Journalist
Arthur I. Cyr
davekim0807@ajupress.com
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GM Korea dismisses exit speculation, pledges $300 million investment for 2026 SEOUL, December 15 (AJP) - General Motors (GM) Korea on Monday moved to quell persistent speculation about a market withdrawal, unveiling a sweeping 2026 business strategy that underscores its commitment to both exports and domestic sales. GM Korea held its "GM Korea 2026 Business Strategy Conference" at the Cheongna Proving Ground in Incheon, where executives highlighted the country's pivotal role in the Detroit automaker's global supply chain. The company said it would invest about $300 million next year and launch at least four new models. The announcement comes as GM Korea navigates the fallout from U.S. President Donald Trump's tariff policies, which currently impose a 15 percent levy on vehicles imported from South Korea. The company shipped about 84 percent of its production to the United States last year, making it heavily exposed to trade friction between Washington and Seoul. Executives sought to emphasize the strategic value of Korean operations. Sport utility vehicles manufactured in South Korea captured 36.7 percent of the U.S. small SUV market in October and accounted for 11.8 percent of GM's total American sales, the company said. Half of U.S. buyers who purchased the Chevrolet Trax Crossover were new GM customers, pointing to the brand's ability to attract fresh clientele. "Over the past two decades, GM has produced 13.3 million vehicles in Korea and sold 2.5 million in the domestic market, establishing GM Korea as a key part of the nation’s automotive industry," Hector Villarreal, CEO of GM Korea, said at the conference. "Moving forward, we will strengthen our full-cycle capabilities in Korea from vehicle design and engineering to manufacturing and sales, while expanding our product portfolio of next-generation ICE vehicles and EVs, introducing advanced driving technologies for Korean customers, and growing together with the Korean market." The automaker also signaled renewed focus on the domestic market, where sales have cratered. GM Korea sold 13,952 vehicles in the country between January and November, a 39.4 percent plunge from a year earlier. Monthly sales dipped below 1,000 units in November. To revive its fortunes, the company plans to roll out three GMC models and one Buick vehicle next year, making South Korea the first market outside North America to carry all four GM brands. Still, experts remain cautious. Sustained U.S. tariffs and tepid domestic demand could reignite exit speculation if conditions fail to improve. GM Korea said in May it would sell nine company-owned service centers nationwide and some facilities at its Bupyeong plant in Incheon, shifting to a partner-operated service network from next year. 2025-12-15 15:09:37 -
SK On expands at home with big bet on LFP amid uncertainty in global battery market SEOUL, December 15 (AJP) - SK On is building a 3-gigawatt-hour lithium iron phosphate (LFP) facility at its Seosan complex in what would become the largest pure-play energy storage system (ESS) production site in Korea, a bold scale-up aimed at catching up with larger domestic rivals seeking to capitalize on power demand driven by AI investment. The facility, designed to roll out ESS capacity sufficient to power 40 to 50 large-scale data centers annually, will mark SK On's first domestic LFP production base, following what industry sources described as a decisive loss to Samsung SDI in the first round of government ESS tenders. In ESS tenders across five provinces awarded by the Ministry of Climate, Energy and Environment in July, Samsung SDI captured nearly 80 percent of total volume, largely due to its existing domestic infrastructure. SK On plans to convert battery production lines originally designated for electric vehicle nickel-cobalt-manganese (NCM) cells at the Seosan plant into ESS-dedicated LFP facilities. "We plan to go after the government's second ESS tender, a 3.3 GWh procurement round scheduled for 2027 delivery," an SK On spokesperson said. The ministry aims to install 138 GWh of ESS capacity nationwide by 2038 to support the expansion of solar and wind power generation, representing a cumulative project pipeline valued at 20 trillion to 30 trillion won ($13.5 billion to $20.3 billion). The capital expenditure around Seosan, however, extends beyond domestic tenders. SK On plans to use the site as a "mother factory" — a research and development hub where new ESS products and manufacturing processes are refined before being replicated at overseas plants. The tightly integrated local battery supply chain, in which cell makers and component suppliers operate in close proximity, is seen as a competitive advantage for this strategy. SK On's aggressive LFP push is unlikely to immediately alter the plans of larger local rivals, which have already crowded into the ESS segment as the electric vehicle market stagnates. LG Energy Solution last month said it would establish a 1 GWh ESS production line at its Ochang plant, previously the largest ESS project of its kind in Korea before SK On's announcement. Samsung SDI, meanwhile, faces a strategic dilemma. Its NCM batteries carry higher production costs than LFP cells, which are about 30 percent cheaper and better suited to the temperature extremes and long charge-discharge cycles typical of grid-scale storage. As rivals expand domestic LFP capacity, Samsung's early advantage — rooted in local manufacturing scale — could erode unless it pivots. The domestic competition is unfolding against a backdrop of intensifying global pressure. Chinese manufacturers CATL, Hithium and EVE Energy dominate the global ESS market, leveraging low-cost LFP production at scale. Korean battery makers account for roughly 24 percent of the global EV battery market, but less than 10 percent of the ESS segment as of mid-2025. Still, the structural outlook favors grid storage. Battery Council International projects the global ESS market will expand nearly sixfold, from 200 GWh in 2025 to 1,200 GWh by 2030, noting that a single large data center can require as much as 1 gigawatt of power to operate. Compared with the stagnant EV market — highlighted by SK On's split with Ford after sluggish EV sales weighed on their joint venture — demand driven by AI data centers and renewable energy infrastructure is emerging as a more durable growth engine. Samsung SDI and LG Energy Solution are not expected to significantly ramp up domestic LFP capacity to match the latecomer. "Samsung and LG are far more experienced ESS suppliers than SK On, leaving SK relatively dwarfed in domestic competition, as seen in the last government bidding," said Chang Jung-hoon, a senior analyst at Samsung Securities, speaking to AJP. "SK On's investment should be viewed from a different angle — as a cost-effective approach to securing a foothold in the domestic market." Chang added that Samsung won most of its recent contracts using NCM batteries rather than LFP cells. "It was the broader battery ecosystem that secured contracts for Samsung and LG. They have far less incentive to expand LFP production in Korea," he said. While challenges abroad persist, particularly in the United States, industry observers expect domestic rivalry to intensify. All three Korean battery makers increasingly view ESS as a critical earnings pillar as the global EV market remains mired in uncertainty. 2025-12-15 14:51:54 -
Samsung, Hyundai, LG and SK chart AI-driven growth strategies for 2026 SEOUL, December 14 (AJP) - South Korea's four largest conglomerates are racing to finalize their 2025 business strategies, with artificial intelligence emerging as the linchpin of their growth plans amid persistent economic uncertainty. Samsung Electronics will convene its biannual global strategy meeting on Dec. 16, bringing together senior executives and overseas subsidiary heads to chart next year's direction. The company, pursuing a transformation into an "AI-driven company," will focus on bolstering AI semiconductor competitiveness and stabilizing mass production of its 2-nanometer foundry process. The memory division will discuss customer-tailored strategies centered on sixth-generation high-bandwidth memory, HBM4, while the consumer electronics unit will concentrate on enhancing AI features across smartphones, televisions and home appliances. Hyundai Motor Group plans to counter potential U.S. tariffs through supply chain diversification while expanding its hybrid lineup to more than 18 models by 2030. The automaker is also pushing to launch robotaxi services in major U.S. cities next year. LG Group held its executive meeting on Dec. 10, where Chairman Koo Kwang-mo and about 40 chief executives discussed strategies to nurture growth engines in AI, biotechnology and clean technology. LG Electronics will hold a company-wide management meeting on Dec. 19 under newly appointed CEO Lyu Jae-cheol. SK Group held its annual CEO seminar in early November, with Chairman Chey Tae-won urging executives to strengthen competitiveness and seize leadership in the AI race. SK hynix has established regional AI research centers, while SK Innovation created an AI transformation unit reporting directly to the CEO. 2025-12-14 14:52:46 -
Korean seaweed rides high as U.S. tariff exemption adds fuel to export boom SEOUL, December 14 (AJP) - South Korea's seaweed exports are on track to shatter records this year, and a newly announced U.S. tariff exemption is set to accelerate the momentum for the country's beloved K-gim. A White House fact sheet released last month listed seasoned seaweed as the sole seafood product to receive duty-free treatment, effectively slashing the previous 15 percent levy to zero, the Ministry of Oceans and Fisheries said Sunday. The exemption took effect on Nov. 13 based on customs clearance dates. Dried seaweed, however, remains subject to the 15 percent reciprocal tariff alongside other seafood items. Still, data reveals that seasoned seaweed accounts for more than 90 percent of the country's seaweed exports to the United States, the tariff to have minimal impact. The ministry said it would negotiate with Washington to secure duty-free status for dried seaweed and tuna fillets as well. The exemption comes as Korean seaweed continues to gain traction among American consumers. Exports to the U.S. reached $228 million in the first 11 months of 2025, up 15.9 percent from a year earlier, despite the imposition of reciprocal tariffs earlier this year. November shipments alone surged 25.2 percent on-year to $24.5 million, outpacing the cumulative growth rate for the January to November period. The U.S. accounts for more than 20 percent of South Korea's total seaweed exports. South Korea's global seaweed exports totaled $1.04 billion in the first 11 months, marking a 13.3 percent increase from the same period last year. This marks the first time annual shipments have surpassed the $1 billion threshold. Last year, exports narrowly missed the milestone at $997 million. The ministry forecasts full-year exports to exceed $1.1 billion for the first time in 2025. 2025-12-14 13:36:26 -
Seoul mayor slams government housing curbs, demands regulatory relief SEOUL, December 14 (AJP) - Seoul Mayor Oh Se-hoon on Sunday lambasted the government's Oct. 15 real estate regulations, accusing policymakers of crushing ordinary citizens' homeownership aspirations and urging an immediate rollback of lending restrictions and redevelopment controls. "The most ordinary yet desperate dream of owning a home is being trampled under the Oct. 15 measures," Oh said in a Facebook post. "The government must no longer turn a blind eye to the side effects of its real estate policy." The conservative mayor argued that tightened mortgage caps and expanded regulated zones have erected "abnormally high barriers" to property purchases, freezing transactions and funneling frustrated buyers into an already parched rental market. His rebuke comes as official data showed housing transactions surging ahead of the curbs. Apartment sales in Seoul jumped 62.5 percent month-on-month in October and soared 176 percent from a year earlier, according to the Ministry of Land, Infrastructure and Transport — a rush analysts attribute to buyers scrambling to close deals before stricter rules took effect. The broader Seoul metropolitan area recorded 39,644 housing deals during the same month, up 26.7 percent from September and 58.5 percent higher than a year ago. By contrast, transactions outside the capital region declined 6.2 percent month-on-month, underscoring the outsized impact of the regulations on the country's economic heartland. The Oct. 15 package designated all 25 districts of Seoul and 12 surrounding Gyeonggi Province municipalities as regulated zones, triggering the most aggressive clampdown on the capital region's property market in years. Oh disclosed he recently met with the Minister of Land, Infrastructure and Transport to convey his concerns but found little willingness to address the policy's fallout. He accused the central government of seeking municipal cooperation on housing supply while refusing to revisit market-distorting regulations. The mayor called for an immediate easing of restrictions on urban redevelopment projects and a reversal of lending policies that, in his view, treat genuine homebuyers as speculators. Invoking the previous Democratic Party's Moon Jae-in administration's income-led growth experiment, Oh warned that "policies begun with good intentions become misgovernment when their results prove harmful," and called on authorities to pivot before repeating past mistakes. 2025-12-14 11:23:14 -
Samsung C&T partners with Poland's Synthos to expand SMR business in Europe SEOUL, December 14 (AJP) - Samsung C&T has signed a memorandum of understanding with Polish small modular reactor (SMR) developer Synthos Green Energy to jointly pursue SMR projects across Central and Eastern Europe, the South Korean construction giant said Sunday. Under the agreement, the two companies will collaborate on expanding SMR business into the Czech Republic, Hungary, Lithuania, Bulgaria and Romania, while also working together on feasibility studies, site surveys and environmental impact assessments for Polish SMR projects. Synthos Green Energy aims to build up to 24 SMRs in Poland by the early 2030s, including the country's first SMR power plant, using BWRX-300 technology developed by GE Vernova Hitachi Nuclear Energy (GVH), a joint venture between General Electric and Japan's Hitachi. The BWRX-300 is a 300-megawatt SMR based on an advanced boiling water reactor design and is considered one of the leading technologies in the emerging SMR sector. Samsung C&T signed a separate agreement with GVH in October to expand SMR projects in Europe, Southeast Asia and the Middle East. "This close partnership with Synthos Green Energy will serve as a milestone in establishing our foothold in Poland and Central and Eastern Europe," Samsung C&T CEO Oh Se-chul said. Synthos Green Energy CEO Rafał Kasprów said he hopes the combination of Samsung C&T's global nuclear project expertise and his company's SMR capabilities will enhance the prospects for Poland's SMR projects and deliver safe, sustainable energy solutions across Europe. The partnership comes as European nations increasingly turn to nuclear power to meet decarbonization targets, with SMRs gaining traction as a flexible, cost-effective alternative to conventional large-scale reactors. 2025-12-14 10:33:02 -
Coupang user numbers rebound slightly despite massive data breach affecting 33.7 million accounts SEOUL, December 14 (AJP) - South Korean e-commerce giant Coupang has seen its user base recover and expand modestly despite a colossal data breach that compromised 33.7 million accounts, underscoring the powerful grip the company maintains over the nation's online shoppers. Weekly active users on Coupang's main shopping app reached 29.9 million during the first week of December, up about 4.1 percent from 28.8 million a month earlier, according to data from retail analytics firm WiseApp Retail on Sunday. The company's affiliated services also posted gains. Coupang Play, the firm's video streaming platform, drew 3.9 million weekly users, a 4 percent increase that kept it in second place among over-the-top services behind Netflix. Coupang Eats, its food delivery arm, climbed 3 percent to nearly 8 million users. Industry analysts attribute the resilience to a so-called lock-in effect, where Coupang's integrated ecosystem spanning shopping, streaming, and delivery makes it difficult for customers to switch to rival platforms. A survey by research firm Embrain Trend Monitor found that 71.9 percent of 1,000 adult respondents said they would struggle to restore trust in the company even if it offered compensation. Yet more than half, at 55.3 percent, said they would likely continue using the service out of convenience. The rebound marks a stark reversal from the user exodus seen in the days following the initial confirmation of the breach, which had led several industry observers to forecast a gradual downfall for the Korean e-commerce giant. 2025-12-14 09:53:45 -
SK On–Ford breakup signals Korea's battery pivot to ESS amid EV fog SEOUL, December 12 (AJP) - The dissolution of the $11.4 billion battery joint venture between SK On and Ford Motor stands as a stark symbol of the shifting center of gravity in the global battery business — away from electric vehicles and toward energy storage systems (ESS), where surging power demands from AI-driven data centers are rewriting the industry's growth map. The two companies will formally part ways in the first quarter of 2026, splitting control of three giga factories launched together in 2022. SK On will take full ownership of the 45-gigawatt-hour plant in Stanton, Tennessee, while Ford assumes the twin sites in Glendale, Kentucky, totaling 82 GWh. The breakup, while abrupt, offers SK On a strategic reset. Freed from exclusive commitments to Ford, it can now supply a broader pool of customers — particularly utilities, hyperscale data-center operators, and ESS integrators repositioning for the grid-scale storage boom. The shift also reflects Ford's own retreat: its EV unit has lost more than $5 billion this year, prompting the automaker to delay mass production of its next-generation electric pickup to 2028. Strategic Reset The restructuring sharply improves SK On's balance sheet. Nearly 10 trillion won ($6.7 billion) in BlueOval SK liabilities currently sit on SK On's consolidated financials. The separation will transfer roughly half of that debt off its books, reducing annual interest expenses by about 250 billion won while giving SK On full access to U.S. Inflation Reduction Act (IRA) production tax credits. The company has already set an aggressive ESS roadmap, targeting up to 10 GWh in orders next year by converting EV battery lines at its Tennessee and Georgia plants. Mass production of LFP-based ESS cells is slated for the second half of 2026. Korean battery makers LG Energy Solution, Samsung SDI, and SK On are all accelerating the conversion of underutilized EV battery lines into ESS production amid deteriorating visibility for global EV demand. At the same time, hyperscale data centers — driven by rising AI workloads — are consuming electricity at unprecedented levels, turning grid-scale batteries into a cornerstone of power-stability infrastructure. "EV batteries face strict weight and volume constraints that demand high energy density and output, but ESS units are stationary installations with relatively fewer space limitations," said Chung Won-suk, an analyst at iM Securities. SK On is separately converting its Stellantis joint venture plant in Indiana into an ESS-dedicated facility targeting 30 GWh of annual capacity by end-2025. Utilization at the plant has dropped below 50 percent amid Stellantis' EV pullback following the phaseout of U.S. federal purchase subsidies in September. ESS Momentum Samsung SDI is in advanced talks to supply Tesla with about 3 trillion won in ESS batteries over three years — roughly 10 GWh annually — marking what could be the company's first large-scale alliance with the world's dominant ESS integrator. LG Energy Solution, which already supplies Tesla with 20 GWh of LFP cells a year, is negotiating to raise that volume by 50 percent to 30 GWh. Combined, Korean suppliers would deliver 40 GWh annually to Tesla, substantially widening the EV maker's diversification away from Chinese giants CATL and BYD. SNE Research projects the global ESS market to expand more than sixfold from 185 GWh in 2023 to 1,232 GWh by 2035. Unlike EVs — where demand is vulnerable to consumer sentiment, macro cycles, subsidies, and policy swings — ESS growth is driven by structural factors: renewable-energy penetration, grid stability requirements, and escalating data-center loads. "ESS battery demand currently stands at about 20 to 25 percent of the EV market, but ESS offers relatively stable structural growth," said Chung. "That is why its sustainability is rated more highly than EVs." Korean players, however, still lag global leaders: they hold roughly 24 percent of the global EV battery market but less than 10 percent of ESS as of mid-2025. Chinese manufacturers CATL, Hithium, and EVE Energy dominate the ESS landscape, largely thanks to low-cost LFP production. U.S.–China tech rivalry is simultaneously creating an opening. The IRA grants significant tax credits for ESS made with U.S.-produced components, giving Korean manufacturers — already operating large-scale facilities across North America — an edge at a time when Chinese firms face steep trade barriers. Korean automakers themselves are shifting more of their product portfolios toward LFP. Though LFP offers lower energy density than nickel-based NCM batteries, it is roughly 30 percent cheaper and more durable under extreme temperatures and long operating cycles — characteristics ideal for storage systems and affordable EVs alike. LG Energy Solution began LFP production at its Michigan plant in June and plans to expand North American ESS capacity to 30 GWh by 2026. Its joint venture with Stellantis in Canada is also reallocating parts of its NCM lines toward ESS. Separately this week, LG Energy Solution announced a $1.4 billion EV battery contract with Mercedes-Benz, believed by analysts to involve LFP cells targeting mid-priced models — another sign of Europe's pivot away from high-cost chemistries. Samsung SDI also unveiled a multiyear, 2-trillion-won ESS contract with a U.S. energy developer, representing roughly 15 percent of its annual revenue and marking its first substantial move into the LFP segment long dominated by Chinese rivals. While LFP appears ascendant, Korean engineers are betting that NCM technology could reclaim market share once it further reduces costs and demonstrates superior safety and energy performance. "Provided that NCM batteries can prove technical sovereignty over LFP and cut prices, we believe the market will eventually sway back to safer and durable nickel variants in the long run," said Kim Sung-soo, head of smart batteries at Pai Chai University. 2025-12-12 15:57:05 -
Celltrion secures major U.S. formulary deal for biosimilar Avtozma SEOUL, December 12 (AJP) - South Korean biopharmaceutical company Celltrion said Friday it has secured formulary inclusion for its autoimmune disease treatment Avtozma with Synergie Medication Collective, a major pharmacy benefit manager (PBM) formed by several Blue Cross and Blue Shield companies in the United States. The intravenous formulation of Avtozma, a biosimilar of Roche's tocilizumab, has been listed as a preferred drug across all public and private insurance formularies managed by Synergie Collective. Patient reimbursement coverage will take effect in January, paving the way for accelerated prescription growth in the world's largest pharmaceutical market. The agreement marks Celltrion's second major coverage win since launching Avtozma in October, following its earlier inclusion in Blue Cross and Blue Shield's Minnesota formulary. Celltrion's U.S. subsidiary has completed the deployment of specialized sales personnel for the rheumatoid arthritis segment, Avtozma's primary indication. A subcutaneous formulation of the drug is slated for release in the first half of next year, which the company expects will further strengthen its market position. "All products we launched in the U.S. market this year, including Avtozma, Stekima and Stoboclo-Osenvelt, have been smoothly listed on major PBM formularies, successfully laying the groundwork for accelerating patient prescriptions," said a Celltrion spokesperson. The top five PBMs control more than 90 percent of the U.S. prescription drug reimbursement market, making their formulary decisions a critical factor for commercial success in the country. 2025-12-12 09:33:09 -
Korea scales back corporate contenders for CES 2026, but books 60% of awards SEOUL, December 11 (AJP) - South Korea's presence at the world's biggest consumer technology show will be notably slimmer next year, even as Korean innovators again dominate the event's coveted awards. CES 2026, slated for Jan. 6 to 9 in Las Vegas, is expected to host between 700 and 800 Korean companies, down sharply from about 1,031 firms in 2025, according to industry data. The retreat is driven largely by startups and sole proprietors pulling back, but major conglomerates are also rethinking their strategies. SK Group — which mounted large-scale, multi-company pavilions from 2019 to 2025 — will send only SK hynix. HD Hyundai, known for showcasing next-generation autonomous vessel technologies in recent years, will skip the show entirely. Hyundai Motor Group is scaling down its exhibition, dropping software and self-driving displays where U.S. rivals currently lead. Samsung Electronics, meanwhile, plans to host its showcase at a private hotel rather than its usual anchor space at the Las Vegas Convention Center's Central Hall, now increasingly dominated by Chinese giants such as TCL and Hisense. Fragmented 'Team Korea' weakens coordination The pullback underscores a long-running issue: Korea's lack of a unified national strategy at CES. "There is no central control tower," said Lee Han-bum, president of the Korea Information & Communication Technology Industry Association (KICTA). "KOTRA, the Seoul city government and dozens of local governments all come separately. There is confusion, and even now many participants have not received final approval." KOTRA will lead a unified Korea Pavilion next year that brings together multiple agencies including the Seoul Metropolitan Government. The pavilion will host 469 companies, up from 445 in 2025. But a large share of exhibitors will still go it alone. At CES 2025, 586 Korean companies participated outside the pavilion. If total Korean attendance falls to around 700, the pavilion's share would rise from 43 percent to roughly 67 percent, but it would still not function as an overarching command structure. KOTRA also directly manages only about 140 companies through its own selection process. Much of its role remains focused on booth design, branding and coordination — not comprehensive oversight. High costs, low returns The financial case for attending CES is becoming tougher. Korea is estimated to have spent around $500 million on CES 2025 but saw less than $20 million in tangible returns, Lee said. Samsung Electronics alone invested 20 billion won ($13.5 million) in last year's exhibition — a cost only the largest corporations can afford, leaving smaller companies heavily dependent on government subsidies. Korea sent the third-largest national delegation in early 2025, behind the United States (1,509 firms) and China (1,339). Yet the Startup Alliance noted that many CES Innovation Award winners from Korea struggled to secure investment or overseas partnerships, raising questions about whether the heavy spending is translating into actual commercial outcomes. Korean startups at Eureka Park, the exhibition's dedicated startup venue, accounted for nearly half of all exhibitors last year at 641 companies out of 1,400 total — a dominance that raised questions about sustainability. A single booth can cost at least 100 million won once accommodation, logistics, patent filings and rental fees are included. A sharply weaker won, higher operational costs and tougher U.S. visa conditions under the Trump administration are adding further pressure. Still, Korea dominates the awards Despite scaling back, Korea remains a standout in innovation accolades. KOTRA said Korean companies have secured 168 awards at CES 2026, accounting for 60 percent of all awards and marking the country's third consecutive year as the event's top winner. Korean firms swept all three Best of Innovation awards in the AI category, with honors going to Doosan Robotics, DeepFusion AI, and CityFive. The Seoul Business Agency will support 70 startups at next year's unified pavilion — down from 104 — but is expanding assistance programs, including investor matchmaking, global IR pitch competitions, and media outreach. "Korea needs to compete on technology, not headcount," Lee said. "That means fewer companies, but better-prepared ones." 2025-12-11 15:57:20