South Korea targets foreign speculators with ban on housing purchases SEOUL, August 21 (AJP) - South Korea will ban nonresident foreigners from purchasing homes in Seoul and other major metropolitan areas, the Ministry of Land, Infrastructure and Transport announced Thursday. Beginning Aug. 26, foreign individuals, corporations and governments must obtain prior approval before acquiring residential property in designated areas. Buyers granted approval will be required to move in within four months and maintain residency for at least two years. The restrictions will apply across all of Seoul, seven districts in Incheon and 23 municipalities in Gyeonggi Province, which together make up the greater Seoul metropolitan area. The measure will remain in effect through Aug. 25, 2026, though officials left open the possibility of extending it depending on housing market conditions. The restrictions were prompted by concerns that overseas buyers were fueling price pressures while taking advantage of looser financing opportunities. Domestic buyers have long faced strict mortgage regulations, while foreigners have been able to tap banks in their home countries for substantial loans — a disparity critics described as a form of “reverse discrimination.” All types of residential housing are covered by the ban, including apartments, single-family homes and multi-unit dwellings larger than six square meters. Commercial and office properties will remain exempt. Violators will be ordered to comply within three months or face fines of up to 10 percent of the property’s purchase price, with penalties applied repeatedly until compliance is achieved, the ministry said. While Gyeonggi Province introduced limited curbs on foreign purchases in select areas in 2020, this is the first time the central government has enacted such broad restrictions across the entire capital region. “This measure is designed to prevent speculation through overseas capital inflows, fundamentally blocking market-disrupting activities by foreigners and stabilizing housing prices to contribute to the housing welfare of our people,” Vice Minister Lee Sang-kyeong said. 2025-08-21 17:38:35

Consumer complaints surge against South Korean fashion platforms SEOUL, August 21 (AJP) - Consumer complaints against South Korea’s fast-growing online fashion platforms have soared more than 30 percent in the past year, the Korea Consumer Agency said Thursday. The agency said it had logged 1,650 complaints from 2022 through June this year against four of the country’s largest platforms — W Concept Korea, Musinsa, Ably Corporation and Kakao Style. The annual caseload nearly doubled in two years, jumping from 278 in 2022 to 443 in 2023 and then surging again to 592 last year. Complaints reached 337 in the first half of 2025 alone, up 30.6 percent from the same period a year earlier. Roughly four out of five disputes were filed by shoppers in their 20s and 30s, the core users of these apps. Women accounted for 83 percent of total complaints, compared with 17 percent from men. The most frequent disputes involved contract withdrawals — cases in which buyers sought to cancel purchases and obtain refunds — which made up nearly half of all complaints. Quality concerns, including defective or damaged products, accounted for 569 cases, while contract violations such as misleading terms numbered 127. 2025-08-21 16:48:32

Korean firms shift supply chains to Southeast Asia amid US-China tensions SEOUL, August 21 (AJP) - South Korean manufacturers are deepening their presence in Southeast Asia, building factories and export hubs in Malaysia, Indonesia and Vietnam as they seek to reduce dependence on China and navigate shifting global trade rules. The push reflects both rising geopolitical risks and the draw of lower labor costs in a region that has emerged as one of the world’s most attractive alternatives to Chinese manufacturing. Southeast Asian governments are competing for investment with tax breaks and expedited permits, while free trade agreements have lowered barriers within the bloc. Simmtech, a semiconductor substrate maker, operates a packaging plant in Penang, Malaysia, which has become a magnet for global chipmakers including Intel and Micron. Its subsidiary, Sustio, completed a $77 million expansion of the site earlier this year. In Indonesia, Hyundai Motor and LG Energy Solution are building the country’s first battery-cell plant in Karawang, near Jakarta, with a $1.1 billion investment. The facility, expected to start operations in 2025, will produce up to 10 gigawatt-hours annually, largely for electric vehicles in South Korea and India. Steel and chemical producers are also moving aggressively. POSCO has set up cold-rolled and hot-rolled steel plants in Vietnam, while Lotte Chemical bolstered its presence in Malaysia by acquiring Titan Chemicals. LS Electric, an energy equipment maker, opened a plant in Bac Ninh, Vietnam, to serve the region’s infrastructure boom. Part of the appeal is political. Unlike China, Southeast Asian nations are largely insulated from the escalating trade and technology confrontation between Washington and Beijing. Regional frameworks such as the Association of Southeast Asian Nations Free Trade Agreement and the Regional Comprehensive Economic Partnership have further cut tariffs on intra-Asian trade. Cost competitiveness remains a decisive factor. Vietnam’s factory workers earn an average of $320 a month, less than half the average in China. In Indonesia, labor costs are 30 to 50 percent lower than in South Korea across many industrial sectors, offering savings for labor-intensive production. 2025-08-21 14:24:57

South Korea turns to drone technology to guard against fires, bird strikes SEOUL, August 20 (AJP) - South Korea has selected two consortiums to develop specialized drones for firefighting and airport bird control, the Ministry of Land, Infrastructure and Transport said Wednesday. This came as the country moves to strengthen disaster-response capabilities following a series of deadly incidents. The ministry said it reviewed 22 proposals from 119 companies before awarding the projects. One consortium will focus on building heavy-duty drones to fight wildfires, while another will develop artificial intelligence–driven systems to detect and disperse birds near airports. The initiative comes after two stark reminders of the nation’s vulnerability: a plane crash last December that investigators suspect was caused by a bird strike, and massive wildfires in March that burned across wide swaths of the country. Angelux, which will lead the firefighting drone consortium, is set to receive 11.5 billion won, or about $8.2 million, over the next three years to develop aircraft capable of carrying 200 kilograms of fire suppressant. The drones, with a maximum takeoff weight of 450 kilograms, are designed to fly for up to three hours to battle blazes in areas deemed too dangerous for human firefighters. Angelux also plans to import larger foreign-made firefighting drones capable of handling 260-kilogram payloads. The second consortium, led by NH Networks, will receive 5 billion won through 2026 to develop bird deterrence technology. Its drones will patrol within four kilometers of airports, using AI to analyze flight patterns and deploying swarm units to scatter flocks that pose a threat to aircraft safety. Industry experts have long called for more advanced bird strike prevention measures, noting that major airports abroad already employ avian radars and laser systems. “This project will provide new firefighting response capabilities,” Joo Jong-wan, deputy minister of civil aviation, said in a statement. “The successful commercialization of heavy-duty fire drones will help meet growing domestic demand for specialized aircraft.” 2025-08-20 15:49:12

US push for equity in Intel raises alarm for Samsung Electronics, SK hynix SEOUL, August 20 (AJP) - The Trump administration is seeking an equity stake in Intel as part of its semiconductor subsidy package, a move that could reverberate across the global chip industry and unsettle South Korea’s Samsung Electronics and SK hynix, both of which are planning major U.S. investments with government support. White House spokeswoman Karoline Leavitt confirmed Tuesday (local time) that the administration is negotiating for roughly a 10 percent stake in Intel in exchange for a $10.9 billion grant to expand the company’s domestic manufacturing. “The president wants to put America’s needs first, both from a national security and economic perspective,” Leavitt said at a press briefing. Commerce Secretary Howard Lutnick described the plan as a straightforward swap: government funding for company shares. “We should get an equity stake for our money,” he said in an interview with CNBC. “We will deliver the money, which was already committed under the Biden administration. We will get equity in return for it.” The subsidies stem from the CHIPS Act, a 2022 bipartisan law that set aside $52.7 billion to bolster U.S. semiconductor production. But since taking office, Trump has pushed to toughen the program’s requirements, framing subsidies not only as industrial policy but also as leverage for extracting concessions from chipmakers. The policy shift could complicate the expansion strategies of Samsung and SK hynix, which have announced tens of billions of dollars in U.S. projects. Samsung is investing $37 billion through 2030 to build factories and research centers, while SK hynix plans a $3.87 billion artificial intelligence memory packaging facility in Indiana. Under the Biden administration, Samsung and SK hynix had been awarded subsidies of $4.75 billion and $458 million, respectively. But in June, Lutnick said several semiconductor awards were being renegotiated, casting doubt on those commitments. Washington has signaled similar intentions in other sectors. Earlier this year, the U.S. approved Nippon Steel’s acquisition of U.S. Steel only after securing a so-called golden share, giving the government veto power over decisions tied to national security. Analysts say equity stakes in foreign-owned projects could force Korean companies to align more closely with U.S. supply chains, potentially limiting their flexibility in global operations. Lutnick sought to play down those concerns. “It’s not governance,” he said. “We’re just converting what was a grant under Biden into equity for the American people. We have no intention of interfering in day-to-day operations.” 2025-08-20 14:48:04

Korean food exports to US shrink for first time in 26 months amid tariffs SEOUL, August 20 (AJP) - South Korea’s agricultural and food shipments to the United States declined in July for the first time in more than two years, as new American tariffs began weighing on demand. Exports fell 6.7 percent from a year earlier to $139 million, data from the Korea Trade Statistics Promotion Institute showed on Wednesday. It was the first monthly contraction since May 2023 and followed a stretch of rapid growth that had lifted first-half shipments by 27 percent. The downturn was led by staples of the Korean food boom in American supermarkets. Instant noodle exports dropped 17.8 percent to $14 million, after soaring more than 40 percent in the first half. Snack shipments tumbled 25.9 percent to $20 million, while sauces fell 7.2 percent to $7 million. Industry sources said the reversal partly reflected importers rushing to front-load orders ahead of a 15 percent blanket tariff imposed by the Trump administration. Samyang Foods, whose fiery Buldak noodles have become a best seller in the United States, said it had accelerated exports through June to build inventory before duties took effect. The slowdown also coincides with weakening U.S. consumer sentiment. More than half of Americans cite grocery bills as their biggest source of financial strain, according to a recent AP-NORC poll. Analysts say Korean food giants including CJ CheilJedang and Nongshim posted sluggish second-quarter results in the American market. Despite the setback, South Korea’s farm and food exports to the United States totaled $1.07 billion in the January–July period, up 21.3 percent from a year earlier, though the pace of growth has cooled since June. The deceleration poses risks for Seoul’s goal of reaching $14 billion in agricultural exports this year. The Ministry of Agriculture, Food and Rural Affairs is scheduled to hold its third export strategy meeting this week. Minister Song Mi-ryung is expected to discuss corporate concerns and consider additional support measures to sustain momentum. 2025-08-20 12:47:04

Mercedes-Benz faces sanctions in Korea over misleading claims on EV batteries SEOUL, August 19 (AJP) - South Korea’s antitrust regulator has begun sanction proceedings against Mercedes-Benz Korea over allegations that it misled consumers about the batteries used in its electric vehicles, an issue that has gained public attention after a high-profile apartment fire last year. Mercedes-Benz Korea is suspected of violating advertising and fair trade laws, according to sources from the Fair Trade Commission, Tuesday. Regulators allege that the Korean unit falsely claimed all of its electric models were equipped with batteries from Contemporary Amperex Technology Co. Ltd., or CATL, China’s leading battery supplier, when in fact some vehicles used lower-cost alternatives. The company is also accused of directing affiliated dealers to pass along those claims to customers, raising the prospect of deceptive consumer practices under Korean law. The matter gained urgency after a Mercedes EQE caught fire and exploded in the underground garage of an apartment complex in Incheon last August. Investigators later found that the car had been fitted with batteries from Farasis, a Chinese manufacturer considered less premium than CATL, despite Mercedes’ advertising to the contrary. The commission’s inspectors conducted on-site inspections at Mercedes-Benz Korea headquarters and dealerships in September and January. A hearing will be held to determine the severity of any penalties, with both regulators and company representatives participating. Separately, 24 plaintiffs, including Mercedes-Benz EV owners, filed a lawsuit last October at the Seoul Central District Court, seeking compensation over what they described as misrepresentation of battery suppliers and unresolved safety concerns. 2025-08-19 17:27:10

Bank of Korea warns stablecoin proposal could shake bond market Image of cryptocurrencies/ Reuters-Yonhap SEOUL, August 19 (AJP) - South Korea’s central bank on Tuesday rejected a proposal to issue short-term treasury bonds to back a won-based stablecoin, cautioning that such a move could disrupt financial markets and distort government financing. In a written response to the National Assembly’s Strategy and Finance Committee, the Bank of Korea said treasury bonds should be issued strictly for their intended purpose — financing government operations — not to satisfy demand from specific sectors such as cryptocurrency. Stablecoins, digital tokens typically pegged to national currencies, require reserve assets that are both highly liquid and low-risk. The Korea Capital Market Institute, a government-backed think tank, recently suggested that short-term treasury bonds could meet that need for a Korean stablecoin. The central bank pushed back firmly. “Considering the issuance of short-term bonds to satisfy specific market demand like stablecoins is inappropriate,” it wrote. The bank argued that greater issuance of short-term bonds would increase refinancing risks and strain the market’s capacity to absorb additional supply, ultimately threatening fiscal stability. This is the latest in a series of warnings by the bank over the government’s push to accelerate stablecoin adoption, which it has repeatedly said could jeopardize monetary and financial stability if rushed. The think tank's senior research fellow, Kim Pil-kyu, cited U.S. and European regulatory frameworks that allow stablecoins to hold short-term government debt as reserve assets. The Bank of Korea countered that fluctuations in stablecoin issuance could create destabilizing imbalances in the treasury market, triggering swings in short-term interest rates and rippling into other funding markets, including commercial paper and certificates of deposit. Instead, the bank recommended its own monetary stabilization securities — particularly 91-day bonds issued on a regular basis — as a more suitable reserve asset. U.S. legislation, it noted, also restricts stablecoin reserves to securities with maturities of fewer than 93 days. 2025-08-19 14:45:30

[[K-Tech]] Korean game makers bring big bets to Gamescom 2025 SEOUL, August 19 (AJP) - When Gamescom, the world’s largest video game convention, opens its doors on Wednesday, the cavernous exhibition halls of Cologne will once again fill with flashing screens, long lines and hundreds of thousands of fans eager for the next big title. This year, South Korea’s biggest gaming companies are arriving in force. Krafton, the publisher behind “PUBG: Battlegrounds,” is mounting one of the flashiest presences at the five-day expo, with a booth split between two major releases: “inZOI,” a life-simulation game, and “PUBG: Blindspot,” a new top-down tactical shooter rooted in the PUBG universe. Pearl Abyss, meanwhile, is returning with its ambitious open-world adventure “Crimson Desert.” After focusing last year on combat mechanics, the studio plans this year to highlight the game’s expansive exploration systems, with a release targeted for early 2026. Other Korean firms are also using the Cologne stage to woo global audiences. Netmarble will unveil trailers for its anime-inspired role-playing game, “The Seven Deadly Sins: Origin,” and, in partnership with Samsung Electronics, will demo “Mongil: Star Dive” on the company’s glasses-free 3D monitors. Kakao Games’ subsidiary, Ocean Drive Studio, is bringing back “God Save Birmingham,” a zombie survival title set in plague-stricken 14th-century England, with a new pre-alpha build. Smaller developers are not being left behind. Backed by the government-run Korea Creative Content Agency, a “Korea Pavilion” will showcase projects from independent studios hoping to break into the European market. The Korean contingent will share the spotlight with industry giants from around the world. Microsoft is emphasizing its new portable ROG Xbox Ally, developed with MSI, while offering hands-on play for about 20 titles. Nintendo plans to highlight “Pokémon Legends: Z-A” and a slate of games for its recently launched Switch 2 console. For Korean game makers, Cologne offers both visibility and validation. While domestic gaming remains a robust market, the global stage has become increasingly critical, with blockbuster development costs rising and international fandom dictating success or failure. 2025-08-19 11:00:46

[[K-Tech]] Vegan meat gains global momentum. In Korea, it's a harder sell. SEOUL, August 19 (AJP) - On a narrow street in Itaewon, the Seoul neighborhood known for its antique shops and international dining, a brown-hued restaurant hums with chatter in several languages. The tables are crowded with steaming bowls of shrimp fried rice, jjajangmyeon noodles slicked with black bean sauce, and glossy platters of deep-fried beef — or at least that is how it looks. The restaurant, ALT.a, is entirely vegan. The shrimp, beef and pork are not from animals at all but from soybeans, lima beans and other plants, carefully engineered to mimic the texture, chew and flavor of meat. ALT.a, whose dishes have won recognition from the Michelin Guide’s Bib Gourmand, is one of several experiments in South Korea’s growing but still fragile market for alternative proteins. With the world’s population expected to reach 10 billion by 2050, and global protein demand projected to nearly double, scientists and food companies are racing to find replacements for livestock meat that are both palatable and sustainable. The industry’s bets fall into three categories: plant-based meat, cultured meat grown from animal cells, and edible insects. Plant-based protein, for now, remains the most advanced — and in many ways the most practical — option. South Korea is no stranger to plant-based proteins. Tofu, believed to have been introduced to the Korean Peninsula nearly 2,000 years ago, is as essential to local cuisine as bread and butter are in the West. Most instant noodles here already contain textured soy chunks that resemble meat, fooling many consumers into thinking they are eating beef. The domestic market for vegan meat reached about 22.7 billion won, or $17 million, in 2020 and was projected to climb nearly 30 billion won by the end of this year, according to the Korea Agro-Fisheries & Food Trade Corporation. Food giants like CJ CheilJedang have rolled out entire product lines of meat-free hamburger steaks, tteokgalbi (short rib patties) and rice balls. The company says its proprietary fermentation techniques remove the “bean smell” that has long plagued mock meats, while binding proteins more tightly to simulate the bounce and juiciness of animal flesh. Promise and Struggles Despite this, South Korea’s plant-based sector is struggling. Companies complain of high costs, weak consumer demand and overreliance on imported ingredients. “With the exception of a few export products, we’ve scaled back most of our alternative meat operations to business-to-business sales,” Yoo Jin-sun, a manager at ALTist, the parent company of ALT.a., told AJP. Zikooin Company, another producer, described the domestic market as sluggish. Government researchers echo that assessment. “Almost all the firms approaching us lament the harsh conditions,” said Kim Min-young, a researcher at the National Institute of Crop and Food Science. “Most of the soy protein used here is imported, often genetically modified or low quality. Simply put, the plant meat doesn’t taste good enough.” According to Kim Gi-chang, a researcher of food technology from the Rural Development Administration, the administration plans to intervene by promoting premium, non-GMO, locally sourced proteins and expanding research into hybrid meats — combining cultured animal cells with plant-based protein — as well as insect-based ingredients for medical use. Officials are even weighing whether to introduce plant-based meals in school cafeterias. “If implemented, students could enjoy tasty and healthy plant-based options while learning that synthetic meat is nothing to fear,” Kim Min-young from the said. For now, though, South Korea’s vegan restaurants remain a niche curiosity rather than a mainstream option. On a recent evening in Itaewon, ALT.a’s diners seemed less concerned about the market dynamics than about the flavor of the dishes in front of them. The “shrimp” fried rice glistened in the light. The jjajang sauce was sticky and rich. The “beef” was crispy at the edges and tender inside. If the future of food was on the table, it was indistinguishable from the present. 2025-08-19 10:52:15