Journalist
Kim Dong-young, Im Yoon-seo
davekim0807@ajupress.com
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Kakao posts record first-quarter earnings as AI fuels Korea's platform giants SEOUL, May 07 (AJP) - South Korea's platform giants are converting an artificial intelligence investment cycle into top-line momentum, with Kakao joining rival Naver in delivering AI-revved first-quarter earnings. According to regulatory filings on Thursday, Kakao's consolidated operating profit jumped around 65.9 percent from a year earlier to 211.4 billion won ($145.7 million) on an adjusted basis, while revenue climbed 11.1 percent to 1.94 trillion won — both first-quarter records. The figures reclassify Kakao Games as a discontinued operation following its planned divestiture. Platform revenue, the company's core engine, rose 16 percent to 1.18 trillion won. Talk Biz advertising sales advanced 16 percent to 338.4 billion won, helped by a 27 percent surge in business-messaging revenue as financial-sector advertisers ramped up spending and Kakao diversified its message products. Mobility and payments, grouped under "platform others," climbed 30 percent to 506.5 billion won. Kakao Mobility logged a third consecutive quarter of double-digit growth across taxi, parking and last-mile logistics, while Kakao Pay topped 300 billion won in quarterly revenue for the first time. "The first quarter was encouraging in that we achieved qualitative growth by reinforcing our fundamental competitiveness," Kakao CEO Chung Shin-a said, adding that Kakao would now pivot from a messenger used by 50 million Koreans into "an agentic AI platform." Shares of Kakao edged down 0.70 percent to 45,959 won as of 10:30 Thursday amid broad KOSPI profit-taking. The company, running a chat platform that most Koreans use, has been racing to embed generative AI across its services, including a high-profile tie-up with OpenAI to integrate ChatGPT-based features into KakaoTalk, alongside infrastructure and model partnerships aimed at accelerating its agentic AI roadmap. The tailwind echoes that of larger rival Naver, which reported earlier a 16.3 percent jump in first-quarter revenue to 3.24 trillion won and a 7.2 percent rise in operating profit to 541.8 billion won, as AI-integrated advertising and consumer-to-consumer commerce drove growth. Naver said AI now accounts for more than half of its advertising revenue growth through sharper targeting, while its global ventures arm — anchored by Spain's Wallapop, Poshmark and Kream — saw sales climb 18.4 percent. The company has also signed memorandums with AMD and Tata Consultancy Services to build out AI infrastructure and cloud services 2026-05-07 10:33:58 -
CJ CheilJedang to promote Korean liquor at PGA Tour event SEOUL, May 07 (AJP) - CJ CheilJedang announced it will use this year's "The CJ Cup Byron Nelson," a PGA Tour event, as a platform to introduce Korean traditional liquor to global consumers, part of a broader push to position Korean distilled spirits alongside Japanese sake and Chinese baijiu. The South Korean food giant said cocktails made with Munbae-ju and Gamuchi soju will be served to players and spectators at the tournament, which the company has sponsored through its Bibigo brand. Last year's edition featured four "K-Liquor cocktails" based on Munbae-ju, marking the spirit's debut in Texas. Munbaeju is a grain-based distilled liquor made from millet and sorghum without additives, known for its distinctive wild pear aroma. The drink has gained a following across generations in South Korea. "Thanks to the partnership with CJ CheilJedang, we have been able to introduce Munbaeju to consumers in the United States and beyond for a second consecutive year," said Lee Seung-yong, CEO of Munbae Distillery. "The strong response on the ground confirms the competitiveness of our spirits and bodes well for future sales." The company has signed supply agreements with liquor makers Munbae Distillery and Danong Bio, and is aging the spirits at a facility in Nonsan, South Chungcheong Province. The first products, aimed at the U.S. market, are scheduled for launch in the second half of this year. CJ CheilJedang has also been selected for the government's "Global Next K-Food Project," which supports overseas expansion of traditional Korean liquor producers through programs such as a "K-restaurant week" tied to local dining venues. 2026-05-07 09:36:50 -
Hyundai Motor Group revamps labor command at Mobis SEOUL, May 06 (AJP) - Hyundai Motor Group has reportedly created a vice president-level post dedicated to labor affairs at parts affiliate Hyundai Mobis and tapped Jeong Sang-bin, head of Hyundai Motor's policy development office, to fill it, as the country's largest automaker tightens its grip on union risk across the supply chain. The group also elevated oversight of labor relations to the president level, naming Kia President Choi Jun-young as the new chief of the policy development office, the group's top labor post, according to industry sources on Wednesday. The reshuffle follows the March enactment of the so-called Yellow Envelope Law, a revision to articles 2 and 3 of the Trade Union Act that broadens the scope of lawful industrial action and has heightened the threat of walkouts at Hyundai's affiliates. The Korea Metal Workers' Union has since demanded direct bargaining with Hyundai Motor, Mobis and three other affiliates over the wages and conditions of subcontractor staff, a push that analysts warn could feed into parts costs and chip away at the group's global cost competitiveness. Sending Jeong, a policy development veteran, to Mobis may reflect the group's drive to contain labor flare-ups at parts units before they ripple into assembly-line stoppages at the carmaker, sources said. "The personnel order has not been formally issued, so we are not in a position to confirm the matter at this time," said a Hyundai Mobis spokesperson when asked for confirmation. 2026-05-06 14:08:01 -
Celltrion posts record Q1 as new biosimilars drive earnings surge SEOUL, May 06 (AJP) - South Korean biopharmaceutical firm Celltrion reported its strongest first-quarter results on record, as a wave of newly launched biosimilars accelerated overseas sales and pushed operating profit more than twofold higher. According to regulatory filings released Wednesday, the company logged consolidated revenue of 1.14 trillion won ($779.43 million) and operating profit of 321.9 billion won for the three months ended March 31, up 36 percent and 115.5 percent, respectively, from a year earlier. The operating margin widened to about 28.1 percent. Sales of five high-margin biosimilars launched last year jumped 67 percent on year to 581.2 billion won, accounting for 60 percent of total product revenue for the first time. Omlyclo, rolled out across Europe in September, has captured market shares of 98 percent in Denmark, 80 percent in Spain and 70 percent in the Netherlands within roughly four months of launch. Momentum has carried into the United States, where Zymfentra, the world's only subcutaneous infliximab, is logging its highest-ever monthly prescription volumes, more than triple year-earlier levels. SteQeyma held an IQVIA-tracked share above 10 percent as of March, supported by reimbursement coverage secured through major pharmacy benefit managers. "Achieving sharp growth in the seasonally weak first quarter reflects the full-fledged market entry of our high-margin product lineup," said a Celltrion spokesperson, adding that the results mark a successful start toward exceeding annual targets of 5.3 trillion won in revenue and 1.8 trillion won in operating profit. Celltrion's board on Wednesday also approved cancelling about 100 billion won of recently bought treasury shares, following last month's retirement of 9.11 million shares worth roughly 1.8 trillion won. The company plans to expand its biosimilar portfolio to 18 products by 2030 and 41 by 2038, while broadening its novel drug pipeline to 20 candidates by 2027. Shares of Celltrion traded at 197,000 won per stock on 9:30 a.m., 0.4 percent lower than the previous session. 2026-05-06 09:35:41 -
Korea University, UNIST team up to build Korean version of Harvard-MIT HST SEOUL, May 04 (AJP) - Korea University College of Medicine and the Ulsan National Institute of Science and Technology (UNIST) have been picked for the government's flagship program to nurture physician-scientists, marking a fresh push to close the gap between Korean medical research and global leaders such as Harvard-MIT and Stanford. The two institutions were selected as a new consortium under the 2026 K-MediST (Korea Medical Science & Technology) program, supervised by the Ministry of Health and Welfare and administered by the Korea Health Industry Development Institute. The five-year project runs from April 2026 through December 2030. Kim Tae-hoon, professor at Korea University College of Medicine and head of research at Korea University Anam Hospital, will serve as principal investigator, while Baek Seung-jae, dean of UNIST's Graduate School of Health Sciences and Technology, takes on the role of co-principal investigator. At the heart of the partnership lies what the schools call the "KUNIST" platform, a joint framework offering a joint MD-PhD degree, a shared research institute, and direct support for technology commercialization. A roughly 502-square-meter research hub will be set up at Korea University's Chung Mong-koo Hall in northern Seoul, linked to UNIST's high-performance computing and analytical infrastructure in Ulsan. The curriculum revolves around four pillars — medical AI, precision medicine, smart hospitals and extreme medicine — and will be built on the ADDIE instructional design model to tailor coursework to each student's research focus. A so-called 'Data Living Lab' is to feed real-time clinical data into research, allowing trainees to move between bedside and bench without friction. The program was modelled on Harvard-MIT's Health Sciences and Technology and Stanford University's BioX, both regarded as global benchmarks for physician-scientist training. The Korean partners say they intend to pursue joint research and exchange ties with those institutions. "Physician-scientists are the core talent in the bio-health field who can solve problems encountered in clinical settings through laboratory research," said Jung Eun-young, director-general for health industry policy at the Ministry of Health and Welfare, in a separate briefing on the broader program. 2026-05-04 14:09:56 -
Krafton's Unknown Worlds sets May 15 early access launch for Subnautica 2 SEOUL, May 01 (AJP) - Unknown Worlds Entertainment, the creative studio under South Korean gaming giant Krafton, confirmed that its underwater survival sequel Subnautica 2 will enter early access on May 15 for PC and Xbox Series X|S, priced at $30. The title has held the top spot on Steam's global wishlist ranking for about nine consecutive months since September 2025, amassing an estimated 3.8 million wishlists and cementing its status as one of the most anticipated games of 2026. A new cinematic trailer released alongside the announcement showcased the game's alien ocean ecosystem and its survival mechanics. Built on Unreal Engine 5, Subnautica 2 transports players to an uncharted alien planet and introduces four-player cooperative gameplay for the first time in the franchise's history. The series' predecessor, released in 2018, has sold more than 18.5 million copies worldwide and is widely regarded as a benchmark in the survival genre. "We will actively engage with players throughout the early access period and refine the game together," said Ted Gill, chief executive of Unknown Worlds. The launch comes after a turbulent chapter in the game's development. Krafton ousted Gill and studio co-founders in July 2025 and delayed the release from its original 2025 window, triggering lawsuits and a court order that reinstated Gill as CEO earlier this year. The former developers alleged the shakeup was aimed at avoiding a $250 million earnout payment tied to the game's delivery. Industry observers say the early access performance of Subnautica 2 will serve as a critical test of Krafton's push to diversify beyond its flagship PUBG franchise, particularly in Western markets where the Subnautica brand commands a loyal following. 2026-05-01 17:16:38 -
South Korea's exports top $80 billion for second straight month SEOUL, May 01 (AJP) - South Korea's exports surged 48 percent year-on-year in April to $85.89 billion, breaching the $80 billion threshold for a second consecutive month as a semiconductor supercycle powered by global artificial intelligence investment continued to underpin the trade-dependent economy. The Ministry of Trade, Industry and Energy reported Friday that the April figure trailed only the all-time high of $86.6 billion set in March, making it the second-largest monthly tally on record. Imports rose 16.7 percent to $62.11 billion, yielding a trade surplus of $23.77 billion and extending the country's streak of monthly surpluses to 15. Chip shipments drove the bulk of the gains. Semiconductor exports soared 173.5 percent to $31.9 billion, eclipsing the $30 billion mark for a second month in a row on surging demand for high-bandwidth memory, DDR5 and NAND flash used in AI server infrastructure. Computer exports also rocketed 515.8 percent to $4.08 billion, propelled by brisk enterprise demand for solid-state drives. Rising crude oil prices stemming from the prolonged Middle East conflict lifted petroleum product exports by 39.9 percent to $5.11 billion, though analysts noted the increase was driven largely by unit-price gains rather than higher volumes. Automobile shipments, by contrast, slipped 5.5 percent amid logistics disruptions in the Middle East and the overhang of U.S. tariff measures. By destination, exports to China jumped 62.5 percent on robust appetite for semiconductors and IT products, while shipments to the United States climbed 54 percent on the strength of chips and computers. Exports to the Middle East, however, tumbled 25.1 percent as the war disrupted trade routes. "South Korea saw its monthly exports surpass the $80 billion mark, along with a trade surplus of over $20 billion, for the second straight month for the first time in history in April even amid the persisting conflict in the Middle East," said Kim Jung-kwan, Minister of Trade, Industry and Resources. Analysts cautioned that the export boom remains heavily tethered to semiconductors and elevated oil prices, leaving it vulnerable to additional U.S. tariffs, a protracted Middle East war and a broader global slowdown in the second half of the year. 2026-05-01 12:59:59 -
Lee calls for end to 'pro-labor vs. pro-business' divide SEOUL, May 01 (AJP) - South Korean President Lee Jae Myung called for an end to the long-standing dichotomy that pits workers against employers, vowing to deliver "real growth" through cooperation between labor and management. Speaking at a Labor Day ceremony at the Blue House on Friday — the first such event ever held at the former presidential compound — Lee said the country could only move forward by abandoning the "outdated binary" of pro-labor versus pro-business politics. About 120 figures from labor, business, government and civil society attended the gathering. "A society that respects labor and a country that is good for doing business are not mutually exclusive. There are no workers without companies, and no companies without workers," Lee said. The event marked the first time the country's two rival umbrella unions, the Federation of Korean Trade Unions and the more militant Korean Confederation of Trade Unions, jointly attended a government Labor Day ceremony, an unprecedented show of unity that the Blue House described as a response to the administration's labor-respecting agenda. Lee, a former teenage factory worker, pledged to expand basic labor rights to non-regular employees, subcontractors, platform workers and freelancers, and said workplace safety would not be compromised. He framed safety as "a fundamental duty of the state and corporations, not a cost or a choice," cautioning against forcing workers to bear one-sided sacrifices in the name of productivity gains driven by artificial intelligence. The remarks come amid heightened labor tensions in South Korea, including a planned large-scale walkout by the Samsung Electronics union as well as Samsung Biologics, and follow legislation that restored the holiday's original Korean name, Nodongjeol, and elevated it to a statutory public holiday for the first time in 63 years. Lee, who said he was proud to have once been a "boy laborer" himself, vowed to answer workers' voices with "a heavy sense of duty" as the country navigates the twin pressures of the AI transition and the climate crisis. 2026-05-01 10:45:15 -
Apple's incoming CEO signals new products as quarterly revenue hits record SEOUL, May 01 (AJP) - Apple's incoming chief executive John Ternus voiced strong confidence in the company's product pipeline, hinting at new categories on the horizon as the iPhone maker posted record fiscal second-quarter revenue. Speaking on a conference call on Thursday (local time) after Apple reported results for the January-March quarter, Ternus, who takes the helm in September from Tim Cook, said the company had "an incredible roadmap" ahead and was preparing fresh offerings, though he declined to disclose details. "Suffice it to say, this is the most exciting time in my 25-year career at Apple to be building products and services.," Ternus said, suggesting work was under way on new product forms. He pledged to carry on the financial discipline that defined Cook's 15-year tenure. Apple posted revenue of $111.18 billion for the quarter, up 17 percent from a year earlier and surpassing the LSEG consensus estimate of $109.66 billion for an all-time high in the period. Earnings per share came in at $2.01, beating Wall Street's $1.95 forecast. iPhone sales jumped 21.7 percent to a record $56.99 billion but fell just shy of the $57.21 billion analysts had projected, while the iPad, Mac, wearables and services divisions all topped expectations. Services revenue reached $30.98 billion, and research and development spending climbed 33.6 percent to $11.42 billion as the company widened its artificial intelligence push. Cook flagged supply constraints during the quarter, particularly for the iPhone, tied to limited capacity at advanced chip nodes operated by Taiwan's TSMC, and warned that the squeeze would tighten in the April-June quarter. 2026-05-01 10:02:18 -
UPDATE: Samsung Biologics union demands immediate talks as first-ever strike begins SEOUL, May 1 (AJP) - Samsung Biologics, the world's largest contract drug manufacturer by volume, was rocked on Friday by the first full-scale walkout in its 15-year history, with the union demanding management return to the bargaining table at once and the company warning of losses of up to 640 billion won ($434 million). The Samsung Biologics chapter of the Samsung Group labor union launched the strike on Friday, Labor Day, after 13 rounds of wage talks since December collapsed without a deal. The union has vowed to walk off the job through May 5. In a sharply worded statement issued as the strike began, the union accused executives of resorting to legal pressure and intimidation rather than substantive dialogue, blaming boardroom missteps — chronic understaffing, aggressive cost-cutting, and decisions made without input from the production floor — for the company's recent order shortfalls. "If the company is truly worried about losses and damage to client trust, it should stop shifting responsibility to employees and immediately enter genuine negotiations," the union said. Workers are demanding a 14 percent average pay raise, a one-off bonus of 30 million won per employee, and 20 percent of operating profit to be distributed as performance pay. Management has countered with a 6.2 percent wage hike, leaving the two sides far apart. The projected hit of 640 billion won amounts to about half of the company's first-quarter revenue of 1.26 trillion won. Samsung Biologics warns that biopharmaceutical manufacturing relies on a continuous, nine-stage process in which a single interruption can spoil entire batches of living cells, forcing them to be discarded as waste. A partial strike from April 28 to 30, joined by some 60 workers in the materials handling division, has already disrupted output of 23 products including cancer treatments, HIV medicines, and atopic dermatitis therapies, with damage estimated at 150 billion won. Chief Executive John Rim convened a town hall on Thursday and apologized to staff before issuing an afternoon message urging workers to reconsider joining the walkout, saying prolonged disruption could inflict irreversible damage on both the firm and its employees. Ahead of the walkout, the company filed for an injunction to block the strike. A South Korean court last month barred industrial action only on the final three stages — concentration and buffer exchange, drug-substance filling, and buffer manufacturing — while allowing the union to halt the other six. Samsung Biologics appealed the same day, arguing the entire production line must be tightly controlled. Industry observers warn that supply-chain disruption could erode Samsung Biologics' standing with global clients, who may shift orders to overseas rivals if delivery deadlines slip. The U.S. Food and Drug Administration and other regulators place heavy emphasis on process integrity, meaning even minor disruptions typically trigger full batch disposal regardless of actual quality outcomes. The walkout underscores deepening labor unrest across the Samsung empire. Affiliate Samsung Electronics, the world's largest memory chipmaker, faces an 18-day general strike from May 21 through June 7, with tens of thousands of workers demanding bonuses tied to 15 percent of operating profit — a sum that could reach 45 trillion won. The South Korean government has cautioned that a stoppage at the chip giant could ripple through the broader economy. 2026-05-01 09:25:08