Journalist
Kim Dong-young, Im Yoon-seo
davekim0807@ajupress.com
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IMF pushes back Korea's $40,000 per capita GDP forecast to 2029 Getty Images Bank SEOUL, April 28 (AJP) - The International Monetary Fund has delayed its forecast for when South Korea will reach $40,000 in per capita gross domestic product, pushing the milestone back two years from 2027 to 2029. In its latest World Economic Outlook report, released this month, the IMF projected that South Korea’s per capita GDP would fall to $34,642 this year — a 4.1 percent decline from last year’s $36,129 — slipping below 2022 levels. The downgrade reflects mounting concerns over South Korea’s economic trajectory amid persistent political uncertainty and sluggish domestic demand, making the symbolic $40,000 benchmark more elusive. Under the revised forecast, South Korea’s per capita GDP is expected to inch up to $35,880 next year, $37,367 in 2027, and $38,850 in 2028, before finally surpassing the $40,000 mark at $40,341 in 2029. The adjustment marks a notable shift from the IMF’s outlook just six months ago. In October, the fund predicted that South Korea would reach $41,031 in per capita GDP by 2027, with the 2029 figure projected at $44,347. The IMF’s broader economic projections for South Korea paint a similarly cautious picture. Real GDP growth is forecast to remain at a modest 1.0 percent this year, gradually recovering to 2.1 percent by 2027 before tapering off to around 1.8 percent by 2030. 2025-04-28 16:08:49 -
SK Telecom begins SIM card replacement after cybersecurity breach Users of SK Telecom wait in line in front of a store in Seoul for free SIM card change, April. 28, 2025. Yonhap SEOUL, April 28 (AJP) - South Korea’s largest mobile carrier, SK Telecom, began offering free SIM card replacements at its 2,600 stores nationwide on Monday, following a major cybersecurity breach that exposed sensitive customer information. The breach, detected on April 18, involved malicious code that compromised unique identification numbers tied to customer SIM cards, the company said. SK Telecom, which serves roughly 23 million subscribers and hosts an additional 1.87 million users through budget carriers on its network, said it has about one million SIM cards in stock and plans to secure another five million by the end of next month. Analysts warned that shortages and service disruptions could arise as the company moves to replace SIM cards for as many as 25 million customers. Customers can obtain replacement SIM cards at T World stores or airport roaming centers. Anticipating heavy demand, the company urged customers to make online reservations in advance to avoid long waits. “We expect considerable inconvenience if customers rush to stores simultaneously,” an SK Telecom spokesperson said. In the days before launching the replacement program, SK Telecom had encouraged users to sign up for its SIM protection service, developed in cooperation with the Seoul Metropolitan Police Agency’s cybercrime unit. The service is designed to prevent unauthorized access even if SIM information is stolen or duplicated. Following the breach, SK Telecom said it had raised its fraud detection system to its highest alert level to block suspicious authentication attempts. The company added that no instances of actual financial or identity theft had been reported to date. Investigations by the Korea Internet & Security Agency and police authorities are ongoing. Despite these measures, concerns continue to mount across sectors. The Financial Supervisory Service has advised banks and other institutions to consider using additional authentication methods beyond mobile verification. Several insurance companies have temporarily suspended mobile-based authentication services linked to SK Telecom users. On Sunday, South Korea’s Acting President and Prime Minister Han Duck-soo instructed the Ministry of Science and ICT to conduct a thorough review of SK Telecom’s response to the incident. “We sincerely apologize for the inconvenience caused to our customers due to this cyber intrusion,” the company said in a statement. “We will do our utmost to address customer concerns and resolve this incident as quickly as possible.” 2025-04-28 11:11:17 -
DeepSeek updates privacy policy after Korean regulatory review DeepSeek logo/ AFP-Yonhap SEOUL, April 28 (AJP) - Chinese artificial intelligence company DeepSeek published a Korean-language privacy policy on Monday, days after South Korean regulators raised concerns over the company’s handling of user data. Despite the update, DeepSeek’s services remain suspended in South Korea. The move follows a regulatory inspection by South Korea’s Personal Information Protection Commission (PIPC), which concluded last week that DeepSeek had failed to secure user consent for the international transfer of personal data. The investigation also found that user prompts entered by South Korean customers had been transmitted to Volcano Engine, a subsidiary of ByteDance, the Chinese parent company of TikTok. In response, DeepSeek amended its privacy policy, adding new provisions pledging compliance with South Korea’s Personal Information Protection Act. The updated policy discloses that user data may be transferred to four overseas entities — three located in China and one in the United States — and notes that users have the right to refuse such transfers. Despite these revisions, DeepSeek’s services remain unavailable for download on South Korean app marketplaces. The PIPC had earlier voiced concerns about the company’s handling of private information, leading to the suspension of its services in February. The commission has said the decision to resume operations ultimately rests with the company, noting that DeepSeek may do so once it has “acceptably implemented corrective measures.” 2025-04-28 11:04:11 -
Inside the Vatican conclave: The secret process of electing a pope Cardinals walk in procession to the Sistine Chapel at the Vatican, at the beginning of the conclave/ Osservatore Romano via AP-Yonhap SEOUL, April 26 (AJP) - Pope Francis, the 266th and first Latin American leader of the Roman Catholic Church, passed away on Easter Monday, April 21, at the age of 88. Following Saturday's funeral, the Catholic Church now faces the solemn task of selecting a new leader through its unique electoral system: the conclave. The word "conclave" stems from Latin, combining "com" (together) and "clavis" (key) - an apt description for a process where cardinal electors are secluded until they choose the next head of the Catholic Church. Popularized in media through works like Dan Brown's "The Da Vinci Code" and Robert Harris' "Conclave," this ancient procedure enforces complete isolation, secret ballots, and a prohibition on debates to ensure independence, neutrality, and fairness in the selection process. The conclave takes place during the interregnum, a period of approximately 15 to 20 days beginning with the pontiff's death and concluding with the election of his successor. Only cardinals under 80 years of age may participate as both voters and potential candidates. Currently, 135 of the world's 252 cardinals are eligible to enter the conclave as electors. Cardinal Kevin Farrell, who announced Pope Francis' death, will serve as camerlengo (chamberlain), overseeing the Vatican during this interim period. As camerlengo, he will form a four-person committee with three randomly selected cardinals who rotate every three days. The Sistine Chapel in preparation of the conclave/ AP-Yonhap The cardinals will reside in the Domus Marthae Sanctae (Saint Martha's House), a hotel-like accommodation for visiting clergy, with rooms assigned by lottery. Voting takes place in the Sistine Chapel, beneath Michelangelo's renowned masterpieces. Each cardinal swears an oath of secrecy and must maintain silence throughout the proceedings. External communication ceases completely - no media access or electronic devices are permitted. Even the Sistine Chapel's curtains remain drawn. During the conclave, the Sistine Chapel transforms into a voting hall with a specially constructed chimney. Each cardinal casts one vote, with a two-thirds plus one majority required for election. Ballot counting occurs daily - one round on the first day and up to four votes per day thereafter. After each day's voting, the ballots are burned with chemicals producing white smoke for a successful election or black smoke if no decision has been reached. If the conclave fails to achieve a two-thirds majority after three days, the voting pauses for a day before resuming. While the longest conclave in history lasted three years in 1281, modern conclaves typically conclude within a week. Pope Francis was elected after just five ballots, with voting completed in merely 24 hours. When cardinals agree on a candidate, the chosen man simply says "Accepto" ("I accept" in Latin). After selecting his pontifical name, the newly elected pope emerges to the sound of chiming bells, wearing the white zucchetto cap that symbolizes his office. Experts suggest that while the Church may take a more conservative approach than under Pope Francis, the next pontiff could come from a different racial background. According to Italy's largest daily newspaper Corriere della Sera, South Korea's Cardinal Lazarus You Heung-sik ranks 11th among its "12 likely successors to Pope Francis." Other prominent candidates include Cardinal Pietro Parolin from Italy, Cardinal Luis Antonio Gokim Tagle from the Philippines, and Cardinal Fridolin Ambongo Besungu from the Democratic Republic of Congo. 2025-04-26 14:57:42 -
North Chungcheong Province vies for manufacturing AI center with four municipalities A manufacturing factory with AI implemented/ Courtesy of North Chungcheong Province SEOUL, April 26 (AJP) - North Chungcheong Province has launched a bid to establish a manufacturing AI center in collaboration with four local municipalities, officials announced on Saturday. The province is participating in a regional specialized revitalization project for manufacturing data competition organized by the Ministry of SMEs and Startups, alongside Cheongju City, Chungju City, Jincheon County, and Eumseong County. The initiative, which comes with about 6 billion won (US$4.16 million) in national funding over three years, aims to deploy AI technology and manufacturing data to address challenges in regional specialized industries. If selected, North Chungcheong plans to build a manufacturing AI center at its Techno Park of Chungbuk Innovation City, creating a platform where small and medium-sized enterprises can collect, standardize and utilize their process data. "We will do our utmost to attract the Manufacturing AI Center to play a direct role in creating an AI-based manufacturing innovation ecosystem," said Kim Su-in, director of the science and talent bureau at North Chungcheong Province. The Ministry of SMEs and Startups will select up to three regions for the project, with 11 provinces and metropolitan cities currently competing, creating a competitive ratio of about 4 to 1. Final selection results are expected to be announced next month following on-site and face-to-face evaluations. 2025-04-26 11:08:59 -
Four PPP presidential candidates prepare for crucial primary debate (From left) Kim Moon-soo, Ahn Cheol-soo, Han Dong-hoon, Hong Joon-pyo pose for a photo at the People Power Party (PPP)'s headquarters prior to a presidential candidate selection. Jointed Press Corps SEOUL, April 26 (AJP) - South Korea's ruling People Power Party (PPP) will host a high-stakes debate on Saturday featuring the four remaining candidates in its presidential primary: Ahn Cheol-soo, Han Dong-hoon, Hong Joon-pyo, and Kim Moon-soo. The debate is expected to revolve around the contentious issue of former President Yoon Suk-yeol's impeachment, with Hong and Kim, who opposed the measure, facing off against Ahn and Han, who supported it. Analysts anticipate fierce exchanges over responsibility for the declaration of martial law and the subsequent impeachment. During previous one-on-one debates, tensions flared when Kim criticized Ahn for "impeaching a president from his own party," while Ahn retorted that Kim must "sincerely apologize to the public before crossing the river of impeachment and finding a path to victory." Hong and Han similarly clashed, with Hong accusing Han of "providing a crucial catalyst for the martial law declaration," while Han countered that "flatterers like Hong who flanked the president bear responsibility for the martial law crisis." The party will conduct voting among its delegates (50 percent) and public opinion polls (50 percent) on April 27-28, with results to be announced on April 29. Any candidate securing more than 50 percent of votes will be confirmed as the party's presidential nominee. If no candidate achieves a majority of 50 percent votes, the top two finishers will advance to a final round determined by party member votes and general public opinion surveys, each accounting for half the votes, the selection to be finalized by May 3. The snap presidential election, set for June 3, comes due to the impeachment of disgraced former President Yoon Suk Yeol over his botched Dec. 3 declaration of martial law late last year. 2025-04-26 10:18:43 -
As Trump targets pharma, Korean biotech firms reassess US strategies U.S. President Donald Trump gestures as he arrives in Maryland, April 13, 2025. Reuters-Yonhap Editor's Note: This is the fourth in a series of stories examining how the Trump administration's economic policies affect South Korea's key industries. SEOUL, April 23 (AJP) - South Korean pharmaceutical companies are bracing for the fallout from U.S. President Donald Trump's tariffs and drug price reforms that could reshape the global pharmaceutical landscape and disrupt overseas supply chains. The Trump administration has launched a national security investigation into the pharmaceutical sector — a move widely seen as laying the groundwork for potential tariffs. While the exact contours of the proposed levies remain unclear, Trump has previously floated the idea of a 25 percent tariff. The prospect has triggered anxiety among global drugmakers and supply chain strategists, who warn of higher costs and pricing instability. Analysts say that if implemented, the tariffs could erode the price competitiveness of foreign manufacturers over the medium to long term, with ripple effects across the pharmaceutical industry. Adding to industry unease, media reports suggest that the Trump team is considering linking U.S. drug prices to those paid in other developed countries — a proposal that could compound pressures on pharmaceutical firms already grappling with tighter margins. In South Korea, some companies are already taking precautionary steps. Celltrion, a leading biopharmaceutical manufacturer, announced in February that it had transferred nine months’ worth of inventory for U.S.-bound products in anticipation of potential disruptions. The company is also considering shifting portions of its production to American contract manufacturing organizations (CMOs) to mitigate risks. As a longer-term strategy, Celltrion is evaluating increased exports of drug substances — components that typically face lower tariffs — as a way to maintain market access. SK Biopharmaceuticals, which sells the epilepsy treatment Cenobamate in the United States, said it has secured a six-month inventory buffer and contracted with an FDA-approved manufacturer capable of stepping in quickly if needed. Currently, the company completes its final packaging in Canada before shipping to the U.S. Samsung Biologics finds itself in a particularly delicate position. Despite its U.S. sales accounting for just over a quarter of its revenue, the company lacks production capacity in the United States — a contrast to rivals such as Thermo Fisher Scientific, Catalent, and Switzerland’s Lonza Group. Industry insiders caution that while Samsung Biologics may not be directly affected by initial tariff measures, an expanded policy scope could expose the firm’s key products — including monoclonal antibodies — to new costs and uncertainties. The policy push has also drawn criticism from American pharmaceutical executives. Joaquin Duato, CEO of Johnson & Johnson, argued that tariffs could backfire by introducing supply chain volatility. “There’s a reason pharmaceutical tariffs are zero,” he said. “If you want to build capacity in the U.S., the most effective lever isn’t tariffs — it’s tax policy.” Even for companies willing to reshore, logistical hurdles remain steep. According to the Pharmaceutical Research and Manufacturers of America, building a new biopharmaceutical facility can cost up to $2 billion and take as long as a decade to complete. Eli Lilly CEO Dave Ricks told the BBC that existing price agreements with insurers and government programs mean that companies cannot simply pass tariff costs to consumers. “So we have to eat the cost of the tariffs and make trade-offs within our own companies,” he said, noting that the result could be reduced staffing or cuts to research and development. Yet Trump’s agenda has not been without concessions to the industry. His campaign has floated plans to scale back portions of the Biden administration’s Inflation Reduction Act, particularly provisions that allow Medicare to negotiate drug prices — a policy pharmaceutical companies argue discourages innovation. Current law allows negotiations for complex biologic drugs 13 years after market entry, and for simpler pills and capsules after nine years. Trump has proposed extending those timelines by at least four years, a move likely to be welcomed by manufacturers but viewed with skepticism by consumer advocates concerned about higher drug costs. The Trump team has also pointed to past efforts to expedite the FDA’s approval process for biosimilars — a measure intended to encourage market competition and lower costs. Still, South Korean industry officials remain cautious. “If Trump decides to push forward with tariffs, the combination of tariffs and biosimilar incentives may become a zero-sum game,” said Hwang Ju-rie, director of public and international relations at the Korea Biotechnology Industry Organization. “The benefits and drawbacks could cancel each other out.” Hwang noted that over 90 percent of South Korea’s biotech firms remain in the research phase, meaning only a handful of FDA-approved products — largely from larger firms — would be directly affected in the near term. “For now,” she added, “the industry is watching closely. Nothing is certain.” 2025-04-25 09:29:12 -
Harmful chemicals detected in children's toys from Chinese e-commerce platforms Key chains with hazardous substances sold on Chinese e-commerce site. Courtesy of Seoul Metropolitan Government SEOUL, April 24 (AJP) - Several children’s toys sold on major Chinese e-commerce platforms contain toxic substances at levels far exceeding safety standards, the Seoul Metropolitan Government announced on Thursday. City officials said they tested 25 toys purchased from global platforms including Temu, Shein, and AliExpress. Four products failed to meet domestic safety regulations, with one “keyring doll” found to contain phthalate plasticizer (DEHP) at concentrations up to 278 times the permitted limit in its face, hands, and feet. DEHP, or di(2-ethylhexyl) phthalate, is classified by the International Agency for Research on Cancer as a potential human carcinogen. It is also known to disrupt endocrine function and has been linked to reproductive harm. Other items flagged in the inspection included modeling clay that contained CMIT (chloromethylisothiazolinone) and MIT (methylisothiazolinone), chemical preservatives banned in humidifier disinfectants in South Korea after being implicated in a public health crisis. Exposure to these substances at elevated levels can cause severe irritation to the skin, eyes, and respiratory system. In addition to chemical hazards, two educational toys failed physical safety assessments. One toy, designed in the shape of a weighing scale, had dangerously sharp base plates that posed puncture risks. Another toy — a sorting game involving clips and fabric balls — lacked proper safety labeling and was found to develop sharp edges when damaged. In response, Seoul officials have formally requested that the e-commerce platforms remove the non-compliant products from sale. Authorities also issued a public advisory urging caution when purchasing children's products via international direct-to-consumer websites. The city government said it would expand the scope of its inspection in May to include children’s textile items, anticipating a surge in seasonal demand ahead of Children's Day on May 5. 2025-04-24 15:19:26 -
South Korea's economy shrinks in first quarter A snack bar in Seoul preparing for opening/ Yonhap SEOUL, April 24 (AJP) - South Korea’s economy contracted in the first quarter of 2025, weighed down by a prolonged political uncertainty and concerns about U.S. tariffs, according to preliminary data released by the Bank of Korea on Thursday. Gross domestic product fell 0.2 percent from the previous quarter, marking the country’s second economic contraction in just three quarters. The latest reading sharply contrasts with the central bank’s earlier forecast of 0.2 percent growth and raises fresh doubts about the viability of its full-year growth target of 1.5 percent. The bank attributed the downturn to a confluence of headwinds, including prolonged political uncertainty, anxiety over U.S. trade policy, record-setting wildfire damage, and a temporary halt in operations at multiple construction sites. Private consumption edged down 0.1 percent as households cut back on entertainment, cultural activities, and medical services. Government spending also dipped 0.1 percent, largely due to reduced healthcare expenditures. The steepest declines came from investment. Construction investment plunged 3.2 percent — with building construction particularly hard hit — while facilities investment fell 2.1 percent, driven by reduced spending on machinery, including semiconductor manufacturing equipment. Exports, a key pillar of South Korea’s economy, slipped 1.1 percent amid weak demand for chemical products, machinery, and industrial equipment. Imports fell more sharply, declining 2.0 percent, mainly due to decreased purchases of crude oil and natural gas. Among industry sectors, electricity, gas and water services posted a robust 7.9 percent gain, while agriculture, forestry and fishing rose 3.2 percent, buoyed by strong performance in the fishing industry. Real gross domestic income, a measure of purchasing power, declined 0.4 percent, underscoring the mounting challenges facing Asia’s fourth-largest economy. 2025-04-24 10:57:06 -
SK hynix posts soaring profits on surging AI chip demand SK hynix headquarters in Icheon, Gyeonggi Province/ Yonhap SEOUL, April 24 (AJP) - SK hynix reported a sharp rise in first-quarter profits on Thursday, fueled by surging demand for advanced memory chips used in artificial intelligence applications. The company’s operating profit jumped 157.8 percent from a year earlier to 7.44 trillion won, or about $5.21 billion, according to a regulatory filing. Revenue rose 41.9 percent to 17.64 trillion won, while net profit soared 323 percent to 8.11 trillion won. “The memory market improved faster than expected in the first quarter as AI development competition intensified alongside inventory buildup demand,” SK hynix said in a statement. The firm credited its strong performance to expanded sales of premium products, including its fifth-generation HBM3E 12-layer high-bandwidth memory chips and DDR5 memory modules — key components commanding high prices in the growing AI market. Despite the typically slow first quarter for the industry, SK hynix’s operating profit margin climbed to 42 percent, extending its streak of profitability growth to eight consecutive quarters. 2025-04-24 09:46:53