Journalist

김동영
Kim Dong Young
  • Korean petrochemical firms seek lifeline through mergers as losses mount
    Korean petrochemical firms seek lifeline through mergers as losses mount SEOUL, June 13 (AJP) - South Korea’s beleaguered petrochemical industry is turning to consolidation as a potential lifeline, with Lotte Chemical and HD Hyundai reportedly in discussions to integrate their naphtha cracking operations. The move comes as domestic producers reel from plunging profits and stiff competition from China and the Middle East. Lotte Chemical’s operating profit plummeted nearly 64 percent in the past year, falling from 2.59 trillion won ($1.9 billion) in 2023 to 916.8 billion won in 2024. HD Hyundai’s petrochemical unit, HD Hyundai Oilbank, saw a similarly steep drop of 58.2 percent, with profits shrinking to 258 billion won over the same period. In a bid to bolster liquidity, Lotte Group has put its landmark Lotte World Tower up as collateral and divested its Pakistan subsidiary. Now, the company is said to be weighing a more radical step: merging its naphtha cracking center in the Daesan industrial complex with that of HD Hyundai Chemical, a joint venture in which HD Hyundai Oilbank holds a 60 percent stake and Lotte Chemical owns the remaining 40 percent. Sources familiar with the matter say that under the proposed plan, Lotte would transfer its ethylene production facilities — which have a capacity of 1.1 million tons annually — to HD Hyundai Chemical, consolidating operations with HD Hyundai’s existing 850,000-ton unit at the same site. HD Hyundai would provide additional investment to integrate the assets under a single operating entity. Industry analysts say the consolidation could generate meaningful cost savings by streamlining operations and reducing overhead, including labor and facility maintenance. The talks come amid broader efforts within South Korea’s petrochemical sector to restructure in the face of unprecedented external pressures. Chinese ethylene production has more than doubled in recent years, soaring from 26 million tons in 2018 to an estimated 55 million tons in 2024, according to the Oxford Institute for Energy Studies. Meanwhile, producers in the Middle East have further disrupted the market, slashing production costs to a third of South Korean levels by leveraging cutting-edge crude-to-chemicals technology. Lotte and HD Hyundai are not alone in considering consolidation. Industry sources say LG Chem has also approached both companies to discuss potential collaboration or facility reassessments, though no formal agreements have been reached. The South Korean government is preparing a sweeping policy response. The ruling Democratic Party has proposed special legislation aimed at revitalizing the sector. The bill includes financial assistance for corporate restructuring, reductions in electricity rates, and exemptions from antitrust laws to facilitate cooperative ventures. 2025-06-13 11:09:16
  • Koreas leading online bookstore admits possible data breach after ransomware attack
    Korea's leading online bookstore admits possible data breach after ransomware attack SEOUL, June 12 (AJP) - Yes24, South Korea’s largest online bookstore, acknowledged for the first time on Thursday the possibility that customer data may have been compromised in a ransomware attack that has crippled its operations for days. In a statement posted on its official website, the company said it would individually notify customers if investigators confirm that personal data had been leaked. The announcement came one day after the Personal Information Protection Commission launched a formal investigation into the hacking attack. The company, which until now had denied any breach of user data, said in its advisory, “Yes24 has not confirmed any external leakage of customer personal information. The company, however, added, “We are informing customers of this precautionary measure to prepare for any possibility.” The attack, carried out by unidentified hackers using ransomware, knocked out both the main and backup servers of Yes24 on Monday. As of Thursday, the website remained inaccessible, and the company said it expects to restore full service by Sunday — though that timeline has already slipped past earlier projections amid ongoing technical challenges. The company also urged customers to be on alert for phishing attempts, warning them to avoid suspicious messages purporting to be from Yes24 or financial institutions, and to delete any unverified links or attachments. The incident marks one of the most disruptive cyberattacks to hit a major South Korean e-commerce platform in recent years. The Yes24 case has raised new concerns over digital security and crisis response protocols at private firms entrusted with sensitive consumer information. Amid the growing fallout, discrepancies emerged between Yes24 and a government cybersecurity agency over the company’s cooperation in the recovery effort. The Korea Internet & Security Agency (KISA) disputed Yes24’s assertion that it was working with authorities, saying it had sent experts to the company’s headquarters twice since the onset of the attack but was denied cooperation on both occasions. 2025-06-12 16:16:47
  • Government to confront climbing grocery costs in meeting with industry groups
    Government to confront climbing grocery costs in meeting with industry groups SEOUL, June 12 (AJP) - Kim Min-seok, President Lee Jae-myung's nominee for prime minister, is set to hold talks on Friday with representatives from the nation’s food and restaurant sectors as the government confronts growing public frustration over rising consumer prices. According to officials familiar with the issue, the meeting will take place in Seoul and will include representatives from the Korea Food Industry Association, the Korea Foodservice Industry Association, and the Ministry of Agriculture, Food and Rural Affairs. The discussions come amid heightened political and public scrutiny over food costs, particularly for everyday staples. On Tuesday, Kim told reporters that concerns over lunch prices and basic groceries are “deeply felt by the working population,” echoing remarks made earlier this week by President Lee. “President Lee’s recent visit to the market and his comments on food and ramen prices were not offhanded,” Kim said. “He understands the pain that rising daily costs inflict on workers.” On Monday, during an emergency economic task force meeting, President Lee publicly questioned why the price of a packet of instant noodles — a common and affordable meal for many — has climbed to nearly 2,000 won, or about $1.45. His comments underscored the administration’s concerns over persistent price pressures, despite a broader easing in inflation. While South Korea’s overall consumer inflation fell into the 1 percent range last month — the first such dip in five months — processed food prices continued to rise, marking a 4 percent increase for the second consecutive month. Dining-out costs also remained elevated. Combined, the two categories contributed 0.81 percentage points to last month’s 1.9 percent overall inflation rate — accounting for nearly half of the total. Roughly 60 food and restaurant firms have raised prices over the past six months, prompting accusations that the sector has taken advantage of political uncertainty following the December martial law crisis to quietly push through price hikes. Industry representatives are expected to argue that the increases were driven by unavoidable cost pressures, particularly from global raw material prices. Some companies had postponed adjustments last year under government pressure, insiders say, and profit margins in the food sector remain relatively thin compared to other industries. The outcome of Friday’s meeting may offer early clues about how the new administration plans to navigate the delicate balance between market forces and political accountability. 2025-06-12 14:13:55
  • INTERVIEW: How one gamer turned his passion into global console hit
    INTERVIEW: How one gamer turned his passion into global console hit SEOUL, June 11 (AJP) - For Lee Jun-ho, it all began with tears. He was a middle school student, clutching a controller as the final scene of Shining Force, a turn-based tactical role-playing game, played out on the screen. "I remember tears streaming down my face as the ending unfolded," he recalled. That moment of revelation would eventually lead Lee to the heart of South Korea's gaming industry. Today, he serves as the creative director behind The First Berserker: Khazan, an action RPG from Neople, a subsidiary of Nexon. Released in March, the game shot to second place on Steam's global top sellers chart on its debut day, marking a bold entry into a global market typically dominated by American and Japanese console giants. Lee's unlikely journey into game development began during long nights playing Warcraft III. A fellow player — a game developer — noticed his strategic precision and invited him to join his company. It was Lee's first step into the industry. South Korea is better known for its booming mobile and PC game sectors, which together account for nearly 85 percent of the country’s gaming revenue. Console gaming, by contrast, is a relatively minor player — representing just 4.9 percent of the domestic market. In 2023, the Korean console market totaled roughly $827 million, compared to $26.6 billion in the United States and $3.7 billion in Japan. Yet Neople chose to break convention with Khazan, its first console-focused, single-player package game. The studio, best known for its Dungeon & Fighter franchise, sought to reimagine that universe for a new platform and audience. "None of us had ever made a single-player console game before," Lee said. "We had to learn everything from scratch — through iteration, testing, and countless hours of trial and error." The result is a third-person RPG that distills the Dungeon & Fighter series' frenetic action into a tightly choreographed solo experience. Critics have praised its demanding combat and visceral mechanics. IGN highlighted the game's "exhilaration in executing split-second guards and dodges to escape relentless attacks." For Lee, crafting the game's action sequences was both a technical and artistic pursuit. Drawing inspiration from sources as diverse as martial arts films and classic arcade titles, he immersed himself in the choreography of movement. "I studied directors featured at the Taipei Golden Horse Film Festival — how they talked about timing, rhythm, impact," Lee said. "I analyzed their creative processes the same way I analyzed games." Lee's obsession with detail is matched by his belief in the importance of hands-on experience. Around 2010, as he surveyed the landscape of over 2,000 gaming companies in Korea, he asked himself how he could stand apart. His answer: become a creator who had lived, played, and deeply understood games. "There are three kinds of people in game development," he said. "Those who've made games, those with direct or indirect experience, and those with neither. I believe only the first two can make something truly exceptional." Lee's analytical approach extends to games he didn't create. He breaks down Tekken 3, the iconic fighting game, into elements like control mechanics, psychological interplay, and performance feedback. Every small design decision, he argues, must be in service of player experience. As for the future, Lee hopes to continue expanding the Dungeon & Fighter intellectual property into new genres and formats. He sees Khazan as a foundation — not just for Neople, but for Korean console gaming more broadly. "I'll never forget the moment I saw someone buying Khazan in an offline game store on launch day," he said. "It reminded me that this game had to be made like it was my last — with nothing held back. If I'm lucky enough to make another, I’ll aim even higher." 2025-06-11 15:03:28
  • Trump trade war to hit US harder than China: World Bank
    Trump trade war to hit US harder than China: World Bank SEOUL, June 11 (AJP) - The World Bank sharply lowered its forecast for U.S. economic growth this year, citing mounting fallout from the Trump administration’s trade policies. In its latest Global Economic Prospects report, released Tuesday, the bank revised its U.S. growth estimate to 1.4 percent for 2025, down from 2.8 percent in 2024. The Washington-based institution attributed the downgrade primarily to U.S. President Donald Trump’s tariff measures, which it said are weighing more heavily on domestic growth than on the economies of targeted trading partners. Globally, the World Bank trimmed its growth projection to 2.3 percent, down from a previous estimate of 2.7 percent, warning that rising protectionism and heightened economic uncertainty are suppressing investment and trade across nearly all major economies. “This would mark the slowest rate of global growth since 2008, outside of full-fledged global recessions,” the report noted. China, the central focus of the Trump administration’s trade efforts, is expected to maintain its growth trajectory, with projections holding steady at 4.5 percent for this year and 4.0 percent for 2026. Europe and Japan are also expected to face continued economic headwinds. Growth in both the eurozone and Japan is projected at 0.7 percent this year, with modest recoveries anticipated in 2026, reaching 0.8 percent. Despite the bleak outlook, the World Bank offered a glimmer of optimism. A swift resolution to trade tensions could yield modest global gains, potentially boosting growth by as much as 0.3 percentage point by 2026. “Increased trade barriers, heightened policy uncertainty, and multiple downside risks are weighing on the global outlook,” the bank said, stressing that “revitalizing and re-energizing global dialogue and cooperation are paramount.” Meanwhile, senior officials from the United States and China are meeting in London this week in an effort to ease tensions stemming from tariffs and export restrictions on critical materials such as rare earth minerals. 2025-06-11 14:49:25
  • Samsung SDI signs battery supply deal with German energy firm
    Samsung SDI signs battery supply deal with German energy firm SEOUL, June 11 (AJP) - Battery manufacturer Samsung SDI said on Wednesday that it has signed a new supply agreement with Tesvolt, a leading German energy storage company. While the company did not disclose the value or exact timing of the deal, a Samsung SDI spokesperson confirmed that executives from both firms met on May 8 regarding the agreement. The contract will see Samsung SDI deliver its flagship battery solution, the Samsung Battery Box, to Tesvolt by the end of June. The deal builds on a longstanding partnership between the two companies, which began in 2017. According to Samsung SDI, the agreement could serve as a springboard for deeper collaboration, with further supply negotiations and joint marketing efforts planned for upcoming energy storage projects. Samsung SDI also noted during its first-quarter earnings call that it has already secured orders accounting for approximately 90 percent of its planned energy storage system battery production for 2025. 2025-06-11 10:27:12
  • Bank of Korea sounds alarm as won-backed stablecoin momentum builds
    Bank of Korea sounds alarm as won-backed stablecoin momentum builds SEOUL, June 10 (AJP) - As interest in won-denominated stablecoins intensifies, the Bank of Korea is cautioning that a premature rollout could jeopardize the nation’s monetary stability. Central bank officials say that without carefully designed regulations, stablecoins could pose systemic risks and weaken the South Korean currency's status as legal tender. In response, the Bank of Korea will host a high-profile conference on July 1 to address the implications of stablecoin adoption and outline possible countermeasures. While the bank is expected to acknowledge the growing inevitability of stablecoins in the global financial landscape, it will stress the importance of a measured approach rooted in financial stability concerns. “Won stablecoins are currency substitutes, and if non-bank institutions issue them freely, it could significantly undermine monetary policy effectiveness,” said BOK Governor Rhee Chang-yong during a press briefing on May 29. Stablecoins — digital assets typically pegged to traditional fiat currencies such as the U.S. dollar or euro — are increasingly viewed as tools for faster, lower-cost payments with reduced volatility. Yet their adoption in South Korea remains tentative, with policymakers weighing risks and potential frameworks Market interest spiked earlier this month after Kim Yong-beom, policy chief of the presidential office, floated the idea of a “Korean-style” model that would allow private financial institutions and fintech firms to issue won-backed stablecoins, alongside banks. However, significant legal hurdles remain. Experts say the launch of a functional won-denominated stablecoin would likely require extensive amendments to a web of financial statutes. Analysts expect the Bank of Korea to maintain its cautious stance until a unified regulatory approach emerges among government agencies and ruling party lawmakers. 2025-06-10 14:26:34
  • Korean Air charts global ambitions as group nears 70-year milestone
    Korean Air charts global ambitions as group nears 70-year milestone Editor's Note: This article is the 21st installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, June 5 (AJP) - As Hanjin Group prepares to mark its 70th anniversary this November, South Korea’s largest transportation conglomerate is plotting a course for global expansion. The centerpiece of the group’s transformation is Korean Air, which solidified its standing as a global aviation player in December 2024 by finalizing its 1.8 trillion won (approximately $1.31 billion) acquisition of longtime rival Asiana Airlines. The merger — four years in the making and mired in regulatory scrutiny — granted Korean Air a 63.88 percent stake in Asiana, propelling the combined carrier into the ranks of the world’s 10 largest airlines by capacity. At the helm is Chairman and Chief Executive Cho Won-tae, also known as Walter Cho, grandson of Hanjin’s founder. Under his stewardship, the merged airline has pledged full integration within two years, with no workforce reductions — a move aimed at assuaging labor concerns in a nation sensitive to corporate restructuring. But Cho’s ambitions stretch far beyond Korean airspace. In May, Korean Air announced a strategic 10 percent stake in WestJet, Canada’s second-largest airline, underscoring a push to strengthen its transpacific network. “We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity,” Cho said in a statement. The investment, he added, is intended to increase customer choice and reinforce the airline’s international footprint. These initiatives mark a striking evolution for a company that began in 1945 with a single truck at Incheon Port. Founded by Cho Choong-hoon, Walter’s grandfather, Hanjin grew rapidly through contracts with the U.S. military following the Korean War, and took to the skies in the 1960s with the acquisition of state-owned Korea Airlines, rebranded as Korean Air. In the decades since, the conglomerate has diversified its operations, launching shipping services, parcel delivery, and even educational institutions, including Inha University and Hankuk Aviation University. Korean Air posted record first-quarter revenue of 3.96 trillion won this year, up 3 percent from the previous year. But rising depreciation and maintenance costs — fueled by deliveries of Boeing 787-9 and 787-10 aircraft — cut into profitability. Operating profit fell 19 percent to 351 billion won, while net income declined 44 percent to 193 billion won. Passenger revenue increased modestly by 4 percent to 2.44 trillion won, and cargo revenue rose 6 percent to 1.05 trillion won, driven by strong demand in e-commerce, electronics, and auto parts. Meanwhile, Hanjin Logistics, the group’s delivery and freight arm, posted first-quarter revenue of 728 billion won, a 2.2 percent year-on-year increase, with operating profit up 12 percent to 26.2 billion won. Despite operational growth, the group remains dogged by governance issues. Since the death of his father, Cho Yang-ho, in 2019, Walter Cho has consolidated leadership, notably steering the Asiana merger to completion with support from the state-run Korea Development Bank. Yet his control may soon be tested. Hoban Group, a domestic construction and investment firm, has quietly increased its stake in Hanjin KAL, the group’s holding company. Though it trails Cho’s faction by a narrow 1.5 percentage point margin in shareholding, its growing influence has raised eyebrows. Hoban previously made an unsuccessful bid to acquire Asiana Airlines and would need to commit an estimated 2.6 trillion won to gain a controlling stake. For now, Hoban insists its interest is “purely financial,” denying any intention to pursue a management takeover. Nonetheless, its maneuvering introduces a layer of uncertainty just as Hanjin seeks to redefine itself on the global stage. As the conglomerate approaches its milestone anniversary, it faces a pivotal question: Can it maintain momentum in international markets while navigating increasingly turbulent corporate waters at home? For Hanjin — and for Walter Cho — the answer may define the next chapter in South Korea’s aviation legacy. 2025-06-05 09:37:49
  • Exhibition showcases trend of electric vehicles
    Exhibition showcases trend of electric vehicles SEOUL, June 4 (AJP) - South Korea’s premier electric vehicle exhibition, EV Trend Korea 2025, opened in Seoul on Tuesday with an awards ceremony honoring standout innovations in the nation’s fast-growing EV sector. The three-day event, hosted by the Ministry of Environment at COEX convention center, brought together major industry stakeholders, including the Korea Battery Industry Association and the Korea Automotive Environmental Association. Ahn Se-chang, director general of the Climate Change Policy Bureau at the environment ministry, delivered opening remarks to a crowd of executives and policymakers. Attendees included Shin Seung-kyu, executive vice president of Hyundai Motor Group, and Glen Schmidt, vice president for government and external affairs at BMW Korea. Now in its eighth year, the exhibition is the largest in its history, according to organizers. Crowds flooded the venue on opening day, drawn by hands-on exhibits, live demonstrations and test-driving opportunities. A popular highlight was the EV camping display, showcasing vehicle-to-load (V2L) technology that allows EVs to power outdoor equipment and appliances. Among the headliners was Hyundai’s newly redesigned Nexo, the company’s hydrogen-powered SUV originally launched in 2018. The updated model boasts a projected driving range of more than 700 kilometers on a single hydrogen refill — completed in under five minutes — and will feature a panoramic curved display dashboard. The vehicle is set for release next month, according to Hyundai officials present at the show. 2025-06-04 16:15:51
  • Business groups urge new president to focus on economic recovery
    Business groups urge new president to focus on economic recovery SEOUL, June 4 (AJP) - South Korean business groups called on President Lee Jae-myung to revitalize the country’s flagging economy and position it as a global economic heavyweight amid mounting domestic and international challenges. In a series of statements issued Tuesday, business leaders asked the new administration to prioritize economic stability, bolster industrial competitiveness, and enact reforms aimed at restoring growth in a nation grappling with sluggish consumption, falling birthrates, and global trade headwinds. The Korea Chamber of Commerce and Industry, one of the country's most influential business organizations, urged President Lee to “unite national capabilities” to confront structural issues such as low growth and regional population decline. In a policy paper, the group emphasized the need for proactive leadership in an era shaped by protectionist trade policies and the rapid advancement of artificial intelligence. “President Lee must steer the nation through a volatile global landscape and domestic uncertainty,” the chamber stated, calling for “decisive measures that restore public trust and energize economic fundamentals.” The Federation of Korean Industries echoed the call for urgent action, expressing confidence that “pragmatic, performance-oriented policies” could elevate South Korea into the ranks of the world’s top five economies. The group urged the government to foster innovation, revive the ailing manufacturing sector, and support emerging technologies as pillars of long-term growth. The Korea Enterprises Federation, meanwhile, pressed for bold regulatory reforms and a more flexible labor market, saying such measures are essential for enhancing competitiveness and sustaining prosperity. “Insightful and balanced leadership will be crucial in navigating the coming challenges,” the group said. The Korea International Trade Association advocated for a more profit-driven trade strategy, emphasizing the importance of minimizing external risks through coordinated diplomatic and trade policy efforts. “Rapid shifts in the global trade order require swift and adaptive responses,” the group said. As President Lee assumes office, expectations are high that his administration will move quickly to define its economic priorities and reassure markets. The coming months are expected to offer the first real test of how he balances labor-friendly campaign promises with the demands of a deeply concerned business sector. 2025-06-04 14:59:26