Naver's second quarter net profit jumps nearly 50 percent SEOUL, August 8 (AJP) - Naver, South Korea’s largest internet company, said on Friday that its second-quarter net profit surged nearly 50 percent from a year earlier, aided by a base effect tied to changes in its corporate structure and gains across its core business segments. Net income for the April-to-June period rose to 497.4 billion won, or about $359.6 million, the company said in a regulatory filing. That marks a 47.9 percent increase from the same period last year. Revenue climbed 11.7 percent to 2.91 trillion won, while operating profit rose 10.3 percent to 521.6 billion won. The sharp rise in net income was largely attributed to the inclusion of its metaverse and database unit, Naver Z, in consolidated financial statements this quarter. The unit had been excluded in last year’s results, creating what the company described as a “base effect.” Naver’s core search platform generated 1.36 trillion won in revenue, up 5.9 percent year-on-year, supported by newly introduced artificial intelligence features designed to improve user engagement and ad performance. E-commerce sales rose 19.8 percent to 861.1 billion won, driven by the growth of its Naver Plus Store app. Revenue from its fintech division increased 11.7 percent to 411.7 billion won. Its content business — which includes webtoons and digital media — recorded a 12.8 percent increase in sales, reaching 474 billion won. Enterprise services revenue also grew, rising 5.8 percent to 131.7 billion won. “We will make greater efforts to enhance our platform’s competitiveness through AI and secure new growth drivers for long-term growth and global expansion,” said Choi Soo-yeon, Naver’s chief executive, in a statement. The results come as Naver continues to invest heavily in artificial intelligence and overseas expansion, including its efforts to grow its webtoon platform globally and strengthen its fintech ecosystem. 2025-08-08 11:17:53

Samsung Electronics, SK hynix could avoid US chip tariffs under new Trump policy SEOUL, August 8 (AJP) - The Trump administration will waive newly announced semiconductor tariffs for companies that commit to building manufacturing facilities in the United States during President Donald Trump’s current term, the Commerce Secretary said on Thursday (local time), signaling a possible reprieve for major South Korean chipmakers including Samsung Electronics and SK hynix. In an interview with Fox News, Secretary Howard Lutnick sought to clarify President Trump’s announcement a day earlier of a sweeping 100 percent tariff on imported semiconductors. The policy is intended to bolster domestic chip production amid growing concerns over supply chain vulnerabilities. “What the president said is: if you commit to build in America during his term, and if you file it with the Commerce Department and your auditor oversees construction all the way through, then he will allow you to import your chips while you are building — without a tariff,” Lutnick said. He stressed that companies must demonstrate verifiable progress on their U.S. construction projects in order to qualify. “You have to be confirmed and overseen building in America,” he said. “Not just promised.” The policy clarification comes after Trump’s Wednesday announcement at a White House event highlighting Apple’s new domestic investment plans. “A 100 percent tariff on all chips and semiconductors coming into the United States,” he said. “But if you’ve made a commitment to build, or if you’re in the process of building, as many are, there is no tariff.” The initial declaration sent shockwaves through the global semiconductor industry, but analysts said South Korean firms may be well-positioned to benefit from the exemption framework due to their ongoing investments in U.S. manufacturing. Samsung Electronics currently operates a chip fabrication plant in Austin, Texas, and is building a second facility in Taylor, Texas, scheduled to begin operations in 2026. SK hynix is constructing a $3.87 billion high-bandwidth memory packaging plant in West Lafayette, Indiana, with production expected to begin in 2028. 2025-08-08 10:21:44

[[K-Tech]] South Korea's fintech giants gear up for stablecoin battle SEOUL, August 7 (AJP) - South Korean fintech companies are forming dedicated task forces and ramping up preparations as expectations mount for the introduction of won-backed stablecoins in the country. Stablecoins, digital tokens typically pegged to fiat currencies like the U.S. dollar or euro, have gained traction globally for their potential to enable faster, lower-cost transactions while promising greater price stability. Following the fintech sector's growing interest in cryptocurrency, mobile financial services provider Toss, operated by Viva Republica, has recently established a stablecoin task force team to examine business opportunities in the emerging market, according to industry sources on Thursday. The task force, led by Toss chief business officer Kim Kyu-ha, includes three financial subsidiaries under the Toss umbrella. The move follows similar actions by Kakao, which formed a group-wide stablecoin task force involving KakaoBank and KakaoPay. Both tech giants are positioning themselves ahead of potential regulatory approval for digital currencies. The crypto boom comes as South Korea presses forward with legislative reforms aimed at modernizing digital asset oversight — a key campaign pledge of President Lee Jae Myung. While South Korea's central bank and the Bank for International Settlements have raised fresh alarms over the systemic risks posed by the rapid rise of stablecoins, fintech giants are in preparation as stablecoins provide faster and cheaper transactions while mitigating the volatility often associated with cryptocurrencies like Bitcoin or Ethereum. Naver Pay has also signaled its intentions, with CEO Park Sang-jin saying in June 26 that the company is "well-positioned to develop and implement practical use" if stablecoin regulations are introduced. Last month, Naver announced plans to collaborate with Dunamu on stablecoin business ventures. System integration companies are also eyeing opportunities as banks, brokerages, and payment platforms would need to convert or redesign their existing payment and settlement systems for blockchain-based operations. Digital solution provider LG CNS mirrored great interests during its second quarter results briefing, its chief account officer Kim Hong-geun announcing that " we are strategically responding to stablecoin business opportunities." 2025-08-07 15:03:52

[[K-Tech]] Hyundai Motor, General Motors to jointly develop 5 new vehicles for North American markets SEOUL, August 7 (AJP) - Hyundai Motor Company and General Motors (GM) announced on Thursday their plans to jointly develop and release 5 new vehicles by 2028, including a commercial electric vehicle model. Four of the planned vehicles, a mid-sized pickup and a compact pickup truck, a compact sedan, and a compact sport utility vehicle, are to target Central and South American markets. All vehicles are to have the flexibility to use internal combustion or hybrid propulsion systems. Hyundai and GM are to also release a commercial electric vehicle to target North America as early as 2028. Hyundai is to lead the development of the compact vehicle and commercial EV, and GM is expected to lead the engineering of the mid-sized truck. About 80,000 units are expected to be produced and sold annually once the two top carmakers start their mass production phase. The collaboration stems from a memorandum of understanding the two firms signed last September. However, reportedly, the announcement of the collaboration was postponed due to prolonged discussions over car lineups. "Hyundai's strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets," said Jose Munoz, president and CEO of Hyundai Motor. "Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want – beautifully designed, high-quality, safety-focused vehicles with technology they appreciate," the Hyundai Motor CEO added. "By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost," said Shilpan Amin, GM senior vice president and global chief procurement and supply chain officer, adding: "These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale." The two companies also plan joint sourcing initiatives in North and South America for materials, transport, and logistics. Further areas for potential joint operations include raw materials, components, and complex systems. Hyundai Motor and GM also agreed to explore collaboration on low-carbon emissions steel as part of their commitment to sustainable manufacturing. 2025-08-07 10:42:06

[[K-Tech]] Samsung SDI battery powers electric vehicle to Guinness World Record SEOUL, August 7 (AJP) - A Samsung SDI battery-powered electric vehicle has secured a place in the Guinness Book of World Records after achieving the world's longest single-charge driving distance. Samsung SDI announced Thursday that Lucid Motors' Lucid Air Grand Touring model, equipped with the South Korean company's batteries, broke the previous world record during a single-charge driving test. The vehicle traveled 1,205 kilometers (748.7 miles) without charging during tests conducted last month on highways, mountain roads, and side streets between St. Moritz, Switzerland, and Munich, Germany. This surpassed the previous record of 1,045 kilometers by about 160 kilometers. The Air Grand Touring model houses 6,600 of Samsung SDI's 21700 cell cylindrical batteries, the batteries featuring nickel-cobalt-manganese (NCM) cathodes and silicon-based anodes to deliver comparatively higher capacity, longer lifespan and rapid charging capabilities. Samsung SDI and Lucid forged a strategic partnership in 2016, subsequently launching high-performance models including the Lucid Air Dream Edition. "Having Samsung SDI's cylindrical batteries power the world's longest-range vehicle demonstrates our superior technology," a Samsung SDI official told AJP, adding that SDI is to cooperate further with Lucid Motors to expand global market share and accelerate the development of safe products. 2025-08-07 09:41:25

HD Hyundai Heavy Industries wins US Navy ship repair contract SEOUL, August 6 (AJP) - HD Hyundai Heavy Industries announced Wednesday that it has secured a contract to perform maintenance, repair, and overhaul work on a U.S. Navy vessel. The deal marks the first such agreement since the two countries began discussing broader cooperation in shipbuilding. The contract involves the USNS Alan Shepard, a Lewis and Clark-class dry cargo ship weighing 41,000 tons. The work will be carried out at HD Hyundai Mipo Dockyard in Ulsan and is expected to be completed and the vessel redelivered in November, the company said in a press release. Joo Won-ho, the head of HD Hyundai Heavy’s naval and special ship business unit, highlighted the significance of the contract. "This MRO contract is significant as it's the first order following the government's 'Make American Shipbuilding Great Again (MASGA)' proposal," he said, referring to a South Korean initiative aimed at strengthening cooperation with the United States. South Korea's government proposed the $150 billion shipbuilding cooperation plan as a potential bargaining chip to counter potential tariff measures from the U.S. The contract is the latest step in a series of efforts by HD Hyundai to deepen its ties with the United States. The company signed a strategic partnership with Huntington Ingalls Industries, the largest U.S. defense shipbuilder, in April to collaborate on technology and joint naval ship construction. It also entered into a commercial shipbuilding partnership with the American company Edison Chouest Offshore in June. Other South Korean shipbuilders are also pursuing U.S. market opportunities. Hanwha Ocean, another major player, won a maintenance contract for the auxiliary ship Charles Drew last month and secured two other naval maintenance contracts in 2024. 2025-08-06 16:27:48

Wall Street banks lift growth forecasts for S. Korea as exports, trade outlook improve SEOUL, August 6 (AJP) - Major international investment banks are turning more optimistic about South Korea’s economic prospects, with J.P. Morgan raising its 2025 growth forecast for the country for the second time in a month. J.P. Morgan has lifted its projection for South Korea’s real gross domestic product growth to 0.7 percent on July 24, up from 0.5 percent at the end of June. The 0.2 percentage-point upward revision follows stronger-than-expected second-quarter growth, driven by resilient exports and a rebound in manufacturing, the bank said in a release, citing data from the Bank of Korea. Until late June, J.P. Morgan had held the lowest forecast among eight major global investment banks tracked by the Korea Center for International Finance. The Wall Street firm maintained its average annualized growth forecast for the second half of 2025 at 1.8 percent. It cautioned, however, that third-quarter momentum may taper due to base effects, though ongoing fiscal stimulus should cushion any slowdown. Goldman Sachs also adjusted its outlook upward on Aug. 1, raising its 2025 growth forecast to 1.2 percent from 1.1 percent. The bank cited easing trade-related uncertainty following recent Korea-U.S. negotiations. “The trade announcement alleviates tariff-related risks for key sectors such as semiconductors,” Goldman Sachs said in a note, adding that South Korea now faces no worse conditions than its global peers. This latest revision follows an earlier upgrade in June, when Goldman increased its forecast from 0.7 percent to 1.1 percent, citing reduced U.S. tariff threats, stronger growth outlooks in the United States and China, and expected fiscal support from Seoul. Despite the individual upgrades, the average 2025 GDP growth forecast among the eight international banks remained steady at 0.9 percent as of late July, unchanged for a second consecutive month, according to the Korea Center for International Finance. The Bank of Korea may also revise its growth outlook upward later this month when it releases its August economic update. In May, the central bank projected 0.8 percent growth for the year and said a second supplementary budget could add about 0.1 percentage point to that figure. 2025-08-06 14:36:45

[[K-Tech]] LG CNS will build Indonesia's largest AI data center SEOUL, August 6 (AJP) - LG CNS said Wednesday it had secured a contract to build Indonesia’s largest artificial intelligence data center, marking the first time a Korean firm will construct such a facility abroad. The project, located in Jakarta, involves the development of an 11-story hyperscale AI data center with a power capacity of 30 megawatts and a total floor space of roughly 46,000 square meters. Construction is slated for completion by the end of 2026. Once operational, the facility will house more than 100,000 servers and is estimated to cost around 100 billion won, or about $75 million. The company said it sees the project as a strategic foothold for entering key regional markets such as Singapore and Malaysia, where demand for AI infrastructure is rapidly accelerating. LG CNS signed the construction deal on Monday through its joint venture, LG Sinarmas Technology Solutions, with Indonesia’s Sinar Mas Group — the country’s third-largest conglomerate. The client, Kuningan Mas Gemilang (KMG), is a joint venture between Sinar Mas and Korea Investment Real Asset Management. The company plans to increase the facility’s power capacity to 220 megawatts in later development phases. KMG tapped LG CNS as its construction partner after the Korean firm completed consulting and design services for the project in 2024. To accommodate the demands of AI workloads, the facility will employ a hybrid cooling system that combines conventional air-based cooling with advanced liquid cooling technologies — necessary for handling the extreme heat produced by high-performance GPUs. The data center will also support high-density racks with power demands of up to 130 kilowatts each — more than 20 times that of typical racks — and will be equipped with dual power systems to ensure uninterrupted operations. Cooling solutions will be supplied by LG Electronics, and energy storage systems will come from LG Energy Solution. “This project demonstrates our ambition to be a global leader in AI data infrastructure,” said Hyun Shin-gyoon, chief executive of LG CNS. “We will leverage our expertise to deliver a next-generation AI data center that creates exceptional value for our client and expands our presence across Southeast Asia.” 2025-08-06 10:37:35

[[K-Food]] Young chefs explore Korean cuisine in Indonesia SEOUL, August 5 (AJP) - Riding a global wave of enthusiasm for Korean food culture, South Korean food firm CJ CheilJedang has concluded its first overseas culinary competition, aimed at fostering the next generation of Korean food ambassadors abroad. The event, part of the company’s Cuisine.K initiative, was held in Indonesia in partnership with Akademi Sages, a leading culinary institute in the country. CJ CheilJedang served as the exclusive sponsor of the two-month competition, which attracted over 100 aspiring chefs eager to fuse Korean flavors with local traditions. The contest began in May with an online preliminary round, challenging participants to create original dishes under the theme of Indonesian-Korean main courses using Korean ingredients. Competitors drew on a variety of CJ products widely available in Indonesia — such as Bibigo dumplings, seaweed, and gochujang (red pepper paste) — to craft dishes that reflected both culinary cultures. Michael Ken Samuel, who emerged as the grand prize winner, impressed judges with his inventive use of dumplings and fermented soybean paste. “This competition not only deepened my understanding of Korean cuisine but also solidified my dream of becoming a Korean food chef,” Samuel said following his win. The initiative comes as Korean cuisine continues to gain international attention through popular media, including Netflix’s hit cooking show Culinary Class Wars, which has helped spotlight Korean food culture on screens worldwide. “For CJ CheilJedang, this was more than a competition — it was a meaningful opportunity to inspire lasting interest in Korean cuisine and share the DNA of K-food with the next generation of chefs in Indonesia,” said Kim Sang-myeong, who oversaw the project. The company said it plans to expand the Cuisine.K program to other countries in the coming years, in line with its broader efforts to globalize Korean food and elevate local talent with a passion for Korean flavors. 2025-08-05 16:16:26

South Korea moves to shore up steel industry hit by US tariffs, Chinese imports SEOUL, August 5 (AJP) - A joint inspection team made up of senior government officials and industry representatives visited major steelworks in the southeastern port city of Pohang on Tuesday, as South Korea confronts a deepening crisis in its steel sector driven by U.S. tariffs and a surge in low-cost Chinese imports. The team, including officials from the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, and the Ministry of Land, Infrastructure and Transport, held closed-door meetings at the steel plants of POSCO and Hyundai Steel. The site visits were intended to assess the feasibility of designating Pohang as a preemptive industrial crisis response zone, according to city officials. The visit comes as Pohang, long the center of South Korea’s steel industry, suffers from a severe slowdown. Production at the city’s steel industrial complex, which houses 268 companies operating 355 factories, totaled 1.2 trillion won (about $920 million) in May — a 7.2 percent decline from a year earlier. Cumulative output through May fell 9.3 percent year-on-year to 5.87 trillion won. Amid growing global competition and weakening demand, major steelmakers have begun scaling back operations in the region. POSCO shuttered its No. 1 blast furnace last year, followed more recently by the closure of its wire rod plant, citing an oversupply in the global market, falling prices, and outdated equipment. Hyundai Steel closed its No. 2 Pohang plant in July, citing unsustainable losses. The downturn has prompted an unusual show of political unity. On Monday, 106 lawmakers from both ruling and opposition parties jointly introduced a sweeping “K-Steel Bill,” which would establish a presidential committee under President Lee Jae Myung to guide the industry’s transition toward low-carbon steelmaking. The proposed legislation outlines plans to designate four major steel-producing regions — Pohang, Gwangyang, Incheon and Dangjin — as special green steel zones. These areas would benefit from fast-tracked permits, reduced administrative fees, and exemptions from certain antitrust regulations to allow for coordinated restructuring efforts. The bill also proposes tougher trade defenses, including stricter verification of country-of-origin claims and extended anti-dumping measures, in an effort to stem the influx of low-priced Chinese steel. Crucially, the legislation seeks to position South Korea’s steel industry for a transition to hydrogen-based production, as global regulatory pressures mount. The European Union is set to impose carbon-based tariffs on steel imports, raising the stakes for producers who continue to rely on coal-intensive methods. Industry leaders welcomed the proposed overhaul. “This special bill comes at a very important time for overcoming the steel industry crisis and transitioning to green steel technology,” said Lee Kyung-ho, executive vice chairman of the Korea Iron & Steel Association, which has traditionally been led by chairmen of POSCO. The bill, if enacted, could provide a critical boost to an industry that helped power South Korea’s postwar economic rise — but now finds itself at a crossroads, squeezed between environmental mandates abroad and fierce price competition at home. 2025-08-05 13:59:16