Korea, Malaysia resume FTA talks to close gap in key areas SEOUL, May 13 (AJP) - South Korea and Malaysia are set to resume negotiations this week in Kuala Lumpur as the two nations seek to advance their bilateral free trade agreement. The talks, scheduled from Tuesday through Thursday, mark the sixth round of negotiations since the process resumed in March 2024. The South Korean delegation is headed by Kwon Hye-jin, the country’s chief trade negotiator from the Ministry of Trade, Industry and Energy. Malaysia’s team is led by Sumadi Balakrishnan, senior director at the Ministry of Investment, Trade and Industry. Officials from both sides say momentum has been building. Since last August, the two countries have held five formal rounds and several intersessional meetings, culminating in a significant breakthrough last month. The April 8–11 talks closed gaps in 10 key areas, including goods and services trade as well as broader economic cooperation. This week’s discussions will focus on eight major topics, notably rules of origin, while revisiting earlier negotiations on trade in goods and services. Both nations have now tabled their respective offer lists, laying the groundwork for more detailed bargaining. The stakes are high for South Korea, which is seeking to strengthen its foothold in Southeast Asia amid shifting trade dynamics in the region. While April exports to ASEAN countries totaled $94.4 billion — just $14.4 billion shy of exports to China — South Korea’s shipments to ASEAN outpaced those to China in February and March. “Establishing a bilateral FTA with Malaysia, a promising market within ASEAN, will significantly enhance our companies’ global competitiveness and help mitigate uncertainty,” Kwon said in a statement. 2025-05-13 10:40:08

US, China agree to roll back tariffs, pause trade war SEOUL, May 12 (AJP) - The United States and China announced Monday that they had reached a preliminary agreement to reduce and temporarily suspend a series of reciprocal tariffs, marking a significant step toward de-escalating a trade conflict that has rattled global markets for weeks. Following a weekend of closed-door negotiations in Geneva, U.S. Treasury Secretary Scott Bessent said the two countries had agreed to a 90-day pause on implementing new tariffs, with both sides committing to reduce existing levies by a combined 115 percentage points. “We had very productive talks, and I believe the venue — here in Lake Geneva — added great equanimity to what was a very positive process,” Bessent told reporters. Chinese Vice Premier He Lifeng, who led Beijing’s delegation, described the discussions as “in-depth” and “candid.” Under the terms of the agreement, U.S. tariffs on Chinese imports will be reduced to 30 percent from the current 145 percent. In turn, China will lower its tariffs on American goods to 10 percent. In a statement released by China's Commerce Ministry, officials said both sides were committed to taking coordinated steps to implement the agreement. The ministry also indicated that China would suspend or remove certain non-tariff retaliatory measures imposed on the U.S. since April 2. The latest talks marked the first high-level, in-person negotiations on trade between the two countries since U.S. President Donald Trump returned to the White House and revived his aggressive trade agenda. The Trump administration has blamed China for what it describes as decades of unfair trade practices and, earlier this year, imposed sweeping tariffs that reignited tensions between the world’s two largest economies. While Monday’s announcement offers a temporary reprieve for businesses and investors, analysts cautioned that a 90-day window may be too short to resolve deeper structural disagreements. Still, the move was welcomed by markets, with major indices in Asia and Europe climbing on hopes of a thaw in bilateral trade relations. 2025-05-12 17:16:34

OECD warns of slowing growth in South Korea SEOUL, May 12 (AJP) - South Korea’s potential economic growth is projected to dip below 2 percent next year, according to the Organisation for Economic Cooperation and Development, raising fresh concerns about the long-term health of Asia’s fourth-largest economy. The OECD forecast South Korea’s potential GDP growth rate at 1.98 percent for 2026 — a slight but symbolic decline from this year’s estimate of 2.02 percent. The revision reflects a broader and more worrisome trend as the country’s growth ceiling has steadily eroded. Over the 10-year period from 2017 to 2026, South Korea’s potential growth rate is expected to fall by 1.02 percentage points, the seventh-steepest drop among the 37 OECD member countries. The weakening outlook aligns with estimates from major domestic institutions. The National Assembly Budget Office has projected potential growth at 1.9 percent for 2025, while the Korea Development Institute places it even lower, at 1.5 percent. Potential GDP refers to the maximum level of output an economy can sustain without igniting inflation. While less visible than headline growth figures, the metric serves as a crucial gauge of economic vitality — and the direction is now clearly downward. South Korea's short-term performance has also lagged. The country posted the slowest GDP growth among 19 major OECD economies in the first quarter of 2025, contracting by 0.25 percent, the Bank of Korea reported on May 11. Much of the decline is being attributed to demographic headwinds. In a March report, the OECD highlighted South Korea’s collapsing fertility rate as a structural risk, warning that a shrinking workforce and a rapidly aging population could hamper efforts to sustain living standards. “The impact of a one-percentage-point decline in potential growth may be more severe for advanced economies than for emerging ones,” said Kim Kwang-seok, head of economic research at the Institute for Korean Economy & Industry. 2025-05-12 10:57:34

K-pop festival in Japan becomes business platform for Korean firms SEOUL, May 12 (AJP) - South Korean companies secured export agreements valued at $9.76 million during business matchmaking sessions held alongside a major K-pop festival in Japan, the Korea Trade-Investment Promotion Agency (KOTRA) said Monday. The business-to-business consultations, organized by KOTRA, took place on May 8 at the Tokyo International Forum, coinciding with KCON Japan, an annual K-pop showcase hosted by entertainment conglomerate CJ ENM. The three-day event featured performances by 33 artist teams, including girl groups QWER, Kep1er, and Rescene. Forty small and medium-sized enterprises from South Korea — specializing in beauty products, food, and fashion accessories — engaged in 351 tailored meetings with 82 Japanese buyers, the agency said. The promotional effort included a joint exhibition space curated with Powder Room, a prominent Korean beauty platform, which drew foot traffic through interactive events and brand demonstrations. Korean beauty brands, including Dr. AG, All My Things, and Nudique, saw heightened interest from Japanese buyers, with several companies reporting fully booked consultation schedules ahead of the event. “The Korean Wave has evolved beyond a cultural trend into a vehicle for export growth,” said Park Yong-min, director of KOTRA’s Japan regional office. “We will continue to support Korean SMEs in entering the Japanese market and building sustainable partnerships.” 2025-05-12 10:51:10

Kim Moon-soo secures candidacy after failed ouster attempt SEOUL, May 11 (AJP) - A last-ditch effort by the ruling conservative People Power Party (PPP) to replace its presidential nominee has ended in turmoil, exposing deep fractures within the party just ahead of the registration deadline. The party leadership’s attempt to replace Kim Moon-soo, the candidate who won the party’s primary, with former Prime Minister Han Duck-soo unraveled within 24 hours following fierce internal opposition and a narrow defeat in a party-wide vote. Kim is now expected to be officially registered as the party’s presidential candidate on Sunday. The drama began on the night of May 9, when party leaders — frustrated by Kim’s refusal to unify candidacies ahead of the May 11 deadline — moved to strip him of his nominee status. Kim had proposed a public opinion poll between May 15 and 16 as a method for candidate unification, but the leadership rejected this idea. In a series of emergency meetings held at midnight, the party’s interim leadership and Election Commission voted to revoke Kim’s candidacy and replace him with Han. At 3:30 a.m. on May 10, Han formally joined the party as a full member and submitted his registration paperwork. By 4 a.m., he stood as the sole registered candidate, and Kim was effectively disqualified. The party leadership, seeking legitimacy for the controversial move, held a vote of party members throughout the day on May 10. The vote lasted 11 hours, from 10 a.m. to 9 p.m. In an emergency press conference, Kim denounced the leadership’s actions as illegal and anti-democratic. “The party's leadership unlawfully stripped me of my candidacy, despite my legitimate selection by party members and the public,” he said. He also filed for an injunction with the Seoul Southern District Court to halt the disqualification, telling the court that the party “revoked my nomination in the dead of night without informing me, and chose another candidate behind closed doors.” The party’s interim leader, Kwon Young-se, defended the decision in a separate press conference, saying, “It was a painful but necessary step.” He accused Kim of repeatedly making “groundless accusations” that had sown division within the party. Several figures who had competed in the primary, as well as some lawmakers expressed outrage. Han Dong-hoon, a former justice minister who was defeated in the party primary, likened the move to autocratic behavior, saying, “Even North Korea wouldn’t do this.” Veteran lawmaker Hong Joon-pyo launched a blistering attack on Kwon and PPP floor leader Kwon Seong-dong. Another candidate, Ahn Cheol-soo, called the situation a “political farce,” while lawmaker Na Kyung-won wrote on social media, “This is not the PPP I know.” At 7 p.m., the two camps attempted another round of negotiations. Kim’s side proposed a compromise involving a 100-percent public opinion poll, with limited safeguards against strategic voting. Han’s team, however, insisted on a full party vote using the K-Voting system, a digital voting mechanism. The talks collapsed after just 40 minutes. By 11 p.m., the party’s interim leadership announced the results of the vote: a narrow majority of party members opposed the candidate replacement. Kim’s candidacy was reinstated. In a final act of contrition, the interim leader Kwon offered his resignation. “It is deeply regrettable that unification was not achieved,” he said. “That failure is mine alone. I take full responsibility and will step down.” Kim is now expected to formally register his candidacy with the National Election Commission on Sunday. 2025-05-11 09:40:49

Naver posts mixed earnings results for 1st quarter SEOUL, May 9 (AJP) - Naver posted robust first-quarter sales while its net profit fell, according to figures released by the South Korea's largest portal on Friday. Sales for the first three months of this year reached 2.79 trillion won (US$1.99 billion), up 10.3 percent from the same period last year, backed by steady growth across its diverse business sectors despite intensifying competition and challenges in emerging technologies including artificial intelligence (AI). Operating profit jumped 15 percent to 505.3 billion won, but net profit tumbled 23.8 percent to 423.7 billion won. The search-related division, which takes the lion's share of the company's business sectors, saw an 11.9 percent surge in revenue to 1.01 trillion won, driven by AI-optimized advertising. The commerce unit followed with a 12 percent growth on-year, with on-platform transaction volume increasing by 10.1 percent. The fintech division saw an 11 percent increase, processing 19.6 trillion won in payments through its app Naver Pay, up 17.4 percent from the previous year. "Naver secured unmatched competitiveness by building an ecosystem that AI cannot replace, connecting our own content and data," said CEO Choi Soo-yeon. Addressing concerns about AI's impact on the market overall, Choi commented that, based on internal data, there were no adverse effects, with traffic continuing to rise for business-related queries where the company maintains relative strength, compared to market rivals. Naver also revealed plans to launch a service in partnership with grocery delivery app Kurly in the second half of the year, further strengthening its recently launched separate shopping platform. 2025-05-09 16:40:58

Rising demand for data centers reshapes global real estate market, research reveals SEOUL, May 9 (AJP) - A surge in global demand for data centers is significantly influencing the dynamics of the real estate market around the world, according to a recent analysis by Cushman & Wakefield. The global commercial real estate services firm compared data centers worldwide and found that development pipelines have reached historic levels this year, with North and South America driving market growth. Virginia stands at the forefront with ongoing development exceeding 15 gigawatts in planned capacity, along with the expansive presence of data centers for tech giants such as Amazon, Google, and Microsoft. "We expect total capacity to continue expanding across all global regions, with each projected to see at least double-digit growth based on current development pipelines," said John McWilliams, a head researcher at Cushman & Wakefield. Development strategies are pivoting from urban centers toward peripheral locations. Phoenix, Sydney, and Virginia are garnering attention as suburban markets capable of accommodating high-power integration, reflecting an industry-wide push to secure expansive sites for sustainable campus-style developments. Non-traditional industrial sectors including electric vehicle and semiconductor companies, have joined the competition to acquire sites with pre-established utility connections. These properties have become valuable strategic assets amid long wait times for power supply. While the Midwest region of America maintains relatively affordable costs, areas such as Indianapolis and Iowa face mounting price pressures due to demand spillover from neighboring high-cost markets. The Asia-Pacific region continues its steady growth despite supply constraints. Ten of the world's top 30 locations are included in this region, with Johor Bahru in Malaysia and Singapore recording the lowest vacancy rates. Beijing secured eighth place in overall rankings, surpassing several U.S. cities, and ranks second globally behind Virginia in operational market size. Notable growth in the Asia-Pacific region also includes Seoul, which ranked ninth in the established market rankings, while Busan secured third place in the emerging market rankings. 2025-05-09 15:58:21

Riding tailwind of LNG Carriers, South Korea sets sights on lucrative next-generation liquid hydrogen carriers SEOUL, May 9 (AJP) - Riding tailwind of LNG carrier sales, South Korea eyes lucrative next-generation liquid hydrogen carriers Amid heated competition with China for market dominance in global shipbuilding, South Korea is intensifying concerted efforts to develop liquid hydrogen carriers as the next lucrative frontier for the industry. The Ministry of Trade, Industry and Energy said on Friday that it has formed a task force for the development of liquid hydrogen carriers. Liquid hydrogen carriers are seen as next-generation, high-tech vessels that could help South Korean shipbuilders maintain their competitive edge and tap into emerging markets, following their success with liquefied natural gas (LNG) carriers. These vessels would transport hydrogen in liquid form at temperatures of -253°C, reducing its volume to 1/800th and improving transportation efficiency by more than tenfold, though no commercial large-scale ships of this type currently exist. In November 2024, the ministry mulled strategies for liquid hydrogen carriers fueled by hydrogen, aiming to use vaporized hydrogen from the cargo or separate non-carbon fuels such as ammonia and hydrogen as the propulsion system for the ships. Currently, major market player HD Hyundai is pioneering high-pressure direct injection ammonia dual-fuel engines, securing orders for the world's first ammonia-powered vessels in October 2024. In such vessels, hydrogen may also be used as energy sources, as ammonia breaks down into hydrogen and nitrogen. The push for liquid hydrogen carriers comes in line with the United Nations' campaigns for net-zero coalitions, which aim to cut emissions as much as possible to achieve a balance where greenhouse gas emissions are offset by removals from the atmosphere. While LNG remains the most readily available option currently, hydrogen is emerging as a prominent alternative to meet global carbon neutrality requirements in the near future. The ministry pledged to pour approximately 55.5 billion won ($39 million) in liquid hydrogen carriers this year and plans to construct the world's largest demonstration vessel by 2027. With over 100 organizations participating in around 43 projects simultaneously, the task force will collaborate with shipbuilding companies, universities, and research institutes to accelerate commercialization. "We will actively support these projects and relevant technologies to develop large-scale liquid hydrogen carriers and facilitate construction processes by streamlining legislation and other measures, while establishing a supply chain for them, with the goal of having them recognized as global standards," said a ministry official. 2025-05-09 14:27:46

Lotte Cinema, Megabox agree to merge, challenging CGV Logos of Lotte Cultureworks and Megabox JoongAng/ Courtesy of Lotte Group, JoongAng Group SEOUL, May 8 (AJP) - South Korea’s second- and third-largest cinema operators, Lotte Cinema and Megabox JoongAng, have agreed to merge, forming a formidable new entity poised to reshape the nation’s film exhibition landscape. JoongAng Holdings, the parent company of Megabox, announced on Thursday that it had signed a memorandum of understanding (MOU) with Lotte Group to combine their film-related subsidiaries: Megabox JoongAng and Lotte Cultureworks, which oversees Lotte Cinema. The move marks one of the most significant realignments in South Korea’s media and entertainment sector in years. The newly formed joint venture will be jointly managed by both conglomerates, pending a business combination review by the Fair Trade Commission. Further details of the merger are expected to emerge in the coming months, following additional negotiations and regulatory scrutiny. The merger, if finalized, would directly challenge the country’s largest cinema chain, CJ CGV, altering long-established dynamics in the competitive multiplex market. According to the Korean Film Council, CJ CGV operated 1,346 screens nationwide in 2024, making it the country’s dominant exhibitor. Lotte Cinema managed 915 screens, while Megabox operated 767. The merger would give the new entity control of 1,682 screens — overtaking CGV in sheer scale. The agreement also extends beyond exhibition, encompassing a merger of the two groups’ film distribution arms: Lotte Entertainment, which backed major hits including the Along With the Gods series and Hansan: Rising Dragon, and Plus M Entertainment, the distributor behind 12.12: The Day and The Roundup franchise. In a joint statement, both companies framed the merger as a bid to revitalize South Korea’s film industry, which has struggled to regain momentum following the COVID-19 pandemic. “This MOU is intended to combine the strengths of both companies to improve competitiveness, enhance financial stability, and provide differentiated customer experiences,” a Lotte Group spokesperson said. A representative from JoongAng Group added that the partnership would focus on expanding content diversity, investing in domestic film production, and improving audience services. “Our goal is to establish a sustainable business environment by securing competitive content, creating premium viewing experiences, and fostering stability in the Korean film market.” The companies also signaled plans to expand high-end cinema formats, such as Megabox’s Dolby Cinema and Lotte Cinema’s Superplex, as part of their strategy to draw audiences back to theaters. 2025-05-08 17:25:00

Korea, Czech deepen nuclear, tech ties despite court ruling delaying major deal SEOUL, May 8 (AJP) - South Korea and the Czech Republic have signed a suite of bilateral agreements aimed at strengthening cooperation in nuclear energy and advanced technology sectors, even as a key contract for the construction of nuclear reactors was postponed by a Czech court ruling. In a two-day diplomatic visit led by South Korean Minister of Trade, Industry and Energy Ahn Duk-geun, the two countries signed 14 MOUs and cooperation agreements, underscoring a shared commitment to long-term strategic collaboration. Minister Ahn met with Czech Prime Minister Petr Fiala and Senate President Miloš Vystrčil in Prague, reaffirming bilateral ties amid growing energy and technological challenges in Europe. The centerpiece of the talks — a planned contract between Korea Hydro & Nuclear Power (KHNP) and Czech energy company ČEZ to construct two nuclear reactors at the Dukovany site — was delayed following a court decision a day earlier. While details of the legal ruling remain limited, the postponement introduced a notable complication into what had been anticipated as a major breakthrough in South Korea’s push to export nuclear technology. Still, officials from both nations pressed ahead with the broader agenda. During the meetings, Ahn and Fiala discussed partnerships spanning industry, energy, construction, infrastructure, and science and technology. In the presence of Prime Minister Fiala, the two countries' industry ministers signed a renewed nuclear cooperation agreement, building on a memorandum signed last year. The pact includes commitments by South Korea to support the Dukovany project, participate in nuclear development in third countries, and collaborate on the construction of two additional reactors in the Czech Republic. As part of the broader effort, KHNP and its consortium, known as “Team Korea,” signed ten MOUs with Czech companies aimed at facilitating technical cooperation and supply chain partnerships for the country’s planned nuclear expansion. Beyond energy, the two governments signaled deeper ties in future-focused industries. A new memorandum on battery cooperation was signed, with both countries agreeing to align their industrial policies in response to the European Union’s forthcoming battery regulations. Additional agreements included initiatives to support academic and research institutions, such as partnerships between South Korean institutes and Czech universities to establish joint R&D centers. Among them were plans for an advanced vehicle technology hub in Ostrava and a robotics cooperation center in Prague. “This year marks the 35th anniversary of diplomatic ties and the 10th anniversary of our strategic partnership,” said Ahn. “South Korea and the Czech Republic have built a relationship of trust. We will maintain close communication with the Czech side to reach a final agreement on the nuclear project as soon as possible.” 2025-05-08 16:27:02