HYBE founder Bang Si-hyuk grilled by regulators over alleged IPO fraud SEOUL, July 3 (AJP) - South Korean financial regulators have summoned Bang Si-hyuk, the founder and chairman of HYBE, for questioning over allegations of fraudulent trading practices linked to the firm's initial public offering. Bang, the influential music executive who oversaw HYBE’s transformation into a global entertainment powerhouse, appeared before the Financial Supervisory Service (FSS) late last month to address accusations that he misled investors in the run-up to the company’s 2020 stock market debut, sources from the FSS said Thursday. According to the allegations, Bang privately informed early investors and venture capital firms that HYBE had no plans to go public, only to subsequently arrange for those stakeholders to sell their shares to a private equity fund reportedly controlled by a close associate. That fund then profited significantly from HYBE’s IPO, generating an estimated 400 billion won, or roughly $294 million. Industry sources said Bang had a profit-sharing agreement with the fund — entitling him to more than 30 percent of its trading gains — but failed to disclose the arrangement in HYBE’s official securities filings. Regulators are investigating whether the alleged omission constitutes a breach of disclosure requirements under South Korean financial law. The FSS is currently reviewing the case and is expected to determine next steps through the Financial Services Commission’s Securities and Futures Commission. A formal referral to prosecutors remains under consideration. HYBE, formerly known as Big Hit Entertainment, went public in October 2020 and quickly became one of South Korea’s most valuable entertainment companies, propelled by the global success of BTS and an expanding roster of K-pop talent and international acquisitions. Neither HYBE nor Bang has publicly commented on the investigation. 2025-07-03 17:30:36

Republicans press Trump administration to challenge Korea's online platform regulation SEOUL, July 3 (AJP) - A group of 43 House Republicans is urging the Trump administration to confront South Korea over a proposed law regulating online platforms, warning that the measure could become a flashpoint in ongoing trade talks between the two countries. In a letter sent to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, the lawmakers called the proposed regulation a discriminatory barrier that unfairly targets American digital companies. The effort was led by Representatives Adrian Smith of Nebraska and Carol Miller of West Virginia. The legislation, championed by President Lee Jae Myung and previously pursued by his predecessor, Yoon Suk Yeol, has drawn criticism from U.S. tech firms and policymakers who argue it mirrors the European Union’s Digital Markets Act — a law that imposes strict rules on large online platforms. "One barrier that we urge you to address in any negotiations is proposed legislation advanced by the Korea Fair Trade Commission and embraced by the new Lee Jae Myung government, which disproportionately targets U.S. digital companies for heightened regulatory requirements," the lawmakers wrote in the letter, which was posted on Representative Smith’s website. The Republicans said the bill imposes "disparate legal and enforcement standards designed to undermine" innovative U.S. business models, while giving a pass to Chinese digital giants such as ByteDance, Alibaba and Temu. They accused the Korean government of advancing policies that “serve the strategic interests of the Chinese Communist Party.” The lawmakers also took aim at South Korea’s Fair Trade Commission, accusing it of conducting aggressive enforcement actions — including early-morning inspections — against American firms. They claimed such tactics constrain U.S. companies’ ability to operate freely in the Korean market. The letter marks a rare, coordinated intervention by a large bloc of congressional Republicans into a specific regulatory proposal in a close U.S. ally, and highlights the growing scrutiny of digital trade barriers abroad. It also signals a broader willingness by Republican lawmakers to link digital market access to broader strategic concerns about China’s influence in the region. While the Trump administration has not publicly responded to the letter, analysts here say the issue could become a sticking point in future trade negotiations with Seoul. 2025-07-03 15:34:48

Korea seeks to address China's export controls on key materials SEOUL, July 3 (AJP) - South Korea and China held a new round of bilateral supply chain talks in Seoul on Thursday, as the two countries grapple with growing disruptions stemming from Beijing’s tightening export controls on key industrial materials. The meeting brought together senior officials including Kim Jong-chul, director-general for international trade relations at South Korea’s Ministry of Trade, Industry and Energy, and Wang Liping, his counterpart from China’s Ministry of Commerce. Since August 2023, China has steadily expanded its list of export restrictions on strategic resources, starting with gallium and germanium — materials essential to semiconductor and defense technologies. In the months that followed, Beijing added graphite, antimony, tungsten and tellurium to the list. Tensions escalated further in April, after Washington raised tariffs on a wide range of Chinese imports. In response, China imposed new export controls on seven rare earth elements, including samarium, used in cobalt magnets; gadolinium, for medical imaging contrast agents; and dysprosium, vital to electric vehicle motors. Other materials now under restriction include lutetium, used in radiation therapy; scandium, a strengthening additive in aerospace aluminum alloys; yttrium, for solid-state lasers; and terbium, essential for display phosphors. At Thursday’s meeting, South Korean officials urged Beijing to minimize the impact of these measures on domestic manufacturers and to ensure the continued flow of critical inputs. Seoul also proposed that Chinese authorities host a series of policy briefings later this year to enhance transparency and predictability in supply chain management. The dialogue is part of a broader framework known as the “supply chain hotline,” a government-to-government mechanism launched in December 2023 to facilitate communication and preempt disruptions. The first meeting was held in Seoul, followed by a second session in the eastern Chinese city of Yantai in November. While no major breakthroughs were announced, both sides expressed commitment to ongoing dialogue amid a rapidly shifting geopolitical and trade landscape. 2025-07-03 13:32:08

KCC Group pivots to defense tech, semiconductors as construction falters Editor's Note: This article is the 25th 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 2 (AJP) - As South Korea’s construction industry struggles with a prolonged downturn, KCC Group, once a stalwart of the sector, is reinventing itself through a bold pivot toward advanced semiconductor materials and high-tech defense applications — an ambitious transformation that may redefine the company’s role in the global supply chain. The conglomerate offered a glimpse of its future in May at PCIM Europe 2025, a leading international trade fair for power electronics held in Nuremberg, Germany. There, KCC showcased a range of semiconductor technologies developed through its U.S.-based subsidiary, Momentive Performance Materials, one of the world’s largest providers of silicone-based solutions. Among the highlights were active metal brazing ceramic substrates — materials that improve bonding between copper circuits and ceramics in high-performance semiconductors — drawing strong interest from global manufacturers. KCC also unveiled direct copper bonding substrates for power modules and new high-reliability encapsulation materials, signaling its intention to become a comprehensive supplier to the semiconductor industry. This shift marks a dramatic evolution for a company whose roots lie in postwar reconstruction. KCC traces its founding to 1958, when Chung Sang-young, the youngest brother of Hyundai Group founder Chung Ju-yung, launched Keumkang Slate Industries. It later merged with Korea Chemical, founded in 1974, to become Keumkang Korea Chemical in 2000. The company rebranded as KCC in 2005 and now anchors a group that includes KCC Glass, KCC Engineering & Construction, and KCC Silicone. KCC’s move into the silicone business began with its acquisition of British firm Basildon in 2011, followed by its 2019 purchase of Momentive, a landmark $3 billion deal that gave it a foothold in the global silicone market. In 2020, KCC spun off its synthetic materials division as KCC Silicone, which now drives nearly half of its business. According to Korea Investor Service, silicones accounted for 45.3 percent of KCC’s revenue in 2024, with paints contributing 27.9 percent and construction materials 16.6 percent. But the group’s traditional strengths have been under pressure. KCC’s first-quarter earnings for 2025 showed revenue rising just 0.7 percent year-on-year to 1.60 trillion won ($1.18 billion), while net income plunged 90.4 percent to 44.1 billion won amid continued weakness in the construction sector. Analysts noted that while the company benefited from strong prices in its silicone division and the removal of one-off costs in coatings, losses in construction materials continued to weigh on the bottom line. In response, KCC is aggressively moving into defense — a sector with demanding technical requirements and growing strategic value. The company has secured contracts with major defense firms including LIG Nex1, Hanwha Aerospace, and Korea Aerospace Industries (KAI), and is working to develop advanced coatings that can withstand extreme heat and corrosion. Among its most ambitious projects: coatings for low-orbit satellites and unmanned aerial combat systems, in collaboration with KAI. Over the past three years, KCC has filed 21 patents for defense-related coatings, out of 50 total applications. The urgency of the transformation was laid bare during a New Year’s address by Chairman Chung Mong-jin, who warned employees that 2025 would bring “the most severe crisis since the Asian financial crisis.” He called for "emergency management" and a sweeping digital overhaul of the company’s operations. “Digital transformation based on data, which is a core asset in the AI era, is essential,” Chung said. “All business processes must be innovated around data.” KCC's high-tech reorientation may prove essential for its survival. A company that once helped build the foundations of modern South Korea is now betting its future on the technologies that will shape the next era of global industry — from next-generation semiconductors to space-based defense systems. 2025-07-03 09:35:48

Nokia promotes AI-powered networks as crucial to Korea's tech future SEOUL, July 2 (AJP) - Finnish telecommunications giant Nokia unveiled its latest suite of AI-powered networking technologies in Seoul, Wednesday, positioning robust network infrastructure — not just graphics processing units — as the true backbone of next-generation artificial intelligence systems. The company showcased its 25G passive optical network (PON) and Ethernet-PON (E-PON) technologies, which promise faster, more scalable internet speeds without the need to replace existing fiber-optic infrastructure — a practical appeal for operators facing mounting data demands. While lauding the South Korean government’s focus on acquiring high-performance GPUs, Nokia Korea’s Chief Technology Officer James Han emphasized that AI innovation cannot thrive without a network capable of handling the vast quantities of data GPUs generate. “The transmission of GPU-processed data is only as strong as the networks that carry it,” Han said, underscoring the importance of end-to-end system performance in AI deployments. President Lee Jae Myung has made AI sovereignty a central plank of his administration’s agenda, pledging to acquire more than 50,000 GPUs and expand domestic data center capacity. His government has also appointed high-profile AI experts to public office, reinforcing South Korea’s ambition to lead in global AI development. “Building an AI ecosystem is key to next-generation digital innovation, and Nokia is delivering on that promise by embedding AI into real-world networks,” said Kevin Ahn, CEO of Nokia Korea. He added that true innovation lies not only in compute capacity but also in minimizing network latency and increasing throughput — both essential to real-time AI applications. Nokia also unveiled its vision for AI-integrated radio access networks, arguing that the convergence of AI and telecom will define the approaching 6G era. With international competition intensifying around sovereign AI capabilities and next-generation mobile standards, Nokia is positioning itself as a key partner in South Korea’s 6G R&D initiatives. The company said it remains committed to helping the country develop the foundational infrastructure needed to maintain its edge in digital innovation. “The real bottleneck in AI is no longer just processing power,” said Han. “It’s how fast and reliably you can move the data.” 2025-07-02 16:38:48

US set to impose new tariffs on Korean goods as steel, automobile exports stumble SEOUL, July 2 (AJP) - South Korea’s exports declined in the first half of 2025, as mounting U.S. tariffs on key goods — including steel and automobiles — weighed heavily on trade, with additional duties of up to 15 percent set to take effect next week. According to data released Tuesday by the Ministry of Trade, Industry and Energy, exports fell 0.03 percent year-on-year to $334.7 billion from January to June. While the drop appears slight, officials say the underlying trends are alarming, especially with heightened trade tensions expected to escalate further when a new round of U.S. tariffs begins July 8. Exports to the United States fell 3.7 percent during the period, marking the first half-year decline since the onset of the COVID-19 pandemic in early 2020. Steel shipments to the U.S. tumbled 11.2 percent after the Trump administration raised tariffs from 25 percent in March to 50 percent by June. Auto exports were hit even harder, plunging 16.8 percent following the imposition of a 25 percent duty on Korean-made vehicles in April. General machinery exports dropped 16.9 percent amid sluggish investment in American industrial facilities. “The tariff shocks are now showing up clearly in the numbers,” a senior trade ministry official said. “And the next wave could be even more disruptive.” The looming tariffs — authorized under an executive order signed in March — will target a broad array of Korean goods not previously subject to levies. The U.S. granted a 90-day reprieve in April after financial markets reacted sharply to the initial announcement, but the White House has indicated it will allow the new tariffs to proceed starting next Monday. The trade pressures come at a time of broader global uncertainty, with Korea’s exports to China also falling 4.6 percent and to Japan by 3.8 percent in the first half. While steel and autos bore the brunt of the current tariff regime, one notable outlier has been the semiconductor sector. Exports of chips to the U.S. surged 14.7 percent year-on-year to $73.3 billion, driven in part by stockpiling ahead of possible sanctions. Semiconductors accounted for 22 percent of Korea’s total exports, hitting a record monthly high of $15 billion in June. South Korea and the U.S. held detailed negotiations in Washington from June 22 to 27, but failed to reach a breakthrough. While the U.S. pushed for changes to Korean regulations — including the 30-month age limit on imported beef and restrictions on genetically modified products — Seoul argued that the new tariffs violate existing free trade agreements and could undermine decades of bilateral economic cooperation. Forecasts for the rest of the year remain gloomy. The Korea International Trade Association projects exports will fall 3.8 percent in the second half, bringing the full-year total to $668.5 billion, down 2.2 percent from 2024. The Korea Institute for Industrial Economics & Trade offered a similar outlook of $670.6 billion, a 1.9 percent decline. 2025-07-02 14:16:20

Korean biotech firm DewCell partners with Thermo Fisher on artificial platelet project SEOUL, July 1 (AJP) - DewCell, a South Korean biotechnology company specializing in stem cell-based therapies, announced Tuesday that it has launched a collaboration with Thermo Fisher Scientific of the United States to develop a customized culture medium for the large-scale production of artificial platelets. The partnership will focus on creating a serum-free, animal-origin-free medium tailored specifically to platelet cell cultivation. DewCell said the joint effort aims to maximize manufacturing efficiency while adhering to stringent safety and regulatory standards. Lee Min-woo, DewCell’s chief executive, said in a statement the firm now positioned to simultaneously advance production optimization, material safety, and global compliance through a fully customized solution for artificial platelet production. Artificial platelets — used to support blood clotting in patients with bleeding disorders or undergoing surgery — are seen as a potential answer to the growing global shortage of blood donations. As the need for reliable, scalable blood products intensifies, biotech firms around the world have accelerated efforts to develop synthetic or lab-grown alternatives. DewCell said it plans to expand partnerships with global life science companies as it pushes to commercialize its proprietary stem cell-based platelet manufacturing technology. Thermo Fisher Scientific, based in Waltham, Massachusetts, is one of the world’s largest suppliers of laboratory equipment and biomanufacturing services. 2025-07-01 16:39:02

US faces greatest economic risk in global trade war: BOK SEOUL, July 1 (AJP) - The United States stands to suffer the most severe economic fallout if President Donald Trump’s protectionist trade policies provoke full-scale retaliation from its global trading partners, the Bank of Korea said in a report released Tuesday. The central bank’s New York office said that U.S. trade exposure has grown significantly since the 1930s, when the Smoot-Hawley Tariff Act exacerbated the Great Depression by sharply raising duties on imported goods. Today’s globalized economy, the bank cautioned, renders the United States far more vulnerable to reciprocal tariffs. “If countries around the world retaliate against U.S. tariff increases, the United States is likely to become the biggest victim,” the report stated. The analysis underscores a disparity in trade dependencies among major economies. U.S. exports account for about 7 percent of the nation’s gross domestic product, compared with 2.9 percent for China and 3.1 percent for the European Union. That suggests Washington is more exposed to retaliatory measures than Beijing or Brussels, despite its role as the aggressor in recent trade disputes. Drawing on projections from the International Monetary Fund, the report estimates that a 25-percentage-point hike in average U.S. tariffs — similar to those floated by the Trump administration — could slash American real exports by 19 to 28 percent over the next decade. By contrast, EU exports would shrink by as little as 0 percent and at most 1.1 percent; Chinese exports would fall between 5 and 7 percent. The pain would not stop at exports. The U.S. economy could see its real GDP contract by up to 1.3 percent, the report warned, surpassing potential declines of 1.1 percent in China and 0.6 percent in the EU. Still, the BOK noted a paradox: despite the ominous trade outlook, financial markets have largely shrugged off the risks. Stock indexes that dipped following tariff announcements in April have since rebounded to record highs, reflecting investor expectations that the eventual tariffs may be softer than initially feared. Yet the central bank cautioned that volatility could return swiftly if trade negotiations falter or economic momentum weakens later in the year. “Uncertainty surrounding trade policy remains a key risk to financial markets,” the report said, adding that asset prices may face abrupt corrections if talks collapse or growth slows unexpectedly. 2025-07-01 14:57:24

US pharma industry urges trade pressure on South Korea over drug pricing SEOUL, July 1 (AJP) - The American pharmaceutical industry is calling on the Trump administration to use ongoing trade negotiations to pressure South Korea into overhauling its drug pricing system, which the industry argues unfairly suppresses prices and harms U.S. innovation and exports. In comments submitted to the Office of the U.S. Trade Representative on June 27, the Pharmaceutical Research and Manufacturers of America (PhRMA), the industry’s primary lobbying group, urged Washington to take a tougher stance on what it described as “unfair pharmaceutical policies” in foreign markets. PhRMA singled out South Korea, along with Australia and Canada, as particularly problematic. All three are high-income countries with strong demand for prescription drugs, yet the group contends they routinely underpay for American pharmaceutical products. The push comes as Trump escalates his focus on what he views as international price manipulation. In an executive order issued May 12, the president directed the USTR and the Commerce Department to take action against foreign governments that “deliberately and unfairly” depress drug prices below market value — often, critics say, at the expense of American consumers who continue to pay among the highest prices globally. PhRMA criticized South Korea’s National Health Insurance Service for subjecting new drug applications to “burdensome reviews” that slow the pace of market access. The group argued that the complex regulatory environment — marked by lengthy timelines and opaque price assessments — deters American pharmaceutical companies from bringing innovative therapies to Korean patients. The U.S. Chamber of Commerce echoed those concerns, submitting its own comments to the USTR. The chamber said South Korea sets drug prices significantly lower than other developed nations, failing to provide what it called fair compensation for U.S. pharmaceutical and biotech firms. It also cited data indicating that only about 20 percent of the 500 new drugs introduced globally between 2013 and 2014 have been approved for reimbursement in South Korea, with an average wait time of 40 months. The Trump administration’s pharmaceutical policies continue to draw mixed reactions. While some in the manufacturing sector have welcomed efforts to use trade talks to push for faster regulatory approvals and updated pricing formulas abroad, the pharmaceutical industry has pushed back on the president’s proposed “most favored nation” pricing policy. That initiative, which aims to align U.S. drug prices with those paid in other advanced economies, has drawn criticism from drugmakers who warn it could stifle investment and slow the pace of drug development. 2025-07-01 13:56:06

New finance minister expected to drive AI-led fiscal reform SEOUL, June 30 (AJP) - South Korean President Lee Jae Myung on Sunday nominated Koo Youn-chul, a former government policy coordination chief and vice finance minister, to lead the Ministry of Economy and Finance, filling a key economic post that has stood vacant for more than two months. The appointment of Koo, a 60-year-old career bureaucrat and current visiting economics professor at Seoul National University, is seen as a strategic move to inject momentum into the Lee administration’s economic agenda and recalibrate the country’s fiscal policy direction. His nomination follows the resignation of former Finance Minister Choi Sang-mok in April. Born in Seongju, North Gyeongsang Province, in 1965, Koo joined the civil service after passing the state administration exam. He rose through the ranks of the Ministry of Economy and Finance, serving as budget director and second vice minister, and later became head of the Office for Government Policy Coordination under the Moon Jae-in administration. Known for his deft handling of complex policy portfolios, Koo played a central role in the country's pandemic-era economic response, overseeing emergency budgets and managing inter-ministerial coordination on contentious issues such as real estate policy. His expertise spans traditional fiscal policy as well as emerging fields like artificial intelligence — skills that officials say align closely with the new government’s dual emphasis on economic revitalization and digital innovation. At a press briefing on Sunday, Koo outlined his priorities: reviving domestic demand, managing external uncertainties, and fostering long-term economic innovation. He also underscored the need for strategic public investment, likening the state's role to that of a private firm seeking profit to survive. “The state must invest efficiently — like companies that perish without profit — to discover future growth engines for sustainable development,” he said, emphasizing South Korea’s ambitions to become a global AI leader. His nomination is expected to restore regular operations of economy-related ministerial meetings, which have been stalled since Choi’s departure. One of Koo’s first challenges will be spearheading a major reorganization of the finance ministry itself — an ambitious reform that involves separating budget functions and integrating financial policy departments. The structural overhaul will require careful navigation of inter-agency boundaries, involving coordination with the Financial Services Commission, the Ministry of Trade, Industry and Energy, and the Ministry of Land, Infrastructure and Transport. Observers say the success of these efforts will depend heavily on Koo’s ability to harmonize competing institutional interests while steering South Korea through a period of low growth and fiscal uncertainty. 2025-06-30 15:56:20