Forum highlights need for economic 'reboot' in face of industrial upheaval SEOUL, June 18 (AJP) - As South Korea faces mounting pressure to stay competitive in an era of rapid technological change, policymakers and industry leaders gathered Wednesday at a technology forum in Seoul to urge sweeping innovation and a reimagining of the country’s growth strategy. The Aju Future Strategy Forum, hosted by Aju News Corporation and held at the FKI Tower in Yeouido, convened government officials, lawmakers, and economic experts to assess the challenges confronting the nation’s economy amid an evolving industrial landscape. The event's theme — “Reboot Korea” — underscored calls for structural transformation and digital modernization. In a congratulatory message, President Lee Jae-myung called for the urgency, stressing the need to build “new growth engines” while pursuing a vision of “fair growth” that equitably distributes both opportunities and results. Yun Ho-jung, a lawmaker from the ruling Democratic Party, said in an address, “The world is changing — and so must we." "When I heard the theme ‘Reboot Korea,’ I imagined restarting a computer. But the situation requires more than that. We need to insert ‘growth chips’ — that is, fresh ideas and initiatives from government, corporations, and citizens alike," he added. The forum drew a broad range of political and business figures, including former Trade, Industry and Energy Minister Moon Sung-wook, People Power Party lawmaker Na Kyung-won and Reform Party acting leader Chun Ha-ram. Moon, delivering a keynote titled “Renovation K-Economy,” painted a sobering picture of Korea’s economic trajectory. “Even if global trade conditions improve in our favor, it will be difficult to raise growth beyond 1 percent,” he said, calling for accelerated investment in what he described as “killer technologies” and the cultivation of “core talent” to preserve economic security and long-term competitiveness. Quoting from the film Interstellar, Moon added, “We will find a way. We always have.” The forum also featured strategic proposals from Song Jae-ho, chairman of the advisory committee to the National Assembly Speaker, and Kim Sei-wan, president of the Korea Capital Market Institute. Song advocated for the development of “mega city regions” through integrated regional governance, calling for a national “economic remapping” to stimulate balanced growth across provinces. Kim emphasized the urgent need for financial infrastructure reform as the digital economy expands, pointing to the emergence of security tokens as a key area for legislative support. “Without adaptive regulation, financial markets risk falling behind,” he warned. In a panel discussion, panelists tackled a range of challenges hindering South Korea’s AI sector, including rigid and outdated regulatory frameworks, underdeveloped data ecosystems, and inadequate infrastructure support for private companies. Speakers called for a stronger public-private partnership to build the digital foundation necessary for long-term innovation. 2025-06-18 16:40:50

Korean government unveils plan for national AI service, major R&D expansion SEOUL, June 18 (AJP) - South Korea's Ministry of Science and ICT announced sweeping plans on Wednesday to accelerate the nation’s artificial intelligence capabilities, pledging to launch a state-sponsored AI service and boost research and development funding by more than 4 trillion won (approximately $2.9 billion). In a policy briefing to the National Policy Planning Committee at the Government Complex in Sejong, ministry officials outlined a strategy that favors promotion over regulation, amid growing global competition in AI technology. The initiative follows a series of high-profile cybersecurity breaches, including a recent hacking incident at telecom giant SK Telecom. The ministry’s blueprint aligns with President Lee Jae-myung’s campaign promise to develop a homegrown version of ChatGPT — dubbed the “Korean GPT” — designed for universal public access. Officials set a goal for the domestic AI model to reach at least 95 percent of the performance benchmark set by top-tier global foundation models. To revive what officials described as a weakened research ecosystem, the government plans to raise R&D investment to 5 percent of overall public spending. The expanded funding will target core areas including AI, biotechnology, defense, and energy, as part of a broader push to meet the administration’s campaign pledges. Among the key challenges outlined were the expansion of AI computing infrastructure, the implementation of supporting legislation under the recently passed AI Basic Act, and the development of general-purpose AI models that can serve diverse applications. The ministry also addressed setbacks in its national AI computing center project. After a failed tender process drew no private sector bids, officials said they would ease requirements for the special-purpose corporation intended to manage the center. New tenders will be issued, or alternative models considered, by next month. In a nod to industry concerns over excessive oversight, the ministry said it is reviewing a proposal from the ruling Democratic Party that would introduce a three-year grace period before the AI Basic Act is fully enforced. The goal, officials said, is to craft "flexible, promotion-oriented" regulations that foster innovation rather than stifle it. The government is also weighing a more centralized governance structure for AI policy. Plans include strengthening the National Artificial Intelligence Committee by appointing a small cohort of private-sector experts and potentially placing the committee under direct presidential leadership. A dedicated AI policy office may be launched as early as August. 2025-06-18 15:21:14

S. Korea plans $14 billion second supplementary budget to boost economy SEOUL, June 17 (AJP) - The South Korean government is expected to introduce a 20 trillion won (approximately $14.6 billion) supplementary budget on Thursday, part of a broader effort to revitalize the nation’s faltering export-driven economy. The proposal, which would mark the second supplementary budget of 2025, is scheduled for submission at the cabinet meeting on June 19. It follows a 13.8 trillion won stimulus package announced in May and is aimed at boosting domestic consumption through targeted fiscal support. According to presidential spokesperson Kang Yu-jung, President Lee Jae-myung has been closely involved in crafting the new budget. The centerpiece of the package is a nationwide economic recovery program that will distribute cash payments scaled to income levels. Since taking office on June 4, President Lee has consistently advocated for expansionary fiscal policy and direct cash-transfer schemes. His administration’s urgency has been underscored by the Bank of Korea’s recent downward revision of its 2025 growth forecast to 0.8 percent, citing weak household spending and a slump in construction activity. The revised plan moves away from the ruling Democratic Party’s original proposal of universal 250,000 won payouts. Instead, recipients of basic livelihood subsidies would receive 450,000 won in the initial phase. Low-income families and single-parent households would be allotted 350,000 won, while the general public would receive 250,000 won. The budget also earmarks approximately 500 billion won for local currency programs and fiscal adjustments to address revenue shortfalls attributed to policies under former President Yoon Suk Yeol. 2025-06-17 14:44:14

Korean biotech firms showcase innovation at BIO International Convention SEOUL, June 17 (AJP) - Global biotechnology leaders and emerging innovators have convened in Boston as the 2025 BIO International Convention opened, drawing an estimated 20,000 industry professionals from across the world. The four-day event, held at the Boston Convention and Exhibition Center, marks the 32nd edition of the world’s largest biotechnology trade show. “BIO 2025 offers Korean biotech companies an unparalleled global platform to showcase their technologies and establish transformative partnerships,” said Jurie Hwang, director of public and international relations at the Korea Biotechnology Industry Organization (KoreaBio). The convention takes place against the backdrop of evolving pharmaceutical markets. With the U.S. under renewed political pressure to curb rising drug prices, South Korean firms are eyeing the American biosimilar market, where several high-profile patents are nearing expiration. South Korea’s pharmaceutical sector made a notable showing at this year’s gathering. Samsung Biologics, Celltrion, Lotte Biologics and SK Biopharmaceuticals were among the major companies hosting large-scale booths aimed at securing global partnerships and licensing agreements. 2025-06-17 10:36:58

Korea Zinc sends first shipment of antimony to US SEOUL, June 16 (AJP) - Korea Zinc, South Korea’s sole producer of antimony, a mineral deemed critical for national defense, has shipped its first direct export of the material to the United States, according to the company officials on Monday. Roughly 20 metric tons of antimony were recently loaded onto a cargo vessel bound for Baltimore, Maryland, marking a significant milestone in Washington’s efforts to diversify sources of critical minerals and reduce its reliance on China. The shipment, arranged as a spot transaction, is expected to arrive next month and be distributed through local importers to approximately 10 American companies, including several major defense contractors, the sources said. “South Korean exports of antimony to the U.S. will play an important role in diversifying supply chains away from their original dependence on China,” said Park So-young, a senior researcher at the Korea International Trade Association. The move comes as the United States seeks to secure more resilient supply chains for strategic materials. Last year, more than 60 percent of America’s antimony imports originated from China, which imposed export controls on the mineral and other critical materials in August. Korea Zinc aims to export about 100 tons of antimony to the United States this year. Beginning in 2025, the company expects to ramp up shipments to more than 240 tons annually, with plans for monthly deliveries of 20 tons. Antimony is a key component in a range of military and high-tech applications. It is used in armor-piercing ammunition, semiconductors, submarine ballast systems, and aerospace technologies. The mineral is also essential in the production of infrared components for the missile warning systems on F-35 fighter jets. 2025-06-16 15:17:01

Korean gaming group condemns Tencent's reported Nexon takeover bid SEOUL, June 16 (AJP) - A South Korean gaming industry association on Monday strongly condemned a reported bid by Chinese technology giant Tencent to acquire Nexon, one of South Korea’s largest game developers, calling the move a threat to the country’s “industrial sovereignty” and urging the government to intervene. In a statement, the Korea Game Society criticized what it described as “systematic domination attempts” by foreign entities to gain control over strategic sectors of the South Korean economy. The group said the deal, if realized, would represent more than a corporate transaction, warning it could amount to an erosion of national autonomy in the digital economy. “This matter represents a national security issue that the government cannot remain neutral about,” the association said. “This is not merely a transaction between private companies, but an organized attempt to control the Republic of Korea's key industries.” The criticism follows a June 12 report by Bloomberg, which cited sources familiar with the matter as saying Tencent Holdings was exploring a potential $15 billion acquisition of Nexon to bolster its global gaming portfolio. According to the report, Tencent had approached the family of the late Nexon founder Kim Jung-ju to discuss a possible deal. The gaming association urged the South Korean government to formally classify the video game industry as a “national strategic sector” and to establish legal safeguards to prevent foreign takeovers of domestic firms. Neither Tencent nor NXC, Nexon’s holding company, have publicly commented on the reports. In a brief statement to AJP, Nexon said it had “no official position or confirmable information” on the matter. Separately, a Tencent representative, speaking anonymously to a Chinese technology outlet on June 13, reportedly denied that the company was engaged in acquisition talks with the founder’s family or reviewing any deal involving Nexon. 2025-06-16 15:13:45

President Lee pledges support for growth at meeting with business leaders SEOUL, June 13 (AJP) - President Lee Jae-myung met with the heads of South Korea’s largest conglomerates and business associations on Friday, pledging regulatory reform and support for corporate growth as central pillars of his economic agenda. The meeting came just days before his scheduled departure for the Group of 7 summit in Canada. The gathering, held at the presidential office in Yongsan, Seoul, brought together top executives from Samsung, Hyundai Motor Group, LG Group, and Lotte Group, as well as leaders of six major economic organizations. “The most important thing is the people's livelihood,” Lee said during the meeting. “At the heart of that is the economy — and at the heart of the economy is business.” The meeting marked a swift start to Lee’s administration. His first official act was the establishment of an emergency economic review task force, signaling his urgency in tackling economic challenges. Lee is expected to depart for Canada this weekend to attend the G7 summit, where he is also planning bilateral talks with U.S. President Donald Trump. Trade tensions, particularly tariffs impacting South Korean industries, are likely to feature prominently in those discussions. Lee emphasized the government’s role in helping domestic firms expand abroad and compete globally, vowing to deploy both diplomatic and security measures in support of corporate interests. At the same time, he struck a tone of reform, warning that South Korea could no longer rely on protectionist policies or opaque business practices. “We must build a fair and transparent economic ecosystem,” he said, while reaffirming his administration’s commitment to fostering a market-friendly environment. Samsung Electronics Chairman Lee Jae-yong expressed support for the president’s business-first approach, reaffirming the conglomerate’s investment and hiring plans. Chey Tae-won, chairman of both SK Group and the Korea Chamber of Commerce and Industry, praised the upcoming APEC summit as a vital opportunity for public-private cooperation, and urged continued government backing to ensure its success. 2025-06-13 15:19:47

Korean petrochemical firms seek lifeline through mergers as losses mount SEOUL, June 13 (AJP) - South Korea’s beleaguered petrochemical industry is turning to consolidation as a potential lifeline, with Lotte Chemical and HD Hyundai reportedly in discussions to integrate their naphtha cracking operations. The move comes as domestic producers reel from plunging profits and stiff competition from China and the Middle East. Lotte Chemical’s operating profit plummeted nearly 64 percent in the past year, falling from 2.59 trillion won ($1.9 billion) in 2023 to 916.8 billion won in 2024. HD Hyundai’s petrochemical unit, HD Hyundai Oilbank, saw a similarly steep drop of 58.2 percent, with profits shrinking to 258 billion won over the same period. In a bid to bolster liquidity, Lotte Group has put its landmark Lotte World Tower up as collateral and divested its Pakistan subsidiary. Now, the company is said to be weighing a more radical step: merging its naphtha cracking center in the Daesan industrial complex with that of HD Hyundai Chemical, a joint venture in which HD Hyundai Oilbank holds a 60 percent stake and Lotte Chemical owns the remaining 40 percent. Sources familiar with the matter say that under the proposed plan, Lotte would transfer its ethylene production facilities — which have a capacity of 1.1 million tons annually — to HD Hyundai Chemical, consolidating operations with HD Hyundai’s existing 850,000-ton unit at the same site. HD Hyundai would provide additional investment to integrate the assets under a single operating entity. Industry analysts say the consolidation could generate meaningful cost savings by streamlining operations and reducing overhead, including labor and facility maintenance. The talks come amid broader efforts within South Korea’s petrochemical sector to restructure in the face of unprecedented external pressures. Chinese ethylene production has more than doubled in recent years, soaring from 26 million tons in 2018 to an estimated 55 million tons in 2024, according to the Oxford Institute for Energy Studies. Meanwhile, producers in the Middle East have further disrupted the market, slashing production costs to a third of South Korean levels by leveraging cutting-edge crude-to-chemicals technology. Lotte and HD Hyundai are not alone in considering consolidation. Industry sources say LG Chem has also approached both companies to discuss potential collaboration or facility reassessments, though no formal agreements have been reached. The South Korean government is preparing a sweeping policy response. The ruling Democratic Party has proposed special legislation aimed at revitalizing the sector. The bill includes financial assistance for corporate restructuring, reductions in electricity rates, and exemptions from antitrust laws to facilitate cooperative ventures. 2025-06-13 11:09:16

Korea's leading online bookstore admits possible data breach after ransomware attack SEOUL, June 12 (AJP) - Yes24, South Korea’s largest online bookstore, acknowledged for the first time on Thursday the possibility that customer data may have been compromised in a ransomware attack that has crippled its operations for days. In a statement posted on its official website, the company said it would individually notify customers if investigators confirm that personal data had been leaked. The announcement came one day after the Personal Information Protection Commission launched a formal investigation into the hacking attack. The company, which until now had denied any breach of user data, said in its advisory, “Yes24 has not confirmed any external leakage of customer personal information. The company, however, added, “We are informing customers of this precautionary measure to prepare for any possibility.” The attack, carried out by unidentified hackers using ransomware, knocked out both the main and backup servers of Yes24 on Monday. As of Thursday, the website remained inaccessible, and the company said it expects to restore full service by Sunday — though that timeline has already slipped past earlier projections amid ongoing technical challenges. The company also urged customers to be on alert for phishing attempts, warning them to avoid suspicious messages purporting to be from Yes24 or financial institutions, and to delete any unverified links or attachments. The incident marks one of the most disruptive cyberattacks to hit a major South Korean e-commerce platform in recent years. The Yes24 case has raised new concerns over digital security and crisis response protocols at private firms entrusted with sensitive consumer information. Amid the growing fallout, discrepancies emerged between Yes24 and a government cybersecurity agency over the company’s cooperation in the recovery effort. The Korea Internet & Security Agency (KISA) disputed Yes24’s assertion that it was working with authorities, saying it had sent experts to the company’s headquarters twice since the onset of the attack but was denied cooperation on both occasions. 2025-06-12 16:16:47

Government to confront climbing grocery costs in meeting with industry groups SEOUL, June 12 (AJP) - Kim Min-seok, President Lee Jae-myung's nominee for prime minister, is set to hold talks on Friday with representatives from the nation’s food and restaurant sectors as the government confronts growing public frustration over rising consumer prices. According to officials familiar with the issue, the meeting will take place in Seoul and will include representatives from the Korea Food Industry Association, the Korea Foodservice Industry Association, and the Ministry of Agriculture, Food and Rural Affairs. The discussions come amid heightened political and public scrutiny over food costs, particularly for everyday staples. On Tuesday, Kim told reporters that concerns over lunch prices and basic groceries are “deeply felt by the working population,” echoing remarks made earlier this week by President Lee. “President Lee’s recent visit to the market and his comments on food and ramen prices were not offhanded,” Kim said. “He understands the pain that rising daily costs inflict on workers.” On Monday, during an emergency economic task force meeting, President Lee publicly questioned why the price of a packet of instant noodles — a common and affordable meal for many — has climbed to nearly 2,000 won, or about $1.45. His comments underscored the administration’s concerns over persistent price pressures, despite a broader easing in inflation. While South Korea’s overall consumer inflation fell into the 1 percent range last month — the first such dip in five months — processed food prices continued to rise, marking a 4 percent increase for the second consecutive month. Dining-out costs also remained elevated. Combined, the two categories contributed 0.81 percentage points to last month’s 1.9 percent overall inflation rate — accounting for nearly half of the total. Roughly 60 food and restaurant firms have raised prices over the past six months, prompting accusations that the sector has taken advantage of political uncertainty following the December martial law crisis to quietly push through price hikes. Industry representatives are expected to argue that the increases were driven by unavoidable cost pressures, particularly from global raw material prices. Some companies had postponed adjustments last year under government pressure, insiders say, and profit margins in the food sector remain relatively thin compared to other industries. The outcome of Friday’s meeting may offer early clues about how the new administration plans to navigate the delicate balance between market forces and political accountability. 2025-06-12 14:13:55