AJU PRESS - ASIA NEWS HUB

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Kim Dong Young davekim0807@ajupress.com

S.Korea braces for torrential rains as powerful storm system targets flood-hit regions SEOUL, August 9 (AJP) - South Korea's southern provinces face another deluge this weekend as meteorologists warn of intense rainfall reaching 70mm per hour in coastal areas, threatening regions still reeling from recent flooding. The Korea Meteorological Administration said Saturday that thunderstorms packing strong winds would pummel the southern half of the peninsula through Sunday afternoon, with some areas expecting more than 200mm of precipitation. The heaviest downpours will concentrate between Saturday afternoon and Sunday morning. Coastal areas of South Jeolla and South Gyeongsang provinces face the most severe conditions, with rainfall rates potentially exceeding 70mm per hour. The capital Seoul and northern Gyeonggi Province will see minimal accumulation under 5mm, while central regions including Daejeon and parts of Chungcheong Province expect 10 to 60mm. Southern metropolitan areas of Busan, Ulsan and Daegu anticipate 30 to 100mm, with isolated pockets receiving up to 150mm. The storm system arrives as South Korea grapples with oppressive humidity that has pushed the heat index above 31 degrees Celsius. Saturday's temperatures will range from 27 to 30 degrees, climbing to 28 to 33 degrees on Sunday despite temporary cooling in rain-affected areas. Jeju Island, the country's southernmost territory, expects 30 to 80mm of rainfall with localized totals exceeding 100mm. The precipitation will begin along the southern coast Saturday morning before expanding northward throughout the day. Most areas north of Seoul will see rainfall taper off by Saturday night, though scattered showers may persist in central regions through early Sunday. 2025-08-09 10:24:09
South Korea posts record current account surplus of $14.27 billion in June SEOUL, August 8 (AJP) - South Korea recorded its largest-ever monthly current account surplus in June, buoyed by resurgent semiconductor exports and a surge in dividend income from overseas investments, the Bank of Korea said Friday. The surplus reached $14.27 billion, the most since the central bank began compiling data, according to preliminary balance of payments figures for June. It marked the 26th consecutive month of a surplus, underscoring the resilience of the country’s external position amid persistent global uncertainties. The cumulative surplus for the first half of 2025 totaled $49.37 billion, making it the third-largest on record for any six-month period. The goods account surplus climbed to $13.16 billion in June, a $2.5 billion increase from May and the third-highest monthly figure ever recorded. Exports rose to $60.37 billion, fueled by robust demand for information technology products. Semiconductor shipments jumped 11.3 percent year-on-year, while exports of computer peripherals surged 13.6 percent. But gains in tech exports were tempered by weakness in traditional manufacturing sectors. Passenger car shipments slipped 0.3 percent, and steel product exports declined 2.8 percent, as evolving U.S. trade policies continued to weigh on key industrial goods. Imports also rose to $47.21 billion, ending a three-month streak of declines. The rebound was driven by a 38.8 percent surge in semiconductor manufacturing equipment purchases, along with a 7.3 percent increase in consumer goods, including foreign-made passenger vehicles. Shipments to the European Union rose 14.7 percent and exports to Southeast Asia gained 6.0 percent. In contrast, exports to the United States edged down 0.5 percent, while those to China — South Korea’s largest trading partner — dropped 2.7 percent. 2025-08-08 15:45:26
LIG Nex1, Doosan, Hyosung Heavy included in MSCI index SEOUL, August 8 (AJP) - Global index provider MSCI has added three South Korean companies to its Korea Index in its latest quarterly rebalancing, while removing three others. The new additions, announced Thursday (local time), include defense contractor LIG Nex1, construction and robotics firm Doosan, and electric motor manufacturer Hyosung Heavy Industries. Companies dropped from the index are food and biotechnology conglomerate CJ CheilJedang, electric components maker LG Innotek, and chemical firm SKC. The changes will take effect after market close on Aug. 26. Firms added to or removed from the index, widely regarded as a benchmark for global investors tracking South Korean equities, often experience significant shifts in foreign investment as global funds adjust their portfolios to mirror the changes. The reshuffling is part of MSCI’s routine quarterly reviews, conducted in February, May, August, and November. 2025-08-08 14:28:15
Naver's second quarter net profit jumps nearly 50 percent SEOUL, August 8 (AJP) - Naver, South Korea’s largest internet company, said on Friday that its second-quarter net profit surged nearly 50 percent from a year earlier, aided by a base effect tied to changes in its corporate structure and gains across its core business segments. Net income for the April-to-June period rose to 497.4 billion won, or about $359.6 million, the company said in a regulatory filing. That marks a 47.9 percent increase from the same period last year. Revenue climbed 11.7 percent to 2.91 trillion won, while operating profit rose 10.3 percent to 521.6 billion won. The sharp rise in net income was largely attributed to the inclusion of its metaverse and database unit, Naver Z, in consolidated financial statements this quarter. The unit had been excluded in last year’s results, creating what the company described as a “base effect.” Naver’s core search platform generated 1.36 trillion won in revenue, up 5.9 percent year-on-year, supported by newly introduced artificial intelligence features designed to improve user engagement and ad performance. E-commerce sales rose 19.8 percent to 861.1 billion won, driven by the growth of its Naver Plus Store app. Revenue from its fintech division increased 11.7 percent to 411.7 billion won. Its content business — which includes webtoons and digital media — recorded a 12.8 percent increase in sales, reaching 474 billion won. Enterprise services revenue also grew, rising 5.8 percent to 131.7 billion won. “We will make greater efforts to enhance our platform’s competitiveness through AI and secure new growth drivers for long-term growth and global expansion,” said Choi Soo-yeon, Naver’s chief executive, in a statement. The results come as Naver continues to invest heavily in artificial intelligence and overseas expansion, including its efforts to grow its webtoon platform globally and strengthen its fintech ecosystem. 2025-08-08 11:17:53
Samsung Electronics, SK hynix could avoid US chip tariffs under new Trump policy SEOUL, August 8 (AJP) - The Trump administration will waive newly announced semiconductor tariffs for companies that commit to building manufacturing facilities in the United States during President Donald Trump’s current term, the Commerce Secretary said on Thursday (local time), signaling a possible reprieve for major South Korean chipmakers including Samsung Electronics and SK hynix. In an interview with Fox News, Secretary Howard Lutnick sought to clarify President Trump’s announcement a day earlier of a sweeping 100 percent tariff on imported semiconductors. The policy is intended to bolster domestic chip production amid growing concerns over supply chain vulnerabilities. “What the president said is: if you commit to build in America during his term, and if you file it with the Commerce Department and your auditor oversees construction all the way through, then he will allow you to import your chips while you are building — without a tariff,” Lutnick said. He stressed that companies must demonstrate verifiable progress on their U.S. construction projects in order to qualify. “You have to be confirmed and overseen building in America,” he said. “Not just promised.” The policy clarification comes after Trump’s Wednesday announcement at a White House event highlighting Apple’s new domestic investment plans. “A 100 percent tariff on all chips and semiconductors coming into the United States,” he said. “But if you’ve made a commitment to build, or if you’re in the process of building, as many are, there is no tariff.” The initial declaration sent shockwaves through the global semiconductor industry, but analysts said South Korean firms may be well-positioned to benefit from the exemption framework due to their ongoing investments in U.S. manufacturing. Samsung Electronics currently operates a chip fabrication plant in Austin, Texas, and is building a second facility in Taylor, Texas, scheduled to begin operations in 2026. SK hynix is constructing a $3.87 billion high-bandwidth memory packaging plant in West Lafayette, Indiana, with production expected to begin in 2028. 2025-08-08 10:21:44
[[K-Tech]] South Korea's fintech giants gear up for stablecoin battle SEOUL, August 7 (AJP) - South Korean fintech companies are forming dedicated task forces and ramping up preparations as expectations mount for the introduction of won-backed stablecoins in the country. Stablecoins, digital tokens typically pegged to fiat currencies like the U.S. dollar or euro, have gained traction globally for their potential to enable faster, lower-cost transactions while promising greater price stability. Following the fintech sector's growing interest in cryptocurrency, mobile financial services provider Toss, operated by Viva Republica, has recently established a stablecoin task force team to examine business opportunities in the emerging market, according to industry sources on Thursday. The task force, led by Toss chief business officer Kim Kyu-ha, includes three financial subsidiaries under the Toss umbrella. The move follows similar actions by Kakao, which formed a group-wide stablecoin task force involving KakaoBank and KakaoPay. Both tech giants are positioning themselves ahead of potential regulatory approval for digital currencies. The crypto boom comes as South Korea presses forward with legislative reforms aimed at modernizing digital asset oversight — a key campaign pledge of President Lee Jae Myung. While South Korea's central bank and the Bank for International Settlements have raised fresh alarms over the systemic risks posed by the rapid rise of stablecoins, fintech giants are in preparation as stablecoins provide faster and cheaper transactions while mitigating the volatility often associated with cryptocurrencies like Bitcoin or Ethereum. Naver Pay has also signaled its intentions, with CEO Park Sang-jin saying in June 26 that the company is "well-positioned to develop and implement practical use" if stablecoin regulations are introduced. Last month, Naver announced plans to collaborate with Dunamu on stablecoin business ventures. System integration companies are also eyeing opportunities as banks, brokerages, and payment platforms would need to convert or redesign their existing payment and settlement systems for blockchain-based operations. Digital solution provider LG CNS mirrored great interests during its second quarter results briefing, its chief account officer Kim Hong-geun announcing that " we are strategically responding to stablecoin business opportunities." 2025-08-07 15:03:52
[[K-Tech]] Hyundai Motor, General Motors to jointly develop 5 new vehicles for North American markets SEOUL, August 7 (AJP) - Hyundai Motor Company and General Motors (GM) announced on Thursday their plans to jointly develop and release 5 new vehicles by 2028, including a commercial electric vehicle model. Four of the planned vehicles, a mid-sized pickup and a compact pickup truck, a compact sedan, and a compact sport utility vehicle, are to target Central and South American markets. All vehicles are to have the flexibility to use internal combustion or hybrid propulsion systems. Hyundai and GM are to also release a commercial electric vehicle to target North America as early as 2028. Hyundai is to lead the development of the compact vehicle and commercial EV, and GM is expected to lead the engineering of the mid-sized truck. About 80,000 units are expected to be produced and sold annually once the two top carmakers start their mass production phase. The collaboration stems from a memorandum of understanding the two firms signed last September. However, reportedly, the announcement of the collaboration was postponed due to prolonged discussions over car lineups. "Hyundai's strategic collaboration with GM will help us continue to deliver value and choice to our customers across multiple vehicle segments and markets," said Jose Munoz, president and CEO of Hyundai Motor. "Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want – beautifully designed, high-quality, safety-focused vehicles with technology they appreciate," the Hyundai Motor CEO added. "By partnering together, GM and Hyundai will bring more choice to our customers faster, and at lower cost," said Shilpan Amin, GM senior vice president and global chief procurement and supply chain officer, adding: "These first co-developed vehicles clearly demonstrate how GM and Hyundai will leverage our complementary strengths and combined scale." The two companies also plan joint sourcing initiatives in North and South America for materials, transport, and logistics. Further areas for potential joint operations include raw materials, components, and complex systems. Hyundai Motor and GM also agreed to explore collaboration on low-carbon emissions steel as part of their commitment to sustainable manufacturing. 2025-08-07 10:42:06
[[K-Tech]] Samsung SDI battery powers electric vehicle to Guinness World Record SEOUL, August 7 (AJP) - A Samsung SDI battery-powered electric vehicle has secured a place in the Guinness Book of World Records after achieving the world's longest single-charge driving distance. Samsung SDI announced Thursday that Lucid Motors' Lucid Air Grand Touring model, equipped with the South Korean company's batteries, broke the previous world record during a single-charge driving test. The vehicle traveled 1,205 kilometers (748.7 miles) without charging during tests conducted last month on highways, mountain roads, and side streets between St. Moritz, Switzerland, and Munich, Germany. This surpassed the previous record of 1,045 kilometers by about 160 kilometers. The Air Grand Touring model houses 6,600 of Samsung SDI's 21700 cell cylindrical batteries, the batteries featuring nickel-cobalt-manganese (NCM) cathodes and silicon-based anodes to deliver comparatively higher capacity, longer lifespan and rapid charging capabilities. Samsung SDI and Lucid forged a strategic partnership in 2016, subsequently launching high-performance models including the Lucid Air Dream Edition. "Having Samsung SDI's cylindrical batteries power the world's longest-range vehicle demonstrates our superior technology," a Samsung SDI official told AJP, adding that SDI is to cooperate further with Lucid Motors to expand global market share and accelerate the development of safe products. 2025-08-07 09:41:25
HD Hyundai Heavy Industries wins US Navy ship repair contract SEOUL, August 6 (AJP) - HD Hyundai Heavy Industries announced Wednesday that it has secured a contract to perform maintenance, repair, and overhaul work on a U.S. Navy vessel. The deal marks the first such agreement since the two countries began discussing broader cooperation in shipbuilding. The contract involves the USNS Alan Shepard, a Lewis and Clark-class dry cargo ship weighing 41,000 tons. The work will be carried out at HD Hyundai Mipo Dockyard in Ulsan and is expected to be completed and the vessel redelivered in November, the company said in a press release. Joo Won-ho, the head of HD Hyundai Heavy’s naval and special ship business unit, highlighted the significance of the contract. "This MRO contract is significant as it's the first order following the government's 'Make American Shipbuilding Great Again (MASGA)' proposal," he said, referring to a South Korean initiative aimed at strengthening cooperation with the United States. South Korea's government proposed the $150 billion shipbuilding cooperation plan as a potential bargaining chip to counter potential tariff measures from the U.S. The contract is the latest step in a series of efforts by HD Hyundai to deepen its ties with the United States. The company signed a strategic partnership with Huntington Ingalls Industries, the largest U.S. defense shipbuilder, in April to collaborate on technology and joint naval ship construction. It also entered into a commercial shipbuilding partnership with the American company Edison Chouest Offshore in June. Other South Korean shipbuilders are also pursuing U.S. market opportunities. Hanwha Ocean, another major player, won a maintenance contract for the auxiliary ship Charles Drew last month and secured two other naval maintenance contracts in 2024. 2025-08-06 16:27:48
Wall Street banks lift growth forecasts for S. Korea as exports, trade outlook improve SEOUL, August 6 (AJP) - Major international investment banks are turning more optimistic about South Korea’s economic prospects, with J.P. Morgan raising its 2025 growth forecast for the country for the second time in a month. J.P. Morgan has lifted its projection for South Korea’s real gross domestic product growth to 0.7 percent on July 24, up from 0.5 percent at the end of June. The 0.2 percentage-point upward revision follows stronger-than-expected second-quarter growth, driven by resilient exports and a rebound in manufacturing, the bank said in a release, citing data from the Bank of Korea. Until late June, J.P. Morgan had held the lowest forecast among eight major global investment banks tracked by the Korea Center for International Finance. The Wall Street firm maintained its average annualized growth forecast for the second half of 2025 at 1.8 percent. It cautioned, however, that third-quarter momentum may taper due to base effects, though ongoing fiscal stimulus should cushion any slowdown. Goldman Sachs also adjusted its outlook upward on Aug. 1, raising its 2025 growth forecast to 1.2 percent from 1.1 percent. The bank cited easing trade-related uncertainty following recent Korea-U.S. negotiations. “The trade announcement alleviates tariff-related risks for key sectors such as semiconductors,” Goldman Sachs said in a note, adding that South Korea now faces no worse conditions than its global peers. This latest revision follows an earlier upgrade in June, when Goldman increased its forecast from 0.7 percent to 1.1 percent, citing reduced U.S. tariff threats, stronger growth outlooks in the United States and China, and expected fiscal support from Seoul. Despite the individual upgrades, the average 2025 GDP growth forecast among the eight international banks remained steady at 0.9 percent as of late July, unchanged for a second consecutive month, according to the Korea Center for International Finance. The Bank of Korea may also revise its growth outlook upward later this month when it releases its August economic update. In May, the central bank projected 0.8 percent growth for the year and said a second supplementary budget could add about 0.1 percentage point to that figure. 2025-08-06 14:36:45