Journalist
Kim Dong-young, Lim Jaeho
davekim0807@ajupress.com
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China halts rare earth exports; Korean industries brace for impact Samsung Electronics' smartphones/ Yonhap SEOUL, April 14 (AJP) - China has suspended exports of rare earth minerals essential to a range of advanced technologies — including electric vehicles, semiconductors and robotics, the New York Times reported Monday. Analysts say China's move could reverberate across global supply chains and disrupt key sectors of South Korea’s manufacturing industry. According to the report, Beijing has halted shipments of rare earth elements and associated magnetic materials widely used in high-tech production. The suspension is widely interpreted as a retaliatory response to steep tariffs imposed by the Trump administration. The export ban is expected to remain in place until China implements a new regulatory framework, one that could permanently restrict the sale of these materials to American companies, including those in the defense industry. China’s Ministry of Commerce had signaled the move on April 4, when it announced new export controls on seven specific rare earth elements — samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium — to be enforced through a licensing system. South Korean automakers, including Hyundai Motor, are closely monitoring the developments. Dysprosium, in particular, is crucial for the production of electric vehicle motors and battery components, and prolonged supply disruptions could have serious implications for the sector. The impact on the domestic display industry, however, is expected to be more limited. While terbium and yttrium are used in small quantities in the manufacture of color filters and phosphors for OLED displays, industry sources said the relatively minor volumes involved may buffer major disruptions. Semiconductor and battery manufacturers are also bracing for the potential fallout. Experts warn that China’s tightening control over rare earth exports may accelerate efforts among global tech firms to diversify supply chains and reduce reliance on a single source of these critical materials. 2025-04-14 10:04:31 -
U.S. sets 10 to 25 percent tariff range for negotiations with South Korea, shipbuilding to be key leverage point National security multi-purpose vessel (NSMV) Empire State/ Courtesy of Hanwha Philly Shipyard SEOUL, April 11 (AJP) -The United States Trump administration has established guidelines for upcoming 90-day reciprocal tariff negotiations, setting a ceiling at country-specific rates announced on April 2 and a floor at the universal 10 percent basic tariff rate. South Korea, which led the global shipbuilding market in January 2025 with 62 percent of total compensated gross tons (CGTs) for 13 shipbuilding orders, now holds a bargaining chip as Trump recently signed an executive order on Wednesday aimed at revitalizing American shipbuilding capabilities and countering Chinese maritime dominance. The executive order notably includes provisions for incentives to encourage allied nations' shipbuilding companies to invest capital in the United States to strengthen American shipbuilding capacity. President Trump and Acting Prime Minister Han Duck-soo reportedly also mentioned shipbuilding as an area for U.S.-Korea cooperation during their first phone call. The U.S. shipbuilding industry has been in decline for decades, a trend taken a toll by the Merchant Marine Act of 1920, known as the Jones Act, which fostered monopolies among domestic shipbuilders and eroded global competitiveness. Last year statistics say China had surpassed the United States in total fleet size, fielding 234 vessels to the U.S. Navy’s 219. South Korea is already a strong ally for rehabilitating U.S. maritime supremacy, as both major players Hanwha Ocean and HD Hyundai Heavy Industries secured Master Ship Repair Agreements (MSRAs) with the U.S. Naval Supply Systems Command this year, though these contracts remain limited to MRO. Aside from shipbuilding, the Trump administration seeks cooperation with Alaska's liquefied natural gas (LNG) project, as U.S. Treasury Secretary Scott Bessent highlighted as an area of interest. Previously, the U.S. had suggested South Korea, Japan, and Taiwan to be on board the project, especially reaching out to South Korea for specialized icebreakers — essential for navigating Arctic waters — that Korean shipbuilders also take pride in. 2025-04-11 15:20:13 -
Fitch affirms South Korea's credit rating while impeachment turmoil Civilians watching the news cheer on as the Constitutional Court unanimously upheld President Yoon Suk Yeol's impeachment, April 4, 2025. Yonhap SEOUL, April 11 (AJP) - Global credit rating agency Fitch Ratings revealed it had anticipated former President Yoon Suk Yeol's impeachment when maintaining South Korea's sovereign credit rating at 'AA- stable' in February, a decision that helped calm market concerns. In a recent report titled "Korean Court Decision on Presidential Impeachment Eases Political Risk," Fitch said the ruling eliminated a significant political uncertainty factor that had been looming over the nation's economic outlook. "We had assumed that the court would uphold the impeachment when we affirmed Korea’s ‘AA-’ sovereign rating with a Stable Outlook in February 2025," Fitch noted in its assessment of the political landscape. Major financial institutions including J.P. Morgan and Citigroup had similarly predicted the impeachment outcome, with both including early presidential elections in their second-quarter forecasts for the Korean peninsula. While the impeachment ruling has removed immediate political uncertainty, Fitch expressed concerns about potential fiscal policy shifts depending on which candidate wins the upcoming presidential election. "We believe it is likely a Democratic Party government would adopt a looser fiscal policy stance than the current administration," Fitch reported, though adding that regardless of the candidate elected, the South Korean government is likely to take proactive policy responses to address the economy issues including national debt. South Korea's national debt increased by 48.6 trillion won last year to reach 1,175.2 trillion won, while the managed fiscal balance recorded a deficit of 104.8 trillion won, equivalent to about 4.1 percent of GDP. The international ratings firm ended its report with a solemn warning that the upward trend in government debt may "put downward pressure over the medium term" to the economy. 2025-04-11 13:45:04 -
Offline retailers ramp up in-store brand strategy to weather slow consumption A premium Daiso branch in Busan/ Courtesy of Shinsegae Simon SEOUL, April 11 (AJP) - In an effort to combat sluggish consumer spending and stay competitive against online shopping platforms, South Korea’s major offline retailers are increasingly turning to popular in-store brands to draw foot traffic. E-Mart, the country’s largest hypermarket chain, significantly expanded its in-store brand ratio from 30 percent to 70 percent when it reopened a megastore in the western port city of Incheon in March 2023, featuring well-known names such as footwear retailer ABC Mart. Competitor Lotte Mart also revamped its Uiwang branch, south of Seoul, in May 2024 by introducing famous retail partners like Daiso and Donggwang Factory Outlet. “Through our renovations, we've incorporated numerous family-friendly establishments such as children’s cafes, transforming our spaces to encourage customers to linger longer,” a Lotte Mart official said. This strategy has extended to high-end department stores as well. Lotte Department Store welcomed Musinsa Standard—the offline brand of the popular online fashion platform Musinsa—to its store in the southern satellite city of Suwon. Meanwhile, Shinsegae Department Store launched a dedicated dessert zone called Sweet Park at its Gangnam flagship mall, featuring renowned global names like Japan’s Gariguette and Belgian chocolatier Pierre Marcolini. According to industry analysts, the move reflects a broader response to prolonged economic stagnation, which has led to a contraction in the number of hypermarkets operated by South Korea’s top three chains -- from 423 in 2019 to 368 by the end of 2024. “For brick-and-mortar retailers, bringing in recognizable in-store brands serves a dual function -- generating rental income and elevating the overall appeal of the store,” said Lee Jong-woo, a business professor at Ajou University. “The race to attract brands with strong consumer pull, such as Daiso and Musinsa, is expected to intensify.” 2025-04-11 10:09:17 -
Studio Meta-K secures investment for advanced AI content production Thumbnails of Studio Meta-K's AI films crowned by awards from Project Odyssey Season 2/ Courtesy of Studio Meta-K SEOUL, April 10 (AJP) - Studio Meta-K, a South Korean technology startup specializing in artificial intelligence-powered media production, has raised 2 billion won, or approximately $13.7 million, in new funding from Korea Investment Partners, the company announced Thursday. The funds will be used to bolster the firm’s AI development initiatives, enhance content production infrastructure, and support the rollout of global marketing strategies, according to a company statement. Kim Hee-jin, a director at Korea Investment Partners, said in a statement that Studio Meta-K’s proprietary technology in AI-generated content and virtual human development positions the company “as a critical force shaping the future content ecosystem, beyond the bounds of the current market.” Founded to push the boundaries of digital storytelling, Studio Meta-K is looking to broaden its scope beyond AI-generated dramas. The company plans to extend its production capabilities to include advertising, film, music videos, and virtual personalities — a move aimed at capturing a growing international appetite for AI-driven media. Industry analysts note that AI-assisted drama production can significantly reduce costs while enhancing production quality — an increasingly attractive proposition in a competitive content landscape. 2025-04-10 16:58:13 -
Stocks rally as tariff concerns ease A Hana Bank branch in Seoul/ Yonhap SEOUL, April 10 (AJP) - South Korean stocks soared on Thursday, recouping recent losses after President Donald Trump announced a 90-day postponement of planned tariffs. The benchmark KOSPI index surged 6.6 percent to close at 2,445.06, marking its strongest single-day gain in months. The tech-heavy KOSDAQ index also posted a robust advance, rising 5.97 percent to finish at 681.79. Foreign investors purchased roughly 1.1 trillion won ($753 million) worth of stocks and derivatives. Technology shares led the rebound. Samsung Electronics climbed 6.42 percent and SK hynix soared 11.03 percent. LG Energy Solution, a major player in the electric vehicle battery market, posted the day's strongest gain among blue-chip stocks, jumping 11.31 percent. The South Korean won also gained 27.7 won against the U.S. dollar to close at 1,456.4. “Sectors that had been under heavy pressure from tariff-related uncertainty saw a sharp rebound,” said Lee Kyung-min, an analyst at Daishin Securities. “Secondary battery and shipbuilding stocks also benefited from ongoing policy dynamics surrounding China.” Still, Lee cautioned that market turbulence could persist. “Expanded volatility remains inevitable as negotiations proceed and new risks emerge,” he said. 2025-04-10 16:48:48 -
Kia to enter US pickup truck market Kia Corp.'s pickup truck Tasman/Courtesy of Kia SEOUL, April 10 (AJP) - Kia Corp. announced Thursday it will invest 42 trillion won, or about $31.5 billion, over the next five years as it ramps up its transition to electric vehicles and expands its global manufacturing footprint. The investment, disclosed during the company’s annual CEO Investor Day, represents a 10 percent increase over Kia’s previous five-year plan and is aimed at boosting annual production capacity to 4.25 million vehicles by 2030. The figure averages 8.4 trillion won per year. As part of its strategy, Kia said it will enter the highly competitive North American pickup truck market — long dominated by U.S. manufacturers — with a self-developed, mid-sized electric pickup. The company aims to sell 90,000 units of the new model annually by 2034. While demand for internal combustion engine pickups remains strong in emerging markets, including for Kia’s Tasman model, CEO Song Ho-sung emphasized that North America is expected to lead growth in electric pickup demand. “We see the region as a key driver in the next wave of EV adoption,” Song said. The announcement comes on the heels of Hyundai Motor Group’s pledge last month to invest $21 billion in the United States, signaling an aggressive global push by the automotive conglomerate, which includes both Hyundai and Kia brands. Kia also laid out plans to increase domestic production by 13 percent, reaching 1.78 million vehicles annually by 2030, and raise overseas production by 20 percent to 2.47 million vehicles. The company said approximately 40 percent of output at Hyundai Motor Group Metaplant America — a forthcoming Georgia-based facility with a planned capacity of 500,000 vehicles — will be dedicated to Kia-branded models. 2025-04-10 13:53:39 -
Trump scales back tariffs for allies, escalates trade pressure on China Combo photo of U.S. President Donald Trump and Chinese President Xi Jinping/ AFP-Yonhap SEOUL, April 10 (AJP) - President Donald Trump abruptly scaled back his sweeping tariff plan on April 9, temporarily exempting about 70 countries from the brunt of his trade actions while dramatically escalating pressure on China with a punitive 125 percent tariff. The policy reversal came just 13 hours after the White House enacted a set of country-specific reciprocal tariffs that rattled global markets and drew criticism from U.S. allies. Under the revised framework, trading partners such as South Korea, Japan, and members of the European Union will face only a 10 percent baseline tariff for the next 90 days. “I thought that people were jumping a little bit out of line,” Trump told reporters, defending the abrupt shift. “They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid.” While key allies were granted temporary relief, China found itself further targeted. The White House raised its tariff on Chinese goods to 125 percent, up from the 104 percent rate announced just a day earlier — a move signaling intensifying trade tensions between Washington and Beijing. White House spokesperson Caroline Leavitt defended the decision, saying the increased tariffs reflected China’s retaliatory stance and history of unfair trade practices. “Countries like China, who have chosen to retaliate and try to double down on their mistreatment of American workers, are making a mistake,” Leavitt said. “President Trump has a spine of steel, and he will not break.” Though the administration suspended the implementation of additional country-specific tariffs for now, existing sector-specific duties — including 25 percent tariffs on steel, automobiles, and certain other categories — remain in effect. The revised policy follows an intense round of behind-the-scenes diplomacy. Treasury Secretary Scott Bessent said that outreach from numerous governments prompted the temporary adjustment and indicated that trade negotiations are underway. “This has been his strategy all along,” Bessent said, referencing Trump’s decision to pause further tariffs for several U.S. allies. He confirmed that South Korea, Japan, and Vietnam had each initiated contact with Washington in an effort to de-escalate tensions. When pressed on whether the latest measures amounted to a full-blown trade war, Bessent rejected the notion, framing the issue instead as a targeted response to "bad actors" — with China squarely in focus. “China is the biggest source of the U.S. trade problems,” he said. Trump, meanwhile, struck a more conciliatory tone when asked about future negotiations with Beijing. “China wants to make a deal,” he said. “They just don’t know how quite to go about it.” 2025-04-10 10:36:17 -
Korean chipmakers on edge as Trump's agenda roils global supply chain A semiconductor wafer on display at Samsung Electronics headquarters in Seocho-gu, Seoul/ Yonhap Editor's Note: This is the third in a series of stories examining how the Trump administration's economic policies affect South Korea's key industries. From trade restrictions to shifting global supply chains, we explore the challenges businesses faced, how they adapted, and the lasting effects on the country's economy. SEOUL, April 10 (AJP) - South Korea's semiconductor companies are navigating a new wave of uncertainty as U.S. President Donald Trump escalates his campaign against federal subsidies for the chipmaking industry, a shift in U.S. industrial policy that could ripple through the global technology supply chain. In a March 4 address to Congress, Trump called for the repeal of the CHIPS Act, a landmark 2022 bipartisan initiative that earmarked $52.7 billion to revitalize domestic semiconductor manufacturing. The law was widely seen as a cornerstone of the Trump administration's strategy to reduce reliance on foreign chipmakers and bolster America's technological edge. The changing U.S. policy reverberated across the global chipmaking industry just as Taiwan Semiconductor Manufacturing Company, or TSMC, unveiled a $100 billion investment in its Arizona operations. Days later, Trump intensified his criticism, asserting that semiconductor firms "do not need the money," and claimed credit for TSMC's U.S. expansion. "All I did was say, if you don't build your plant here, you're going to pay a big tax," Trump said on April 8. His rhetoric coincided with a new round of trade pressure. On April 3, the Trump team announced sweeping 25 percent "reciprocal" tariffs on select imports from South Korea, though the semiconductor industry narrowly avoided immediate inclusion. The White House later paused the levies for 90 days, leaving in place a 10 percent baseline tariff. However, major South Korean exports — including automobiles and auto parts — have already been subject to full 25 percent tariffs since March 26, raising concerns about indirect consequences for the chip sector. For Samsung Electronics, the crown jewel of South Korea's tech industry, the stakes are mounting. Its foundry division held just 8.1 percent of the global market in the fourth quarter of 2024, compared to TSMC's dominant 67.1 percent share. On April 3, TSMC reportedly met with Intel to discuss a joint venture, a move that industry analysts say may have been encouraged by Trump as part of efforts to rejuvenate the domestic chip industry. TSMC's U.S. momentum comes as it faces a 34 percent tariff at home in Taiwan and scrutiny over alleged ties to Chinese telecommunications giant Huawei. "Samsung has reduced its foundry facility investment budget to less than 5 trillion won this year, about half of last year's amount, due to declining factory utilization," said an industry source. The official added that a potential TSMC-Intel alliance could further complicate Samsung's expansion plans in the United States, particularly as progress on its Taylor, Texas, facility has reportedly slowed. On March 31, the White House introduced a new "United States Investment Accelerator" tasked with overseeing the CHIPS program office and negotiating what it described as "better deals" than those under the current administration. Industry officials believe the initiative could foreshadow both stricter subsidy requirements and more robust investment mandates. Adding to the uncertainty, Trump has repeatedly floated the possibility of a 25 percent tariff on semiconductor imports, most recently reaffirming the proposal on April 3, without offering a timeline. Meanwhile, U.S.-based GlobalFoundries and Taiwan's UMC — the fourth- and fifth-largest players in the foundry space — are reportedly exploring a strategic alliance that could challenge Samsung's second-place position. SK hynix, another major South Korean chipmaker, is faring better in the short term. The company is seeing robust demand for its high-bandwidth memory (HBM) products, a critical component in artificial intelligence applications and widely adopted by Nvidia. But even there, geopolitical undercurrents loom. Some clients, anticipating future trade friction, have accelerated orders in recent months. "The pull-in effect and declining inventories have created favorable conditions," said Lee Sang-rak, SK hynix's head of global sales and marketing, during a March 27 shareholder meeting. "But it is uncertain how long this will last." Despite rising interest in the U.S. market, South Korea's chip exports to the United States accounted for just 7.5 percent of its total last year — far behind China (32.8 percent), Hong Kong (18.4 percent), and Taiwan (14.5 percent), according to data from the Korea International Trade Association. Still, the prospect of sweeping U.S. tariffs has left many Korean executives and policymakers wary. Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, believes the impact may be less severe than feared. "Korean and Chinese companies already dominate the general-purpose memory market," he said. "Tariffs will raise costs for U.S. buyers more than they will hurt Korean producers. And in the high-bandwidth memory market, Korean firms are already ahead." 2025-04-10 10:30:05 -
From pizza to cream buns, baseball-themed treats soar "KBO Bread" series by SPC Samlip/ Yonhap SEOUL, April 9 (AJP) - On a sunny April afternoon, the stands at Jamsil Baseball Stadium pulse with energy. Fans in team jerseys cheer between bites of cream-filled buns, and vendors weave through the crowd with boxes of limited-edition pizza shaped for one-handed snacking — perfect for keeping the other hand free to wave rally towels. This is baseball season in South Korea. But beyond the roar of the crowd and the crack of the bat, another game is unfolding — one being played in boardrooms and branding meetings across the country. As the Korea Baseball Organization (KBO) enjoys an unprecedented surge in popularity, with more than 10 million fans flocking to stadiums last season and a new record set for the fastest one million in attendance, companies are rushing to align themselves with the sport — and its deeply devoted followers. Pizza chains, bakeries, convenience stores and even theme parks are tapping into the cultural moment with a slate of baseball-themed products and promotions aimed squarely at the fanbase. Earlier this week, Domino’s Pizza Korea unveiled its latest pitch: a baseball-themed snack created in partnership with the KBO. The product is intentionally elongated — designed, the company says, for ease of eating with one hand while cheering with the other. “We wanted to create something that truly fits into the fan experience,” said a spokesperson for Domino’s. “Baseball is a ritual here — it’s about food, friends, atmosphere. We’re adding to that.” Last month, SPC Samlip, one of Korea’s largest baked goods companies, released a line of “KBO Bread” featuring hidden collectible stickers of team mascots and star players tucked inside each package. Within just three days, more than one million units had flown off store shelves. Convenience store chains like CU have also jumped on the bandwagon, teaming up with the Doosan Bears and Yonsei University Dairy to offer baseball-themed cream buns. In their first week alone, the buns — each packaged with team logos and slogans — sold more than 120,000 units. “Professional baseball isn’t just a sport anymore — it’s a lifestyle, a cultural touchstone,” said one industry insider. “People don’t just watch the game; they live it. And that opens the door for marketing that feels like part of the experience rather than an interruption.” Indeed, some brands are going beyond food entirely. GS25, a convenience store chain, has begun converting select locations into immersive, baseball-themed stores, complete with locker room decor and team memorabilia. Meanwhile, Lotte World Adventure, one of the country’s biggest theme parks, is offering up to 42 percent discounts on admission for Lotte Giants season ticket holders throughout April. For fans, the fusion of commerce and baseball is just another part of the fun — another way to show loyalty, indulge in nostalgia, and feel connected to something bigger. “I bought the bread for the stickers,” said Kim Min-ji, a 27-year-old Twins fan waiting outside a stadium in Seoul. “But now I kind of like the bread, too. It’s silly, but it makes watching the game feel more special.” 2025-04-09 15:55:41