Mercedes-Benz faces sanctions in Korea over misleading claims on EV batteries SEOUL, August 19 (AJP) - South Korea’s antitrust regulator has begun sanction proceedings against Mercedes-Benz Korea over allegations that it misled consumers about the batteries used in its electric vehicles, an issue that has gained public attention after a high-profile apartment fire last year. Mercedes-Benz Korea is suspected of violating advertising and fair trade laws, according to sources from the Fair Trade Commission, Tuesday. Regulators allege that the Korean unit falsely claimed all of its electric models were equipped with batteries from Contemporary Amperex Technology Co. Ltd., or CATL, China’s leading battery supplier, when in fact some vehicles used lower-cost alternatives. The company is also accused of directing affiliated dealers to pass along those claims to customers, raising the prospect of deceptive consumer practices under Korean law. The matter gained urgency after a Mercedes EQE caught fire and exploded in the underground garage of an apartment complex in Incheon last August. Investigators later found that the car had been fitted with batteries from Farasis, a Chinese manufacturer considered less premium than CATL, despite Mercedes’ advertising to the contrary. The commission’s inspectors conducted on-site inspections at Mercedes-Benz Korea headquarters and dealerships in September and January. A hearing will be held to determine the severity of any penalties, with both regulators and company representatives participating. Separately, 24 plaintiffs, including Mercedes-Benz EV owners, filed a lawsuit last October at the Seoul Central District Court, seeking compensation over what they described as misrepresentation of battery suppliers and unresolved safety concerns. 2025-08-19 17:27:10

Bank of Korea warns stablecoin proposal could shake bond market Image of cryptocurrencies/ Reuters-Yonhap SEOUL, August 19 (AJP) - South Korea’s central bank on Tuesday rejected a proposal to issue short-term treasury bonds to back a won-based stablecoin, cautioning that such a move could disrupt financial markets and distort government financing. In a written response to the National Assembly’s Strategy and Finance Committee, the Bank of Korea said treasury bonds should be issued strictly for their intended purpose — financing government operations — not to satisfy demand from specific sectors such as cryptocurrency. Stablecoins, digital tokens typically pegged to national currencies, require reserve assets that are both highly liquid and low-risk. The Korea Capital Market Institute, a government-backed think tank, recently suggested that short-term treasury bonds could meet that need for a Korean stablecoin. The central bank pushed back firmly. “Considering the issuance of short-term bonds to satisfy specific market demand like stablecoins is inappropriate,” it wrote. The bank argued that greater issuance of short-term bonds would increase refinancing risks and strain the market’s capacity to absorb additional supply, ultimately threatening fiscal stability. This is the latest in a series of warnings by the bank over the government’s push to accelerate stablecoin adoption, which it has repeatedly said could jeopardize monetary and financial stability if rushed. The think tank's senior research fellow, Kim Pil-kyu, cited U.S. and European regulatory frameworks that allow stablecoins to hold short-term government debt as reserve assets. The Bank of Korea countered that fluctuations in stablecoin issuance could create destabilizing imbalances in the treasury market, triggering swings in short-term interest rates and rippling into other funding markets, including commercial paper and certificates of deposit. Instead, the bank recommended its own monetary stabilization securities — particularly 91-day bonds issued on a regular basis — as a more suitable reserve asset. U.S. legislation, it noted, also restricts stablecoin reserves to securities with maturities of fewer than 93 days. 2025-08-19 14:45:30

[[K-Tech]] Korean game makers bring big bets to Gamescom 2025 SEOUL, August 19 (AJP) - When Gamescom, the world’s largest video game convention, opens its doors on Wednesday, the cavernous exhibition halls of Cologne will once again fill with flashing screens, long lines and hundreds of thousands of fans eager for the next big title. This year, South Korea’s biggest gaming companies are arriving in force. Krafton, the publisher behind “PUBG: Battlegrounds,” is mounting one of the flashiest presences at the five-day expo, with a booth split between two major releases: “inZOI,” a life-simulation game, and “PUBG: Blindspot,” a new top-down tactical shooter rooted in the PUBG universe. Pearl Abyss, meanwhile, is returning with its ambitious open-world adventure “Crimson Desert.” After focusing last year on combat mechanics, the studio plans this year to highlight the game’s expansive exploration systems, with a release targeted for early 2026. Other Korean firms are also using the Cologne stage to woo global audiences. Netmarble will unveil trailers for its anime-inspired role-playing game, “The Seven Deadly Sins: Origin,” and, in partnership with Samsung Electronics, will demo “Mongil: Star Dive” on the company’s glasses-free 3D monitors. Kakao Games’ subsidiary, Ocean Drive Studio, is bringing back “God Save Birmingham,” a zombie survival title set in plague-stricken 14th-century England, with a new pre-alpha build. Smaller developers are not being left behind. Backed by the government-run Korea Creative Content Agency, a “Korea Pavilion” will showcase projects from independent studios hoping to break into the European market. The Korean contingent will share the spotlight with industry giants from around the world. Microsoft is emphasizing its new portable ROG Xbox Ally, developed with MSI, while offering hands-on play for about 20 titles. Nintendo plans to highlight “Pokémon Legends: Z-A” and a slate of games for its recently launched Switch 2 console. For Korean game makers, Cologne offers both visibility and validation. While domestic gaming remains a robust market, the global stage has become increasingly critical, with blockbuster development costs rising and international fandom dictating success or failure. 2025-08-19 11:00:46

[[K-Tech]] Vegan meat gains global momentum. In Korea, it's a harder sell. SEOUL, August 19 (AJP) - On a narrow street in Itaewon, the Seoul neighborhood known for its antique shops and international dining, a brown-hued restaurant hums with chatter in several languages. The tables are crowded with steaming bowls of shrimp fried rice, jjajangmyeon noodles slicked with black bean sauce, and glossy platters of deep-fried beef — or at least that is how it looks. The restaurant, ALT.a, is entirely vegan. The shrimp, beef and pork are not from animals at all but from soybeans, lima beans and other plants, carefully engineered to mimic the texture, chew and flavor of meat. ALT.a, whose dishes have won recognition from the Michelin Guide’s Bib Gourmand, is one of several experiments in South Korea’s growing but still fragile market for alternative proteins. With the world’s population expected to reach 10 billion by 2050, and global protein demand projected to nearly double, scientists and food companies are racing to find replacements for livestock meat that are both palatable and sustainable. The industry’s bets fall into three categories: plant-based meat, cultured meat grown from animal cells, and edible insects. Plant-based protein, for now, remains the most advanced — and in many ways the most practical — option. South Korea is no stranger to plant-based proteins. Tofu, believed to have been introduced to the Korean Peninsula nearly 2,000 years ago, is as essential to local cuisine as bread and butter are in the West. Most instant noodles here already contain textured soy chunks that resemble meat, fooling many consumers into thinking they are eating beef. The domestic market for vegan meat reached about 22.7 billion won, or $17 million, in 2020 and was projected to climb nearly 30 billion won by the end of this year, according to the Korea Agro-Fisheries & Food Trade Corporation. Food giants like CJ CheilJedang have rolled out entire product lines of meat-free hamburger steaks, tteokgalbi (short rib patties) and rice balls. The company says its proprietary fermentation techniques remove the “bean smell” that has long plagued mock meats, while binding proteins more tightly to simulate the bounce and juiciness of animal flesh. Promise and Struggles Despite this, South Korea’s plant-based sector is struggling. Companies complain of high costs, weak consumer demand and overreliance on imported ingredients. “With the exception of a few export products, we’ve scaled back most of our alternative meat operations to business-to-business sales,” Yoo Jin-sun, a manager at ALTist, the parent company of ALT.a., told AJP. Zikooin Company, another producer, described the domestic market as sluggish. Government researchers echo that assessment. “Almost all the firms approaching us lament the harsh conditions,” said Kim Min-young, a researcher at the National Institute of Crop and Food Science. “Most of the soy protein used here is imported, often genetically modified or low quality. Simply put, the plant meat doesn’t taste good enough.” According to Kim Gi-chang, a researcher of food technology from the Rural Development Administration, the administration plans to intervene by promoting premium, non-GMO, locally sourced proteins and expanding research into hybrid meats — combining cultured animal cells with plant-based protein — as well as insect-based ingredients for medical use. Officials are even weighing whether to introduce plant-based meals in school cafeterias. “If implemented, students could enjoy tasty and healthy plant-based options while learning that synthetic meat is nothing to fear,” Kim Min-young from the said. For now, though, South Korea’s vegan restaurants remain a niche curiosity rather than a mainstream option. On a recent evening in Itaewon, ALT.a’s diners seemed less concerned about the market dynamics than about the flavor of the dishes in front of them. The “shrimp” fried rice glistened in the light. The jjajang sauce was sticky and rich. The “beef” was crispy at the edges and tender inside. If the future of food was on the table, it was indistinguishable from the present. 2025-08-19 10:52:15

Korean banks accelerate stablecoin preparations ahead of regulatory framework SEOUL, August 18 (AJP) - South Korea’s four largest banks are moving to enter the stablecoin market, accelerating preparations as the government edges closer to introducing a regulatory framework for digital assets. Stablecoins — digital tokens typically pegged to fiat currencies such as the U.S. dollar or euro — have drawn global interest for enabling faster, cheaper transactions while promising greater price stability than traditional cryptocurrencies. Industry officials said Monday that the country’s top four banks — KB Kookmin, Shinhan, Hana and Woori — are scheduled to meet with Heath Tarbert, president of Circle Internet Group, one of the leading U.S. stablecoin issuers. The meetings are expected to take place during Tarbert’s visit to Seoul next week. The banks have signed nondisclosure agreements preventing them from discussing details. Talks are expected to center on distributing dollar-backed stablecoins in South Korea and exploring partnerships for developing a won-based version, according to people familiar with the matter. The banks’ push into stablecoins comes as the government advances legislation to modernize oversight of digital assets, a priority for President Lee Jae Myung. The Bank of Korea has repeatedly warned of the systemic risks posed by the rapid growth of stablecoins, but financial and technology companies see them as an inevitable step toward faster, lower-cost payments. Fintech firms such as Viva Republica and Naver Pay have signaled interest in issuing stablecoins tied to the won, and LG CNS, a digital solutions provider, is reportedly considering participation as well. Commercial banks are also stepping up their efforts. KB set up a virtual asset response committee in June and recently made its stablecoin task force permanent. Shinhan is testing a won-based stablecoin payment system with programmable features, such as restricting transactions to small businesses. Hana is analyzing regulatory hurdles, infrastructure requirements and use cases in cross-border payments and remittances. 2025-08-18 16:25:41

Idle South Korean youth cost economy billions, study finds SEOUL, August 18 (AJP) - South Korea’s growing population of “discouraged youth” — those neither working nor looking for work — imposed an estimated economic burden of 53.4 trillion won, or about $38.4 billion, between 2019 and 2023, according to a study released Monday. The research, commissioned by the Federation of Korean Industries and conducted by Lee Mi-suk, an economics professor at Changwon National University, found that the annual cost of lost productivity rose steadily from 8.9 trillion won in 2019 to 11.5 trillion won in 2023. The study measured the gap by estimating potential wages that these idle young people could have earned, using the income levels of comparable employed peers. The analysis suggested that discouraged youth would likely have earned about 80 percent of what working counterparts made, with average monthly potential wages rising from 1.55 million won in 2019 to 1.8 million won last year. The number of young people classified as NEET — shorthand for “not in employment, education or training” — climbed from 432,000 in 2019 to 481,000 in 2023. That increase came even as South Korea’s youth population shrank, from 9.66 million to 8.79 million over the same period. By last year, NEETs accounted for 5.5 percent of South Koreans ages 15 to 29, up from 4.5 percent in 2019. They made up nearly 1 percent of the overall population. A growing share of them hold university degrees. Their numbers rose from 159,000 in 2019 to 184,000 in 2023, accounting for 38.3 percent of all discouraged youth. “High-income potential youth falling into idle states are driving significant economic costs,” the report said, noting that while expected wages for NEETs lag those of their working peers, the losses remain substantial. 2025-08-18 13:40:46

[[K-Tech]] Korean battery firms pour billions into research despite idle factories SEOUL, August 18 (AJP) - South Korea’s top battery makers are stepping up investments in research and development, even as their plants sit partially idle and competition from China intensifies. In recent reports, LG Energy Solution, Samsung SDI and SK On disclosed sharply reduced factory utilization rates for the first half of 2025. LG Energy Solution’s operating rate dropped to 51.3 percent, down from 73.6 percent in 2022. Samsung SDI reported 44 percent, while SK On came in at 52.2 percent. The slowdown reflects a sluggish recovery in global demand for electric vehicles and the mounting pressure from Chinese rivals. The Korean trio’s combined global market share fell 5.4 percentage points from a year earlier, to 16.4 percent, according to the Seoul-based market research firm SNE Research. Yet the companies are spending more than ever to stay ahead. LG Energy Solution invested 620.4 billion won, or about $446 million, in R&D in the first six months of the year — its largest half-year outlay since its founding in 2020. That figure amounted to 5.2 percent of revenue, up from 3.1 percent last year. Samsung SDI, which is targeting mass production of solid-state batteries by 2027, spent 704.4 billion won on research, slightly above last year’s level. Its R&D budget equaled 11.1 percent of sales, the highest ratio among the three Korean firms. Still, the gap with China is widening. CATL, the world’s biggest battery maker, invested roughly $1.4 billion in R&D in the first half alone — more than the three South Korean companies combined. To respond, the Korean manufacturers are reorganizing their research arms. SK On rebranded its battery research institute this month to emphasize next-generation technologies. LG Energy Solution shifted its technology center from the chief executive’s office to its chief technology officer, consolidating authority under a dedicated research head. Samsung SDI also renamed its production and equipment R&D center, underscoring its focus on solid-state and other advanced batteries. 2025-08-18 10:03:44

Samsung Biologics surges ahead as Trump targets pharma imports Editor's Note: This article is the 31st installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, August 14 (AJP) - South Korea's largest contract development and manufacturing organization (CDMO) Samsung Biologics is charging ahead in global markets, even as U.S. President Donald Trump reshapes the biopharmaceutical landscape with sweeping protectionist measures. Trump has repeatedly signaled his intention to impose tariffs on pharmaceutical imports, finally announcing on Aug. 5 plans to levy a "small tariff" before escalating rates dramatically. "In one year, one and a half years maximum, it's going to go to 150 percent and then it's going to go to 250 percent because we want pharmaceuticals made in our country," Trump told CNBC in an interview. While global drugmakers scramble to assess potential damage, industry experts say Samsung Biologics is unlikely to face significant headwinds. The firm focuses primarily on CDMO contracts, its biosimilars unit Samsung Bioepis now spun off from the firm. "South Korea has relatively few drug substance or finished drug exporters at present, aside from major pharmaceutical companies," said Hwang Ju-rie, director of public and international relations at the Korea Biotechnology Industry Organization. "For tariffs to significantly impact the industry, we would need at least another decade, as most biotech firms remain in the research and development phase." Meanwhile, Samsung Biologics has been actively participating in global healthcare events such as the J.P. Morgan Healthcare Conference and Interphex Week Tokyo 2025, attracting international drugmakers as CDMO customers. A relative latecomer to the market, Samsung Biologics sprang to life after Samsung Electronics' late chairman Lee Kun-hee issued stern warnings that the group's cash-cow smartphone and LCD businesses could soon be overtaken by competitors. Needing fresh avenues for innovation, the group's future strategy office identified pharmaceuticals as a key growth sector. The biologics arm of Samsung began operations in early 2011, with the groundbreaking ceremony for Plant 1 held in May. Drug production and drug substance good manufacturing practices were established by 2013, followed by FDA approvals in 2015, positioning the firm for global expansion. Samsung Biologics went public in November 2016, fueling continuous growth. By 2020, it had opened an R&D center in San Francisco, and by 2025, the firm's fifth plant became fully operational, bolstered by robust CDMO operations. In a regulatory filing released on July 23, Samsung Biologics posted 324.4 billion won (approximately $233.5 million) in second-quarter net profit — a 2-percent increase year-over-year. Operating profit rose 9.5 percent during the same period to 475.6 billion won, while sales increased 11.5 percent to 1.28 trillion won. For the first half of the year, Samsung Biologics' sales totaled 2.59 trillion won with operating profit reaching 962.3 billion won — historic gains for the bio giant. The company attributed its second-quarter performance to steady operations at Plants 1 through 3 and accelerated operations at Plant 4. Samsung Biologics noted it has signed a series of large-scale CDMO deals with global pharmaceutical companies this year, surpassing 60 percent of its full-year order total from 2024. Despite current tailwinds, the firm faced scrutiny over legal conflicts concerning an alleged merger case dating back to 2015. Accusations claimed Samsung Electronics Chairman Lee Jae-yong committed unfair trading, stock price manipulation, and accounting fraud related to Samsung Group succession, with Samsung Biologics implicated in the fraud charges. On July 17, the Supreme Court finalized Lee's acquittal in the controversial merger case, clearing Samsung Biologics of all accounting fraud allegations. Samsung Biologics continues expanding its portfolio beyond major CDMO contracting, now venturing into contract research organization services as well. On June 16, the firm announced the launch of Samsung Organoids — advanced drug screening services designed to support clients in drug discovery and development. These three-dimensional cell culture systems are engineered to closely mimic human organs, providing better predictions for patient responses. "With Plant 5 now fully operational, we are leveraging our manufacturing expertise and expanded capacity to deliver seamless, end-to-end CDMO services at scale," said John Rim, CEO and President of Samsung Biologics, in a press release on July 23. Further announcing the firm's advancements in antibody-drug conjugates (ADCs) and the launch of Samsung Organoids, Rim said Samsung Biologics is redefining digitalization in biomanufacturing, its strategic initiatives to "strengthen our ability to accelerate client pipelines, while fostering enduring partnerships grounded in quality and operational excellence." As the global biopharmaceutical landscape undergoes rapid transformation amid trade tensions and technological advances, Samsung Biologics is well-prepared to capitalize on growing demand for both manufacturing expertise and cutting-edge research capabilities, cementing its status as a formidable player in the evolving life sciences arena. 2025-08-14 09:32:18

Global streaming experts to converge in Busan for festival next week SEOUL, August 13 (AJP) - Global developers, producers, IT professionals and other experts are expected to gather for an event to be held in South Korean southern port city of Busan next week, the Ministry of Science and ICT said in a press release on Wednesday. The annual International Streaming Festival, in its third year this year, is set to kick off its four-day run on Aug. 22 under the theme of "Streaming What's Next," with participants exploring the latest trends in streaming platforms, artificial intelligence (AI) and other advanced technologies. The festival will highlight cutting-edge developments including AI integration, free ad-supported streaming television (FAST) services, and advertising innovations while strengthening support for domestic companies seeking overseas expansion and investment opportunities. Organizers plan to encourage local industry workers and advertisers to join networking sessions with international investors, helping them make inroads into global markets. On the sidelines of the festival, an awards ceremony recognizing the best works on streaming platforms will be held on Aug. 24 at the Busan Cinema Center, an outdoor theater that serves as the main venue for the annual Busan International Film Festival (BIFF). Netflix’s hit South Korean series "When Life Gives You Tangerines" will compete for an award along with popular series from other streaming platforms including China's Youku and the U.S.’ Disney Plus and Prime Video. At another event on Aug. 22 during the festival, industry leaders from global research firms Omdia and Statista will deliver keynote speeches on market trends and strategies, followed by two days of relevant sessions. "This year's festival will serve as a stage for global exchange and collaboration among platform operators in AI technology and related content businesses," a ministry spokesman said. Organizers' selection of Busan as the festival venue seems intended to bridge conventional films and streaming content, as the coastal city hosts BIFF annually, with this year's fest scheduled for next month. 2025-08-13 16:04:26

South Korean crypto fraudster pleads guilty to fraud charges in US SEOUL, August 13 (AJP) - Crypto fraudster Kwon Do-hyeong, also known as Do Kwon, pleaded guilty to fraud charges at a federal court hearing in New York on Monday. The so-called "Cryptocrash King" was behind the spectacular collapse of the TerraUSD and Luna cyber that caused over $40 billion in losses to investors in the U.S. and around the world. As part of a plea bargaining deal, the former entrepreneur of Singapore-based Terraform Labs, who faced up to 25 years in prison, admitted to charges of conspiracy to defraud and wire fraud, with prosecutors agreeing not to seek a sentence longer than 12 years while confiscating around US$26.5 billion and other assets. In addition, if Kwon serves half of his sentence and abides by his plea-bargaining agreements, U.S. authorities have also agreed to accept his possible request for their international prisoner transfer program, allowing him to serve the remainder of his prison term in South Korea. "I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon apologized for his conduct in court. "What I did was wrong." Kwon had claimed his innocence since being extradited from Montenegro in January, where he was arrested in March 2023 while attempting to board a flight using several forged passports. He initially pleaded not guilty to all charges during his arraignment. The TerraUSD collapse sent shockwaves through the cryptocurrency industry, as the stablecoin was designed to maintain a $1 peg through an algorithmic system. Prosecutors alleged that trading firms artificially propped up the token's price, contradicting Terraform Labs' public claims that its autonomous mechanism, known as the "Terra Protocol" restored the coin's value. Kwon's sentencing, which will determine his final prison term, is scheduled for Dec. 11. If he eventually manages to return to Seoul, there remains a chance that he could face separate charges here. 2025-08-13 11:25:51