South Korea to host US students in shipbuilding education program SEOUL, June 24 (AJP) - South Korea will launch a new shipbuilding education program next year aimed at strengthening maritime industry ties with the United States by hosting American university students and faculty for short-term training. The initiative was announced Tuesday by the Ministry of Trade, Industry and Energy. Seoul National University, San Diego State University, and HD Korea Shipbuilding & Offshore Engineering signed a memorandum of understanding, outlining plans for collaborative education and training. Under the agreement, Seoul National University will host between 20 and 30 students and faculty members from U.S. institutions annually, beginning in 2026, for short-term engineering programs focused on shipbuilding. The two countries also committed to expanding the scope of the program to include shipyard design professionals. The new agreement builds on a similar trilateral accord signed last July between Seoul National University, the University of Michigan, and HD Korea Shipbuilding & Offshore Engineering. The latest initiative comes as the United States seeks to rebuild its maritime capabilities, following decades of industrial decline in commercial shipbuilding. 2025-06-24 17:09:13

Consumer sentiment in South Korea hits 4-year high SEOUL, June 24 (AJP) - South Korea’s consumer confidence surged to a four-year high in June, lifted by optimism over the launch of a new government and expectations for a forthcoming supplementary budget, the central bank said Tuesday. The Bank of Korea reported that its Composite Consumer Sentiment Index (CCSI) rose to 108.7 in June, up 6.9 points from the previous month and marking the highest reading since June 2021, when the index reached 111.1. The latest increase represents the third consecutive monthly gain and reflects a sharp rebound from December, when the index plummeted 12.5 points following the declaration of martial law by then President Yoon Suk Yeol. Sentiment began to recover in April, when the index stood at 93.8. Analysts said consumer confidence has been bolstered by President Lee Jae-myung’s proposed supplementary budget, which is aimed at stimulating domestic consumption and reviving economic growth. All six sub-indices of the sentiment survey improved in June. The outlook for domestic economic conditions posted the largest gain, rising 16 points to 107. The index measuring current economic conditions climbed 11 points to 74. Expectations for housing prices also surged, with that index jumping 9 points to 120 — its highest level since October 2021, when it hit 125. The monthly increase was the sharpest in more than two years. 2025-06-24 16:13:32

Former Naver executives steer President Lee Jae Myung's AI policy SEOUL, June 24 (AJP) - President Lee Jae Myung has appointed former top executives from Naver to senior government posts, signaling a shift toward industry-driven policymaking as the country seeks to accelerate its ambitions in artificial intelligence. Ha Jung-woo, 48, the former head of AI innovation at Naver Cloud, was named the first Chief of AI Future Planning within the presidential office on June 15. A deep learning specialist, Ha had led the development of advanced AI technologies at Naver and was a vocal proponent of building “sovereign AI” — domestically developed AI systems tailored to national priorities. In his inaugural press briefing, Ha underscored the need for cross-ministerial collaboration, describing AI development as a “strategic imperative” for South Korea’s economic and technological independence. President Lee also nominated Han Seong-sook, 58, a pioneering figure in South Korea’s internet industry, as Minister of SMEs and Startups. Han served as Naver’s chief executive from 2017 to 2022 — the first woman to hold the role — overseeing a critical period of expansion into mobile platforms, fintech, and overseas markets. Under her leadership, the company launched Naver Pay, scaled its global webtoon business, and surpassed 6 trillion won (about $4.3 billion) in annual revenue during the COVID-19 pandemic. The appointments reflect a broader departure from the traditional practice of staffing key policy roles with bureaucrats and academics. Instead, President Lee's administration is turning to private-sector technologists with hands-on experience to help shape the country’s digital future. Industry analysts say the move aligns with Lee’s campaign pledge to develop a homegrown AI model, positioning South Korea as a leader in next-generation technologies while reducing dependence on foreign platforms. 2025-06-24 15:26:22

Mideast tensions jolt financial markets SEOUL, June 23 (AJP) - South Korea’s main stock index dropped below the 3,000-point threshold on Monday as rising geopolitical tensions in the Middle East unsettled global financial markets and triggered a sharp sell-off by foreign investors. The benchmark KOSPI fell 30.71 points, or 1.02 percent, to 2,991.13 as of 10:31 a.m. in Seoul, slipping back below the key psychological level it had reclaimed on June 20 for the first time in more than three years. The decline came in the wake of U.S. airstrikes on Iranian nuclear facilities over the weekend, marking a dramatic escalation in the simmering conflict between Washington and Tehran. The strikes — authorized by U.S. President Donald Trump just days after issuing an ultimatum to Iran — prompted fears of broader regional instability and energy supply disruptions. Foreign investors were at the forefront of Monday’s sell-off, dumping 358.4 billion won, or about $260 million, worth of shares. Institutional investors followed suit, offloading 522.5 billion won. Currency markets also reflected the growing unease. The South Korean won weakened sharply, rising 6.5 won, or 0.47 percent, to 1,383.0 per dollar as of 10:47 a.m. The won had opened 9.4 won higher at 1,375.0, extending losses as investors sought refuge in dollar-denominated assets. Global energy markets were quick to react to the turmoil. West Texas Intermediate crude futures for August delivery jumped 2.60 percent to $75.76 per barrel, driven by fears that Iran’s retaliatory move to close the Strait of Hormuz — a vital conduit for global oil shipments — could choke off supplies. The renewed volatility underscores South Korea’s economic vulnerability to geopolitical shocks, particularly those threatening the flow of Middle Eastern oil, which accounts for a significant portion of the country’s energy imports. Analysts warn that sustained disruption in the region could ripple through the broader economy, weighing on corporate earnings, consumer sentiment, and inflation. 2025-06-23 14:00:13

Closure of Hormuz Strait likely to imperil South Korea's energy lifeline SEOUL, June 23 (AJP) - Iran’s parliament has approved a measure to close the Strait of Hormuz, raising the specter of a severe energy crisis in South Korea. The move, seen as retaliation for recent U.S. military strikes on Iranian nuclear facilities, threatens to sever a critical artery through which nearly 70 percent of South Korea’s crude oil imports flow. The narrow waterway, wedged between Iran and Oman, is one of the world’s most strategic maritime chokepoints. It serves as the primary conduit for oil from major Middle Eastern producers — including Saudi Arabia, Kuwait, and the United Arab Emirates — most of which must transit through the strait to reach Asian markets. “Virtually all of South Korea’s Middle Eastern crude passes through Hormuz,” said an energy analyst in Seoul. “A shutdown would have immediate and far-reaching consequences for the Korean economy, especially in energy-intensive sectors.” About 99 percent of Middle Eastern oil shipments to South Korea are routed through the strait, underscoring the country’s acute vulnerability to geopolitical shocks in the Persian Gulf. The latest escalation sent crude oil prices sharply higher over the weekend, as markets absorbed the implications of a potential shipping blockade. Domestic gasoline and diesel prices in South Korea, which had been declining for over a month, reversed course, with traders pricing in fears of prolonged supply disruptions. The surge is already squeezing corporate margins and curbing consumer spending. Officials in Seoul convened emergency meetings over the weekend to weigh contingency measures. The government is exploring alternative supply routes and strategic reserve deployments, but officials privately concede that few viable options exist should the strait remain closed for an extended period. The industrial sector is likely to be the hardest hit. South Korea’s sprawling network of refineries, petrochemical complexes, and steel mills — most of which rely heavily on imported crude — could face production curtailments within weeks, analysts warned. Key export engines such as semiconductors and automobiles would also feel the ripple effects. Construction firms, many of which depend on large-scale contracts in the Middle East, are watching the situation with growing unease. South Korean companies secured $5.64 billion in regional projects from January through May, accounting for nearly half of their total overseas orders, according to the International Contractors Association of Korea. Economists warn that the crisis could not have come at a worse time. With global growth forecasts hovering around 2 percent and inflationary pressures mounting, a sustained oil price shock could tip South Korea’s economy into stagflation. Some projections suggest GDP growth could fall below 1 percent if military confrontation in the region intensifies. “This is no longer a distant geopolitical risk,” one Seoul-based economist said. “It’s a direct threat to Korea’s economic stability.” 2025-06-23 10:50:21

South Korea unveils plan to build own ChatGPT, Gemini competitor SEOUL, June 20 (AJP) - South Korea has unveiled an ambitious national initiative to develop its own artificial intelligence foundation model, aiming to reduce reliance on U.S. tech giants and establish a competitive foothold in the fast-evolving global AI race. The Ministry of Science and ICT said Friday it will accept applications from domestic AI consortiums through July 21 to participate in the project, which seeks to build a “Korean GPT” — a large language model to rival OpenAI’s ChatGPT and Google’s Gemini. “We expect this to be the starting point for ‘AI for All,’ as South Korea’s top AI elite teams take on the challenge of developing a globally competitive, independent AI foundation model,” said Song Sang-hoon, deputy minister for ICT policy, in a statement. “This will help the nation leap forward as an AI powerhouse.” The initiative, part of a broader policy roadmap presented Wednesday to the National Policy Planning Committee, aligns with President Lee Jae-myung’s campaign pledge to establish a domestically developed AI model designed for universal access and tailored to Korean linguistic and cultural needs. Up to five consortiums will be selected in the first phase, receiving government-provided resources including graphics processing units (GPUs), curated datasets and infrastructure support. The selected teams will be tasked with building both large language models and multimodal AI systems. The government has set an ambitious benchmark: models must perform at least 95 percent as well as leading global counterparts released within the prior six months. An initial evaluation will take place in December and will include a competitive showcase judged by both the public and AI experts. 2025-06-20 16:03:32

South Korea extends bidding deadline for controversial offshore gas project SEOUL, June 20 (AJP) - South Korea has extended the bidding deadline for international energy companies to join its contentious East Sea offshore gas development project, as foreign firms seek assurances about the new administration’s stance on an initiative spearheaded by the previous government. The state-run Korea National Oil Corporation (KNOC) has delayed the original June 20 deadline by several weeks, industry officials said, following requests from interested bidders for more time. The extension is expected to be formally announced through Onbid, the public auction platform managed by the Korea Asset Management Corporation. The delay comes as international oil majors weigh the commitment of President Lee Jae-myung’s administration to the project, which has drawn sharp political scrutiny. While more than 10 overseas companies have reportedly reviewed KNOC’s exploration data since bidding opened on March 20, industry experts say the future of the project remains clouded by political transition. President Lee, who took office on June 4, was a vocal critic of the gas field initiative during his campaign, labeling it a “scam” and questioning the economic viability of a project closely associated with former President Yoon Suk-yeol. The administration has yet to articulate a clear position on whether it will support continued development. KNOC drilled independently at the field’s most promising structure — known as “Blue Whale” — between December and February, but the Ministry of Trade, Industry and Energy later confirmed the site failed to yield commercially viable hydrocarbon reserves. Now, under pressure to reduce its own financial exposure, the debt-laden KNOC is courting foreign investment and technical expertise for a second phase of exploration. The company hopes to attract up to 49 percent equity participation from international partners to investigate other potentially productive structures within the offshore block. Energy analysts say foreign bidders are likely to demand policy clarity before committing to a project that could require hundreds of millions of dollars in upfront investment and years of exploration. 2025-06-20 13:59:47

MSCI upgrades Korea's short-selling rating, but cites lingering barriers SEOUL, June 20 (AJP) - Global index provider MSCI has upgraded South Korea’s short-selling accessibility rating in its annual market accessibility review, marking a modest step forward in the nation’s yearslong effort to join the MSCI World Index. Still, the firm warned that broader foreign investor access remains hampered by longstanding structural hurdles. The upgrade — moving South Korea’s short-selling rating from “negative” to “positive” — follows the partial resumption of short-selling in March, after a nearly three-year suspension. The policy shift brought the country one step closer to aligning with international standards, a key requirement for inclusion in MSCI’s flagship index. Yet the review struck a cautious tone overall, underscoring enduring concerns around South Korea’s currency market, investor registration process, and settlement mechanisms. “Despite these reforms, the registration process continues to face operational hurdles,” MSCI said in its report. “Moreover, the limited usage of omnibus accounts and over-the-counter transactions has constrained the impact of related regulatory initiatives.” MSCI also criticized the slow adoption of corporate governance reforms — particularly procedures allowing companies to confirm dividend payouts before record dates. The firm noted that only a small number of companies have implemented the measure, limiting its effectiveness. South Korea has sought inclusion in the MSCI World Index since 2008, when it was placed on the firm’s watch list. Currently, South Korea holds six “negative” ratings across MSCI’s 18 market accessibility criteria, down from seven a year earlier when short-selling access was downgraded. Key areas requiring improvement include liberalization of the foreign exchange market, streamlining of investor registration, modernization of clearing and settlement systems, and expansion of investment products. In April, Financial Services Commission Chairman Kim Byoung-hwan met with senior MSCI officials in an effort to underscore the government’s reform agenda and advocate for a more favorable evaluation. 2025-06-20 11:11:53

South Korea's construction output sees sharpest decline in decades SEOUL, June 19 (AJP) - South Korea’s construction sector recorded its steepest quarterly contraction since the 1997-98 Asian financial crisis, as both public and private projects ground to a halt amid tightening budgets and waning demand. The total value of construction completed in the first quarter fell 21.2 percent year-on-year to 26.87 trillion won (approximately $19.5 billion), according to data released Thursday by the Korea Research Institute for Construction Policy. With the industry employing millions nationwide, the latest downturn is raising alarms about broader economic ripple effects and the potential drag on employment. “While we anticipated a slowdown in private construction, we expected government spending to partially offset the losses,” said Park Sun-gu, head of the institute’s economic and financial research division. “Instead, we’ve seen steep declines across all segments — public, private, civil engineering, and buildings — through April. Both current and leading indicators are now markedly weak.” The dismal figures follow the Bank of Korea’s downward revision of its 2025 economic growth forecast earlier this month, cutting the outlook to just 0.8 percent, citing a drop in household consumption and persistent weakness in construction. The sector’s downturn has worsened progressively over the past year, with quarterly contractions intensifying from 4 percent in the first quarter of 2024 to 9.7 percent in the fourth quarter, before plunging into double-digit territory in early 2025. Leading indicators suggest little relief ahead. Between January and April, the total permitted building area declined 21.4 percent, while the area of construction commencement shrank 22.5 percent. New construction orders also fell by 4.3 percent, signaling sustained sluggishness for the remainder of the year. Industry analysts warn that any recovery will likely be protracted and uneven, with gains concentrated in certain regions or sectors rather than across the board. A full rebound may not begin until next year, they said. Park urged targeted government intervention, including supplementary budgets focused on supporting smaller contractors and regional markets rather than large, Seoul-based firms, in order to address what he described as growing polarization within the industry. The sector's current woes are particularly striking given the typically stable nature of construction completion metrics, which rarely exhibit such dramatic quarterly swings. 2025-06-19 14:44:45

LS, with eyes on Europe and beyond, builds battery, energy empire Editor's Note: This article is the 23rd installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, June 18 (AJP) - Despite mounting uncertainty in the global electric vehicle market, South Korea’s LS Group is standing firm on its long-term investment plans in battery materials and carbon-free electricity, pledging there will be “no reduction in investment,” even if the pace slows. At the 2025 InterBattery exhibition in Seoul on March 5, LS Group Chairman Koo Ja-eun sought to reassure industry stakeholders. “The chasm came after LS decided to invest in battery materials but before we even began the business in earnest,” Koo said, referring to the so-called EV “market chasm.” “I believe the chasm will already be gone by the time the factory is completed.” Production from LS’s upcoming precursor and secondary battery materials facilities — led by its affiliate LS MnM — is expected to begin as early as 2026. The commitment underscores LS Group’s broader push toward a “carbon-free electricity” future, a vision at the heart of its long-term corporate strategy. LS’s investment in secondary battery materials is one of several prongs in its effort to reshape the energy landscape. The group is also expanding its energy storage systems (ESS) portfolio. LS Electric recently signed a contract with Spain’s Power Electronics, while LS Materials introduced hybrid ESS technology — a first for the South Korean market. Further bolstering its renewables footprint, LS Cable & System (LS C&S), one of the group’s core subsidiaries, announced on June 17 that it had been selected as the preferred bidder to supply submarine cables for South Korea’s largest offshore wind farm, a one-gigawatt development off the southwestern coast. The group traces its industrial lineage back to LG Group, originally co-founded in 1947 by Koo In-hoe and Huh Man-jung. LS Group formally spun off from LG in 2003 under the leadership of Koo Ja-hong and launched officially in 2005, inheriting LG’s industrial electronics and materials divisions. Today, LS C&S, LS Electric, and LS MnM serve as the group’s key growth engines. A largely business-to-business conglomerate, LS has extended its global reach over the past decade. Its U.S.-based wire subsidiary, Superior Essex, broke ground in Serbia in 2018 with a new Essex Balkan plant specializing in windings for automotive and electronics markets. The facility boasts 42 production lines and a 12,000-ton annual capacity, aimed squarely at Eastern Europe’s expanding EV sector. LS C&S has also made inroads across Asia and Europe. In Myanmar, it built the country’s largest power cable plant, LS-Gaon Cable Myanmar (LSGM), while in Poland, it completed a plant in 2019 producing EV battery components and communication cables. In a major milestone, the company in 2020 inked a five-year priority supply contract with Danish offshore wind developer Ørsted for ultra-high voltage submarine cables. The group’s recent financial performance reflects this global pivot. According to a first-quarter report released May 16 by LS Corp., the holding company, consolidated operating profit rose 25 percent year-on-year to 304.5 billion won ($223.6 million), while revenue climbed 16 percent to 6.91 trillion won. LS C&S led the growth, with revenue surging 34.4 percent to 1.94 trillion won, buoyed by strong demand for power infrastructure amid an artificial intelligence-driven data center boom. Meanwhile, LS Electric reported flat performance, with revenue inching down to 1.03 trillion won from 1.04 trillion won a year earlier. The metals and materials business, led by LS MnM, posted 2.83 trillion won in revenue — up 12.2 percent — driven by rising global metal prices and favorable currency conditions. In January 2023, Chairman Koo unveiled “Vision 2030,” a roadmap that calls for more than 20 trillion won in investment by the end of the decade, largely focused on carbon-free electricity and next-generation growth engines including batteries, electric vehicles, and semiconductors. “The common challenge for the world over the next 30 years can be summarized in one word: ‘Net Zero,’” said Koo. “And the key to ‘Net Zero’ is carbon-free electricity. The great transformation to this era presents an unprecedented growth opportunity for LS.” 2025-06-19 10:50:33