POSCO to launch lithium extraction project in US SEOUL, June 30 (AJP) - POSCO Holdings said on Monday that it plans to produce lithium in the United States for the first time, positioning itself at the forefront of efforts to localize battery material supply chains in North America. In a memorandum of understanding signed with Australia’s Anson Resources, POSCO will build and operate a demonstration plant in Green River City, Utah, deploying its proprietary direct lithium extraction (DLE) technology. The agreement marks the first instance of a Korean company attempting to extract the key battery metal on U.S. soil. Under the terms of the partnership, Anson will provide lithium-rich brine feedstock and land access at its concession site, while POSCO will test the commercial feasibility of its DLE technology, which the company has been developing since 2016. The facility, expected to break ground next year, is designed to validate POSCO’s method for recovering lithium from low-concentration brine — an approach the company says could unlock previously inaccessible reserves and help diversify global supply. Lithium, a critical component in electric vehicle batteries and energy storage systems, is currently sourced largely from salt flats in South America and hard rock mines in Australia. POSCO estimates that as much as 87 percent of the world’s lithium reserves are found in salt lake brines, but conventional extraction methods rely on slow, land-intensive evaporation processes ill-suited for regions like the United States. POSCO’s technology, by contrast, offers a more compact and potentially faster method of extracting lithium from brines, making it an attractive alternative for resource development in North America, where environmental and regulatory hurdles can hinder large-scale evaporation projects. The initiative also comes as the Trump administration places renewed emphasis on domestic sourcing of critical minerals. Trump has imposed tariffs on a range of imports, including steel, POSCO’s flagship business, fueling interest among Korean manufacturers in U.S.-based production. POSCO currently operates lithium operations in Argentina with an annual capacity of 25,000 tons and a 43,000-ton facility in Yulchon, South Korea, that processes spodumene ore. Combined, these sites supply enough lithium hydroxide to power roughly 1.6 million electric vehicles per year. 2025-06-30 14:19:53

Regulators target Aekyung, SK Chemicals over humidifier disinfectant scandal SEOUL, June 30 (AJP) - South Korea’s antitrust regulator has launched enforcement proceedings against Aekyung Industrial and SK Chemicals after the two companies failed to comply with orders to publicly acknowledge their responsibility in one of the country’s deadliest consumer product scandals. The Fair Trade Commission (KFTC) has issued examination reports recommending prosecution for both firms, according to industry sources. In 2018, the commission imposed fines totaling 161 million won (approximately $118,000) and ordered the companies to publish statements disclosing their legal violations in connection with a toxic humidifier disinfectant that has been linked to the deaths of more than 1,740 people and serious lung injuries in nearly 6,000 others. Both companies challenged the ruling through administrative litigation. But the Supreme Court ultimately upheld the sanctions — against Aekyung in 2023 and SK Chemicals in 2024 — making the orders legally binding. Despite this, the companies failed to carry out the required public disclosures within the 30-day period mandated by fair trade regulations, according to the KFTC. The regulator is expected to hold hearings in the coming weeks to consider further penalties. The humidifier disinfectant crisis, which erupted over a decade ago, remains one of South Korea’s gravest public health disasters. The chemicals, used by millions of households, proved especially harmful to vulnerable groups such as pregnant women and young children. Aekyung and SK Chemicals were found to have manufactured and distributed the disinfectants without properly assessing the health risks, according to court rulings and government investigations. 2025-06-30 10:59:20

Apple's EU fee cuts spotlight South Korea's unfulfilled promise to curb app store 'commission abuse' SEOUL, June 27 (AJP) - Electronics giant Apple's decision to slash app store fees in Europe is putting fresh pressure on South Korea's government to deliver on President Lee Jae Myung's campaign promise to tackle what critics call "commission abuse" by big tech platforms. The iPhone maker announced sweeping changes to its European app store policies on Thursday, cutting maximum commission rates from 30 percent to 15 percent and allowing developers to promote alternative payment methods under pressure from EU regulators. The move has highlighted the contrast with South Korea, where Google and Apple continue charging up to 30 percent commission despite the country's pioneering 2022 law banning mandatory in-app payments. "We will supplement the mandatory in-app payment prohibition law to improve global equity in app markets," the ruling Democratic Party said in the presidential election promises, but concrete action has yet to materialize. A 2024 survey by the Korea Communications Commission and the Korea Internet & Security Agency found that 70.4 percent of app developers still consider excessive fees their biggest problem, far outweighing concerns about unclear revenue settlements or limited payment options. The in-app purchase tyranny is leading to several protests, with the Korean Publishers Association filing class action lawsuits against Apple last month for its overcharging on web-based novels and comics. The association revealed that the fees even follow to paperback books if purchased through Apple applications. Numbers are growing by the day, as law group We the People reported on June 6, the number of domestic IT firms willing to join in on class action lawsuits against Apple for its excessive fees have spiked through 100, the groups condemning the monopoly of the smartphone maker. Industry observers say the EU's success in forcing Apple's hand could provide a roadmap for South Korean regulators seeking to extract similar concessions from platform giants. 2025-06-27 16:26:34

Xiaomi to launch flagship smartphone in South Korea as it challenges Samsung on home turf SEOUL, June 27 (AJP) - Chinese smartphone maker Xiaomi is to launch its flagship "Xiaomi 15" smartphone during the grand opening of its very first offline store Mi Store in South Korea on Saturday, as the Chinese elctronics giant takes a bold step into the notorious South Korean market often dubbed “graveyard of foreign smartphone brands” where Samsung maintains its strong grip, with Apple capturing the hearts of young consumers. Along with the flagship smartphone, the Beijing-based company also unveiled its new foldable phone on Thursday, "the Mix Flip 2," as it seeks to penetrate Samsung's stronghold in the premium smartphone lineup held tight by the traditional bar-shaped Galaxy S25 series and foldable Galaxy Z Fold 6. "Through the Mi Store opening, we hope domestic consumers can intuitively experience Xiaomi's technology and brand," said Johnny Woo, chief of Xiaomi Korea, adding that the company plans to expand its ecosystem from smartphones to smart home products nationwide. Beyond flagship devices, Xiaomi is also targeting the budget market with its Poco M7 Pro 5G smartphone priced in the 200,000 won (US$147.4) range, expanding its assault across multiple price points. The strategy highlights a stark contrast between Xiaomi's global prowess and its struggle in South Korea. Market research firm Canalys ranked Xiaomi third globally with a 14 percent share in the first quarter, trailing Samsung's 20 percent and Apple's 19 percent. In wearables, Xiaomi commands the top spot with 19 percent of the global market, demonstrating its technological capabilities beyond smartphones. However, the company's performance in South Korea tells a different story. Industry data shows Xiaomi held less than 1 percent of the local smartphone market in the first quarter of 2025, with daily sales reportedly failing to reach even a single unit from time to time. In contrast, Samsung held 60 percent of the South Korean smartphone market in the fourth quarter of 2024, Apple following with 39 percent. Even its executive Johnny Woo brings expertise in global production strategy and supply chain optimization rather than marketing, having built his career primarily in emerging markets including India, Indonesia, Turkey, Pakistan and Egypt. Meanwhile, analysts cite security concerns over Chinese products and low brand loyalty as major obstacles, while the failure of foreign brands, including Nokia, HTC, Motorola and BlackBerry serves as a cautionary tale. 2025-06-27 14:59:48

Hyundai, Kia exports to US plunge as Trump tariffs take toll SEOUL, June 26 (AJP) - Exports of Hyundai Motor and Kia vehicles to the United States plunged 21.5 percent in May compared with the same month a year ago, as the Trump administration’s 25 percent tariff on imported automobiles begins to significantly alter trade flows. The two South Korean automakers, part of the Hyundai Motor Group, shipped 77,892 vehicles to the U.S. last month, down from 99,172 in May 2024, according to figures released Thursday by the Korea Automobile & Mobility Association. The steep drop underscores the mounting pressure on automakers operating in export-dependent economies as Washington intensifies its protectionist stance on trade. “High tariffs will reduce U.S. auto exports and hurt automaker profitability as companies shift to local production while being unable to fully pass increased costs to consumers in a weakened market,” said Kim Kyoung-you, a senior research fellow at the Korea Institute for Industrial Economics & Trade, in a recent report. The tariffs, first proposed by Trump in April and swiftly enacted, are already driving strategic pivots. Dealers in the United States, anticipating the added costs, prioritized clearing existing inventories ahead of the new levy. According to Cox Automotive, Hyundai and Kia dealers held roughly 94 days and 62 days of inventory, respectively, as of early April. Those stockpiles are now largely depleted, setting the stage for tighter margins in the second half of the year. To mitigate the blow, Hyundai Motor Group has accelerated production at its new plant in Georgia, which began operations in March. But analysts warn that expanded U.S. production will not fully offset the losses from declining exports in the near term. The fallout from the U.S. tariffs is also reverberating through South Korea’s domestic auto sector. National vehicle production fell 3.7 percent year-over-year in May to 358,969 units. Hyundai’s output declined 6.0 percent, while Kia’s dropped 3.8 percent, data from the Korea Automobile & Manufacturers Association shows. 2025-06-26 15:45:44

INTERVIEW: Korean startups race to bring lab-grown meat to market SEOUL, June 26 (AJP) - Donning a white lab coat and sterile shoe covers, Dominic Jeong, CEO of South Korean food-tech startup Simple Planet, leads the way through a sleek laboratory buzzing with quiet precision. He opens a chilled cabinet and carefully lifts out petri dishes filled with ivory-white clusters. “These are cultivated animal cells — cow fat and chicken muscle tissue,” Jeong told AJP. “We transform them into protein-rich powders and pastes.” The company’s "cell-based paste" has no flavor, Jeong explains, and it’s not available for public tasting just yet. That step will require prior approval from South Korea’s Ministry of Food and Drug Safety. Simple Planet is part of a growing wave of South Korean startups diving into the emerging world of lab-grown meat, or cultivated meat, as a solution to looming global food insecurity. With the United Nations predicting the global population could reach 10 billion by 2050, the demand for protein is set to nearly double — putting massive strain on existing food systems. While plant-based meats have long catered to vegetarians and the environmentally conscious, cultivated meat targets a broader audience: meat-eaters looking for a more sustainable alternative without sacrificing the real thing. Cultivated meat is created by growing animal cells — typically in a nutrient-rich serum — into muscle and fat tissues. The final product, scientists say, is biologically identical to conventional meat. The same core technology used in regenerative medicine for artificial organs is now being used to grow steaks and chicken breasts. “The only difference,” says Kwon Yeong-mun, director at meat cultivator TissenBioFarm, “is that one’s meant to heal the body, the other is meant to feed it.” But here’s the catch: most lab-grown meat on the market still isn’t 100 percent animal-based. Cultured cells often make up just 20 percent of the final product. The rest? Plant-based fillers and binders. “To make a lab-grown chicken steak, we start with a vegetable protein patty, then add cultured cells and food coloring to mimic real chicken,” Jeong explains. A Climate-Smart Solution Why go through all this effort? The environmental benefits are hard to ignore. Compared to traditional meat production, cultivated meat slashes greenhouse gas emissions, water use, and land consumption. Livestock farming is responsible for roughly 12 percent of global greenhouse gas emissions, and the push to curb that impact is intensifying as climate change accelerates. Jeong says his team’s production tests have already shown promising results. Growing 1,000 kilograms of cultured ingredients using a 50-liter bioreactor saved more than 15,000 kilograms of carbon emissions and over 2,200 cubic meters of water. There are other advantages, too. Lab-grown meat eliminates the need for animal slaughter, sidesteps the risk of food-borne diseases, and avoids the ethical issues tied to factory farming. Despite the buzz, cultivated meat still faces a steep climb to reach supermarket shelves. Back in 2013, the world’s first lab-grown burger cost $325,000. But South Korean researchers are closing in on cheaper alternatives. Professor Joo Seon-tea, who leads the animal science division at Gyeongsang National University, says his startup Orange CAU is nearing commercialization. Their hybrid approach blends cultured muscle tissue with plant protein, which Joo says has passed taste tests and significantly cut production costs. “We estimate our cultured meat will cost about one-third the price of conventional meat to produce,” Joo says. “Retail prices could land at roughly half.” TissenBioFarm, meanwhile, says its whole-cut cultivated meat will sell for about 30,000 Korean won (roughly $22) per kilogram — a bargain compared to USDA Prime ribeye, which can run up to $89 per kilogram. Their secret? A microfiber scaffolding system that mimics the texture and marbling of traditional meat. Kwon explains that the challenge now is scaling up production using large bioreactors to fully infuse those fibers with animal cells and achieve that unmistakable meaty flavor. Still, most of these products remain in R&D limbo. Regulatory approval is the next major hurdle. Last month, a South Korean research team made headlines by replicating meat marbling using self-healing scaffolding — a potential game-changer for appearance and structure. But it’s not ready for consumer forks just yet. “We need Good Manufacturing Practice certification and regulatory approval before anyone can eat it,” says Park Je-young, a professor of bioengineering at Sogang University. Globally, only a handful of countries — Singapore, the United States, Israel, and recently Australia — have greenlit lab-grown meat for human consumption. South Korea is getting closer. The country amended its regulatory framework in 2023 and issued procedural guidelines in early 2024. Still, none of the companies have received final approval to sell. “We cannot disclose how many have applied or when approval might come,” says Sung Jun-hyun, a senior researcher at the National Institute of Food and Drug Safety Evaluation. “But as of now, no product has been cleared for market.” For now, South Korea’s cultivated meat revolution remains confined to labs. But innovators like Jeong are thinking long-term. “We’re not just building steak replacements,” he says. “Our goal is to deliver high-protein animal products to places where meat is scarce or unaffordable. We want to make cultured bulgogi a reality.” 2025-06-26 15:28:29

Korean regulator claims Novo Nordisk cut needle supply to boost obesity drug sales SEOUL, June 26 (AJP) - South Korea’s antitrust regulator has issued a formal warning to Danish pharmaceutical giant Novo Nordisk for cutting off supplies of specialized insulin pen needles used by children with diabetes, in order to prioritize the production of its blockbuster obesity drug, Ozempic, government officials said on Thursday. The Korea Fair Trade Commission (KFTC) concluded that Novo Nordisk violated competition laws when it unilaterally terminated supply contracts for its NovoFine Plus needles without sufficient justification. The regulator stopped short of imposing financial penalties, citing the company’s global supply strategy and the relatively narrow scope of affected consumers. At the center of the dispute is NovoFine Plus, an ultra-thin 4-millimeter needle developed to reduce injection pain and the risk of improper delivery, especially in children requiring daily insulin. Introduced in 2020, the premium needle quickly became a critical tool for families managing Type 1 diabetes. In July 2022, Novo Nordisk notified its South Korean distributor that it would halt standalone sales of NovoFine Plus, citing surging global demand for Ozempic — a drug originally developed to treat Type 2 diabetes but widely used off-label for weight loss. The company said it needed to reserve limited needle inventory for bundling with Ozempic injector pens rather than distributing them separately. Supply to the South Korean market ceased entirely in September 2022, despite a supply contract that was scheduled to remain in effect through the end of that year. In place of NovoFine Plus, the company offered older models with larger diameters — alternatives that many patients and families found more painful and difficult to use. “Even if a product is being reallocated for global strategic reasons, firms must honor local agreements and consider the welfare of vulnerable populations,” a KFTC official said, speaking on background. Ozempic, a glucagon-like peptide-1 receptor agonist, has seen a meteoric rise in demand globally, fueled by its effectiveness in weight loss. The drug has frequently been the subject of controversy, with regulators and physicians raising concerns about supply imbalances, particularly when it comes at the expense of patients with critical medical needs. While the KFTC opted for a non-monetary sanction in this case, legal experts said the warning sends a signal that South Korea is prepared to challenge global pharmaceutical practices when they clash with local consumer rights. 2025-06-26 10:51:54

South Korean central bank warns of stablecoin risks to financial stability SEOUL, June 25 (AJP) - South Korea’s central bank and the Bank for International Settlements (BIS) have raised fresh alarms over the systemic risks posed by the rapid rise of stablecoins, warning that widespread adoption could trigger destabilizing financial shocks and threaten monetary sovereignty. In its financial stability report released Wednesday, the Bank of Korea cautioned that stablecoins — cryptocurrencies pegged to traditional currencies — are vulnerable to abrupt mass redemptions or “coin runs” if public confidence in their reserve assets or price stability erodes. Such loss of trust could lead to "de-pegging" events, in which stablecoins detach from their fiat anchors, with potentially cascading effects on short-term funding markets and liquidity conditions at banks. The central bank emphasized that unlike traditional financial institutions, stablecoin issuers lack safeguards such as deposit insurance or access to lender-of-last-resort functions. The warning comes as South Korea presses forward with legislative reforms aimed at modernizing digital asset oversight — a key campaign pledge of President Lee Jae Myung. BOK Governor Rhee Chang-yong has repeatedly expressed concern that a premature or poorly regulated rollout could undermine monetary stability. The report also cited operational vulnerabilities, pointing to the absence of robust blockchain infrastructure and comprehensive regulation, which increase the risk of technical failures and illicit activity. For emerging markets and non-reserve currency countries such as South Korea, the growing use of dollar-pegged stablecoins could exacerbate exchange rate volatility and complicate capital flow management, the report said. The central bank warned that the mass adoption of such assets could weaken the effectiveness of domestic monetary policy by undermining currency credibility and reducing banks’ capacity for credit creation. The BIS echoed these concerns in a draft of its upcoming annual report, set to be released June 29, stating that stablecoins could dilute monetary sovereignty and introduce new transparency and capital flight challenges — especially in emerging economies. 2025-06-25 16:49:49

'Stablecoins emerge as global financial trend' SEOUL, June 25 (AJP) - Stablecoins are no longer a passing fascination but a defining trend in global finance, Hana Securities said in a report Wednesday. The Seoul-based brokerage described the rise of stablecoins as a shift “from theme to trend,” signaling a structural change in how markets view these blockchain-based assets. The report pointed to a confluence of factors — regulatory reforms, growing institutional interest, and the possible issuance of won-backed stablecoins — that could accelerate South Korea’s transition into a more digitally integrated financial system. “Financial history has alternated between phases of centralization and decentralization,” said Kim Du-un, an analyst at Hana Securities. “We’re now in a transitional period where traditional and digital finance are beginning to coexist. While the balance of power remains unclear, these periods have historically offered rare opportunities — and stablecoins are emerging as one of them.” Stablecoins, typically pegged to government-issued currencies like the U.S. dollar or the euro, have gained popularity worldwide for enabling faster and cheaper transactions while mitigating the volatility often associated with cryptocurrencies like Bitcoin or Ethereum. The report comes amid a flurry of legislative activity in Seoul, where ruling Democratic Party lawmakers have introduced new digital asset bills that expand on President Lee Jae Myung’s campaign promises to modernize the country’s approach to cryptocurrency. South Korea’s regulatory posture is developing in parallel with moves in other major economies. In the United States, Congress passed an act on June 17 — its most comprehensive digital asset legislation to date — aimed at securing a strategic foothold in the global stablecoin market. While details of its coordination with existing financial laws remain under discussion, implementation is expected within the year. The European Union, meanwhile, has already adopted a regulation, which went into effect last year, laying the groundwork for cross-border compliance and investor protection in the bloc’s growing crypto markets. 2025-06-25 14:42:54

South Korea fails again in bid for MSCI Developed Market status SEOUL, June 25 (AJP) - South Korea’s ambitions to join the ranks of the world’s developed financial markets faced another setback as MSCI declined once again to elevate the country from its emerging market classification. In its annual market classification review, the global index provider said South Korea would not be added to its watch list for a potential upgrade — effectively stalling any chance of reclassification until at least 2026. The decision also delays possible inclusion in the MSCI Developed Market Index to 2028 or beyond. “MSCI will continue to monitor the implementation and market adoption of measures to enhance the accessibility of the Korean equity market,” the firm said in a statement. The announcement follows a series of market reforms by South Korean authorities aimed at addressing longstanding concerns from global investors. In March, the government lifted a ban on short-selling, which had been in place since 2020, and implemented measures to curb illegal trading practices. Still, MSCI said these efforts had not gone far enough. “As a reminder, potential reclassification consultations require that all issues have been addressed, reforms have been fully implemented, and market participants have had ample time to thoroughly evaluate the effectiveness of the changes,” the firm said. South Korea has been classified as an emerging market since its inclusion in MSCI’s indices in 1992. It briefly appeared on the watch list for developed market consideration in 2008, only to be removed in 2014 due to what MSCI described as “insufficient progress” on market accessibility. The latest review underscores the complexity and high bar of MSCI’s evaluation criteria. While the index provider last week upgraded South Korea’s short-selling accessibility rating from negative to positive, six other categories — including liberalization of the foreign exchange market, investor registration, and settlement infrastructure — continue to receive negative assessments. MSCI noted that, despite recent reforms to South Korea’s foreign exchange regime, “operational difficulties persist in registration procedures, and the limited use of omnibus accounts and over-the-counter trading constrains the effectiveness of related measures.” In April, Kim Byoung-hwan, chairman of the Financial Services Commission, met with senior MSCI executives to advocate for the country’s upgrade and outline Seoul’s ongoing reform agenda. The meeting, however, appears to have had little effect on MSCI’s deliberations. 2025-06-25 11:01:19