Energy storage setback deepens woes for South Korean battery makers ESS facility in Gyeongsan, North Gyeongsang Province/ Courtesy of the Korea Electric Power Corporation SEOUL, April 2 (AJP) - South Korean battery manufacturers are confronting a sharp downturn in their energy storage system (ESS) divisions, compounding the challenges of an electric vehicle market slowdown, industry analysts said Wednesday. LG Energy Solution is projected to see ESS revenue fall by more than 40 percent from the previous quarter, with estimates placing the figure between 353 billion and 363 billion won ($240 million to $247 million), according to multiple securities firms. “The ESS sector anticipates a significant revenue decline and a shift to operating losses due to seasonal factors,” said Lee Jin-myung, an analyst at Shinhan Securities. Samsung SDI, another major manufacturer, is facing similar headwinds. Analysts forecast a roughly 31 percent decline in its ESS division revenue quarter-on-quarter, bringing it to approximately 500 billion won. Once considered a stabilizing force amid the volatile electric vehicle battery market, ESS sales are now under pressure. High battery costs, inadequate charging infrastructure, and diminishing government subsidies have tempered consumer enthusiasm for electric vehicles, exacerbating financial strains across the industry. The convergence of these struggles has cast a shadow over the first-quarter earnings outlook. LG Energy Solution’s operating profit is projected to plunge 75 percent year-on-year to 39.5 billion won, while Samsung SDI is expected to post an operating loss of 328.7 billion won. In response, battery makers are shifting their focus to large-scale projects with steadier demand and accelerating production in North America, where energy storage needs are surging. LG Energy Solution plans to begin production of lithium iron phosphate (LFP) batteries for ESS applications at its Holland, Michigan, facility this year. Samsung SDI, meanwhile, is exploring U.S. manufacturing options to expand its presence. SK On, another South Korean battery maker, is also moving into the ESS market. Company President Lee Seok-hee recently told shareholders that SK On aims to secure business results in the ESS market by the end of the year and pursue U.S. market entry opportunities. 2025-04-02 14:47:22

Leadership void leaves Korea vulnerable to Trump's tariff offensive U.S. President Donald Trump disembarks Air Force One in Florida, March 28, 2025. Reuters-Yonhap SEOUL, April 2 (AJP) - U.S. President Donald Trump is poised to unveil a sweeping set of reciprocal tariffs on Thursday in a White House ceremony he has branded "Liberation Day," a move that could have profound economic repercussions for export-driven nations like South Korea. The policy, scheduled for announcement at 3 a.m. in the Rose Garden, would impose duties on foreign imports equivalent to those levied by other nations on American goods. The measure could deliver a significant economic shock to South Korea, which recorded a $55.7 billion trade surplus with the United States last year. The new tariffs come on top of the 25 percent duties already imposed on steel and aluminum products, as well as an additional 25 percent tariff on automobiles set to take effect early Thursday. South Korea, already grappling with a leadership vacuum, may find itself particularly vulnerable to the administration’s aggressive trade stance. White House officials have presented the president with several policy options, including a universal 20 percent tariff on all imports or a country-specific approach. Press Secretary Karoline Leavitt confirmed on Tuesday that any measures adopted would take effect immediately upon announcement. In Seoul, Acting President and Prime Minister Han Duck-soo convened an emergency economic security task force meeting with the leaders of the country’s four largest conglomerates, pledging government support for affected businesses. "The government will work to mitigate the impact from all directions and support businesses," Han said. "A trade crisis can never be overcome by the government or individual companies alone." The tariffs threaten to upend the Korea-U.S. Free Trade Agreement (KORUS), potentially forcing a renegotiation of trade terms between the two allies. On Tuesday, the Office of the U.S. Trade Representative released its annual National Trade Estimate (NTE) report, citing a series of non-tariff barriers in South Korea, including restrictions on market access for pet food containing ruminant ingredients, offset requirements in defense procurement, and regulatory hurdles for imported vehicles. While Trump has previously asserted that South Korea’s tariff rates are "four times higher" than those of the United States, the USTR report acknowledged that, under the terms of KORUS, South Korea effectively imposes no tariffs on U.S. goods. Beyond the reciprocal tariffs, Trump has signaled his intent to target additional sectors, including pharmaceuticals and semiconductors, further raising the stakes for South Korean exporters. 2025-04-02 11:17:25

Korea's top financial regulator signals resignation over commercial law dispute Financial Supervisory Service Governor Lee Bok-hyun/ Yonhap SEOUL, April 2 (AJP) - Financial Supervisory Service chief Lee Bok-hyun said Wednesday that he had expressed his intention to resign following a dispute over a proposed amendment to the country’s commercial law. Lee’s announcement, made during a radio interview, follows his previous vow to stake his position on opposing the presidential veto of the controversial amendments to the Commercial Act. That veto was exercised on Tuesday by Acting President Han Duck-soo during a cabinet meeting. “I conveyed my position regarding my resignation to the chairman of the Financial Services Commission yesterday,” Lee said during the broadcast. Kim Byoung-hwan, the commission's chairman, has reportedly urged Lee to reconsider, proposing a discussion on the matter Thursday morning during a meeting focused on macroeconomic and financial issues. Lee also indicated that he intended to seek a direct conversation with President Yoon Suk Yeol. “Given that the president is the appointing authority, it would be most prudent to address him directly if possible, particularly in light of the Constitutional Court’s upcoming ruling on Friday regarding the president’s impeachment,” he said. Lee’s resignation offer adds another layer of uncertainty as South Korea awaits the court’s decision on whether to uphold President Yoon’s impeachment. 2025-04-02 09:19:27

Korean won falls to 15-year low amid political uncertainty Getty Images Bank SEOUL, April 1 (AJP) - The South Korean won fell to its lowest level against the U.S. dollar in more than 15 years, closing at 1,472.90 won per dollar, Monday as political uncertainty weighed on investor sentiment. The currency showed a modest recovery in early Tuesday trading. As of 1:30 p.m. on Tuesday, the won was trading at 1,470.60 per dollar, down 0.16 percent from Monday’s close but still 0.8 percent above the monthly average of 1,457.60. “The won’s recent weakness is being driven primarily by domestic political instability and internal market volatility,” said Park Sang-hyun, an analyst at iM Securities. He cited the political crisis triggered by the martial law declaration by President Yoon Suk Yeol as a key factor eroding investor confidence. “Beyond the legal uncertainty, there are growing concerns about potential divisions or unrest following the court’s decision, which is exacerbating the won’s depreciation,” Park added. While some market analysts have pointed to external pressures, including the risk of U.S. tariffs on South Korean exports, many suggest these factors had already been priced in and do not fully explain the currency’s recent slide. 2025-04-01 13:43:53

Finance minister's US treasury investments raise questions over integrity South Korea's Minister of Economy and Finance Choi Sang-mok/ Yonhap SEOUL, April 1 (AJP) - South Korea's Minister of Economy and Finance, Choi Sang-mok, invested approximately 200 million won (US$135,771) in U.S. treasury bonds last year, while the Korean won was weakening sharply against the dollar. The disclosure has prompted criticism over potential conflicts of interest, given his role in stabilizing the nation's currency. According to official asset disclosure documents released on March 27, Choi purchased 30-year U.S. treasury bonds maturing in 2050 while overseeing government efforts to defend the won. The revelation has fueled controversy, as the finance minister stood to personally benefit from the very currency depreciation his ministry was seeking to mitigate. Among the 18 high-ranking finance ministry officials, Choi was the only one to report holdings in U.S. Treasuries. When questioned about the timing of his investments, Choi declined to specify purchase dates. Critics argue that any acquisitions made around the currency fluctuations triggered by the December 3 martial law declaration by President Yoon Suk Yeol would raise serious ethical concerns. “How can the economic minister responsible for defending the won's value invest in U.S. Treasury bonds that yield higher returns as the won depreciates?” the opposition Democratic Party said in a statement. The Korean won, which began 2024 at approximately 1,310 per dollar, weakened significantly over the course of the year, hitting 1,380 by mid-year before briefly stabilizing. The currency depreciated further in late October, surpassing 1,400 in November and nearing 1,480 by year-end. As of Tuesday at 9 a.m., it remained elevated at 1,473 per dollar. In November, Choi assured lawmakers that South Korea had sufficient foreign exchange reserves to stabilize currency markets. However, his asset disclosures indicate that he was simultaneously investing a substantial sum in financial instruments that would gain from further won depreciation. During a July 8 National Assembly committee meeting, Choi emphasized the government's commitment to limiting exchange rate fluctuations. “The government recognizes that excessive currency volatility is problematic. We are making efforts to minimize such volatility,” he said at the time. Choi's representatives have defended his investments, asserting that they do not violate ethics laws for public officials. Nonetheless, critics point to a pattern of purchasing U.S. Treasuries during periods of dollar strength throughout his tenure as finance minister, raising questions about potential conflicts of interest. 2025-04-01 10:40:36

Short selling resumes in South Korea after 17-month ban A Hana Bank branch in Seoul/ Yonhap SEOUL, March 31 (AJP) - South Korea has fully reinstated short selling across all listed stocks, ending a 17-month ban imposed in an effort to curb illegal naked short selling and restore investor confidence. The move, which took effect Monday, marks the first time since March 2020 that investors will be permitted to short sell any security on the country’s exchanges. During the suspension, regulators introduced a series of structural reforms, including a centralized monitoring system and adjustments to settlement periods and collateral requirements for investors. Authorities have also pledged to implement temporary safeguards to cushion potential market volatility. Until the end of May, the Financial Services Commission will expand its criteria for designating stocks as “overheated” — a classification that can restrict short-selling activity when certain thresholds of volume or price movement are triggered. “While short-term volatility may rise in stocks with valuation concerns, the broader reopening of short selling is a positive step for market maturity,” said Lee Kyung-min, an analyst at Daishin Securities. “It will help attract more balanced foreign capital, both long and short.” Short selling — a practice in which investors sell shares they have borrowed, aiming to buy them back later at lower prices — has long sparked debate. Proponents argue it plays a critical role in price discovery and correcting overvaluations. Critics, however, say the tactic can amplify market instability, especially during periods of stress. The return of short selling comes as South Korea seeks to enhance the credibility of its capital markets ahead of a potential upgrade to developed-market status by global index providers — a move that could open the door to greater international investment. 2025-03-31 13:57:29

Korea, China, Japan renew push for trilateral FTA amid US tensions South Korea's Minister of Trade, Industry and Energy, Ahn Duk-geun, second from left, poses with Japan's Minister of Economy, Trade and Industry Muto Yoji, left, China's Minister of Commerce Wang Wentao, second from right, and Secretary General of the Trilateral Cooperation Secretariat Lee Hee-sup at the 13th trilateral economic and trade ministers' meeting held in Seoul, March 30, 2025. Yonhap SEOUL, March 31 (AJP) - South Korea, China and Japan have agreed to reinvigorate long-stalled negotiations over a trilateral free trade agreement, seeking closer economic cooperation as global trade uncertainty grows amid escalating tensions with the United States. Commerce ministers from the three countries met in Seoul on Sunday for their first trilateral talks in six years. The meeting concluded with a joint pledge to advance a "comprehensive and high-level" trade pact, according to South Korea’s Ministry of Trade, Industry and Energy. "Protectionist measures have increased uncertainty in global trade," Ahn Duk-geun, South Korea's trade minister, said during the talks, in an apparent reference to Washington’s growing shift toward economic nationalism. "Protectionism cannot be the answer, so the three countries should take a leading role in ensuring the World Trade Organization functions smoothly." The trilateral agreement, first proposed in 2012, aimed to lower trade barriers across East Asia. However, negotiations lost momentum in 2019 due to rising U.S.-China tensions and the onset of the COVID-19 pandemic. In recent years, the three countries have focused instead on broader multilateral frameworks such as the Regional Comprehensive Economic Partnership, a trade bloc including 15 Asia-Pacific nations. The renewed effort comes as the Trump administration prepares to impose a new wave of reciprocal tariffs, expected to be announced on April 2. The move could undermine existing trade agreements, including the Korea-U.S. Free Trade Agreement, and further rattle global markets. Wang Wentao, China's commerce minister, echoed concerns about the current trade landscape. "The spread of unilateralism and protectionism is putting great pressure on the trading system and expanding uncertainties," he said. Still, officials acknowledged that significant hurdles remain. A South Korean trade ministry official noted that the three nations face differing economic conditions and levels of liberalization." Japan has relatively low tariff rates, while China’s level of market openness is not as high," the official said. 2025-03-31 10:20:15

Multiple wildfires sweep South Korea, two firefighters perish Wildfire spreads wide in Sancheong County/ Yonhap SEOUL, March 22 (AJP) - Massive wildfires engulfed multiple regions across South Korea on Saturday, claiming the lives of two firefighters and forcing hundreds of residents to evacuate their homes as authorities raised the national crisis alert to its highest level. The most severe blaze in Sancheong County, South Gyeongsang Province, entered its second day uncontained, prompting the Korea Forest Service to deploy over 1,300 personnel including specialized firefighting units, police, and military forces, along with 120 pieces of equipment. The two deceased firefighters, affiliated with Changnyeong County, were discovered at the scene, though details regarding their identities and the circumstances of their deaths remain under investigation. In Uiseong County, authorities evacuated about 170 people, including 70 patients and staff from a nursing home, as another major wildfire spread toward residential areas, with some patients being transferred to hospitals in neighboring Andong. Additional significant fires erupted in Ulsan, Gimhae, Daegu, and portions of Gangwon Province, stretching firefighting resources thin across the nation. The Korea Forest Service elevated the wildfire disaster crisis alert to "severe" for the Chungcheong, Honam, and Yeongnam regions, while raising the alert level from "caution" to "warning" for Seoul, Incheon, Gyeonggi, and Gangwon areas. 2025-03-22 18:30:36

Korean Air seals $32 billion deal with Boeing, GE for fleet modernization Flights from Korean Air and Asiana Airlines at Incheon International Airport/ Yonhap SEOUL, March 22 (AJP) - Korean Air has inked a major agreement with Boeing and GE Aerospace, securing a total of about $35 billion in aircraft and engines as part of an ambitious fleet modernization initiative. The deal, which represents Korean Air's largest procurement by value, includes 20 Boeing 777-9 and 20 Boeing 787-10 aircraft to be delivered by 2033, with an option for 10 additional aircraft. The agreement is valued at $24.9 billion. In a parallel arrangement, Korean Air will acquire eight spare engines from GE Aerospace for $7.8 billion, with an option for two additional engines, along with maintenance services for the GE9X engines that power the Boeing 777-9 aircraft. The trilateral cooperation agreement was signed in Washington D.C. on Friday, with South Korean Minister of Trade, Industry and Energy Ahn Duk-geun and U.S. Secretary of Commerce Howard Lutnik in attendance. "This collaboration in aircraft and aircraft engines will provide Korean Air with the momentum to emerge as a global top-10 airline," said Minister Ahn, adding that the South Korean government would actively support cooperation between businesses in both countries. The procurement comes as Korean Air prepares for its merger with Asiana Airlines, strategically expanding its fleet to enhance passenger comfort, operational efficiency, and environmental sustainability. 2025-03-22 13:12:25

Korean industry minister seeks exemption as Trump's deadline for reciprocal tariffs looms South Korea's Minister of Trade, Industry and Energy, Ahn Duk-geun/ Yonhap SEOUL, March 22 (AJP) - South Korea's Minister of Trade, Industry and Energy, Ahn Duk-geun said that it would be difficult for South Korea to avoid the impact of reciprocal tariffs announced by U.S. President Donald Trump, scheduled to take effect on April 2. During talks with U.S. Secretary of Commerce Howard Lutnik in Washington D.C., Ahn emphasized the close interconnection between the two countries' industrial ecosystems, particularly in advanced technology sectors. "In discussions about future tariff measures, I have once again requested favorable treatment for our country," Ahn told reporters at a briefing held at the South Korean Embassy. The minister noted that there had been some misunderstandings or incorrect information on the U.S. side regarding South Korea, but said these perceptions had improved considerably. Concerns from the Trump administration about China using South Korea as a bypass export channel persist, though South Korean officials have reportedly made progress in dispelling these concerns by pointing out that steel bypass exports have fallen to nearly zero. While the April 2 reciprocal tariffs appear increasingly likely to proceed, Ahn said it remains unclear whether they would take effect immediately upon announcement or after a grace period. "Given the ongoing statements from key U.S. officials regarding tariff policies, it seems difficult for most countries to avoid the impact of these tariff measures," Ahn said. He emphasized that addressing U.S. tariff policies is not a "one-time battle", and pledged to continue building trust with the U.S. government while explaining bilateral cooperation across various sectors. The minister also discussed the designation of South Korea as a "sensitive country" by the U.S. Department of Energy, stating that working-level consultations have been initiated to resolve the issue promptly, with both countries agreeing to cooperate according to established procedures. 2025-03-22 10:47:47