South Korea signals fresh push to join Asia-Pacific trade bloc SEOUL, September 3 (AJP) - The South Korean government said on Wednesday that it would consider joining a sweeping Asia-Pacific trade pact, reviving long-dormant discussions as the country looks to diversify export markets amid heightened uncertainty over U.S. trade policy. The announcement came during an economic ministers’ meeting led by Deputy Prime Minister and Finance Minister Koo Yoon-cheol, where officials also outlined support measures for exporters hit by recent tariff negotiations with Washington. The government said it would “review CPTPP membership to secure an economic alliance network with like-minded countries.” South Korea first weighed joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, in 2021 under former President Moon Jae-in. The effort stalled in the face of fierce opposition from farmers worried about an influx of agricultural imports. The renewed interest reflects Seoul’s growing unease over its dependence on the United States and China, its two largest trading partners, as tensions between the superpowers deepen and protectionist policies spread. Officials say that large-scale free trade agreements are becoming more important for safeguarding access to global markets. The CPTPP, which took effect in 2018 after the United States pulled out of its predecessor pact, now counts 12 members including Japan, Canada, Australia, Mexico and the United Kingdom. Together, they represent about 14 percent of global economic output. Securing entry would not be straightforward. All existing members must approve new applicants, and Japan holds particular influence. While ties between Seoul and Tokyo have warmed under President Lee Jae Myung, longstanding disputes — including South Korea’s ban on Japanese seafood imports following the 2011 Fukushima nuclear disaster — remain major obstacles. At home, agricultural groups are also expected to resist any move toward membership. For now, officials stressed that the government is only beginning a review process, with any formal application requiring extensive consultations and approval at the highest levels. 2025-09-03 15:27:28

South Korea's economy rebounds on strong exports, consumer spending SEOUL, September 3 (AJP) - South Korea’s economy returned to growth in the second quarter, lifted by a revival in consumer spending and a surge in exports, the central bank said Wednesday. Gross domestic product expanded 0.7 percent from the previous quarter, according to revised figures from the Bank of Korea. That was slightly higher than the 0.6 percent preliminary estimate issued in July and a reversal from the 0.2 percent contraction recorded in the first three months of the year. Private consumption rose 0.5 percent, fueled by higher spending on automobiles and medical services, while government outlays climbed 1.2 percent, largely because of health care expenditures. Exports jumped 4.5 percent, driven by strong global demand for semiconductors and petrochemical products. Still, weaknesses persisted in investment and construction. Facility investment slid 2.1 percent as companies cut spending on machinery and transportation equipment, including semiconductor manufacturing tools. Construction investment fell 1.2 percent, reflecting a slowdown in civil engineering projects. Manufacturing output advanced 2.5 percent, led by electronics and optical products. Services grew 0.8 percent as wholesale, retail, accommodation and transportation sectors recovered from first-quarter declines, even as the information and communication industry contracted. Overall construction activity contracted sharply by 3.6 percent, while output in electricity, gas and water supply tumbled 5.4 percent. Agriculture, forestry and fisheries shrank 1.2 percent. Domestic demand contributed 0.4 percentage points to growth, compared with a 0.5 percentage point drag in the first quarter. Net exports added 0.3 percentage points. Real gross national income rose 1 percent, outpacing GDP growth, as improved trade conditions offset weaker income from overseas, the central bank said. 2025-09-03 14:36:43

Hyundai Motor union launches first strike in seven years amid wage standoff SEOUL, September 3 (AJP) - Hyundai Motor Company’s labor union began a partial strike on Wednesday, ending a rare seven-year stretch of labor peace at South Korea’s largest automaker as wage talks collapsed. The union stages two-hour work stoppages during morning and afternoon shifts at the company’s domestic plants on Wednesday and Thursday, and plans to extend the walkout to four hours on Friday. The action halts production across Hyundai’s key facilities in the country. The strike is the first since 2019. Over the past six years, labor and management had managed to sidestep strikes even through the pandemic and a period of heightened trade tensions between South Korea and Japan. This year, however, negotiations broke down after 20 rounds of talks since June 18. Hyundai had offered a second proposal that included a base salary increase of 95,000 won, or about $68 a month, performance bonuses worth 400 percent of monthly pay plus 14 million won in cash, and 30 shares in the company for each worker. Union leaders rejected the package, demanding a larger monthly raise of 141,300 won, performance pay equivalent to 30 percent of last year’s net profit, and an extension of the retirement age to 64 without income gaps. “It is regrettable that the union decided to strike despite insufficient substantial discussions on negotiation items,” Hyundai said in a statement, adding that it would continue to seek “reasonable" results that allow labor and management to coexist. The dispute centers on wages and retirement age, with the union pointing to Hyundai’s strong performance — a record 14.2 trillion won operating profit last year and a 7.3 percent revenue increase in the second quarter. Management, however, has cited rising concerns over U.S. tariff pressures and a slowdown in the global electric vehicle market. The unrest spread beyond Hyundai. On Wednesday afternoon, unions at HD Hyundai, the country’s top shipbuilder, also walked off the job. 2025-09-03 10:53:15

[[K-Tech]] Korean researchers develop cheaper, stronger battery material for EVs SEOUL, September 2 (AJP) - The Korea Electrotechnology Research Institute said Tuesday it was preparing to move its silicon-graphene composite anode material for lithium-ion batteries into mass production, a step that could extend the range of electric vehicles and improve battery performance in consumer electronics. Silicon has long been regarded as a promising alternative to graphite, the standard anode material in lithium-ion batteries, because it can store roughly 10 times more energy. But its tendency to swell and crack during charging cycles, coupled with low electrical conductivity, has limited its use. Researchers at the government-funded institute said they had overcome those hurdles by combining silicon with graphene, a single-atom-thick layer of carbon known for its strength and conductivity. In the composite, graphene forms a mesh-like coating around silicon particles, reducing structural degradation and improving stability. The team also developed a water-based dispersion process, using oxidation-reduction methods, that allows for the scalable production of high-quality graphene in forms suitable for battery manufacturing. Using a one-step process, they created a “core-shell” structure in which graphene encapsulates silicon, allowing the proportion of silicon in the anode to rise from 5 percent to 20 percent without sacrificing stability. According to KERI, the technology could boost the driving range of electric vehicles by more than 20 percent. The researchers also emphasized cost advantages: instead of relying on expensive nano-silicon, the method uses more affordable micron-sized silicon. Commercial production of graphene is expected to be carried out by JNC Materials, a battery materials company that licensed the technology from KERI for 1.1 billion won, or about $790,000, in 2021. JNC has since built facilities capable of producing thousands of tons of graphene annually — enough, the company said, to supply batteries for about 60,000 electric vehicles or hundreds of millions of smartphones. “This technology simultaneously delivers higher capacity and improved stability for secondary batteries,” said Jeong Seung-yol, director of KERI’s Nano Hybrid Technology Research Center. 2025-09-02 15:16:54

KT, LG Uplus reject hacking claims while government probes possible leaks SEOUL, September 2 (AJP) - South Korea’s Ministry of Science and ICT has opened an investigation into possible hacking incidents at telecommunications firms KT and LG Uplus, after earlier security lapses at rival SK Telecom raised alarm about vulnerabilities in the industry. The ministry said Tuesday it had begun an in-depth review after receiving materials from both carriers during on-site inspections. Officials said they would disclose the findings publicly if evidence of breaches is confirmed. The inquiry follows a tip delivered to the office of Rep. Choi Min-hee of the ruling Democratic Party by an anonymous white-hat hacker. The informant claimed that internal data from the two companies’ servers had surfaced externally, suggesting potential leaks. Security researchers reported that LG Uplus’s internal source code for a privileged account management system, along with information from nearly 9,000 servers, had been exposed. At KT, investigators were told of certificate leaks that could have left its systems vulnerable. The ministry’s move comes just weeks after SK Telecom was fined a record sum for failing to safeguard the personal information of more than 23 million subscribers. Regulators said the company had neglected basic cybersecurity practices and oversight. Both KT and LG Uplus rejected the allegations of cyberattacks. KT acknowledged that external web service certificates and private keys had been exposed through unknown channels, but insisted no direct evidence of a breach was found on its networks. LG Uplus said its own internal checks of access controls and firewall logs revealed no suspicious activity. Earlier this year, the ministry inspected servers at major telecom firms using malware detection tools, and at the time reported no signs of intrusion across the sector. 2025-09-02 10:17:17

Chinese milk tea chains push into South Korea's coffee-saturated market SEOUL, September 1 (AJP) - South Korea has long been known as a “coffee republic,” with one of the world’s highest concentrations of cafes per capita. But a wave of Chinese milk tea brands is challenging that dominance, betting that young Korean consumers are ready for a new kind of drink culture. ChaPanda, a fast-growing Chinese beverage chain listed in Hong Kong, disclosed last week that South Korea had become its largest overseas market, accounting for nearly half of its more than 40 international outlets. Since opening its first Seoul store in January, the company has expanded quickly into trendy districts like Gangnam and Hongdae, and even to Jeju Island. ChaPanda, which operates 8,444 stores in China, has made South Korea a cornerstone of its broader push into markets including France and the United States. Mixue, China’s biggest bubble tea chain by store count, has also opened more than 10 locations in Seoul, concentrating on university districts. The company runs over 53,000 outlets worldwide — 48,000 of them in mainland China — and reported $2.09 billion in revenue in the first half of this year, up nearly 40 percent from a year earlier. Premium players are also eyeing the Korean market. HeyTea has established shops in Gangnam, Myeongdong and Hongdae, part of a global network of more than 100 overseas locations. Chagee, another high-end brand and the first Chinese milk tea chain to list on Nasdaq, announced plans to enter South Korea soon. It already operates more than 7,000 stores worldwide. The international rush reflects limits at home. China’s once-booming milk tea industry is now saturated, with thousands of outlets crowding cities and margins narrowing. Seeking new growth, companies are turning abroad — and finding opportunities in markets like South Korea, where younger consumers are increasingly receptive to Chinese lifestyle brands, helped along by a recent surge in bilateral tourism after China eased visa restrictions. Still, analysts caution that success is not guaranteed. Building brand awareness may be easier than building reliable supply chains, especially for drinks that depend on imported tea leaves, fruit and dairy. The state-run China Securities Journal noted that ensuring ingredient quality overseas remains one of the biggest risks to the industry’s global expansion. 2025-09-01 14:08:49

S. Korean households cut food spending to nine-year low amid persistent inflation SEOUL, September 1 (AJP) - South Korean households reduced their food spending to the lowest level in nearly a decade, as high prices forced families to cut back even on basic groceries. Adjusted for inflation, monthly household spending on food and nonalcoholic beverages fell 1 percent in the second quarter from a year earlier, to 341,000 won, or about $245, according to government data released on Monday. That was the lowest level since 2016. In nominal terms, spending rose 1.8 percent to 423,000 won. But the increase failed to keep pace with a 2.9 percent rise in food prices over the same period, reflecting a prolonged squeeze on family budgets. Food costs have been rising faster than overall consumer prices for more than five years. In the second quarter, the food price index reached 125.33, compared with 116.32 for the broader consumer price index, both based on 2020 levels. The pressure has been compounded by extreme weather and currency swings that raised costs for food producers, who in turn have passed them on to consumers. Prices of instant noodles jumped 7.6 percent in July from a year earlier, while confectionery and ice cream rose 6 percent. Families have also been reining in restaurant visits. Spending at eateries edged up just 0.2 percent in the second quarter, to 353,000 won per household. Economists warn that conditions could worsen in the months ahead. With the government weighing increases in electricity and gas rates later this year, households already struggling with higher grocery bills may find little relief. 2025-09-01 09:33:01

South Korea unveils record 728 trillion won budget with big bets on AI, R&D SEOUL, August 29 (AJP) - South Korea’s government on Friday signed off on a record 728 trillion won ($524.3 billion) budget for 2026, an 8.1 percent increase over this year and the first major fiscal blueprint of President Lee Jae Myung’s administration. The spending plan marks a sharp break from the austerity policies of Lee’s predecessor, Yoon Suk Yeol, who kept budget growth near 2 to 3 percent. Instead, the new administration is seeking to jolt Asia’s fourth-largest economy with large-scale investments in artificial intelligence, research and development, and social programs. “The administration faced the critical task of breathing life into a sluggish economy and frozen livelihoods immediately upon taking office,” Deputy Prime Minister and Finance Minister Koo Yoon-cheol said Friday. The budget earmarks a record 35.3 trillion won for research and development, a nearly 20 percent jump from this year, while tripling AI spending to 10.1 trillion won. A centerpiece of the plan is a 2.1 trillion won allocation for high-performance graphics processors to build what the Lee administration calls “sovereign AI” — though the number of planned units has been scaled back from 50,000 to 15,000. Defense spending will climb by 5 trillion won to 66.3 trillion won. The funds will support stealth fighter programs and AI-enabled weapons systems, including a 113.2 billion won investment in bomb-detection and disposal robots. Social welfare will also expand substantially. Outlays are set at 269.1 trillion won, up 20 trillion from this year, with increases in basic livelihood allowances for households and targeted support for single-person families. The government also plans to bolster regional higher education, doubling funding for local universities. A pilot of Lee’s “basic society” platform — providing 150,000 won monthly stipends to residents in depopulating rural areas — will begin next year at a cost of 170.3 billion won. The expansionary budget carries a heavy fiscal burden. Tax revenues are projected at 674.2 trillion won, leaving a deficit of about 54 trillion won. National debt will rise to 1,415 trillion won, pushing the debt-to-GDP ratio above 50 percent for the first time. The fiscal deficit will widen to 4 percent of GDP, surpassing the government’s self-imposed 3 percent ceiling. Officials have pledged to stabilize debt in the “high-50 percent range” by 2029. The budget bill will be submitted to the National Assembly on Sept. 3, where it is expected to face heated debate before a final vote in December. 2025-08-29 15:10:40

Business sentiment in South Korea remains pessimistic for 42nd month SEOUL, August 29 (AJP) - South Korea’s corporate outlook sank further into pessimism for the 42nd straight month, weighed down by U.S. trade measures that have struck at the heart of its semiconductor and steel industries, the nation’s largest business group said Friday. A survey of the country’s 600 biggest companies by the Federation of Korean Industries showed the Business Survey Index for September at 93.2, below the 100 threshold that separates optimism from pessimism. The gauge has not crossed into positive territory since April 2022. Manufacturers reported particularly bleak sentiment, at 92.6, while non-manufacturing firms fared only slightly better at 93.8. The sharpest drop came in electronics and communications equipment, which includes semiconductors. That sector plunged 16.4 points to 94.7, after U.S. President Donald Trump threatened to slap 100 percent tariffs on chips — a warning that rattled an industry central to South Korea’s economy. Metals and metal processing remained mired in the 80s for a third straight month, as Washington’s 50 percent duties on steel, aluminum and copper products went into effect in August. “External trade risks and the prolonged slump in construction, which is depressing demand for cement and other raw materials, are the main forces behind the sustained weakness,” the federation said in its report. 2025-08-29 10:44:50

South Korea becomes anchor in US plan to revive shipbuilding industry SEOUL, August 28 (AJP) - What began as a series of bruising trade talks between Washington and Seoul ended in an unexpected sector: shipbuilding. The negotiations, initially centered on tariffs, culminated in a $150 billion partnership aimed at reviving America’s depleted maritime industry with South Korean know-how. On Aug. 25, President Donald Trump hosted President Lee Jae Myung of South Korea at the White House, just a month after the latest round of negotiations. At their first summit, Trump threw his support behind what Seoul has branded the “Make American Shipbuilding Great Again” initiative, or MASGA — a plan that South Korea advanced as part of the deal. The initiative promises sweeping investments: new U.S. shipyards, training programs to rebuild a skilled workforce and joint maintenance contracts that would pair South Korean companies with American personnel to service Navy vessels. “We’re going to be buying ships from South Korea. We’re also going to have them make ships here with our people, using our people,” Trump said in the Oval Office. “We love their ships.” He tempered the enthusiasm with a note of caution: “Shipbuilding is a tough one to start. You know, it takes a while.” A day later, Lee toured Hanwha Philly Shipyard in Philadelphia, a Korean-owned facility once emblematic of America’s industrial might but long since hollowed out. Hanwha acquired the site last year for $100 million, securing its first liquefied natural gas (LNG) carrier order in half a century. Now, it serves as the partnership’s first tangible proof of concept. “Just as Korean entrepreneurs and workers created the miracle of Korean shipbuilding on barren land, let Korea and the United States join forces to make the MASGA miracle a reality,” President Lee said at the shipyard, echoing the rhetoric of industrial rebirth. For the United States, the partnership marks a rare attempt to confront decades of decline. The Merchant Marine Act of 1920, better known as the Jones Act, shielded domestic shipbuilders from foreign competition but also stifled innovation and global competitiveness. Later restrictions, including the Byrnes-Tollefson Amendment of the 1960s, further isolated American yards by mandating domestic construction of military vessels. The consequences have been stark. Submarine repairs now take an average of 20 months before even entering multiyear overhauls and refueling cycles. Meanwhile, China has seized dominance, capturing about 60 percent of global shipbuilding orders last year and surpassing the U.S. in fleet size, according to defense data. Washington’s response has mixed sticks with carrots: tariffs and fees on Chinese-built ships alongside expanded cooperation with allies. South Korea, the world’s second-largest shipbuilder after China, emerged as the partner of choice. In the first half of this year, Korean shipyards claimed more than a quarter of global orders, buoyed by their dominance in advanced vessels such as LNG carriers. That dominance comes with scars of its own. After the 2008 financial crisis, South Korea’s major shipbuilders — Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering — collapsed under debts and losses. Daewoo’s downfall, marred by accounting fraud, ended in a takeover by Hanwha and the birth of Hanwha Ocean. Now resurgent, Korean shipbuilders are moving quickly in the United States. Hanwha Ocean has signed contracts with the U.S. Navy for repair work on several ships, including the Wally Schirra, the Yukon and the Charles Drew. On the same day as Lee’s shipyard visit, the company announced $5 billion in new investment in Philadelphia and orders for 11 vessels. Hyundai has secured its own foothold, signing a memorandum of understanding on U.S. maritime investment and winning its first Navy maintenance deal earlier this month. Samsung followed suit on Aug. 26, entering a partnership with Vigor Marine Group for naval support ship work. For Trump, the deal represented both an economic and symbolic victory. “We really gave up the shipbuilding industry foolishly many years ago,” he said. “We’re going to be making our own ships again, soon.” Whether the promise can outpace the challenges remains uncertain. But in an era of intensifying competition at sea, Washington and Seoul are betting that a cross-Pacific alliance can breathe new life into an industry long left for dead. 2025-08-29 09:40:29