South Korea tax revenue growth slows in January Cars await shipment/ Courtesy of Hyundai Motor Group SEOUL, March 1 (AJP) - South Korea's tax revenue rose at a significantly slower pace in January compared to a year earlier, sparking concerns about potential fiscal shortfalls as the economy shows signs of cooling. January tax collections increased by 1.5 percent year-on-year to 46.6 trillion won (US$31.8 billion), a sharp deceleration from the 7.1 percent growth recorded in the same month last year, according to data released by Statistics Korea on Friday. The revenue progress rate reached only 12.2 percent of the annual target, falling below both last year's January rate of 13.6 percent and the five-year average of 12.6 percent. While the growth showed signs of cooling down, a Ministry of Finance official said, "It's premature to make definitive judgments about this year's tax situation based solely on January's performance." Value-added tax, one of the three major tax categories, declined by 8 trillion won from the previous year due to increased tax refunds and reduced imports. The securities transaction tax also fell by about 200 billion won compared to January 2024. The lackluster revenue performance comes despite partial restoration of the flexible fuel tax rate and expanded performance-based salary payments, which marginally boosted transportation, energy, environmental, and income tax revenues. 2025-03-01 13:14:54

North Jeolla province edges out Seoul in bid to host 2036 Summer Olympics North Jeolla province officials cheer as the province secured the right to represent South Korea in the bid for the 2036 Summer Olympics, Feb. 28, 2025. Yonhap SEOUL, March 1 (AJP) - North Jeolla province secured the right to represent South Korea in the bid for the 2036 Summer Olympics, delivering a stunning upset over the capital Seoul in a national vote that showcased growing support for regional development. The southwestern province garnered 49 votes to Seoul's 11 in Friday's secret ballot held by the Korean Sport & Olympic Committee (KSOC), shattering expectations and positioning a regional contender to potentially host South Korea's first Summer Games since Seoul in 1988. North Jeolla's victory hinged on its proposal for a multi-city approach, promising to distribute Olympic events across several provincial regions including Daegu city, South Jeolla province, North and South Chungcheong provinces, addressing the International Olympic Committee's emphasis on cost efficiency. "The reality is that 88.5 percent of national sporting events in Korea are held outside the capital region," North Jeolla Governor Kim Kwan-young said during his presentation, drawing parallels to Australia's approach of rotating Olympic hosting duties among Melbourne, Sydney and Brisbane to promote balanced national development. The province plans to allocate athletics competitions to Daegu city, archery and swimming to Gwangju city, gymnastics to Cheongju city, tennis to Hongseong county, and surfing events to Goheung county, creating what it describes as a coalition of regional cities. Seoul, which successfully hosted the 1988 Summer Olympics, emphasized its established infrastructure and accommodation capacity but failed to convince voters despite these advantages, marking its second consecutive Olympic bid defeat after losing the 2032 Games to Brisbane, Australia. Sports officials attributed North Jeolla's unexpected triumph to the province's passionate campaign and Seoul's overconfidence. Provincial representatives reportedly worked tirelessly, meeting individually with voting delegates nationwide to convey their vision, while Seoul delegated much of its presentation to staff members. The financial feasibility of North Jeolla's Olympic ambitions remains questionable, with the province estimating costs at about 9.18 trillion won (US$6.27 billion), though actual expenses could escalate significantly as new venues and athlete villages are constructed. International competition presents another formidable challenge, with India, Qatar, Indonesia, Turkey, Chile, and Hungary among about 10 nations already vying for the 2036 Games. Asian contenders including India and Indonesia are currently considered frontrunners by international sports analysts. The International Olympic Committee is expected to begin formally evaluating bids after selecting a new president in March, with the selection process accelerating under new leadership beginning in June. KSOC President Ryu Seung-min acknowledged the challenges ahead, saying that with North Jeolla's relatively low international profile, "the committee must move even more swiftly" to support the province's Olympic aspirations. 2025-03-01 11:00:04

Korean industry minister forges ties with Trump administration officials SEOUL, March 1 (AJP) - South Korea's Minister of Trade, Industry and Energy, Ahn Duk-geun, has conducted a series of high-level meetings with senior Trump administration officials in Washington D.C., marking the first major trade discussions between the two nations since President Trump's second inauguration. The meetings, which took place from Feb. 26 to 28, included talks with Secretary of Commerce Howard Lutnick, Secretary of the Interior Doug Burgum, and U.S. Trade Representative Jamieson Greer, according to a ministry statement released on Saturday. During the discussions, Minister Ahn conveyed South Korea's position regarding U.S. tariff plans and explored avenues to strengthen bilateral cooperation amid leadership vacuum following the martial law crisis. The two countries agreed to establish working-level consultative bodies focused on tariff measures and shipbuilding cooperation, with South Korea aiming to ensure maximum consideration for its business interests in future negotiations. Minister Ahn emphasized South Korea's commitment to addressing American trade deficit concerns by increasing imports of U.S. gas and crude oil, while also highlighting potential future investments by Korean companies in the American market. Particularly noteworthy was the progress made on shipbuilding cooperation, an area of personal interest to President Trump, with Minister Ahn announcing South Korea's readiness to form a government-wide task force to systematically prepare for public-private collaboration. The South Korean delegation also met with Senator Mark Kelly of Arizona, who introduced the "Ships for America Act" aimed at strengthening the U.S. shipbuilding industry, as well as leaders from influential think tanks. The Trump administration is currently conducting a comprehensive review of U.S. trade policies, due to be completed by Apr. 1, leaving out specific details about potential tariffs on South Korean goods unspecified during the talks. "With this visit to the United States, I believe we have laid the cornerstone for strengthened cooperation with the new cabinet of the U.S. government," said Minister Ahn, adding that South Korea would respond systematically to forthcoming U.S. industrial, trade and energy policies. 2025-03-01 09:49:12

Video streaming firm Wavve faces damage suit for copyright infringement The head office of the Korea Music Copyright Association/ Courtesy of KOMCA SEOUL, February 27 (AJP) - The Korea Music Copyright Association (KOMCA) has filed a lawsuit against the online video streaming service Wavve, seeking approximately 40 billion won ($27.7 million) in damages for alleged copyright infringement, the association said on Thursday. The lawsuit, submitted to the Seoul Central District Court on Feb. 11, follows years of what KOMCA describes as Wavve’s refusal to pay legally required royalties for the use of copyrighted music in its streaming content. According to KOMCA, the unpaid fees were calculated based on Wavve’s reported revenue and subscriber data spanning from 2011 to 2022. The association is also demanding an additional 15 percent penalty for infringement. “In a situation where there was no other way to remedy the creators’ damages, we had no choice but to resort to legal action,” KOMCA said in a statement. The association further criticized major domestic over-the-top (OTT) operators for collectively amassing more than 100 billion won in unpaid royalties. Despite losing an administrative lawsuit against the Ministry of Culture, Sports and Tourism in 2022, KOMCA said, these companies have continued to resist payment obligations. Wavve, however, countered that KOMCA’s claims were based on “unilateral and arbitrary” collection standards that do not reflect market realities. The streaming platform urged the association to return to negotiations. The company argued that KOMCA has imposed disproportionately high music royalty demands on OTT services, forcing them to shoulder more than double the reasonable costs after lobbying for regulatory changes through the ministry. 2025-02-27 16:35:36

Lotte Construction may sell headquarters building in Seoul to address liquidity problem Lotte Construction's headquarters in Seocho-gu, Seoul/ Yonhap SEOUL, February 27 (AJP) - Lotte Construction, a subsidiary of Lotte Group, is taking steps to liquidate assets worth approximately 1 trillion won (US$696 million), including the sale of its building in Seoul’s Seocho-gu, amid ongoing concerns about a liquidity crisis at the group. The construction firm said Thursday that it has commissioned property consulting firms to analyze the profitability of various options for its building, including an outright sale, self-development, and sale-and-leaseback arrangements. Lotte Construction has its head office in the building since 1980. Valued at approximately 500 billion won, the property is considered attractive to developers and asset management firms due to its potential for residential development. The company is also reviewing the sale of warehouse assets in the Seoul metropolitan area and its stake in a rental housing REIT. If all assets are divested, the total liquidity generated could reach 1 trillion won. The move aligns with Lotte Group’s broader strategy to streamline operations by divesting non-core businesses and assets following liquidity challenges that emerged late last year. “We are considering the sale of our headquarters building and have nearly finalized decisions on selling our other assets,” a Lotte Construction official said. “This assessment is not driven by an urgent need for liquidity, but rather by our belief that it is prudent to consider asset sales while the company remains in a stable position.” 2025-02-27 14:10:06

US defense secretary plans South Korea trip for shipbuilding talks U.S. Defense Secretary Pete Hegseth speaks during a press conference in Warsaw, Poland, Feb. 14, 2025. Reuters-Yonhap SEOUL, February 27 (AJP) - U.S. Secretary of Defense Pete Hegseth is expected to visit South Korea next month, with discussions likely to focus on shipbuilding collaboration and defense cost-sharing, according to officials and industry sources, Thursday. The trip is set to follow U.S.-Japan defense ministerial talks in late March, positioning Hegseth as the first cabinet-level official from the second Trump administration to visit South Korea. “Secretary Hegseth's team has contacted Korean shipbuilders, including Hanwha Ocean,” an industry source said. A government source confirmed the visit was "highly likely" but had yet to be finalized. The discussions come as the Trump administration pursues an ambitious initiative to expand American naval power. The U.S. aims to build 364 new warships by 2054, a project estimated to cost $1.075 trillion, as it seeks to counter China’s rapidly growing maritime capabilities. A recent analysis by the Center for Strategic and International Studies (CSIS) found that China surpassed the United States in total fleet size in 2023, boasting 234 vessels compared to the U.S. Navy’s 219. While American warships maintain qualitative superiority, the numerical disparity continues to widen. The U.S. shipbuilding industry has seen a significant decline. According to U.S. Navy assessments, domestic ship production accounts for just 0.4 percent of China’s annual output. In 2023, China controlled roughly 60 percent of global shipbuilding orders, while the U.S. claimed a mere 0.13 percent of the global market in 2024. Washington has increasingly turned to allies with robust shipbuilding capabilities. Shortly after his election victory, U.S. President Trump emphasized the importance of naval cooperation with South Korea during a call with President Yoon Suk Yeol, stating, “We need to closely cooperate with Korea not only in ship exports but also in maintenance, repair, and operations.” Hanwha Ocean, which recently acquired Philadelphia Shipyard with Hanwha Systems, is emerging as a key partner in these efforts. The firm’s success in securing two maintenance, repair, and operations (MRO) contracts with the U.S. Navy in 2024 has heightened interest in its role. Meanwhile, HD Hyundai Heavy Industries is reportedly exploring investment opportunities in the United States, following its 2022 entry into the MRO sector through work with the Philippine Navy. In addition to shipbuilding, defense cost-sharing is expected to be a central topic in Hegseth’s meetings, with Washington potentially seeking an increased financial contribution from Seoul toward maintaining U.S. forces on the Korean Peninsula. 2025-02-27 10:26:10

How TSMC of Taiwan became beating heart of AI chip industry TSMC's Fab 6/ Courtesy of TSMC Editor's Note: This article is the eighth installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, February 26 (AJP) - At a distinguished industry event in late 2023, Jensen Huang, the founder and chief executive of Nvidia, took the stage to acknowledge a partnership he deemed indispensable to his company’s success. “Nvidia would not be possible without TSMC,” Huang said, turning toward his longtime collaborator. Huang praised Taiwan Semiconductor Manufacturing Company (TSMC) and its founder, Morris Chang, for engineering what he called “three true miracles.” He credited the company with developing custom chips for thousands of clients, mastering the art of mass production while maintaining small-scale customization, and advancing semiconductor technology at a breathtaking pace. Founded in 1987 by Chang as the world’s first dedicated semiconductor foundry, TSMC has since become a linchpin of the global technology supply chain. Unlike many semiconductor companies that design and manufacture their own chips, TSMC has built its business on a singular focus: fabrication. By abstaining from chip design, the company positioned itself as a neutral partner for firms seeking manufacturing expertise without the risk of competition. That strategy has propelled TSMC to the pinnacle of the foundry sector. In 2024, the company commanded 62 percent of global market revenue, dwarfing its closest competitor, Samsung Electronics, which held just 10 percent. TSMC’s clients include some of the world’s most influential technology firms, from Nvidia to Apple, all of whom depend on the company’s sophisticated manufacturing processes to remain at the forefront of artificial intelligence and computing. Chang, a Harvard graduate with a storied career at Texas Instruments and General Instruments, championed the then-unorthodox model of contract manufacturing at a time when semiconductor companies traditionally maintained their own fabrication plants. His vision, initially met with skepticism, ultimately proved prescient. Despite Taiwan’s early financial constraints, the island’s government provided crucial support for TSMC’s launch. The Dutch electronics firm Philips also stepped in with investment, helping the nascent company establish its footing. TSMC gained considerable momentum in the 2010s through its partnership with Apple, investing $9 billion to accommodate the tech giant’s demands. Under Chang’s leadership, the company cemented its role as the preferred chipmaker for industry leaders including AMD, Nvidia, and Qualcomm. He stepped down as chairman in 2018, passing the reins to C.C. Wei, who now serves as both chairman and chief executive. Reflecting on TSMC’s journey in an April 2021 speech, Chang remarked, “The advantage was having no competitors; the challenge was having no customers either.” He noted that the company’s fiercest competition does not come from China, but rather from South Korea’s Samsung. As the global artificial intelligence boom fuels unprecedented demand for high-performance chips, TSMC has reaped the benefits. The company reported a 34 percent increase in revenue in 2024, reaching 2.9 trillion New Taiwan dollars ($88 billion). Fourth-quarter revenue surged 38.8 percent to 868.46 billion New Taiwan dollars, surpassing analysts’ expectations. Net profit for the final quarter rose 57 percent. To sustain its dominance, TSMC has earmarked $6.3 billion this year for investment in advanced packaging technologies critical to chip performance and reliability. Among these initiatives is the development of co-packaged optics, an emerging innovation that integrates optical and electrical components to significantly accelerate data transmission beyond conventional copper connections. TSMC has also expanded its global footprint, committing to the construction of three manufacturing facilities in the United States, two in Japan, and one in Germany. Japan has pledged over 1.04 trillion yen in subsidies to support TSMC’s operations in Kumamoto as part of a broader national effort to revitalize its domestic semiconductor industry. While Taiwan’s government stated on Feb. 25 that it had not yet received formal applications for overseas investment, reports suggest that a partnership between TSMC and Intel had been proposed during the Trump administration. Under President Biden, the company secured funding for a manufacturing plant in Arizona — part of a $250 billion investment package, the largest foreign direct investment in U.S. history. As detailed in Chip War: The Fight for the World’s Most Critical Technology, TSMC has emerged as a key player in the ongoing geopolitical contest between the United States and China. In Taiwan, the company is often referred to as “Guardian Spirit Mountain,” a reflection of its crucial role in the island’s economy and national security. With artificial intelligence driving the next wave of technological advancement, TSMC remains at the forefront, enabling the world’s leading chip designers to bring their most ambitious innovations to life. ​​​​ 2025-02-27 10:07:47

South Korea birthrate rises for first time in 9 years Getty Images Bank SEOUL, February 26 (AJP) - South Korea’s birth rate increased for the first time in nine years in 2024, with the number of newborns rising by approximately 8,300 to 238,300, according to preliminary data released by Statistics Korea on Wednesday. The country’s total fertility rate — the average number of children a woman is expected to have in her lifetime — rose to 0.75 from 0.72 the previous year, marking the first uptick since 2015. The modest rebound follows years of decline, with births falling from 438,420 in 2015 to a record low of 230,028 in 2023, intensifying concerns about the nation’s demographic sustainability. Demographic shifts, rather than policy measures, appear to be driving the increase, experts say, pointing to the maturation of children born during the early 1990s’ baby boom, when annual births exceeded 700,000. However, the outlook remains challenging. The cohort effect is expected to be temporary, as younger generations continue to shrink in size. The country’s population has been in natural decline for the past five years, with deaths exceeding births by 118,881 in 2023. Despite the recent fertility rate increase, South Korea remains the only OECD country with a fertility rate below 1.0, far below the OECD average of 1.51 recorded in 2022. Still, some indicators suggest a possible shift. The number of newlyweds climbed to its highest level since 2019, with 222,422 couples marrying last year — a trend that could support further birth rate improvements. “The population of women in their early 30s has increased, and marriages that were delayed due to COVID-19 have consecutively risen,” said Park Hyun-jung, an official from Statistics Korea. “There has also been a shift in social values, with more positive views on marriage and childbirth.” 2025-02-26 16:22:17

Cryptocurrency exchange Upbit slapped with 3-month partial suspension Getty Images Bank SEOUL, February 26 (AJP) - South Korea’s financial regulator has imposed a three-month partial business suspension on Dunamu, the operator of the country’s largest cryptocurrency exchange, Upbit, citing violations of anti-money laundering regulations. The Financial Intelligence Unit (FIU) announced on Wednesday that the suspension, effective from March 7 to June 6, will bar new customers from transferring virtual assets to or from the platform. Existing users, however, will not be affected. Regulators had previously issued a preliminary notice to Upbit on Jan. 9 over alleged violations of customer identification rules. At the time, Upbit maintained that the suspension would not impact cryptocurrency trading for either new or existing users, signaling its intention to contest the allegations. A subsequent investigation, however, uncovered more than 34,000 instances in which the exchange approved customer registrations despite blurry identification documents or photocopied images. The probe also revealed 226,000 transactions conducted without proper customer verification and 189,000 cases in which driver’s licenses were processed without serial numbers being checked. Regulators further identified nearly 6,000 cases where address fields were either left blank or filled with incorrect information — critical lapses in security protocols intended to prevent illicit activities such as money laundering and fraud. Alongside the suspension, the FIU issued a disciplinary warning to Dunamu’s chief executive, Lee Seok-woo, and ordered the dismissal of the company’s compliance officer. Nine other employees also face sanctions for violating financial reporting laws. The warning against Lee is considered a serious disciplinary measure that typically disqualifies an individual from serving as an executive at financial institutions for three years. 2025-02-26 15:34:04

Middle East's growing healthcare market attracts Korean companies Dubai of the United Arabs Emirates/ Getty Images Bank SEOUL, February 26 (AJP) - South Korean pharmaceutical and biotechnology companies are making significant inroads into the Middle East, capitalizing on the region’s growing demand for medical and aesthetic treatments. Daewoong Pharmaceutical has recently entered the Saudi Arabian market with its botulinum toxin product, Nabota, making it the first Asian firm to introduce such a product in the country. While Daewoong had previously secured regulatory approvals in the United States, Europe, and Canada, Saudi Arabia’s stringent approval process had long posed a challenge for similar products. Simultaneously, Hugel has received approval from the United Arab Emirates for its botulinum toxin, Botulax. The company plans to launch the product in April through a strategic partnership with Medica Group. Medytox, another South Korean firm, has also secured regulatory approval in the UAE for two products in its hyaluronic acid filler series, Neuramis. The company is collaborating with BnD Bio, a local medical license holder, to enhance product recognition and distribution. Hanmi Pharmaceutical is also expanding into the region, having signed an exclusive licensing agreement with Saudi Arabia’s Tabuk Pharmaceuticals. The partnership will focus initially on exporting specialty drugs for urology and anti-cancer treatments across the Middle East and North Africa. Market analysts see strong growth potential in the region’s pharmaceutical and aesthetic medicine sectors. According to Research and Markets, the pharmaceutical market in the Middle East and Africa was valued at approximately $30.8 billion last year and is projected to grow at an annual rate of 6.1 percent, reaching $42.4 billion by 2030. The demand for aesthetic treatments is also surging. Saudi Arabia’s beauty and cosmetic surgery market is expected to grow from $7.9 billion in 2023 to approximately $18.8 billion by 2032, according to global research firm Astute Analytica. Regulatory cooperation between South Korea and the Middle East has strengthened in recent years. Last year, South Korea’s Ministry of Food and Drug Safety signed a memorandum of understanding with the UAE’s Emirates Drug Establishment, marking its third such agreement in the region after similar pacts with Iran and Saudi Arabia. 2025-02-26 14:04:15