Journalist
Kim Dong Young
davekim0807@ajupress.com
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US faces greatest economic risk in global trade war: BOK SEOUL, July 1 (AJP) - The United States stands to suffer the most severe economic fallout if President Donald Trump’s protectionist trade policies provoke full-scale retaliation from its global trading partners, the Bank of Korea said in a report released Tuesday. The central bank’s New York office said that U.S. trade exposure has grown significantly since the 1930s, when the Smoot-Hawley Tariff Act exacerbated the Great Depression by sharply raising duties on imported goods. Today’s globalized economy, the bank cautioned, renders the United States far more vulnerable to reciprocal tariffs. “If countries around the world retaliate against U.S. tariff increases, the United States is likely to become the biggest victim,” the report stated. The analysis underscores a disparity in trade dependencies among major economies. U.S. exports account for about 7 percent of the nation’s gross domestic product, compared with 2.9 percent for China and 3.1 percent for the European Union. That suggests Washington is more exposed to retaliatory measures than Beijing or Brussels, despite its role as the aggressor in recent trade disputes. Drawing on projections from the International Monetary Fund, the report estimates that a 25-percentage-point hike in average U.S. tariffs — similar to those floated by the Trump administration — could slash American real exports by 19 to 28 percent over the next decade. By contrast, EU exports would shrink by as little as 0 percent and at most 1.1 percent; Chinese exports would fall between 5 and 7 percent. The pain would not stop at exports. The U.S. economy could see its real GDP contract by up to 1.3 percent, the report warned, surpassing potential declines of 1.1 percent in China and 0.6 percent in the EU. Still, the BOK noted a paradox: despite the ominous trade outlook, financial markets have largely shrugged off the risks. Stock indexes that dipped following tariff announcements in April have since rebounded to record highs, reflecting investor expectations that the eventual tariffs may be softer than initially feared. Yet the central bank cautioned that volatility could return swiftly if trade negotiations falter or economic momentum weakens later in the year. “Uncertainty surrounding trade policy remains a key risk to financial markets,” the report said, adding that asset prices may face abrupt corrections if talks collapse or growth slows unexpectedly. 2025-07-01 14:57:24 -
US pharma industry urges trade pressure on South Korea over drug pricing SEOUL, July 1 (AJP) - The American pharmaceutical industry is calling on the Trump administration to use ongoing trade negotiations to pressure South Korea into overhauling its drug pricing system, which the industry argues unfairly suppresses prices and harms U.S. innovation and exports. In comments submitted to the Office of the U.S. Trade Representative on June 27, the Pharmaceutical Research and Manufacturers of America (PhRMA), the industry’s primary lobbying group, urged Washington to take a tougher stance on what it described as “unfair pharmaceutical policies” in foreign markets. PhRMA singled out South Korea, along with Australia and Canada, as particularly problematic. All three are high-income countries with strong demand for prescription drugs, yet the group contends they routinely underpay for American pharmaceutical products. The push comes as Trump escalates his focus on what he views as international price manipulation. In an executive order issued May 12, the president directed the USTR and the Commerce Department to take action against foreign governments that “deliberately and unfairly” depress drug prices below market value — often, critics say, at the expense of American consumers who continue to pay among the highest prices globally. PhRMA criticized South Korea’s National Health Insurance Service for subjecting new drug applications to “burdensome reviews” that slow the pace of market access. The group argued that the complex regulatory environment — marked by lengthy timelines and opaque price assessments — deters American pharmaceutical companies from bringing innovative therapies to Korean patients. The U.S. Chamber of Commerce echoed those concerns, submitting its own comments to the USTR. The chamber said South Korea sets drug prices significantly lower than other developed nations, failing to provide what it called fair compensation for U.S. pharmaceutical and biotech firms. It also cited data indicating that only about 20 percent of the 500 new drugs introduced globally between 2013 and 2014 have been approved for reimbursement in South Korea, with an average wait time of 40 months. The Trump administration’s pharmaceutical policies continue to draw mixed reactions. While some in the manufacturing sector have welcomed efforts to use trade talks to push for faster regulatory approvals and updated pricing formulas abroad, the pharmaceutical industry has pushed back on the president’s proposed “most favored nation” pricing policy. That initiative, which aims to align U.S. drug prices with those paid in other advanced economies, has drawn criticism from drugmakers who warn it could stifle investment and slow the pace of drug development. 2025-07-01 13:56:06 -
New finance minister expected to drive AI-led fiscal reform SEOUL, June 30 (AJP) - South Korean President Lee Jae Myung on Sunday nominated Koo Youn-chul, a former government policy coordination chief and vice finance minister, to lead the Ministry of Economy and Finance, filling a key economic post that has stood vacant for more than two months. The appointment of Koo, a 60-year-old career bureaucrat and current visiting economics professor at Seoul National University, is seen as a strategic move to inject momentum into the Lee administration’s economic agenda and recalibrate the country’s fiscal policy direction. His nomination follows the resignation of former Finance Minister Choi Sang-mok in April. Born in Seongju, North Gyeongsang Province, in 1965, Koo joined the civil service after passing the state administration exam. He rose through the ranks of the Ministry of Economy and Finance, serving as budget director and second vice minister, and later became head of the Office for Government Policy Coordination under the Moon Jae-in administration. Known for his deft handling of complex policy portfolios, Koo played a central role in the country's pandemic-era economic response, overseeing emergency budgets and managing inter-ministerial coordination on contentious issues such as real estate policy. His expertise spans traditional fiscal policy as well as emerging fields like artificial intelligence — skills that officials say align closely with the new government’s dual emphasis on economic revitalization and digital innovation. At a press briefing on Sunday, Koo outlined his priorities: reviving domestic demand, managing external uncertainties, and fostering long-term economic innovation. He also underscored the need for strategic public investment, likening the state's role to that of a private firm seeking profit to survive. “The state must invest efficiently — like companies that perish without profit — to discover future growth engines for sustainable development,” he said, emphasizing South Korea’s ambitions to become a global AI leader. His nomination is expected to restore regular operations of economy-related ministerial meetings, which have been stalled since Choi’s departure. One of Koo’s first challenges will be spearheading a major reorganization of the finance ministry itself — an ambitious reform that involves separating budget functions and integrating financial policy departments. The structural overhaul will require careful navigation of inter-agency boundaries, involving coordination with the Financial Services Commission, the Ministry of Trade, Industry and Energy, and the Ministry of Land, Infrastructure and Transport. Observers say the success of these efforts will depend heavily on Koo’s ability to harmonize competing institutional interests while steering South Korea through a period of low growth and fiscal uncertainty. 2025-06-30 15:56:20 -
POSCO to launch lithium extraction project in US SEOUL, June 30 (AJP) - POSCO Holdings said on Monday that it plans to produce lithium in the United States for the first time, positioning itself at the forefront of efforts to localize battery material supply chains in North America. In a memorandum of understanding signed with Australia’s Anson Resources, POSCO will build and operate a demonstration plant in Green River City, Utah, deploying its proprietary direct lithium extraction (DLE) technology. The agreement marks the first instance of a Korean company attempting to extract the key battery metal on U.S. soil. Under the terms of the partnership, Anson will provide lithium-rich brine feedstock and land access at its concession site, while POSCO will test the commercial feasibility of its DLE technology, which the company has been developing since 2016. The facility, expected to break ground next year, is designed to validate POSCO’s method for recovering lithium from low-concentration brine — an approach the company says could unlock previously inaccessible reserves and help diversify global supply. Lithium, a critical component in electric vehicle batteries and energy storage systems, is currently sourced largely from salt flats in South America and hard rock mines in Australia. POSCO estimates that as much as 87 percent of the world’s lithium reserves are found in salt lake brines, but conventional extraction methods rely on slow, land-intensive evaporation processes ill-suited for regions like the United States. POSCO’s technology, by contrast, offers a more compact and potentially faster method of extracting lithium from brines, making it an attractive alternative for resource development in North America, where environmental and regulatory hurdles can hinder large-scale evaporation projects. The initiative also comes as the Trump administration places renewed emphasis on domestic sourcing of critical minerals. Trump has imposed tariffs on a range of imports, including steel, POSCO’s flagship business, fueling interest among Korean manufacturers in U.S.-based production. POSCO currently operates lithium operations in Argentina with an annual capacity of 25,000 tons and a 43,000-ton facility in Yulchon, South Korea, that processes spodumene ore. Combined, these sites supply enough lithium hydroxide to power roughly 1.6 million electric vehicles per year. 2025-06-30 14:19:53 -
Regulators target Aekyung, SK Chemicals over humidifier disinfectant scandal SEOUL, June 30 (AJP) - South Korea’s antitrust regulator has launched enforcement proceedings against Aekyung Industrial and SK Chemicals after the two companies failed to comply with orders to publicly acknowledge their responsibility in one of the country’s deadliest consumer product scandals. The Fair Trade Commission (KFTC) has issued examination reports recommending prosecution for both firms, according to industry sources. In 2018, the commission imposed fines totaling 161 million won (approximately $118,000) and ordered the companies to publish statements disclosing their legal violations in connection with a toxic humidifier disinfectant that has been linked to the deaths of more than 1,740 people and serious lung injuries in nearly 6,000 others. Both companies challenged the ruling through administrative litigation. But the Supreme Court ultimately upheld the sanctions — against Aekyung in 2023 and SK Chemicals in 2024 — making the orders legally binding. Despite this, the companies failed to carry out the required public disclosures within the 30-day period mandated by fair trade regulations, according to the KFTC. The regulator is expected to hold hearings in the coming weeks to consider further penalties. The humidifier disinfectant crisis, which erupted over a decade ago, remains one of South Korea’s gravest public health disasters. The chemicals, used by millions of households, proved especially harmful to vulnerable groups such as pregnant women and young children. Aekyung and SK Chemicals were found to have manufactured and distributed the disinfectants without properly assessing the health risks, according to court rulings and government investigations. 2025-06-30 10:59:20 -
Apple's EU fee cuts spotlight South Korea's unfulfilled promise to curb app store 'commission abuse' SEOUL, June 27 (AJP) - Electronics giant Apple's decision to slash app store fees in Europe is putting fresh pressure on South Korea's government to deliver on President Lee Jae Myung's campaign promise to tackle what critics call "commission abuse" by big tech platforms. The iPhone maker announced sweeping changes to its European app store policies on Thursday, cutting maximum commission rates from 30 percent to 15 percent and allowing developers to promote alternative payment methods under pressure from EU regulators. The move has highlighted the contrast with South Korea, where Google and Apple continue charging up to 30 percent commission despite the country's pioneering 2022 law banning mandatory in-app payments. "We will supplement the mandatory in-app payment prohibition law to improve global equity in app markets," the ruling Democratic Party said in the presidential election promises, but concrete action has yet to materialize. A 2024 survey by the Korea Communications Commission and the Korea Internet & Security Agency found that 70.4 percent of app developers still consider excessive fees their biggest problem, far outweighing concerns about unclear revenue settlements or limited payment options. The in-app purchase tyranny is leading to several protests, with the Korean Publishers Association filing class action lawsuits against Apple last month for its overcharging on web-based novels and comics. The association revealed that the fees even follow to paperback books if purchased through Apple applications. Numbers are growing by the day, as law group We the People reported on June 6, the number of domestic IT firms willing to join in on class action lawsuits against Apple for its excessive fees have spiked through 100, the groups condemning the monopoly of the smartphone maker. Industry observers say the EU's success in forcing Apple's hand could provide a roadmap for South Korean regulators seeking to extract similar concessions from platform giants. 2025-06-27 16:26:34 -
Xiaomi to launch flagship smartphone in South Korea as it challenges Samsung on home turf SEOUL, June 27 (AJP) - Chinese smartphone maker Xiaomi is to launch its flagship "Xiaomi 15" smartphone during the grand opening of its very first offline store Mi Store in South Korea on Saturday, as the Chinese elctronics giant takes a bold step into the notorious South Korean market often dubbed “graveyard of foreign smartphone brands” where Samsung maintains its strong grip, with Apple capturing the hearts of young consumers. Along with the flagship smartphone, the Beijing-based company also unveiled its new foldable phone on Thursday, "the Mix Flip 2," as it seeks to penetrate Samsung's stronghold in the premium smartphone lineup held tight by the traditional bar-shaped Galaxy S25 series and foldable Galaxy Z Fold 6. "Through the Mi Store opening, we hope domestic consumers can intuitively experience Xiaomi's technology and brand," said Johnny Woo, chief of Xiaomi Korea, adding that the company plans to expand its ecosystem from smartphones to smart home products nationwide. Beyond flagship devices, Xiaomi is also targeting the budget market with its Poco M7 Pro 5G smartphone priced in the 200,000 won (US$147.4) range, expanding its assault across multiple price points. The strategy highlights a stark contrast between Xiaomi's global prowess and its struggle in South Korea. Market research firm Canalys ranked Xiaomi third globally with a 14 percent share in the first quarter, trailing Samsung's 20 percent and Apple's 19 percent. In wearables, Xiaomi commands the top spot with 19 percent of the global market, demonstrating its technological capabilities beyond smartphones. However, the company's performance in South Korea tells a different story. Industry data shows Xiaomi held less than 1 percent of the local smartphone market in the first quarter of 2025, with daily sales reportedly failing to reach even a single unit from time to time. In contrast, Samsung held 60 percent of the South Korean smartphone market in the fourth quarter of 2024, Apple following with 39 percent. Even its executive Johnny Woo brings expertise in global production strategy and supply chain optimization rather than marketing, having built his career primarily in emerging markets including India, Indonesia, Turkey, Pakistan and Egypt. Meanwhile, analysts cite security concerns over Chinese products and low brand loyalty as major obstacles, while the failure of foreign brands, including Nokia, HTC, Motorola and BlackBerry serves as a cautionary tale. 2025-06-27 14:59:48 -
Hyundai, Kia exports to US plunge as Trump tariffs take toll SEOUL, June 26 (AJP) - Exports of Hyundai Motor and Kia vehicles to the United States plunged 21.5 percent in May compared with the same month a year ago, as the Trump administration’s 25 percent tariff on imported automobiles begins to significantly alter trade flows. The two South Korean automakers, part of the Hyundai Motor Group, shipped 77,892 vehicles to the U.S. last month, down from 99,172 in May 2024, according to figures released Thursday by the Korea Automobile & Mobility Association. The steep drop underscores the mounting pressure on automakers operating in export-dependent economies as Washington intensifies its protectionist stance on trade. “High tariffs will reduce U.S. auto exports and hurt automaker profitability as companies shift to local production while being unable to fully pass increased costs to consumers in a weakened market,” said Kim Kyoung-you, a senior research fellow at the Korea Institute for Industrial Economics & Trade, in a recent report. The tariffs, first proposed by Trump in April and swiftly enacted, are already driving strategic pivots. Dealers in the United States, anticipating the added costs, prioritized clearing existing inventories ahead of the new levy. According to Cox Automotive, Hyundai and Kia dealers held roughly 94 days and 62 days of inventory, respectively, as of early April. Those stockpiles are now largely depleted, setting the stage for tighter margins in the second half of the year. To mitigate the blow, Hyundai Motor Group has accelerated production at its new plant in Georgia, which began operations in March. But analysts warn that expanded U.S. production will not fully offset the losses from declining exports in the near term. The fallout from the U.S. tariffs is also reverberating through South Korea’s domestic auto sector. National vehicle production fell 3.7 percent year-over-year in May to 358,969 units. Hyundai’s output declined 6.0 percent, while Kia’s dropped 3.8 percent, data from the Korea Automobile & Manufacturers Association shows. 2025-06-26 15:45:44 -
INTERVIEW: Korean startups race to bring lab-grown meat to market SEOUL, June 26 (AJP) - Donning a white lab coat and sterile shoe covers, Dominic Jeong, CEO of South Korean food-tech startup Simple Planet, leads the way through a sleek laboratory buzzing with quiet precision. He opens a chilled cabinet and carefully lifts out petri dishes filled with ivory-white clusters. “These are cultivated animal cells — cow fat and chicken muscle tissue,” Jeong told AJP. “We transform them into protein-rich powders and pastes.” The company’s "cell-based paste" has no flavor, Jeong explains, and it’s not available for public tasting just yet. That step will require prior approval from South Korea’s Ministry of Food and Drug Safety. Simple Planet is part of a growing wave of South Korean startups diving into the emerging world of lab-grown meat, or cultivated meat, as a solution to looming global food insecurity. With the United Nations predicting the global population could reach 10 billion by 2050, the demand for protein is set to nearly double — putting massive strain on existing food systems. While plant-based meats have long catered to vegetarians and the environmentally conscious, cultivated meat targets a broader audience: meat-eaters looking for a more sustainable alternative without sacrificing the real thing. Cultivated meat is created by growing animal cells — typically in a nutrient-rich serum — into muscle and fat tissues. The final product, scientists say, is biologically identical to conventional meat. The same core technology used in regenerative medicine for artificial organs is now being used to grow steaks and chicken breasts. “The only difference,” says Kwon Yeong-mun, director at meat cultivator TissenBioFarm, “is that one’s meant to heal the body, the other is meant to feed it.” But here’s the catch: most lab-grown meat on the market still isn’t 100 percent animal-based. Cultured cells often make up just 20 percent of the final product. The rest? Plant-based fillers and binders. “To make a lab-grown chicken steak, we start with a vegetable protein patty, then add cultured cells and food coloring to mimic real chicken,” Jeong explains. A Climate-Smart Solution Why go through all this effort? The environmental benefits are hard to ignore. Compared to traditional meat production, cultivated meat slashes greenhouse gas emissions, water use, and land consumption. Livestock farming is responsible for roughly 12 percent of global greenhouse gas emissions, and the push to curb that impact is intensifying as climate change accelerates. Jeong says his team’s production tests have already shown promising results. Growing 1,000 kilograms of cultured ingredients using a 50-liter bioreactor saved more than 15,000 kilograms of carbon emissions and over 2,200 cubic meters of water. There are other advantages, too. Lab-grown meat eliminates the need for animal slaughter, sidesteps the risk of food-borne diseases, and avoids the ethical issues tied to factory farming. Despite the buzz, cultivated meat still faces a steep climb to reach supermarket shelves. Back in 2013, the world’s first lab-grown burger cost $325,000. But South Korean researchers are closing in on cheaper alternatives. Professor Joo Seon-tea, who leads the animal science division at Gyeongsang National University, says his startup Orange CAU is nearing commercialization. Their hybrid approach blends cultured muscle tissue with plant protein, which Joo says has passed taste tests and significantly cut production costs. “We estimate our cultured meat will cost about one-third the price of conventional meat to produce,” Joo says. “Retail prices could land at roughly half.” TissenBioFarm, meanwhile, says its whole-cut cultivated meat will sell for about 30,000 Korean won (roughly $22) per kilogram — a bargain compared to USDA Prime ribeye, which can run up to $89 per kilogram. Their secret? A microfiber scaffolding system that mimics the texture and marbling of traditional meat. Kwon explains that the challenge now is scaling up production using large bioreactors to fully infuse those fibers with animal cells and achieve that unmistakable meaty flavor. Still, most of these products remain in R&D limbo. Regulatory approval is the next major hurdle. Last month, a South Korean research team made headlines by replicating meat marbling using self-healing scaffolding — a potential game-changer for appearance and structure. But it’s not ready for consumer forks just yet. “We need Good Manufacturing Practice certification and regulatory approval before anyone can eat it,” says Park Je-young, a professor of bioengineering at Sogang University. Globally, only a handful of countries — Singapore, the United States, Israel, and recently Australia — have greenlit lab-grown meat for human consumption. South Korea is getting closer. The country amended its regulatory framework in 2023 and issued procedural guidelines in early 2024. Still, none of the companies have received final approval to sell. “We cannot disclose how many have applied or when approval might come,” says Sung Jun-hyun, a senior researcher at the National Institute of Food and Drug Safety Evaluation. “But as of now, no product has been cleared for market.” For now, South Korea’s cultivated meat revolution remains confined to labs. But innovators like Jeong are thinking long-term. “We’re not just building steak replacements,” he says. “Our goal is to deliver high-protein animal products to places where meat is scarce or unaffordable. We want to make cultured bulgogi a reality.” 2025-06-26 15:28:29 -
Korean regulator claims Novo Nordisk cut needle supply to boost obesity drug sales SEOUL, June 26 (AJP) - South Korea’s antitrust regulator has issued a formal warning to Danish pharmaceutical giant Novo Nordisk for cutting off supplies of specialized insulin pen needles used by children with diabetes, in order to prioritize the production of its blockbuster obesity drug, Ozempic, government officials said on Thursday. The Korea Fair Trade Commission (KFTC) concluded that Novo Nordisk violated competition laws when it unilaterally terminated supply contracts for its NovoFine Plus needles without sufficient justification. The regulator stopped short of imposing financial penalties, citing the company’s global supply strategy and the relatively narrow scope of affected consumers. At the center of the dispute is NovoFine Plus, an ultra-thin 4-millimeter needle developed to reduce injection pain and the risk of improper delivery, especially in children requiring daily insulin. Introduced in 2020, the premium needle quickly became a critical tool for families managing Type 1 diabetes. In July 2022, Novo Nordisk notified its South Korean distributor that it would halt standalone sales of NovoFine Plus, citing surging global demand for Ozempic — a drug originally developed to treat Type 2 diabetes but widely used off-label for weight loss. The company said it needed to reserve limited needle inventory for bundling with Ozempic injector pens rather than distributing them separately. Supply to the South Korean market ceased entirely in September 2022, despite a supply contract that was scheduled to remain in effect through the end of that year. In place of NovoFine Plus, the company offered older models with larger diameters — alternatives that many patients and families found more painful and difficult to use. “Even if a product is being reallocated for global strategic reasons, firms must honor local agreements and consider the welfare of vulnerable populations,” a KFTC official said, speaking on background. Ozempic, a glucagon-like peptide-1 receptor agonist, has seen a meteoric rise in demand globally, fueled by its effectiveness in weight loss. The drug has frequently been the subject of controversy, with regulators and physicians raising concerns about supply imbalances, particularly when it comes at the expense of patients with critical medical needs. While the KFTC opted for a non-monetary sanction in this case, legal experts said the warning sends a signal that South Korea is prepared to challenge global pharmaceutical practices when they clash with local consumer rights. 2025-06-26 10:51:54