HD Hyundai, Hanwha Ocean form alliance for naval vessel exports KSS-III submarine delivered by Hanwha Ocean/ Courtesy of Hanwha Ocean SEOUL, February 26 (AJP) - South Korea’s leading shipbuilders, HD Hyundai Heavy Industries and Hanwha Ocean, have set aside years of fierce competition to collaborate on exporting naval vessels, a move aimed at expanding their presence in the lucrative global defense market. The companies signed a memorandum of understanding on Tuesday at the headquarters of the Defense Acquisition Program Administration in Gwacheon. Under the agreement, HD Hyundai will take the lead in exporting surface vessels, while Hanwha Ocean will oversee submarine exports, leveraging their respective areas of expertise. The partnership follows a setback for both firms last year, when they failed to secure a contract for Australia’s new frigate program, an estimated 10 trillion won ($6.99 billion) project. The deal ultimately went to consortiums from Japan and Germany, which had submitted unified bids. HD Hyundai has produced 102 surface vessels for naval applications, while Hanwha Ocean has built 23 submarines, making them the country’s foremost shipbuilders in their respective categories. The collaboration could position the companies to capitalize on the $1.11 trillion U.S. naval vessel market. A bill introduced in the U.S. Congress would allow South Korean shipyards to construct American warships, a potential breakthrough for the industry beyond its traditional role in maintenance contracts. Analysts also expect the partnership to accelerate progress on South Korea’s next-generation destroyer program, known as KDDX, an 8 trillion won initiative aimed at bolstering the country’s naval capabilities and strengthening its defense industrial base. 2025-02-26 10:27:41

Hyundai Rotem secures $1.53 billion contract to supply trains to Morocco A Hyundai Rotem train/ Courtesy of Hyundai Rotem SEOUL, February 26 (AJP) - Hyundai Rotem, a subsidiary of Hyundai Motor Group, has signed a landmark $1.53 billion contract to supply double-decker electric trains to Morocco, the company announced Wednesday. The deal, the largest in the company's history, marks Hyundai Rotem’s first entry into the North African market. The agreement, signed Tuesday with Morocco’s national railway operator, surpasses the firm’s previous high-profile contracts in Australia and the United States. Under the deal, Hyundai Rotem will deliver trains capable of reaching speeds of up to 160 kilometers per hour, bolstering Morocco’s rail network ahead of the 2030 FIFA World Cup. The new fleet will primarily serve routes centered around Casablanca, one of the country’s key transportation hubs. The contract was secured through South Korea’s “One-Team Korea” initiative, a government-backed strategy that combines diplomatic engagement with financial support, the company said. The initiative played a critical role in outmaneuvering European competitors, particularly during last year’s Korea-Africa Summit, where South Korean officials sought to deepen economic ties with the continent. As part of the agreement, Hyundai Rotem will collaborate with Korea Railroad Corp. (KORAIL) to provide maintenance services and technology transfer programs. KORAIL is negotiating a separate arrangement with Moroccan authorities to facilitate training programs for local railway personnel. The project is also expected to generate significant economic benefits within South Korea. Hyundai Rotem said approximately 90 percent of the train components will be sourced from more than 200 Korean small and medium-sized enterprises. “This contract is a testament to the growing international recognition of South Korea’s railway technology,” a Hyundai Rotem representative said in a statement. He added the firm will continue to compete with European and Chinese manufacturers for major infrastructure projects worldwide. 2025-02-26 10:11:54

US to impose hefty fees on Chinese vessels, possibly benefiting South Korean shipbuilders SEOUL, February 25 (AJP) - The U.S. is poised to impose massive fees on Chinese vessels entering American ports, a move that would benefit South Korean shipbuilding and shipping industries. The Office of the United States Trade Representative (USTR) abruptly announced plans last week that Chinese shipping companies and vessels manufactured in China will face fees up to $1 million per ship or $1,000 per ton of cargo when entering U.S. ports. Non-Chinese shipping companies using Chinese-built vessels could be charged up to $1.5 million per entry. The upcoming measure will be finalized after a public hearing by the U.S. International Trade Commission (USITC) scheduled for next month. The measure stems from an investigation conducted during the previous administration, which concluded that Beijing's maritime dominance "displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience," according to the USTR. This move has already begun reshaping industry landscapes. According to shipping trade journal TradeWinds early this month, German shipping giant Hapag-Lloyd is in the final stages of negotiations to place an order six LNG dual-fuel container ships worth about $1.2 billion from Hanwha Ocean instead of Chinese shipbuilders. South Korean shipping companies including HMM, which handles the largest domestic volume of U.S. shipping cargos while maintaining only 2 percent of Chinese-built vessels in its fleet, are expected to benefit if Chinese shipping companies reduce operations on U.S. routes or if shipping rates increase due to decreased supplies. 2025-02-25 17:40:20

BOK lowers key rate by quarter point SEOUL, February 25 (AJP) - The Bank of Korea (BOK)'s monetary policy board lowered its benchmark interest rate by a quarter percentage point to 2.75 percent on Tuesday. The first rate cut of the year comes as part of efforts to stimulate the struggling domestic economy and follows BOK Governor Rhee Chang-yong's remarks last month, when he decided to keep the rate unchanged, that lowering the interest rate "would be an obvious choice." Since October last year, the BOK has shifted toward monetary easing with multiple rate cuts for the first time since the global financial crisis in the late 2000s, when it lowered rates six consecutive times. The reversal in rate policies comes amid worsening economic conditions, with last year's GDP growth reaching just 2 percent, below the central bank's projected 2.2 percent. The previous quarter's sluggish 0.1 percent growth rate was a particular concern, as it showed no improvement, seeing a 3.2 percent decline in construction investment. The central bank also lowered its economic growth outlook for this year to 1.5 percent from 1.9 percent, citing concerns over the U.S.'s harsh tariff offensives under President Donald Trump, who began his non-consecutive second term earlier this year, as well as domestic political instability following President Yoon Suk Yeol's martial law debacle late last year. The downward revision aligns with other forecasts, as the state-run Korea Development Institute (KDI) recently lowered its growth outlook to 1.6 percent from 2.0 percent, in line with projections from international investment banks. The weak South Korean won is further signaling a gloomy financial downturn ahead, as it drastically weakened past 1,400 won against the greenback in recent trading, the weakest level since the political turmoil caused by the Dec. 3 martial law declaration. "If the U.S. keeps its rates steady, the widening interest rate gap between the two countries may cause problems," said Jang Min, a senior researcher at the Korea Institute of Finance, as foreign investors seek higher yields elsewhere, potentially driving up import costs and fueling inflation if the won continues to weaken. 2025-02-25 15:26:30

Gov't extends support measures until March as veg prices continue to skyrocket SEOUL, February 25 (AJP) - As vegetable prices have surged due to supply shortages from extreme weather this winter, discount programs for agricultural produce will be extended to ease the burden on consumers, the Ministry of Agriculture, Food and Rural Affairs said on Tuesday. The ministry has offered discount programs of up to 40 percent off the prices of cabbage, radish, carrots, and other vegetables, set to expire on Wednesday. But these measures have now been extended until March. According to the Korea Agro-Fisheries & Food Trade Corporation (aT) on Tuesday, retail prices of cabbage, primarily used for pickled, spicy cabbage dish known as kimchi, reached 5,195 won (US$3.63) per head on Monday, up 36.2 percent on-year, and 26.4 percent higher than the three-year average. For radish, another key ingredient in many Korean dishes, prices saw an even steeper climb, selling at 3,241 won per bunch — an 80.4 percent increase from last year and 80.8 percent higher than average levels. "Unusually high temperatures in September and October last year, along with heavy rainfall, damaged crops during the harvest season, while winter snowstorms and cold snaps stunted growth in major farming regions, including South Jeolla Province and Jeju Island," an official from the Ministry of Agriculture, Food and Rural Affairs explained. The official added that such extreme weather conditions have reduced vegetable harvests by 12 to 18 percent, while also driving up prices for cabbage and carrots by more than 40 percent compared to average years. The ministry will also encourage private imports, allowing the aT to directly purchase imported cabbage and radishes for distribution to wholesale markets and kimchi producers. Additionally, about 500 tons of government-stockpiled radishes will be supplied to major supermarkets at 70 percent of wholesale prices to help stabilize the market. 2025-02-25 11:36:09

Gov't to conduct survey to scrap red tape in service industry Seoul's eatery alley in Jongno is deserted, in this phot from December 2024. Yonhap SEOUL, February 25 (AJP) - A thorough survey will identify regulations and other red tape hindering the service industry's growth and competitiveness, the Ministry of Economy and Finance said on Tuesday. The survey, to be conducted through the state-run Public Procurement Service, aims to figure out excessive regulations or restrictions that exist only in South Korea, compared to other major economies. According to the ministry, productivity in the service sector remains significantly lower than its global counterparts, despite accounting for 70 percent of employment and 60 percent of value-added production. In 2021, productivity measured $66,000 per worker, compared to $128,000 in the U.S. and $86,000 in France. The five-month survey will identify redundant or overly restrictive regulations, assess cases where businesses face barriers due to regulatory red tape, and analyze the potential economic impact of various reforms. The ministry plans to prioritize regulatory improvements based on market demand and potential measures to stimulate business. "We will fully work on regulatory reforms to enhance the service industry's competitiveness based on the findings of this assessment," said a ministry official. 2025-02-25 10:17:05

Samsung Group begins new round of global recruitment Samsung Electronics Seocho headquarters/ Yonhap SEOUL, February 24 (AJP) - Samsung Group has launched a new round of international recruitment for research and development professionals, as global competition for technical talent continues to escalate. The recruitment initiative spans nine Samsung affiliates, including Samsung Electronics, Samsung Display, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Biologics, Samsung Bioepis, and Samsung Heavy Industries. While maintaining its Korean language proficiency requirement of Test of Proficiency in Korean Level 3 or higher, this marks Samsung's fourth recruitment round since August 2023, when the company initially introduced its foreign hiring program with three affiliates. The latest campaign features relaxed eligibility criteria, allowing graduate school tenure to be recognized as relevant work experience for candidates with master's or doctoral degrees. Previously, the company required at least two years of work experience following a bachelor's degree. Samsung’s expanded hiring efforts come as global competition for engineering talent intensifies. U.S.-based Micron Technology, for instance, has actively begun recruiting Korean engineers for its operations in Taiwan and Japan for the first time, underscoring the increasing demand for highly skilled professionals in the semiconductor and technology sectors. 2025-02-24 16:07:29

CJ's instant cooked rice sales surge on US demand Bibigo instant rice/ Courtesy of CJ CheilJedang SEOUL, February 24 (AJP) - South Korean food manufacturer CJ CheilJedang reported record-breaking sales of its instant cooked rice product, reaching 914.6 billion won (US$638.1 million) in 2024, driven by robust growth in the U.S. market. The company's overseas revenue accounted for 24 percent of total sales of instant rice, with North America, predominantly the U.S., contributing 188.4 billion won, or 84 percent of international earnings. The instant rice brand has witnessed steady growth, with domestic and international sales climbing from 688 billion won in 2021 to 914.6 billion won in 2024, while export figures more than doubled to 223.1 billion won over the same period. A recent consumer survey by CJ CheilJedang of local white rice consumers in the U.S. revealed that 34.6 percent of participants purchase rice because they view it as a healthy option. The product, marketed under the Bibigo brand name overseas, has expanded its presence to 40 countries, including Australia, Mexico, Canada, and China, with cumulative sales reaching about 6 billion units as of the end of 2024. "CJ CheilJedang's success in the U.S. market has been further bolstered by the global Korean food phenomenon, with increasing numbers of American consumers seeking authentic sticky Korean rice for home consumption," a CJ CheilJedang spokesperson said. 2025-02-24 15:58:46

US commerce chief pledges fast-track support for Korean investors SK Group Chairman Chey Tae-won gives a speech on AI in Washington D.C., Feb. 22, 2025. Courtesy of SK Group SEOUL, February 24 (AJP) - U.S. Secretary of Commerce Howard Rutnik has vowed to streamline regulatory procedures for South Korean companies planning investments of $1 billion or more in the United States. The pledge came during a 40-minute meeting in Washington with a high-level South Korean business delegation, led by Chey Tae-won, chairman of SK Group and head of the Korea Chamber of Commerce and Industry. Executives from South Korean companies, including Samsung Electronics, Hyundai Motor, and LG, attended the meeting. Rutnik identified six key sectors for cooperation: shipbuilding, energy, nuclear power, artificial intelligence, semiconductors, and mobility. His commitment aligns with President Donald Trump’s recently signed "America First Investment Policy" memorandum, which aims to streamline approval processes for investment projects exceeding $1 billion from allied nations. “We recognize the critical role that South Korean companies play in advancing key industries, and we are committed to facilitating a more efficient investment landscape,” Rutnik said in a statement following the meeting. Chey, for his part, welcomed the initiative but emphasized the need for further incentives. “We will continue to explore investment opportunities, but there must be sufficient incentives to meet the administration’s push for increased U.S. production,” he said. He noted that concrete tax reduction measures had yet to be proposed. Speaking separately at a Trans-Pacific Dialogue event in Washington, Chey stressed the importance of trilateral cooperation among South Korea, the United States, and Japan, particularly in artificial intelligence and energy sectors. He also underscored that further U.S. investments from South Korean firms would hinge on clear and tangible tax incentives from the Trump administration. 2025-02-24 13:12:20

Trump targets foreign tech regulations, raising alarm in Seoul U.S. President Donald Trump addresses during a reception in Washington D.C., Feb. 22, 2025. AP-Yonhap SEOUL, February 24 (AJP) - A new memorandum signed by U.S. President Donald Trump is raising concerns in South Korea, as the directive calls for investigations into foreign governments that impose regulations on American technology firms. The move could threaten South Korea’s efforts to impose greater oversight on big tech companies. The directive, signed on Feb. 21, instructs the United States Trade Representative (USTR) to examine and, if necessary, implement retaliatory measures — including tariffs — against nations that levy digital taxes on U.S. firms such as Google and Meta. Though the memorandum does not explicitly target South Korea, its broad scope includes regulations related to cross-border data flows, mandatory local content funding, and network usage fees — issues central to legislative efforts currently under consideration in Seoul. “If the United States strengthens tariffs on other products due to big tech regulations, the government and domestic telecommunications companies need to carefully reconsider imposing network usage fees,” said Chang Sang-sik, director general of the Korea International Trade Association’s Institute for International Trade. The directive comes at a critical time for South Korea, where lawmakers are debating measures that would require foreign content providers to pay network usage fees — a practice that major tech firms, including YouTube, have long avoided in the Korean market. Further complicating matters is the Korea Fair Trade Commission’s proposed Platform Competition Promotion Act, which seeks to curb anti-competitive practices such as self-preferencing and tied selling. The legislation has met resistance from Washington, with USTR nominee Jamison Greer calling it “intolerable” earlier this month. Amid mounting concerns, South Korean officials have launched diplomatic efforts to seek exemptions from potential tariffs. Park Jong-won, deputy trade minister at the Ministry of Trade, Industry and Energy, met with officials from the U.S. Commerce Department and USTR between Feb. 17 and Feb. 20 to discuss the issue. Further discussions are expected, with South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, set to meet with U.S. Secretary of Commerce Howard Lutnik later this month. The talks come as South Korea contends with multiple tariff pressures across key industries, including steel and automobiles. 2025-02-24 11:33:43