Journalist
Arthur I. Cyr
davekim0807@ajupress.com
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Korea Zinc clears legal hurdle for $7.4 billion U.S. smelter project SEOUL, December 24 (AJP) - A South Korean court on Wednesday dismissed an injunction filed by Young Poong Group and MBK Partners seeking to block Korea Zinc's landmark investment deal with the U.S. government, paving the way for the world's largest non-ferrous metal smelter to proceed with a $7.4 billion refinery project in Tennessee. The Seoul Central District Court rejected the plaintiffs' request to halt a third-party share allocation that would give the U.S. government-led joint venture a 10 percent stake in Korea Zinc. The ruling marks a pivotal victory for Chairman Choi Yun-birm, who has been locked in a bitter proxy fight with rival shareholders for over a year. Under the investment plan approved by Korea Zinc's board on Dec. 15, the company will build a strategic minerals refinery in Clarksville, Tennessee, with construction slated to begin in 2027 and operations commencing in 2029. The facility will produce 13 metals, including 11 critical minerals, along with semiconductor-grade sulfuric acid. The joint venture's largest shareholder will be the U.S. Department of War, holding a 40.1 percent stake. The Young Poong-MBK alliance had argued that Korea Zinc's decision to issue new shares rather than invest directly was designed to secure a "white knight" to defend Choi's leadership rather than raise capital. If Korea Zinc proceeds with the share issuance on Dec. 26 as planned, the Choi camp's combined holdings, including stakes held by allies including Hanwha Group, LG Chem, and the National Pension Service, would reach about 45.5 percent of voting shares, overtaking the Young Poong-MBK bloc's 43.4 percent. Young Poong and MBK expressed regret over the court's decision. "We cannot say that concerns over potential damage to existing shareholders' value, fairness of the investment contract, and long-term financial and managerial risks Korea Zinc will bear have been sufficiently addressed," the two said in a joint statement. Korea Zinc welcomed the ruling. "We will carry out this project, which will drive Korea Zinc's future growth, without disruption and successfully enhance corporate and shareholder value," the company said. Industry analysts note that U.S. government participation could classify Korea Zinc as an American security asset, potentially complicating any future takeover attempts by the Young Poong-MBK alliance. 2025-12-24 16:30:43 -
Hate it or not, Coupang remains indispensable to Korean consumers — for now SEOUL, December 24 (AJP) - Coupang is facing intensifying scrutiny from regulators in South Korea and the United States, alongside a growing list of civil and class-action lawsuits. Yet despite mounting criticism over its handling of a massive data breach, the e-commerce group remains deeply embedded in daily life for Korean consumers — from shopping and food delivery to streaming. This week, the South Korean government launched an inter-agency task force to investigate what officials now describe as a national crisis rather than a routine corporate incident. The task force brings together 10 ministries and agencies, including the Ministry of Science and ICT, the Personal Information Protection Commission and the Fair Trade Commission. "The government views this not as a simple corporate data breach but as a serious social crisis that has undermined public trust," said Ryu Je-myung, second vice minister of science and ICT, at the task force's inaugural meeting, adding that Coupang's response to date was "deeply concerning." Coupang disclosed on Nov. 29 that a former employee had accessed customer data through overseas servers for about six months starting in late June without detection. The company initially reported the breach to authorities on Nov. 18, estimating 4,500 affected users. That figure later ballooned to 33.7 million — nearly its entire user base. The e-commerce giant drew further criticism for initially referring to the incident as data "exposure" rather than "leakage," and for removing its apology notice from its homepage within days. Founder and executive chairman Bom Kim has yet to appear publicly despite repeated calls from lawmakers and regulators. "Even the heads of far larger global companies such as Meta and Amazon have appeared before congressional hearings," said Rep. Choi Hyung-du of the ruling People Power Party, accusing Kim of showing disregard for Korean consumers. At a Dec. 17 National Assembly hearing, Coupang sent only interim chief executive Harold Rogers, a U.S.-based executive who required an interpreter, prompting bipartisan frustration. Rogers said the breach did not require disclosure under U.S. Securities and Exchange Commission materiality standards — a position now being tested in American courts. A shareholder class action filed on Dec. 19 in California's Northern District federal court alleges Coupang made false or misleading statements and failed to disclose the breach in a timely manner, causing investor losses. The company's shares have fallen about 20 percent since the breach became public, closing at $22.43 on Wednesday. In Seoul, the National Assembly's Science, ICT, Broadcasting and Communications Committee is scheduled to hold a two-day hearing starting Dec. 30 to examine the breach, alleged unfair trade practices and labor conditions. Despite the regulatory and political pressure, industry analysts say Coupang's structural advantages remain formidable. "From its logistics network to bundled services, there is still no competitor that matches Coupang in terms of customer value," said Shin Kwang-su, a professor of e-commerce at Kyung Hee University's Graduate School of Business. "There may be short-term friction, but it will not be easy for rivals to alter this trajectory." Recent precedents support that view. SK Telecom lost about four percent of its subscribers following a SIM-card data breach in April but stabilized within months, maintaining market share in the high-30-percent range. Still, competitors are moving quickly to exploit the opening. Naver has partnered with Market Kurly to launch a premium grocery service aimed at Coupang's Rocket Fresh. Naver Plus Store, its AI-driven shopping app launched in March, has become the fastest-growing e-commerce platform by downloads this year, according to Sensor Tower. SSG.com, the online retail arm of Shinsegae Group, is revamping membership benefits and expanding premium offerings. CJ Logistics, which handles deliveries for Coupang's rivals, saw its shares hit a 52-week high this month on expectations that even a modest shift in consumer behavior could lift parcel volumes. The political dimension adds further uncertainty. President Lee Jae Myung has called for tougher penalties and a more effective punitive-damages regime. The ruling Democratic Party is expected to revive the Online Platform Act after concluding non-tariff negotiations with the United States, potentially placing dominant platforms such as Coupang and Naver under stricter regulatory oversight. For now, hate it or not, Coupang remains the indispensable giant of Korean e-commerce — battered, besieged, and still without a clear successor waiting in the wings. 2025-12-24 15:48:47 -
Lotus transforms Seoul showroom into immersive art gallery SEOUL, December 24 (AJP) - Lotus Cars Korea finished its art collaboration event at its flagship showroom in Seoul's upscale Gangnam district on Wednesday, merging contemporary Japanese art with high-end automotive design. The event, held from Dec. 21, drew guests from fashion, design, automotive and lifestyle sectors. London and Seoul-based creative directing teams Nazferatu and Aube Arte orchestrated the showcase. Japanese contemporary artist Ryota Daimon headlined the event with a live painting performance, using a vehicle as his canvas. The artist, known for fusing street culture with traditional Japanese aesthetics, transformed the car into what organizers described as an artistic object rather than mere transportation. Korean sculptor Oum Jeong-soon, whose work has featured at the Gwangju Biennale, contributed installation pieces exploring the relationship between space, objects and human presence. Bang & Olufsen's high-end audio systems provided an immersive soundscape throughout the venue. "This art collaboration was an attempt to extend Lotus's pursuit of performance and design sensibility into the broader lifestyle sphere," a Lotus Cars Korea official said. "We plan to continue expanding touchpoints with customers through brand activities that combine art, culture and spatial experiences." The company indicated it would pursue similar differentiated marketing initiatives in 2026, seeking to carve out a distinctive brand identity in South Korea's competitive luxury automotive market. 2025-12-24 10:55:59 -
Naver, Spotify open joint popup store in Seoul to showcase audio content partnership SEOUL, December 23 (AJP) - South Korean internet giant Naver and global music streaming service Spotify have launched a two-day popup store in Seoul's Seongsu-dong to promote their content partnership. The popup store, running from Dec. 23 to 24 at XYZ SEOUL, allows Naver Plus membership subscribers to experience integrated audio content services from both platforms. Non-members can also gain access by signing up for the membership on-site. Since Nov. 27, Naver Plus membership subscribers have been able to access Spotify Premium Basic as part of their monthly subscription, enabling them to stream Spotify's extensive music library at no additional cost. The venue features multiple experience zones highlighting the integration between Naver's services and Spotify. A navigation zone demonstrates how Naver Maps can sync with Spotify to recommend playlists based on saved destinations, while a search zone allows visitors to find and play music directly through Naver's search results. The popup store also includes interactive areas where visitors can create customized eco-bags and view works by graffiti artists. A special room dedicated to South Korean boy band Stray Kids member Felix, who serves as campaign ambassador for both companies, is also available. Naver said it plans to continue online and offline promotional events to strengthen user engagement with the Naver-Spotify collaboration. 2025-12-23 17:47:53 -
Samsung Biologics acquires GSK biopharmaceutical plant in U.S. for $280 million SEOUL, December 22 (AJP) - Samsung Biologics said Monday it has signed an agreement with GSK plc to acquire a biopharmaceutical manufacturing facility in Rockville, Maryland, marking the South Korean contract drugmaker's first production foothold in the United States. The deal, valued at about $280 million, will see Samsung Biologics America, a U.S. subsidiary, take over the 60,000-liter drug substance plant formerly operated by Human Genome Sciences. The asset transfer is expected to close in the first quarter of 2026. The Rockville facility, nestled in the heart of Maryland's biotechnology cluster, comprises two manufacturing buildings capable of supporting antibody drug production from clinical trials through commercial scale. Samsung Biologics will retain all 500 employees at the site and inherit existing production contracts, securing a stable pipeline of large-scale contract manufacturing orders. The acquisition establishes a dual production network linking Samsung Biologics' headquarters in Songdo, South Korea, with the new U.S. base, enabling the company to offer clients greater flexibility and supply chain resilience amid shifting regional regulatory landscapes. The expanded footprint comes as Samsung Biologics recently bolstered its domestic capacity with an additional 1,000-liter bioreactor at its second plant, bringing total production capacity in Songdo to 785,000 liters across five facilities. "This landmark acquisition is a testament to our unwavering commitment to advancing global healthcare and bolstering our manufacturing capabilities in the U.S. The investment will enable us to deepen our collaboration with federal, state, and local stakeholders to best serve our customers and partners while ensuring a reliable and stable supply of life-saving therapeutics," said John Rim, CEO of Samsung Biologics. Regis Simard, president of global supply chain at GSK, said the transaction ensures continued U.S.-based production of critical medicines for American patients. "This deal enables us to further focus on building the agility, capacity and capability needed in our manufacturing network to deliver the next generation of specialty medicines and vaccines," he said. 2025-12-22 09:47:19 -
CJ CheilJedang brings Bibigo brand to Netflix's Culinary Class Wars Season 2 SEOUL, December 18 (AJP) - CJ CheilJedang said Thursday it has supplied a branded pantry stocked with Korean food products for Netflix's cooking competition series Culinary Class Wars Season 2 expanding its global marketing push following a similar tie-up with Squid Game Season 2. The food giant provided a dedicated Bibigo-branded pantry that appeared in episodes released on Dec. 16, featuring ingredients ranging from basic condiments to signature ready-to-eat products for competing chefs to use during the show. The pantry includes Korean staples such as fermented pastes including gochujang and doenjang, alongside Bibigo's flagship products including instant rice, dumplings, kimchi, and processed meats. An internationally beloved series which pit 80 unknown chefs against celebrity chefs in a culinary competition last season, Culinary Class Wars was the first Korean unscripted series to lead Netflix’s Global Top 10 (Non-English) TV list for three consecutive weeks. CJ CheilJedang plans to launch collaborative products tied to the show, following its product partnership with Squid Game Season 2 last year. "The support for Culinary Class Wars Season 2 carries significant meaning, as we not only have a diverse product portfolio led by Bibigo, but have also invested in discovering and nurturing Korean chefs through our Cuisine.K initiative," a company official said. Despite viewer anticipations, Season 2 has faced controversies, with one of its main judges Paik Jong-won embroiled in allegations over origin labeling violations and agricultural land law breaches, while some dishes in the competition have drawn plagiarism accusations. 2025-12-18 11:58:23 -
Korea's shipbuilders to extend order growth streak in 2026 Editor's Note: This is the second installment in AJP's 2026 outlook series on South Korea's key industries, based on forecasts by the Korea Chamber of Commerce and Industry (KCCI). SEOUL, December 17 (AJP) - South Korea's shipbuilding industry is expected to extend its growth streak into 2026 after posting record shipments in 2025, although slowing global orders and intensifying competition from Chinese yards are emerging headwinds, according to forecasts compiled by the Korea Chamber of Commerce and Industry (KCCI). Vessel exports are projected to reach an estimated $31.2 billion this year, up 22 percent, driven mainly by liquefied natural gas (LNG) carriers and large container ships. LNG carriers and container vessels accounted for 38.1 percent and 33.3 percent of total exports, respectively. Export growth is expected to moderate next year. Based on current order books, KCCI forecasts exports of $33.92 billion in 2026, marking a slower but still solid annual increase of 8.6 percent. Orders thin, but Korea holds ground New orders thinned sharply in 2025, clouding the mid-term outlook. Global ship orders through October plunged 43 percent year-on-year to 37.89 million compensated gross tonnage (CGT). Korean shipyards secured 8.06 million CGT over the period, down 5.4 percent — a comparatively mild decline that underscores Korea's resilience amid intensifying global competition. Orders included 80 container ships, 63 tankers, 16 LNG carriers and seven LPG carriers. Low-carbon container vessels stood out as the strongest segment. Orders for such ships rose 5.1 percent year-on-year, accounting for 45.6 percent of total orders, while backlogs surged 31.5 percent as shipping lines accelerated fleet renewals to meet tightening environmental regulations. Despite softer ordering, shipbuilding remains one of South Korea's brightest export sectors heading into 2026, supported by prolonged geopolitical disruptions — including the Red Sea crisis and the Russia-Ukraine war — that continue to sustain replacement demand. LNG and container pipelines stay robust LNG carriers, a traditional stronghold for Korean builders, are showing signs of recovery. HD Hyundai Heavy Industries has reportedly signed a letter of intent with Japanese shipping group NYK for up to eight 174,000-cubic-meter LNG carriers worth an estimated $2.08 billion, linked to Cheniere Energy's Texas projects. Hanwha Ocean is also expected to finalize separate deals with Norway's Knutsen and Equinor totaling around $1 billion. "Interest in new LNG carrier builds has grown," said Georgios Plevrakis, head of Hanwha Ocean's European business development, at the World LNG Summit in Türkiye. "Delivery slots for 2029 are filling quickly, and from mid-next year, availability will shift to 2030." The container ship pipeline also remains firm. HMM awarded a combined $2.16 billion contract to HD Hyundai and Hanwha Ocean last month for 12 LNG dual-fuel container vessels. Singapore-based Pacific International Lines is seeking bids for four to eight 13,000-TEU vessels valued at least $1.28 billion, with Korean yards among the leading contenders. MASGA and U.S. naval ties lift sentiment A Korea–U.S. memorandum of understanding signed in November has further buoyed sentiment. Under the agreement, Seoul committed roughly $150 billion in shipbuilding-related investments to upgrade U.S. shipyards, while Washington publicly backed Korea's ambitions in nuclear-powered submarines. Cooperation is already materializing. Hanwha Ocean became the first Korean builder to secure a U.S. Navy maintenance contract and has undertaken multiple repair projects, including work on the dry cargo vessel Charles Drew. Its $100 million acquisition of Philly Shipyard last year has emerged as a flagship project under the "Make American Shipbuilding Great Again" initiative. HD Hyundai Heavy Industries, meanwhile, won a maintenance contract in August for the 41,000-ton USNS Alan Shepard and completed its merger with HD Hyundai Mipo on Dec. 1 to streamline operations. 2026 outlook: LNG rebound, tankers next Clarkson Research projects global ship orders of 49.78 million CGT across 1,952 vessels in 2026. LNG carrier orders are expected to rebound to 115 units as major projects — including Plaquemines LNG Phase 2, Port Arthur and Rio Grande LNG Phase 1 — reach final investment decisions. Qatar's fleet renewal program could add another 15 to 30 LNG carrier orders. Tankers may emerge as the next growth driver once containership ordering cools. Clarkson forecasts 442 tanker orders next year, including 115 crude carriers and 215 product carriers. Expectations for Korea-built nuclear-powered submarines have also strengthened after Washington's public endorsement during the APEC summit in Gyeongju. While no contracts have been confirmed, U.S. Navy Chief Adm. Daryl Caudle visited HD Hyundai and Hanwha Ocean facilities in November, urging Korea to "move beyond a regional navy." "U.S. naval vessel and nuclear submarine themes that drove share prices in 2025 will continue to support the sector next year as MASGA details emerge," said Byun Yong-jin, analyst at iM Securities. "But earnings will take time to materialize. Nuclear submarines, in particular, are long-cycle projects, and expectations should be tempered." 2025-12-17 15:37:37 -
Kosdaq-heading chip design house SemiFive prices IPO at top of range SEOUL, December 17 (AJP) - South Korean chip designer SemiFive said on Wednesday it has set its initial public offering price at 24,000 won per share, the top of its indicative range, after its book-building drew 2,159 institutional investors with a subscription rate of 436.9 to 1. The IPO will raise about 129.6 billion won ($87 million) and value the company at about 809 billion won when it lists on the KOSDAQ market on Dec. 29. The book-building ran from Dec. 10 to 16. SemiFive, founded in 2019, designs application-specific integrated circuits for AI applications and provides end-to-end services from chip design to mass production. Its clients include AI chip developers FuriosaAI and Rebellions, as well as Hanwha Vision. New orders rose from 5.7 billion won in 2020 to 125.7 billion won in the first nine months of 2025, surpassing the 123.9 billion won booked in all of 2024. Overseas revenue jumped to 55 billion won in the January-September period from 4.5 billion won a year earlier. The company is the first Samsung Foundry design partner to undertake a turnkey project on Samsung's second-generation 2-nanometer gate-all-around process. Revenue from 2nm to 4nm processes rose to 41.4 percent of sales in the first three quarters from 5 percent in 2022. "We have Big Tech-ready development experience, proprietary chip design platform technology, and end-to-end solution capabilities," CEO Brandon Cho said. "We expect to turn profitable next year." 2025-12-17 14:29:14 -
Another turbulent year looms for Korea's petrochemical industry in 2026 Editor's Note: AJP is running a series on the 2026 outlook for South Korea's key industries, based on forecasts compiled by the Korea Chamber of Commerce and Industry (KCCI). The first installment examines petrochemicals. SEOUL, December 16 (AJP) - South Korea's battered petrochemical industry, already deep into streamlining and restructuring, is bracing for another difficult year in 2026, with conditions expected to remain cloudy and rain-soaked, according to an industrial "weather forecast" released by the Korea Chamber of Commerce and Industry (KCCI). Exports are projected to fall a further 6.1 percent next year, following an estimated 11.2 percent drop in 2025, as global oversupply continues to weigh heavily on prices and margins. Domestic output is expected to edge up just 0.9 percent to 20.67 million tons, reflecting capacity rationalization after an estimated 3.7 percent contraction this year. The global glut shows little sign of easing. China's share of global ethylene capacity has surged from 21 percent in 2022 to an estimated 25.2 percent this year, while worldwide oversupply is projected to widen to 49 million tons in 2025, up from 44.9 million tons last year. Restructuring has been most acute at the Yeosu petrochemical complex in South Jeolla Province, which accounts for roughly half of South Korea's total petrochemical capacity and produces 6.41 million tons of ethylene annually. During a visit last month, Trade, Industry and Energy Minister Kim Jung-kwan warned that companies failing to meet a December deadline for output cuts would be excluded from government relief measures. Under a government-mediated "voluntary pact" reached in August, three major petrochemical hubs agreed to roll back naphtha cracking output by up to 25 percent of total capacity. At the Daesan complex in South Chungcheong Province, Lotte Chemical and HD Hyundai Chemical have already submitted plans to scale down their naphtha cracking centers, while Ulsan-based producers SK Geo Centric and Korea Petrochemical are exploring partnership options. Progress elsewhere has intensified pressure on Yeosu-based producers to follow suit. Yeocheon NCC, the country's third-largest ethylene producer, reached a breakthrough this month after its joint owners Hanwha Solutions and DL Chemical reportedly agreed to finalize feedstock supply contracts that had been stalled for nearly a year over pricing disputes. The agreement clears the way for Yeocheon NCC to permanently shut down its No. 3 plant, which has been idle since August, eliminating 470,000 tons of annual capacity. The two shareholders have also agreed to convert a combined 300 billion won ($220 million) in loans into equity. Tensions, however, remain unresolved. DL Chemical said Monday that it had proposed shutting down Yeocheon NCC's larger No. 1 plant, which has capacity of 900,000 tons, a move Hanwha Solutions said had not been agreed upon. Industry sources interpret the proposal as DL's attempt to minimize its losses, noting that Hanwha consumes roughly 1.4 million tons of ethylene annually—nearly twice DL's usage of 735,000 tons. DL Chemical argued in a statement that closing either the No. 1 or No. 2 plant was the only viable option to stem ongoing losses. China's relentless capacity expansion has continued to erode margins across the naphtha-based value chain. Ethylene prices have fallen to about $740 per ton this month, down 17 percent from the start of the year, while propylene prices have dropped 15 percent to around $880 per ton. Analysts expect the oversupply to persist at least through 2027. Domestic demand has offered little relief. Output of vehicles for the domestic market fell 2.7 percent in 2024 to 4.13 million units, while construction activity has contracted by double digits for most of 2025. Rising imports of plastic and textile products have further squeezed demand for locally produced petrochemicals. "Under a conservative scenario involving SK Geo Centric in Ulsan, Yeocheon NCC's No. 1 plant in Yeosu and Lotte Chemical in Daesan, the industry could shed around 2.7 million tons, or 21 percent of domestic capacity," said Jeon Yu-jin, an analyst at iM Securities. "A more aggressive scenario that includes LG Chem's No. 1 plant would push cuts to about 3.9 million tons, or 30 percent." In its report, KCCI urged the government to elevate eco-friendly petrochemical technologies from a "new growth engine" to a "national strategic technology," a move that would lift tax credits by more than 10 percentage points. The group said stronger incentives could accelerate the industry's shift toward bioplastics, chemical recycling and electric-heated naphtha cracking. "China's manufacturing competitiveness is rising by the day, putting every producer on edge," said Lee Jong-myung, head of KCCI's industrial innovation division. "Companies must continue experimenting aggressively, including with AI, while the government needs to deliver bold regulatory reforms and incentive frameworks to support the transition." 2025-12-16 15:46:16 -
Celltrion launches Eylea biosimilar in Europe, secures UK healthcare tenders SEOUL, December 16 (AJP) - South Korean biopharmaceutical company Celltrion said it launched Eydenzelt, its biosimilar version of blockbuster eye disease treatment Eylea, in major European markets including Germany and Britain earlier this month as it seeks to expand its foothold in the lucrative ophthalmology sector. The company's UK subsidiary secured National Health Service tenders in three administrative regions immediately upon launch, including northern England, the country's largest procurement zone, where Eydenzelt became the only officially listed biosimilar, Celltrion said Tuesday. Celltrion has also rolled out Eydenzelt in Portugal, where it plans to target government tenders that account for about 60 percent of the national market. The company aims to progressively expand its European sales footprint through next year to accelerate prescriptions. "Celltrion, recognized as a biosimilar powerhouse across Europe, plans to leverage its marketing prowess and brand credibility built through years of direct sales to ensure the successful market entry of Eydenzelt," a company official said. The company intends to tap into existing networks of healthcare professionals established through its portfolio of autoimmune and oncology biosimilars, expecting brand loyalty to carry over to the new ophthalmic product. Eydenzelt targets the same conditions as Eylea, a treatment for wet age-related macular degeneration and diabetic eye diseases that generated about $9.5 billion in global sales last year. Celltrion obtained European Commission approval for both vial and pre-filled syringe formulations of the biosimilar in February. The launch is expected to ease healthcare spending burdens across European nations while broadening treatment options for patients suffering from retinal disorders. 2025-12-16 10:01:08