[[K-Trade]] S. Korea launches joint task force team to eradicate stock manipulation SEOUL, July 30 (AJP) - A joint team of South Korean financial regulators was launched on Wednesday, in a bid to eradicate stock price manipulation that has been plaguing the market. The joint response team, comprised of officials from the Financial Services Commission (FSC), the Financial Supervisory Service, and the Korea Exchange, is to detect illegal and unfair trading practices. "We will mark 2025 as the first year of exterminating stock manipulation by showing the wrongdoers how they can lose everything," said FSC Vice Chairman Kwon Dae-young at the hanging ceremony of the task force. "Once caught, they will be hit with penalties that exceed their illegal profits," Kwon added, promising that the team will take firm measures to set order in the capital market. Before the launch of the joint task force team, responsibilities for responding to unfair trading had been fragmented across several institutions, leading to delays in effective enforcement. The joint task force comes as President Lee Jae-myung holds onto his election promises of boosting fairness and transparency in South Korea’s markets, aiming to crack down on stock price manipulation and implementing a "one-strike-out" rule to deal decisively with major offenders. Starting October, those caught illegally trading stocks will be charged fines up to twice as much as their unjust gains, and the market monitoring system to be based on individuals rather than trading accounts. The current surveillance system focuses on accounts rather than individuals, making it difficult to pinpoint links between accounts held by the same individuals. Under a new "one-strike-out" rule, stock manipulators will be shut off from the capital market for up to five years, even disqualifying them from serving as executives at listed companies. 2025-07-30 16:41:41

[[K-Tech]] KITA urges nation to nurture fabless startups to boost semiconductor competitiveness SEOUL, July 30 (AJP) - South Korea must foster fabless semiconductor startups to strengthen its position in the rapidly expanding system semiconductor market driven by artificial intelligence growth, a trade association report said Wednesday. The Korea International Trade Association (KITA) released a report highlighting the urgent need to develop the fabless ecosystem as non-memory semiconductors increasingly dominate global markets. Korea's share of the global system semiconductor market stands at a mere 2 percent, trailing far behind the United States' commanding 72 percent, according to the report. Taiwan holds 8 percent, Japan 5 percent and China 3 percent. The disparity becomes more concerning as non-memory semiconductors, led by system chips, accounted for 75.3 percent of global semiconductor sales as of May. This share is projected to reach about 80 percent by 2028. Despite the challenges, Korea shows promise in fabless startup development, ranking fourth globally with 61 companies behind China's 567, the United States' 323 and India's 104. Korean fabless startups demonstrate strong innovation potential, with 42.6 percent holding at least one patent - the second-highest rate globally after Israel's 68.8 percent. However, the domestic ecosystem remains fragile, the report noted. Korean fabless startups attract an average of $37.8 million in cumulative investment, significantly less than China's $101.65 million and the United States' $82.72 million. About 95 percent of Korean fabless startups remain in early funding stages focused on product launches or business expansion, while mature companies pursuing overseas expansion represent 29.9 percent in the United States and 14.8 percent in China. The report recommended streamlining budget channels across multiple ministries and establishing clear allocation quotas for fabless firms within the government's semiconductor ecosystem fund. "The government should take the lead in creating the ecosystem, and in the long term, promote autonomous growth led by the private sector," said Heo Seul-bi, a KITA researcher. "If Korea concentrates on developing capabilities in neural processing units and edge devices where it has strengths, it can seize opportunities in global competition." 2025-07-30 14:18:29

[[K-Tech]] Krafton's Q2 net profit tumbles 95 percent despite record sales for first half of the year SEOUL, July 30 (AJP) - South Korean gaming giant Krafton, well-known for its flagship game “PUBG: Battlegrounds”, reported on Tuesday its second-quarter net income tumbled 95.4 percent due to increased operational costs. The company reported 15.5 billion won, around US$11.1 million, in net profit for the April to July period, down 95.4 percent compared to year-on-year, in a regulatory filing on Tuesday. Krafton attributed its sharp fall in net income to increased marketing expenses and labor fees. Despite its moody second quarter results, the company posted its highest sales for the January to June period, with sales nearing 1.53 trillion won, up 11.9 percent from the same period of last year. Operating profits for the first half of 2025 also rose 9.5 percent to 703.3 billion won. The firm analyzed its sales that mobile gaming contributed 960 billion won, followed by PC gaming with 543.2 billion won, console gaming and others with 33 billion won. Looking ahead, Krafton is to broaden its portfolio by digging new franchise intellectual properties under its five-year long-term strategy for new games. 2025-07-30 13:45:42

[[K-Tech]] Hyundai Motor's earnings drop sharply despite record sales, weighed down by US tariffs SEOUL, July 24 (AJP) - Hyundai Motor reported a double-digit drop in second-quarter operating profit on Thursday, as new U.S. tariffs and intensifying market competition eroded margins. Operating profit fell 15.8 percent from a year earlier to 3.60 trillion won, or about $2.6 billion — the company’s sharpest quarterly decline since the third quarter of 2020. The drop came even as revenue rose 7.3 percent to a record 48.29 trillion won, buoyed by strong sales of hybrid vehicles, solid performance in financial services, and favorable foreign exchange rates. Net income reached 3.25 trillion won, while Hyundai’s operating margin slipped to 7.5 percent, down from 9.5 percent a year ago. The company attributed the earnings decline primarily to the full brunt of recently imposed U.S. automotive tariffs, coupled with rising sales costs and increased use of incentives amid fierce competition in major markets. Global vehicle sales edged up 0.8 percent during the quarter. Overseas deliveries increased 0.7 percent to 877,296 units, while sales in the United States rose 3.3 percent to 262,305 units, as buyers rushed to secure vehicles ahead of anticipated price hikes stemming from the tariffs. Hyundai has so far kept U.S. prices steady despite the duties. Sales of eco-friendly vehicles — a category that includes hybrid, plug-in hybrid, and battery electric models — surged 36.4 percent year-on-year to 262,126 units globally. Electric vehicle sales totaled 78,802 units, while hybrid sales hit 168,703, reflecting growing adoption in Europe and an expanded hybrid lineup. Hyundai warned that trade-related uncertainty, particularly around U.S. tariff policy, remains the most significant risk to its outlook. The automaker also faces additional pressure with federal tax credits for electric vehicle purchases in the United States set to expire on October 1, potentially dampening demand in the second half of the year. Still, the company said it would maintain its annual earnings guidance for now. Hyundai added that it is preparing a “systematic response” ahead of the U.S. government’s expected announcement on tariff policy changes on Aug. 1. 2025-07-24 16:39:51

[[K-Tech]] From creepy-crawly to culinary contender: Companies bet big on edible insects SEOUL, July 24 (AJP) - The first bite delivered a crispy snap, followed by an unexpectedly savory burst — something between charred prawns and stir-fried anchovies. There was no musty aftertaste, no trace of the gamy aroma one might expect. “These are mealworms,” said Celina Lee, founder and chief executive of Grub Lab, a South Korean food-tech startup focused on edible insects. She watched her guest's reaction with a practiced calm, then offered a second helping — this time, a generous scoop of golden-brown slivers still bearing traces of their original form. “They taste better than they look, don’t they?” Grub Lab is one of South Korean firms betting that insects — once a novelty street snack — could become a cornerstone of future global diets. As the world grapples with the looming threat of food insecurity, the race to develop sustainable protein alternatives has accelerated, and insects are emerging as an unlikely frontrunner. With the global population expected to hit 10 billion by 2050, protein demand is projected to nearly double, putting unprecedented strain on agriculture and livestock production. In response, the food industry is advancing three main alternatives: plant-based meat for vegetarians, lab-grown meat for traditionalists, and edible insects for scalable, low-cost protein. South Korea, which has a long if sporadic tradition of insect consumption — including fried grasshoppers during harvest and silkworm pupae skewered on street corners — is positioning itself as a leader in the insect protein sector. A surge in patents, ranging from insect-based noodles to cheese, illustrates the scope of innovation. “Insects are remarkably efficient,” Lee told AJP. “They consume one-fifth the water and one-fifteenth the feed of traditional livestock, while emitting just a fraction of the carbon dioxide.” Referred to by industry insiders as “little cattle,” insects also require far less land, needing just one-fourteenth the space per gram of protein compared to cows. With breeding cycles as short as two months, they allow for multiple harvests per year — making them both cost-effective and climate-resilient. Market projections back the optimism. Precedence Research estimates that the global edible insect market, currently valued at $1.77 billion, will grow nearly sixfold to $9.14 billion by 2034. In terms of nutrition, insects outperform many conventional meats. According to South Korea’s Ministry of Food and Drug Safety, mealworms contain 53 grams of protein per 100 grams — about 1.5 times more than pork. Rice grasshoppers contain even more: 64.2 grams of protein per 100 grams and nearly 40 times the iron. Their fat content is significantly lower, and what fat remains consists mostly of healthy unsaturated fatty acids. “Insects are the protein of the future,” said Kim Jae-keun, a professor of smart food resources at Donga University of Health. “They’re a viable alternative, particularly as extreme weather events — like the unusually intense monsoon season we saw this July — drive up feed prices and threaten traditional livestock.” Kim sees smart insect farms as the next frontier: vertically integrated, climate-controlled facilities that can produce reliable yields regardless of external weather conditions. South Korea’s government is beginning to act on that vision. On July 16, officials in Gangwon Province broke ground on a 20 billion won ($14.5 million) industrial complex dedicated to insect smart farming. The 2.8-hectare facility will focus on mass-producing mealworms, grubworms, crickets, and silkworms. “We want zero waste,” said Seok Young-seek, the center’s director. “Insects aren’t just food. Their chitin shells can be used in bioplastics and sensors. Their waste becomes fertilizer. There’s enormous potential.” The first batch — an estimated 200 tons of mealworms — is expected by mid-2026. The complex has already drawn attention from major firms: LG CNS is participating in automation design, while food giants Pulmuone and Hanmi Nutrition have expressed interest in integrating insect protein into their offerings. Despite the momentum, government data shows the number of edible insect businesses in South Korea grew only modestly in recent years — from 2,535 in 2019 to 3,031 in 2023, an 18 percent increase. That growth pales in comparison to the 180 percent surge in the four years leading up to 2015. Total sales in 2023 reached just 47.3 billion won, marking a 5.3 percent increase from the previous year — a sign that consumer acceptance is still lagging. “It’s really the visual aspect that turns people off,” said Lee Joon-ha, an expert in industrial insects at the National Institute of Agricultural Sciences. “People associate bugs with filth or household pests. It’s a deeply ingrained aversion that’s hard to change.” To combat the stigma, officials have organized edible insect festivals and launched public campaigns, including naming contests for farmed bugs. But Lee says a more lasting shift will come only when insects are reimagined in the culinary space. “Right now, we mostly see insects powdered, juiced, or dried. That’s not enough,” he said. “We need genuinely appetizing, original food products — things people want to eat, not just tolerate.” Until then, startups like Grub Lab are pushing forward, hoping that taste, not appearance, will eventually win over the masses. “Once people try it,” Celina Lee said, offering another sample, “they usually come back for more.” 2025-07-24 14:14:35

[[K-Tech]] Hanwha Aerospace nears Nuri rocket technology transfer deal SEOUL, July 23 (AJP) - Hanwha Aerospace is poised to finalize a long-delayed agreement with the Korea Aerospace Research Institute to assume key responsibilities for South Korea’s homegrown space launch vehicle, the Nuri rocket, officials said Wednesday. The two sides are in the final stages of negotiations and are expected to sign the technology transfer agreement on Friday at KARI’s headquarters in Daejeon. The deal would mark a critical milestone in the country’s effort to commercialize its space program and hand over leadership from state to private hands. The agreement comes nearly three years after Hanwha was selected as the preferred negotiation partner in October 2022. While KARI has already shared some technical data ahead of Nuri’s upcoming fourth launch, core components and designs remained restricted pending the completion of the contract. Nuri is South Korea’s first fully domestically developed space launch vehicle. Developed over a decade with a government investment of about 2 trillion won, or roughly $1.45 billion, the three-stage rocket has flown three times since its debut in 2021. A fourth flight is scheduled for November. Officials hope the agreement will usher in a new phase of the country’s space program, often referred to as “New Space,” in which private firms take a leading role in satellite launches and space transportation. The government selected Hanwha Aerospace as the program’s system integrator in 2022, mirroring the United States’ transition of space launch responsibilities to companies like SpaceX. Negotiations had been stalled for years due to disputes over technology transfer fees and the extent of proprietary knowledge to be disclosed. But officials say the deal now appears to be imminent, setting the stage for broader private-sector participation. Under the Nuri advancement program, the government plans to conduct three additional launches annually from this year through 2027, aiming to strengthen South Korea’s commercial space capabilities and reduce dependence on foreign launch providers. 2025-07-23 16:10:02

Korea's lending clampdown leaves door wide open for foreign buyers SEOUL, July 23 (AJP) - Foreign property acquisitions in Seoul have surged in the wake of South Korea’s tightened mortgage lending rules for domestic buyers, according to newly released court registry data. The new regulations, which took effect on June 27, cap mortgage loans at 600 million won (about $435,000) for most buyers. In the weeks that followed, domestic transactions plummeted. Between July 1 and July 18, purchases of apartments and officetels — mixed-use buildings that serve both residential and commercial purposes — fell by 27.2 percent compared to the same period in June. In contrast, foreign acquisitions rose 14.3 percent over the same span, totaling 120 transactions. Chinese nationals accounted for nearly half, with 57 purchases, followed by Americans with 35 and Canadians with eight. The increase highlights a regulatory gap that exempts overseas buyers using foreign financing from the lending restrictions imposed on domestic borrowers. While South Korean residents are subject to strict lending requirements, foreigners using external capital sources face few such constraints. The disparity has prompted a wave of high-end listings targeting Chinese investors. On Juwai.com, China’s largest international property platform, dozens of Seoul luxury apartments are featured, with some priced as high as 25.8 billion won (approximately $18.7 million). Foreign ownership of South Korean residential properties exceeded 100,000 units for the first time last year, an increase of 9.6 percent from the year prior. Nearly three-quarters of those properties are located in the greater Seoul area, and more than 9,000 units are held through fractional ownership by multiple foreign buyers. Critics have pointed to the uneven enforcement of lending rules. Domestic buyers face immediate loan recalls and penalties for violations, while foreign buyers using offshore funding mechanisms are largely unaffected — exposing what lawmakers and housing advocates describe as a structural enforcement gap. In response, lawmakers have proposed legislation to rein in foreign purchases. The measures include shifting from a notification-based system to a permit-based process and requiring a minimum three-year residency commitment for foreign buyers seeking to acquire residential property. 2025-07-23 14:01:19

Hanwoo beef gets legislative backing as Korea aims to modernize cattle farming SEOUL, July 22 (AJP) - South Korea has enacted a new law aimed at strengthening the nation's hanwoo beef industry. The Ministry of Agriculture, Food and Rural Affairs announced Tuesday that the so-called “Hanwoo Act” has been officially promulgated and will go into effect on July 23 next year. The legislation mandates that the government devise rolling five-year development plans for the premium Korean beef industry and provide direct financial support to cattle farmers. The move revives a version of the law that was previously scrapped and reflects growing recognition of hanwoo beef’s central role in the rural economy. “Hanwoo production ranks third in agricultural output after pork and rice,” said Ahn Yong-deok, director general of the ministry’s livestock policy division. “The number of cattle farms is the largest in the livestock sector, making it a key sector for the rural economy. This law will serve as a catalyst to upgrade our support system and strengthen competitiveness while discovering new measures for farm management stability.” The new law requires the agriculture ministry to conduct research to improve breeding techniques and meat quality, while also offering slaughter and shipment incentives to farmers to help stabilize supply and demand. As of last month, South Korea was home to approximately 3.29 million hanwoo cattle. North Gyeongsang Province accounted for the largest share, with more than 716,000 cows, followed by South Jeolla Province with roughly 604,000. In the months ahead, the ministry will work to finalize detailed subordinate regulations before the law’s implementation. Hanwoo beef, known for its marbling and high-quality flavor, commands premium prices domestically. 2025-07-22 16:08:11

Hyundai's electric vehicle exports plunge 88 percent amid US setbacks SEOUL, July 22 (AJP) - Hyundai Motor Group’s electric vehicle exports plunged nearly 90 percent in the first five months of 2025, as softening demand and looming policy shifts in the United States threaten the automaker’s global electrification strategy. Data released Tuesday by the Korea Automobile & Mobility Association showed that Hyundai and its affiliate Kia shipped just 7,156 EVs between January and May, an 88 percent decline from 59,705 units during the same period last year. The slump marks the group’s lowest EV export volume since 2021, when it first rolled out its dedicated electrification push. Hyundai Motor, which includes its upscale Genesis brand, recorded an 87 percent drop in exports, down to 3,906 units. Kia’s EV shipments fell even more steeply, tumbling 89.1 percent to 3,250 vehicles. The downturn comes despite expanded local production in the U.S., where Hyundai began operating its first dedicated EV facility — the Hyundai Motor Group Metaplant America — in Georgia earlier this year. The plant produced nearly 29,000 Ioniq 5 models and more than 4,000 units of the new Ioniq 9 in the first half. Kia, for its part, assembled over 14,800 EV6 and EV9 vehicles for the American market. Still, the production ramp-up has yet to yield gains in U.S. sales. Combined Hyundai and Kia EV deliveries in the United States declined 28 percent year-over-year to 44,555 units in the first half, according to data from Wards Intelligence, part of the research firm Omdia. Over the same period, the broader U.S. EV market grew 5.2 percent. Analysts warn that the second half of the year may prove even more challenging. Under U.S. President Donald Trump’s recently enacted "One Big Beautiful Bill Act," federal tax credits for EV purchases are set to expire on October 1. The Korea Economic Research Institute projects the change could cost Hyundai up to 45,828 units in lost annual sales in the United States. In response to faltering global demand, Hyundai has begun scaling back domestic production. The company temporarily halted operations at its Ulsan Plant 1 — which manufactures the Ioniq 5 and Kona EV — from July 16 to 21, marking its fifth partial shutdown this year. The U.S. accounted for roughly 36 percent of Hyundai Motor Group’s total EV exports last year, making the American market a cornerstone of its international strategy. The recent slowdown threatens not only the company’s sales targets but also its broader vision of competing globally. 2025-07-22 14:23:22

South Korean retail investors dump gold as stocks rally SEOUL, July 22 (AJP) - South Korean retail investors have turned net sellers of gold for the first time in over a year, pivoting toward equities as the country’s main stock index soared to its highest level in nearly four years. Between July 1 and July 21, individual investors unloaded a net 15.9 billion won, or approximately $11.4 million, worth of gold on the Korea Exchange, with a sharp 11.1 billion won sold in a single day on July 21, according to exchange data. Proprietary trading firms also joined the sell-off, shedding nearly 11.4 billion won worth of gold over the same period. The shift ends a 15-month streak of net gold purchases that began in March 2023 and saw retail investors accumulate nearly 1.5 trillion won in the precious metal through June. Analysts say the reversal reflects growing confidence in the domestic equity market, where the benchmark KOSPI index crossed the 3,200 mark in mid-July — a level last seen in late 2021. The rally, driven in large part by surging semiconductor stocks and optimism surrounding the new government’s economic agenda, has lured capital away from traditional safe-haven assets. International gold prices, meanwhile, have remained rangebound around $3,370 per troy ounce after peaking at $3,487.94 in April. The recent plateau follows a months-long rally fueled by investor anxiety over U.S. trade policy and global economic uncertainty, as well as a weakening dollar that had amplified demand for gold earlier in the year. While South Korean investors pulled back, their Chinese counterparts were heavy buyers of gold in the first half of 2025, purchasing about 63 tons through exchange-traded funds. However, that demand has since cooled after Beijing launched a crackdown on speculative trading in May. 2025-07-22 11:20:33