinsa official noted that winter is the peak sales season for fashion platforms: “Outerwear sales determine the success of the year, and Black Friday helps us amplify brand revenue. This year about 4,500 brands participated, and we prepared logistics aggressively to prevent delivery delays.” The company added that Ugg boots, faux-fur jackets and half-coats emerged as top performers during this season. Musinsa’s “Sale Festa/Black Friday” sales surged 73 percent in 2022 and 44 percent in 2023, underscoring how platforms have turned the season into a strategic revenue engine. Korean consumers overwhelmingly shop online, with 51.5 percent preferring e-commerce over physical stores, according to the Korea International Trade Association. The United States remains an outlier, with Black Friday still functioning as a national ritual rooted in inventory clearing. Retailers such as Best Buy, Target and Walmart use the period to flush old stock ahead of year-end accounting. But even in the U.S., online sales now dominate: Black Friday 2024 online revenue hit $10.8 billion, up 10 percent year-on-year, with mobile transactions accounting for 55 percent, according to Adobe Analytics. Shopify merchants alone generated $11.5 billion during the Black Friday–Cyber Monday period. Still, the culture of crowds lining up at dawn remains uniquely American. China’s Singles’ Day dwarfs both markets. Fueled by aggressive discounting, mobile payments and livestream commerce, Alibaba posted 57.1 billion yuan (US$9.3 billion) in a single day as far back as 2014—more than U.S. Black Friday and Cyber Monday combined at the time. The ecosystem has since evolved into a full consumer-stimulus infrastructure tied directly to Beijing’s consumption-boosting policies. By 2021, 409 million Chinese shoppers—nearly a third of all internet users—were using livestream platforms for purchases. Goo explains, “China’s Singles’ Day scaled rapidly because livestream commerce and mobile payments created a promotional infrastructure at the national level. Unlike Korea, sheer market size means the ceiling for growth is much higher.” Category trends also differ. Electronics and household goods dominate U.S. demand, whereas Korea sees strongest traction in beauty, fashion and small appliances. China skews toward livestream-driven impulse purchases, premium imports and cross-border e-commerce. According to Korean retail platforms, Black Friday in Korea functions less as a ‘clearance’ period and more as a ‘sales accelerator.’ Olive Young and Musinsa both highlight that the domestic market already runs frequent seasonal promotions, reducing the role of Black Friday as a once-a-year deep-discount event. Despite the differences in culture and mechanics, all three markets share one theme: year-end shopping seasons have become a barometer of consumer confidence. Korea’s case is especially telling. The country’s domestic “Black Friday” shows how platforms—not big-box stores—now dictate consumption trends, reflecting a hyper-digitized retail landscape where algorithms, loyalty funnels and app engagement shape spending patterns far more than in-store displays. As Goo puts it, “For Korea’s version to scale further, platforms will need to expand their reach to overseas consumers. Domestic market size is limited, so long-term growth depends on strengthening cross-border accessibility.” 2025-11-25 16:04:19

Musinsa launches K-culture platform targeting global fans SEOUL, November 24 (AJP) - South Korean fashion platform Musinsa launched K-KONNECT this month, a dedicated category featuring K-pop and K-culture merchandise including fashion items, albums, and event tickets. The service, which builds on Musinsa's limited-release platform "Musinsa Drop" launched in 2023 and "Musinsa Edition" brand collaborations from 2024, aims to connect Korean culture with global fans through exclusive products and offline pop-up stores. K-KONNECT covers categories ranging from artist collaborations with fashion brands to album releases. The platform offers exclusive merchandise, photo cards and other special benefits available only through Musinsa, along with offline pop-up stores. Recent launches include BLACKPINK character fashion items and a special edition lightstick customization kit on Nov 1, with pop-up stores in five locations including Seoul and Busan running through Nov 10. Virtual boy group PLAVE's second single album "PLBBUU" released on Nov 11 through online and offline channels reached number one in popular product rankings. The offline pop-up drew long queues of fans waiting before opening. "Collaboration cases are increasing across the content industry to strengthen trendy and hype images by partnering with fashion brands, and Musinsa with its strong young customer base is attracting attention as an optimal platform," a Musinsa official said, adding the company plans to expand artist and IP-based business collaborations through K-KONNECT. 2025-11-24 17:38:57