Korean banks accelerate stablecoin preparations ahead of regulatory framework SEOUL, August 18 (AJP) - South Korea’s four largest banks are moving to enter the stablecoin market, accelerating preparations as the government edges closer to introducing a regulatory framework for digital assets. Stablecoins — digital tokens typically pegged to fiat currencies such as the U.S. dollar or euro — have drawn global interest for enabling faster, cheaper transactions while promising greater price stability than traditional cryptocurrencies. Industry officials said Monday that the country’s top four banks — KB Kookmin, Shinhan, Hana and Woori — are scheduled to meet with Heath Tarbert, president of Circle Internet Group, one of the leading U.S. stablecoin issuers. The meetings are expected to take place during Tarbert’s visit to Seoul next week. The banks have signed nondisclosure agreements preventing them from discussing details. Talks are expected to center on distributing dollar-backed stablecoins in South Korea and exploring partnerships for developing a won-based version, according to people familiar with the matter. The banks’ push into stablecoins comes as the government advances legislation to modernize oversight of digital assets, a priority for President Lee Jae Myung. The Bank of Korea has repeatedly warned of the systemic risks posed by the rapid growth of stablecoins, but financial and technology companies see them as an inevitable step toward faster, lower-cost payments. Fintech firms such as Viva Republica and Naver Pay have signaled interest in issuing stablecoins tied to the won, and LG CNS, a digital solutions provider, is reportedly considering participation as well. Commercial banks are also stepping up their efforts. KB set up a virtual asset response committee in June and recently made its stablecoin task force permanent. Shinhan is testing a won-based stablecoin payment system with programmable features, such as restricting transactions to small businesses. Hana is analyzing regulatory hurdles, infrastructure requirements and use cases in cross-border payments and remittances. 2025-08-18 16:25:41

Idle South Korean youth cost economy billions, study finds SEOUL, August 18 (AJP) - South Korea’s growing population of “discouraged youth” — those neither working nor looking for work — imposed an estimated economic burden of 53.4 trillion won, or about $38.4 billion, between 2019 and 2023, according to a study released Monday. The research, commissioned by the Federation of Korean Industries and conducted by Lee Mi-suk, an economics professor at Changwon National University, found that the annual cost of lost productivity rose steadily from 8.9 trillion won in 2019 to 11.5 trillion won in 2023. The study measured the gap by estimating potential wages that these idle young people could have earned, using the income levels of comparable employed peers. The analysis suggested that discouraged youth would likely have earned about 80 percent of what working counterparts made, with average monthly potential wages rising from 1.55 million won in 2019 to 1.8 million won last year. The number of young people classified as NEET — shorthand for “not in employment, education or training” — climbed from 432,000 in 2019 to 481,000 in 2023. That increase came even as South Korea’s youth population shrank, from 9.66 million to 8.79 million over the same period. By last year, NEETs accounted for 5.5 percent of South Koreans ages 15 to 29, up from 4.5 percent in 2019. They made up nearly 1 percent of the overall population. A growing share of them hold university degrees. Their numbers rose from 159,000 in 2019 to 184,000 in 2023, accounting for 38.3 percent of all discouraged youth. “High-income potential youth falling into idle states are driving significant economic costs,” the report said, noting that while expected wages for NEETs lag those of their working peers, the losses remain substantial. 2025-08-18 13:40:46

[[K-Tech]] Korean battery firms pour billions into research despite idle factories SEOUL, August 18 (AJP) - South Korea’s top battery makers are stepping up investments in research and development, even as their plants sit partially idle and competition from China intensifies. In recent reports, LG Energy Solution, Samsung SDI and SK On disclosed sharply reduced factory utilization rates for the first half of 2025. LG Energy Solution’s operating rate dropped to 51.3 percent, down from 73.6 percent in 2022. Samsung SDI reported 44 percent, while SK On came in at 52.2 percent. The slowdown reflects a sluggish recovery in global demand for electric vehicles and the mounting pressure from Chinese rivals. The Korean trio’s combined global market share fell 5.4 percentage points from a year earlier, to 16.4 percent, according to the Seoul-based market research firm SNE Research. Yet the companies are spending more than ever to stay ahead. LG Energy Solution invested 620.4 billion won, or about $446 million, in R&D in the first six months of the year — its largest half-year outlay since its founding in 2020. That figure amounted to 5.2 percent of revenue, up from 3.1 percent last year. Samsung SDI, which is targeting mass production of solid-state batteries by 2027, spent 704.4 billion won on research, slightly above last year’s level. Its R&D budget equaled 11.1 percent of sales, the highest ratio among the three Korean firms. Still, the gap with China is widening. CATL, the world’s biggest battery maker, invested roughly $1.4 billion in R&D in the first half alone — more than the three South Korean companies combined. To respond, the Korean manufacturers are reorganizing their research arms. SK On rebranded its battery research institute this month to emphasize next-generation technologies. LG Energy Solution shifted its technology center from the chief executive’s office to its chief technology officer, consolidating authority under a dedicated research head. Samsung SDI also renamed its production and equipment R&D center, underscoring its focus on solid-state and other advanced batteries. 2025-08-18 10:03:44

Samsung Biologics surges ahead as Trump targets pharma imports Editor's Note: This article is the 31st installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, August 14 (AJP) - South Korea's largest contract development and manufacturing organization (CDMO) Samsung Biologics is charging ahead in global markets, even as U.S. President Donald Trump reshapes the biopharmaceutical landscape with sweeping protectionist measures. Trump has repeatedly signaled his intention to impose tariffs on pharmaceutical imports, finally announcing on Aug. 5 plans to levy a "small tariff" before escalating rates dramatically. "In one year, one and a half years maximum, it's going to go to 150 percent and then it's going to go to 250 percent because we want pharmaceuticals made in our country," Trump told CNBC in an interview. While global drugmakers scramble to assess potential damage, industry experts say Samsung Biologics is unlikely to face significant headwinds. The firm focuses primarily on CDMO contracts, its biosimilars unit Samsung Bioepis now spun off from the firm. "South Korea has relatively few drug substance or finished drug exporters at present, aside from major pharmaceutical companies," said Hwang Ju-rie, director of public and international relations at the Korea Biotechnology Industry Organization. "For tariffs to significantly impact the industry, we would need at least another decade, as most biotech firms remain in the research and development phase." Meanwhile, Samsung Biologics has been actively participating in global healthcare events such as the J.P. Morgan Healthcare Conference and Interphex Week Tokyo 2025, attracting international drugmakers as CDMO customers. A relative latecomer to the market, Samsung Biologics sprang to life after Samsung Electronics' late chairman Lee Kun-hee issued stern warnings that the group's cash-cow smartphone and LCD businesses could soon be overtaken by competitors. Needing fresh avenues for innovation, the group's future strategy office identified pharmaceuticals as a key growth sector. The biologics arm of Samsung began operations in early 2011, with the groundbreaking ceremony for Plant 1 held in May. Drug production and drug substance good manufacturing practices were established by 2013, followed by FDA approvals in 2015, positioning the firm for global expansion. Samsung Biologics went public in November 2016, fueling continuous growth. By 2020, it had opened an R&D center in San Francisco, and by 2025, the firm's fifth plant became fully operational, bolstered by robust CDMO operations. In a regulatory filing released on July 23, Samsung Biologics posted 324.4 billion won (approximately $233.5 million) in second-quarter net profit — a 2-percent increase year-over-year. Operating profit rose 9.5 percent during the same period to 475.6 billion won, while sales increased 11.5 percent to 1.28 trillion won. For the first half of the year, Samsung Biologics' sales totaled 2.59 trillion won with operating profit reaching 962.3 billion won — historic gains for the bio giant. The company attributed its second-quarter performance to steady operations at Plants 1 through 3 and accelerated operations at Plant 4. Samsung Biologics noted it has signed a series of large-scale CDMO deals with global pharmaceutical companies this year, surpassing 60 percent of its full-year order total from 2024. Despite current tailwinds, the firm faced scrutiny over legal conflicts concerning an alleged merger case dating back to 2015. Accusations claimed Samsung Electronics Chairman Lee Jae-yong committed unfair trading, stock price manipulation, and accounting fraud related to Samsung Group succession, with Samsung Biologics implicated in the fraud charges. On July 17, the Supreme Court finalized Lee's acquittal in the controversial merger case, clearing Samsung Biologics of all accounting fraud allegations. Samsung Biologics continues expanding its portfolio beyond major CDMO contracting, now venturing into contract research organization services as well. On June 16, the firm announced the launch of Samsung Organoids — advanced drug screening services designed to support clients in drug discovery and development. These three-dimensional cell culture systems are engineered to closely mimic human organs, providing better predictions for patient responses. "With Plant 5 now fully operational, we are leveraging our manufacturing expertise and expanded capacity to deliver seamless, end-to-end CDMO services at scale," said John Rim, CEO and President of Samsung Biologics, in a press release on July 23. Further announcing the firm's advancements in antibody-drug conjugates (ADCs) and the launch of Samsung Organoids, Rim said Samsung Biologics is redefining digitalization in biomanufacturing, its strategic initiatives to "strengthen our ability to accelerate client pipelines, while fostering enduring partnerships grounded in quality and operational excellence." As the global biopharmaceutical landscape undergoes rapid transformation amid trade tensions and technological advances, Samsung Biologics is well-prepared to capitalize on growing demand for both manufacturing expertise and cutting-edge research capabilities, cementing its status as a formidable player in the evolving life sciences arena. 2025-08-14 09:32:18

Global streaming experts to converge in Busan for festival next week SEOUL, August 13 (AJP) - Global developers, producers, IT professionals and other experts are expected to gather for an event to be held in South Korean southern port city of Busan next week, the Ministry of Science and ICT said in a press release on Wednesday. The annual International Streaming Festival, in its third year this year, is set to kick off its four-day run on Aug. 22 under the theme of "Streaming What's Next," with participants exploring the latest trends in streaming platforms, artificial intelligence (AI) and other advanced technologies. The festival will highlight cutting-edge developments including AI integration, free ad-supported streaming television (FAST) services, and advertising innovations while strengthening support for domestic companies seeking overseas expansion and investment opportunities. Organizers plan to encourage local industry workers and advertisers to join networking sessions with international investors, helping them make inroads into global markets. On the sidelines of the festival, an awards ceremony recognizing the best works on streaming platforms will be held on Aug. 24 at the Busan Cinema Center, an outdoor theater that serves as the main venue for the annual Busan International Film Festival (BIFF). Netflix’s hit South Korean series "When Life Gives You Tangerines" will compete for an award along with popular series from other streaming platforms including China's Youku and the U.S.’ Disney Plus and Prime Video. At another event on Aug. 22 during the festival, industry leaders from global research firms Omdia and Statista will deliver keynote speeches on market trends and strategies, followed by two days of relevant sessions. "This year's festival will serve as a stage for global exchange and collaboration among platform operators in AI technology and related content businesses," a ministry spokesman said. Organizers' selection of Busan as the festival venue seems intended to bridge conventional films and streaming content, as the coastal city hosts BIFF annually, with this year's fest scheduled for next month. 2025-08-13 16:04:26

South Korean crypto fraudster pleads guilty to fraud charges in US SEOUL, August 13 (AJP) - Crypto fraudster Kwon Do-hyeong, also known as Do Kwon, pleaded guilty to fraud charges at a federal court hearing in New York on Monday. The so-called "Cryptocrash King" was behind the spectacular collapse of the TerraUSD and Luna cyber that caused over $40 billion in losses to investors in the U.S. and around the world. As part of a plea bargaining deal, the former entrepreneur of Singapore-based Terraform Labs, who faced up to 25 years in prison, admitted to charges of conspiracy to defraud and wire fraud, with prosecutors agreeing not to seek a sentence longer than 12 years while confiscating around US$26.5 billion and other assets. In addition, if Kwon serves half of his sentence and abides by his plea-bargaining agreements, U.S. authorities have also agreed to accept his possible request for their international prisoner transfer program, allowing him to serve the remainder of his prison term in South Korea. "I made false and misleading statements about why it regained its peg by failing to disclose a trading firm's role in restoring that peg," Kwon apologized for his conduct in court. "What I did was wrong." Kwon had claimed his innocence since being extradited from Montenegro in January, where he was arrested in March 2023 while attempting to board a flight using several forged passports. He initially pleaded not guilty to all charges during his arraignment. The TerraUSD collapse sent shockwaves through the cryptocurrency industry, as the stablecoin was designed to maintain a $1 peg through an algorithmic system. Prosecutors alleged that trading firms artificially propped up the token's price, contradicting Terraform Labs' public claims that its autonomous mechanism, known as the "Terra Protocol" restored the coin's value. Kwon's sentencing, which will determine his final prison term, is scheduled for Dec. 11. If he eventually manages to return to Seoul, there remains a chance that he could face separate charges here. 2025-08-13 11:25:51

Jobseekers face toughest market amid manufacturing slump SEOUL, August 12 (AJP) - Amid the prolonged economic downturn, the country’s toughest job market meant there were only 0.4 positions available per jobseeker last month, the lowest level seen in more than two decades. According to a monthly report released on Monday by the Ministry of Employment and Labor, the number of jobs available per jobseeker fell to 0.4 in July, down from 0.51 a year ago and also the lowest since July 1999. Job ads posted on government recruitment sites totaled approximately 165,000, down about 16.9 percent from the previous year, while the number of jobseekers rose 5.5 percent to around 411,000 during the same period. The ministry attributed the deteriorating job market to a worsening shortage of manufacturing-sector jobs, exacerbated by challenges in production and exports. Relevant figures reflect this trend, as the number of employment insurance subscribers dropped by some 5,000 workers in manufacturing and 19,000 in construction amid a prolonged industry slump lasting more than two years. But service industries and healthcare and welfare industries managed to add more jobs, among the country's total 15.6 million workers with employment insurance as of July. Applicants for unemployment benefits remained relatively stable at 111,000 in July, down slightly from the previous year. However, total benefit payments rose 3.3 percent to 1.1 trillion won as more unemployed workers and jobseekers have lingered for several more months in finding their new jobs. 2025-08-12 17:01:03

CJ CheilJedang posts sales drop amid slowdown in domestic consumption SEOUL, August 12 (AJP) - Food manufacturer CJ CheilJedang posted an operating profit of 353.1 billion won or approximately US$253.8 million in the second quarter, down about 7 percent as domestic consumption remains sluggish, despite robust sales in overseas markets. According to financial reports released on Tuesday, the country's largest food giant's consolidated revenue including sales from its logistics unit stood at 7.24 trillion won in the period between April and June, a slight decline of 1.5 billion won from a year ago. CJ's core food business division posted revenue of 2.69 trillion won, down just 1 percent, while operating profit fell 34 percent to 90.1 billion won. It attributed the setbacks to sluggish domestic consumption, with food sales dropping 5 percent to 1.32 trillion won as consumers kept their wallets shut at offline retail stores. However, online sales of processed food surged 24 percent, offering some relief from the decline at traditional brick-and-mortar stores. Overseas sales also rose 3 percent to 1.37 trillion won, driven by its flagship brand Bibigo gaining traction from major foreign markets. In particular, sales in North America reached 1.11 trillion won, with frozen rice up 19 percent, chicken rising 12 percent, and rolls increasing 18 percent. The biotechnology-based food business division also posted steady growth, with revenue rising 2 percent to 1.08 trillion won and operating profit climbing 8 percent to 102.4 billion won. CJ plans to accelerate its culinary expansion in the second half by building or enhancing production facilities overseas including Japan, while developing more diverse products to meet demand from health-conscious consumers here. 2025-08-12 10:30:10

Top online bookstore suffers another ransomware attack SEOUL, August 11 (AJP) - Online bookstore Yes24 suffered another ransomware breach on Monday, just two months after its previous attack in June, raising alarming concerns about data security. The latest attack comes amid security experts' warnings that the country's largest bookstore's decision to negotiate with hackers during the initial June incident may have made it an easy target for future attacks. The firm said the incident occurred at around 4:30 a.m., but the system was fully recovered by 11:20 a.m., about seven hours after the attack. "We sincerely apologize for causing inconvenience to our customers once again," Yes24 said in its press release. Yes24 first suffered a ransomware attack on June 9, which paralyzed its app and internet services for about a week. The company faced criticism at the time for failing to immediately notify users about the breach and for its lack of transparency regarding the incident. Security experts expressed particular concern when it emerged that Yes24 had reportedly paid cryptocurrency to the attackers to resolve the situation, a move that violated relevant cybersecurity regulations. "The most critical problem is that Yes24 failed to establish an off-site backup system that stores key data in external storage or cloud services to prepare for ransomware infections," said the Ministry of Science and ICT and Korea Internet & Security Agency (KISA) in a report. Government agencies and security experts also warned of the risks posed by Yes24’s decision to negotiate with hackers, expressing concerns about the possible recurrence of attacks. Industry observers now worry that the "worst-case scenario" predicted in the earlier report, with Yes24 becoming a repeat target within just two months. These incidents raise concerns about broader cybersecurity vulnerabilities in South Korea, following recent massive attacks on SK Telecom and Seoul Guarantee Insurance, prompting calls for stronger response measures and improvements in backup infrastructure. According to KISA's report, one in four companies targeted by ransomware attacks lacked backup systems capable of rapid recovery, exposing widespread security risks among many businesses. Security experts warn that without decisive action, South Korean companies could become primary targets for international ransomware groups, stressing the need for a firm stance against cyberattacks. 2025-08-11 16:35:08

Consumers feel the pinch as grocery prices soar SEOUL, August 11 (AJP) - Grocery and food prices jumped 3.5 percent in July from a year earlier, marking the sharpest increase in recent months as the costs of rice, instant noodles and seafood soared, market data showed on Monday. An index gauging the prices of food and non-alcoholic beverages, compiled by the KOrean Statistical Information Service (KOSIS), climbed to 125.75 last month, adding pressure on households already strained by rising costs including a recent hike in public transportation fees. The country’s overall inflation rate also rose to 2.1 percent. Market watchers attribute the surge to this summer's unprecedented heat wave and torrential rains, which severely disrupted agricultural production, while processed food manufacturers pushed through a series of price hikes. Fishery and seafood products led the increase with a 7.2 percent spike, the steepest rise in two years. Most staple foods that frequently appear on dining tables saw particularly sharp increases. Prices for dried squid rocketed 42.9 percent, while croaker and mackerel, both commonly consumed in many households, jumped 13.4 percent and 12.6 percent, respectively. Rice, a dietary staple, rose 7.6 percent, the fastest increase since March 2024. Bread and cereal products surged 6.6 percent, seeing the highest increase in nearly two years, while instant noodles maintained a three-month streak of 6 percent. Confectionery and ice cream prices climbed 5 percent, while dairy products including milk, cheese and eggs rose 3.6 percent. Adding to consumer woes, subway commuters in Seoul now have to spend more on transportation as the base fare increased by 150 won to 1,550 won (approximately US$1.12) since late June, pushing daily round-trip costs above 3,000 won. Mounting costs across the board loom as the government considers raising electricity and gas bills in the second half, which would further squeeze household finances already grappling with higher food prices. 2025-08-11 15:27:18