Kia to equip upcoming EV5 with CATL batteries SEOUL, July 17 (AJP) - Kia, a subsidiary of Hyundai Motor Group, will use batteries made by China’s CATL in its upcoming EV5 electric compact SUV, expanding Hyundai’s reliance on Chinese battery technology. The EV5, scheduled to launch in September, will be equipped with CATL’s nickel-cobalt-manganese (NCM) battery packs, which have a capacity of 81.4 kilowatt-hours, according to Kia officials. NCM batteries, while more costly due to volatile raw material prices, offer higher energy density than the increasingly popular lithium iron phosphate (LFP) alternatives. The move marks Hyundai Motor Group’s latest expansion of its partnership with CATL, whose ternary battery technology is already used in Hyundai’s Niro and Kona electric models. It comes at a time of heightened geopolitical tension and shifting trade dynamics — particularly in the United States, where tariffs on Chinese-made vehicles and components have increased. Facing pressure from the so-called electric vehicle “market chasm,” where early adopter enthusiasm has cooled and mass-market demand has yet to fully materialize, Hyundai is recalibrating its supply chain to maintain pricing flexibility in key markets. Analysts say the use of Chinese batteries may offer a short-term solution for managing production costs. Kia’s EV5 will become the company’s fifth dedicated electric vehicle, following the EV6, EV9, EV3 and EV4. The vehicle was first revealed as a concept at the 2023 Shanghai Auto Show, with the production version debuting later that year in Chengdu. Mass production is expected to begin in the second half of 2025. The decision to deepen battery sourcing ties with CATL could also signal Hyundai’s broader strategy to diversify suppliers amid uncertain U.S. policy shifts and slowing EV adoption in several markets. 2025-07-17 14:24:51

KOGAS anchors Korea's energy strategy in age of AI, uncertainty Editor's Note: This article is the 27th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, July 16 (AJP) - As artificial intelligence reshapes global energy consumption patterns, the Korea Gas Corporation (KOGAS) is placing a bold wager on liquefied natural gas. The state-run energy company reported this week that the first shipment of LNG from the Canada LNG project — in which it holds an ownership stake — is en route to South Korea. The milestone marks a strategic shift as the company looks to reposition LNG as a central pillar of the AI-powered economy. The Canadian cargo, expected to be cheaper than current imports from the Middle East, Australia, and the United States, underscores KOGAS’s efforts to diversify its sourcing amid intensifying geopolitical instability. The three regions currently account for more than 70 percent of the company's LNG portfolio. Executives are also weighing possible participation in the long-delayed Alaska LNG project, a move that could broaden supply lines while offering diplomatic leverage in trade talks with the United States. But the project remains mired in uncertainty, with industry analysts citing unresolved questions around financing, cost competitiveness, and commercial viability. Previous withdrawals by energy majors such as ExxonMobil and BP have raised red flags about its long-term potential. Founded in 1983 to ensure stable natural gas supplies, KOGAS began operations three years later at its Pyeongtaek terminal. The company has since grown into one of the world’s largest LNG importers, boasting the highest global storage capacity — 11.47 million kiloliters — and supplying about 80 percent of South Korea’s LNG needs. Over the decades, KOGAS has built a sprawling import network. It began sourcing from Qatar in 1999, followed by Oman, Yemen, Indonesia, and Australia. More recently, the company added supplies from Mozambique, expanding its footprint into Africa. Today, that diversification is more than an operational strategy; it is a geopolitical hedge. As energy markets become increasingly exposed to conflict, sanctions, and trade restrictions, KOGAS is seeking to secure supply lines for what it sees as a new kind of energy demand — one driven not by households. At a company-hosted forum on July 11, CEO Choi Yeon-hye laid out a vision for LNG in the age of artificial intelligence. “We will actively reflect the opinions provided by experts through the KOGAS Forum to further strengthen future energy security and drive innovation in the natural gas industry,” she said. Choi highlighted the potential for LNG-powered distributed generation to support data centers — a critical infrastructure layer as AI accelerates electricity consumption. To that end, the company is constructing a major LNG terminal in Dangjin, South Chungcheong Province. When completed in 2030, the facility will include 10 storage tanks and a full suite of port infrastructure. The first tank — at 270,000 cubic meters, the largest in South Korea — was topped off in May. Choi described the site as an “energy hub for the west coast” and a key component of national energy policy. Still, the company’s financial results reflect the shifting terrain of the global energy market. In the first quarter of this year, KOGAS reported revenue of 12.73 trillion won (about $9.24 billion), a modest year-over-year decline of 77.9 billion won. Sales volumes rose due to colder weather and industrial demand, but lower international prices weighed on returns. Operating profit fell by 87.7 billion won to 833.9 billion won, and net income declined to 367.2 billion won. Overseas projects, including those in Mozambique, helped cushion the blow. As the world balances the dual imperatives of energy security and digital transformation, KOGAS’s strategic pivot offers a glimpse into how traditional energy firms are adapting. By betting on LNG as a transitional fuel in a digital-first economy, the company is positioning itself not only as a supplier — but as an enabler of South Korea’s broader technological ambitions. 2025-07-17 10:23:37

[[K-Tech]] LG CNS ventures into insect farming using AI-powered breeding technology SEOUL, July 16 (AJP) - South Korean IT solutions provider LG CNS has begun construction on an artificial intelligence-powered insect farming complex in Gangwon Province. The groundbreaking ceremony for the facility — billed as an “insect smart factory” — was held Wednesday in the city of Chuncheon, with Gangwon Province Governor Kim Jin-tae and LG CNS Executive Vice President Kim Hong-keun in attendance. The factory will use advanced automation and AI-driven systems to breed, monitor, and harvest insects such as mealworms at industrial scale. By deploying its proprietary manufacturing automation platform, LG CNS aims to manage the entire production process — from breeding to quality control — through a unified, data-driven control system. At the core of the factory’s operations is an AI system designed to monitor insect growth stages in real time. The technology analyzes movement patterns and color variations to detect abnormalities or disease, identifying substandard or dead specimens before they can contaminate batches. The system is intended to solve a persistent challenge in traditional insect farming, where manual sorting is both labor-intensive and unreliable at scale. “LG CNS will deliver fundamentally differentiated value to customers by combining our automation innovation with the emerging insect industry,” said Kim, the company’s executive vice president. The Chuncheon facility is expected to produce roughly 700 tons of mealworms annually by the end of the year. The insects are widely used in animal feed, protein supplements, and biodegradable materials — key components in efforts to create more sustainable food and resource systems. While insect farming has long been touted as a potential solution to climate and food security issues, scaling production has proven difficult. LG CNS’s entry into the sector reflects a broader push among Korean tech firms to apply AI and automation to ecological and agricultural challenges. 2025-07-16 14:21:09

US beef exporters intensify lobbying as Korea weighs lifting age restrictions SEOUL, July 16 (AJP) - American beef exporters are intensifying their lobbying efforts to convince South Korea to lift its 16-year ban on U.S. cattle over 30 months old. This push comes as Seoul seeks leverage ahead of critical tariff negotiations with Washington. South Korea has maintained the 30-month age limit on American beef imports since the 2008 bovine spongiform encephalopathy (BSE), or "mad cow disease," crisis. Officials have cited a heightened risk of detecting BSE-linked hazardous materials in older cattle as the reason for the restriction. This barrier has become a central point of contention in U.S. trade pressure. On March 31, the Office of the U.S. Trade Representative (USTR) highlighted the beef age restriction as one of several non-tariff barriers in its annual National Trade Estimate (NTE) report. The report also noted, "In addition, Korea continues to prohibit the import of processed beef products, including ground beef patties, beef jerky, and sausage, regardless of age." The global landscape for beef imports has changed significantly in recent years. Japan lifted similar restrictions in 2019, followed by China in 2020 and Taiwan in 2021. This leaves South Korea, along with Russia and Belarus, as one of the few major markets still imposing age limits on U.S. beef. U.S. meat industry giants are engaging in what sources describe as comprehensive lobbying efforts targeting the Korean market. The U.S. Meat Export Federation suggests that lifting the age restriction could generate an additional $175 million in revenue for American exporters. Beyond beef, the apple market presents another point of contention. The U.S. has sought market access for its apples for 33 years, ever since filing a risk analysis request in 1993. Despite repeated American complaints, Korean quarantine authorities have consistently blocked these efforts. Domestically, regional governments are mobilizing opposition to agricultural concessions. The North Gyeongsang Province Council and Cheongsong County Council have issued formal statements demanding the immediate suspension of apple import reviews. Further protests are planned, with the farmers federation intending to demonstrate against non-tariff barriers outside the presidential office in Yongsan, Seoul. 2025-07-16 10:53:33

High-income YouTubers under crackdown over unreported earnings SEOUL, July 14 (AJP) - South Korea’s tax authorities have ramped up enforcement efforts against YouTubers and other online content creators, uncovering widespread tax evasion and imposing billions of won in penalties. According to data submitted to ruling party lawmaker Jung Tae-ho by the National Tax Service (NTS), audits were conducted on 21 YouTubers in 2024 alone, resulting in 8.9 billion won (approximately $6.45 million) in penalties. The intensified scrutiny reflects growing concern over tax compliance among high-earning online influencers. From 2019 through 2024, regional tax offices audited 67 YouTubers, levying a total of 23.6 billion won in penalties — an average of about 350 million won per creator. The figures encompass all types of business income, not solely revenue generated through YouTube. Tax enforcement has accelerated in recent years. While just 22 creators were audited over the four-year period between 2019 and 2022, authorities investigated 24 in 2023 and another 21 in 2024. During that same time, the average penalty per YouTuber rose sharply, exceeding 420 million won last year. Despite the rise in enforcement, tax authorities acknowledged limitations in tracking specific income streams, such as direct viewer donations. Officials said they do not maintain detailed records distinguishing between forms of income like "super chats" or voluntary bank transfers, which creators often label as "subscriptions" or "gifts." Regardless of terminology, such donations are taxable under Korean law. “Voluntary” viewer contributions — whether processed through platforms or transferred directly — must be reported as income, the NTS said. In a sign of broader digital enforcement, the NTS said it had expanded its scope this year to include 17 investigations into other online platforms. These include nine cases linked to sexually explicit broadcasts, five involving deepfake gambling sites, and three YouTube channels accused of spreading defamatory content for profit. Lawmaker Jung, who disclosed the findings, called for stronger safeguards to address gaps in online income reporting. “We need to encourage honest reporting and introduce institutional improvements to prevent blind spots in digital taxation,” he said. 2025-07-14 15:22:08

Korean steelmakers struggle under US tariff pressure, global glut SEOUL, July 14 (AJP) - South Korea’s steelmakers endured another punishing quarter as a persistent global supply glut collided with a sharp escalation in U.S. tariffs. Steel exports from South Korea fell 5.9 percent year-on-year to $15.63 billion in the first half of 2025, according to the Ministry of Trade, Industry and Energy. The downturn accelerated in May and June — dropping 12.4 percent and 8.0 percent respectively — as the full effects of the Trump administration’s 25 percent tariff began to bite. The blow was compounded in June when the White House doubled the tariff rate on steel and aluminum to 50 percent. Speaking at a U.S. Steel plant outside Pittsburgh on May 31, U.S. President Donald Trump defended the move, saying: “At 25 percent, they can sort of get over that fence. At 50 percent, they can no longer get over the fence.” The rate hike has reignited fears of a broader trade contraction, especially for export-reliant economies like South Korea. The Korea International Trade Association now forecasts a 7.2 percent decline in steel exports in the second half of the year, while the Federation of Korean Industries projects a 5 percent drop amid tightening global margins. POSCO Holdings, the country’s largest steel group, is expected to report second-quarter operating profit of 646.8 billion won ($469 million), a 14 percent decline from a year earlier. While lower raw material prices and a weaker won provided some cost relief, analysts said slumping demand and falling prices in Southeast Asian markets likely weighed on overseas operations. In response, POSCO has accelerated efforts to streamline its international footprint, including the recent sale of its 1.1 million-ton-capacity Zhangjiagang Pohang Stainless Steel plant in China. Hyundai Steel, the nation’s second-largest producer, also faces mounting headwinds. Second-quarter revenue is projected to decline 3.2 percent to 5.85 trillion won, with operating profit forecast to fall 15.2 percent to 83.1 billion won. Despite the grim backdrop, industry watchers point to a few signs of potential relief in the second half. Beijing’s production curbs have begun to lift steel prices, and a pending South Korean government decision on imposing anti-dumping duties against Chinese and Japanese hot-rolled steel could help alleviate some pressure from low-cost imports. 2025-07-14 14:23:48

Soaring fruit prices in South Korea reflect strain of heat wave SEOUL, July 14 (AJP) - Fruit prices in South Korea have surged sharply in recent weeks, as an early summer heat wave scorches the country, disrupting crop yields and straining supply chains. Watermelons and napa cabbage — summertime staples — have seen particularly steep price increases, prompting emergency measures from the government. As of July 11, the average retail price of a watermelon stood at 29,115 won, or about $21.16, according to data from the Korea Agro-Fisheries and Food Trade Corporation. The price is up 36.5 percent from a year ago and nearly 39 percent above the average over the past three years. The spike stems from a confluence of adverse weather conditions. A lack of sunlight in June delayed watermelon crop development, while the onset of intense heat in July accelerated demand. Producers say the extreme temperatures have reduced sugar content in many watermelons, leading to a supply shortage of high-quality fruit. Other summer fruits are also feeling the heat. Melons are selling for 10,076 won each, a 21.7 percent increase from a year ago and 16.3 percent higher than the three-year average. Peaches, another seasonal favorite, have climbed about 10 percent in price year over year. Napa cabbage — a key ingredient in kimchi, Korea’s beloved fermented dish — has shown particularly volatile movements. While current prices are still about 10 percent lower than last year’s levels, they jumped 27.4 percent in just one week to 4,309 won per head, reflecting tightening supply conditions. Livestock and poultry products have also been affected by the oppressive temperatures. Egg prices have risen nearly 6 percent from last year, reaching 7,162 won for a pack of 30, as consumers turn to protein-rich foods amid the heat. Chicken prices, currently at 6,070 won per kilogram, remain in line with year-ago levels but are up 11 percent from a month ago — with further increases likely as demand climbs ahead of Chobok, the first of Korea’s traditional “dog days” of summer on July 20. In response, the government has rolled out emergency supply measures. The Ministry of Agriculture, Food and Rural Affairs said it has secured 35,500 tons of napa cabbage for release during market shortages and prepared 2.5 million backup seedlings to offset crop losses. For watermelons, officials expect prices to ease later this month as harvests expand to more regions nationwide. Still, with meteorologists forecasting continued heat into August, officials and consumers alike are bracing for sustained pressure on food prices — and on the resilience of the country’s agricultural system. 2025-07-14 10:08:32

Naver Webtoon halts popular 'Wind Breaker' series over tracing allegations SEOUL, July 12 (AJP) - Naver Webtoon has suspended its long-running sports webtoon "Wind Breaker" after the creator admitted to tracing scenes from Japanese manga, ending a 12-year serialization that had become one of the platform's flagship titles. Creator Jo Yong-seok acknowledged the plagiarism allegations in the final episode revealed on Friday, confessing that some scenes in his work bore striking similarities to other comic book images. The webtoon, which follows a protagonist's journey through amateur bicycle racing competitions, had been running since 2013. Jo attributed his actions to the pressure of weekly deadlines spanning over a decade. He expressed deep regret for failing to uphold the standards expected of creators, offering repeated apologies to readers who had followed the series faithfully. Naver Webtoon confirmed it had identified similarities in composition and directing between "Wind Breaker" and other works, prompting the decision to halt both serialization and service of the webtoon immediately. The suspension marks another blow to the webtoon industry, which has grappled with recurring plagiarism scandals. Naver Webtoon faced similar controversies in 2023 with titles including "I want to date a girl" and "Can I Cancel My Confession" Critics have pointed to the platform's inconsistent approach to handling such incidents. While previous plagiarism cases prompted official announcements, this latest suspension was disclosed quietly at the bottom of the final episode without separate notification. The incident has reignited discussions about quality control measures in the rapidly expanding webtoon market. Naver Webtoon had previously promised to develop detection technology and strengthen monitoring systems following the 2023 plagiarism controversies. 2025-07-12 14:25:59

South Korean companies accelerate China exit amid trade tensions SEOUL, July 12 (AJP) - South Korean companies are rapidly withdrawing from China as regulatory pressures and trade tensions make operations increasingly unprofitable, with major manufacturers joining what was once limited to retail firms. About 40 major South Korean companies have closed or downsized their Chinese operations since 2017, according to the Korea Institute for International Economic Policy. The trend has expanded beyond retail to encompass key manufacturing sectors including automotive, steel and petrochemicals. POSCO sold its stainless-steel subsidiary Zhangjiagang Pohang Stainless Steel to a Chinese steel company for about 400 billion won (US$290 million) earlier this month. The facility, established in 1997 to target the Chinese market, was once hailed as "China's POSCO" but has posted annual losses exceeding 100 billion won due to oversupply and price competition. Hyundai Motor's Beijing Hyundai Motor Company joint venture has been shedding assets, selling its Chongqing factory last year, while currently pursuing the sale of its Changzhou plant. Kumho Petrochemical also joined the exodus last year by divesting its entire stake in the SB latex business, a joint venture with a Chinese company. Companies cite sluggish sales in China, intensified competition from local rivals, rising production costs and labor shortages as primary challenges. Beijing Hyundai's revenue plummeted 83.5 percent to 3.31 trillion won last year from 20.13 trillion won in 2016, while Hyundai's China sales dropped to 125,000 units with just 0.6 percent market share. The business environment has deteriorated further since Donald Trump's second administration began, with strengthened sanctions against China creating additional uncertainty, with U.S. tariffs on Chinese products currently standing at 30 percent. South Korea's overseas investment patterns reflect this dramatic shift. Chinese investment, which accounted for 39.1 percent of total foreign direct investment in 2005 at $2.92 billion, has collapsed to just 3 percent last year. Meanwhile, U.S. investment has surged from $7.05 billion in 2015 to $22.29 billion last year, creating an 11.6-fold gap with Chinese investment. The divergence marks a striking reversal from 2010, when the two destinations received similar investment levels. Trump's "Make America Great Again" agenda is expected to accelerate this trend, with POSCO and Hyundai Steel planning an integrated steel mill in Louisiana and LS Cable launching a $750 million subsea cable factory. Hyundai Motor Group also announced plans in March to invest an additional $21 billion in the U.S. over four years. 2025-07-12 13:47:23

US tariff revenue hits record high as trade war escalates SEOUL, July 12 (AJP) - The United States recorded its highest-ever monthly tariff revenue in June, collecting $27.2 billion as the Trump administration's aggressive trade policies continue to reshape federal finances. The figure represents a nearly four-fold increase from the same period last year, according to Treasury Department data released Friday. The surge in tariff income helped push total federal revenue to a record monthly high of $526 billion, up 13 percent from June 2024. Federal spending fell 7 percent to $499 billion, resulting in a monthly budget surplus of $27 billion. However, the Treasury noted that accounting for welfare payment timing adjustments, the government would have faced about a $70 billion deficit. Treasury Secretary Scott Bessent hailed the results as vindication of President Donald Trump's trade strategy. "As President Trump works hard to take back our nation’s economic sovereignty, today’s monthly Treasury Statement is demonstrating record customs duties – and with no inflation," Bessent wrote on X (formerly Twitter). Tariffs have rapidly emerged as a major revenue source for the federal government, with their share of total tax collection doubling from 2 percent to 5 percent in about four months. The levies now rank as the government's fourth-largest income source, trailing only withheld income taxes, non-withheld income taxes, and corporate taxes. For the fiscal year beginning October 1, 2024, tariff revenue reached $113.3 billion over nine months, marking the first time such collections exceeded $100 billion in a fiscal year. The previous record underscored the dramatic shift in U.S. trade policy under the current administration. Trump has signaled further escalation, promising that "big money coming in" when higher reciprocal tariffs take effect from August 1. Bessent predicted during a Cabinet meeting last week that tariff revenue could exceed $300 billion this year. The revenue windfall comes as interest payments on the national debt continue climbing, reaching $921 billion over nine months of the fiscal year, representing a 6 percent increase from the previous year. 2025-07-12 10:59:58