KT, LG Uplus reject hacking claims while government probes possible leaks SEOUL, September 2 (AJP) - South Korea’s Ministry of Science and ICT has opened an investigation into possible hacking incidents at telecommunications firms KT and LG Uplus, after earlier security lapses at rival SK Telecom raised alarm about vulnerabilities in the industry. The ministry said Tuesday it had begun an in-depth review after receiving materials from both carriers during on-site inspections. Officials said they would disclose the findings publicly if evidence of breaches is confirmed. The inquiry follows a tip delivered to the office of Rep. Choi Min-hee of the ruling Democratic Party by an anonymous white-hat hacker. The informant claimed that internal data from the two companies’ servers had surfaced externally, suggesting potential leaks. Security researchers reported that LG Uplus’s internal source code for a privileged account management system, along with information from nearly 9,000 servers, had been exposed. At KT, investigators were told of certificate leaks that could have left its systems vulnerable. The ministry’s move comes just weeks after SK Telecom was fined a record sum for failing to safeguard the personal information of more than 23 million subscribers. Regulators said the company had neglected basic cybersecurity practices and oversight. Both KT and LG Uplus rejected the allegations of cyberattacks. KT acknowledged that external web service certificates and private keys had been exposed through unknown channels, but insisted no direct evidence of a breach was found on its networks. LG Uplus said its own internal checks of access controls and firewall logs revealed no suspicious activity. Earlier this year, the ministry inspected servers at major telecom firms using malware detection tools, and at the time reported no signs of intrusion across the sector. 2025-09-02 10:17:17

Chinese milk tea chains push into South Korea's coffee-saturated market SEOUL, September 1 (AJP) - South Korea has long been known as a “coffee republic,” with one of the world’s highest concentrations of cafes per capita. But a wave of Chinese milk tea brands is challenging that dominance, betting that young Korean consumers are ready for a new kind of drink culture. ChaPanda, a fast-growing Chinese beverage chain listed in Hong Kong, disclosed last week that South Korea had become its largest overseas market, accounting for nearly half of its more than 40 international outlets. Since opening its first Seoul store in January, the company has expanded quickly into trendy districts like Gangnam and Hongdae, and even to Jeju Island. ChaPanda, which operates 8,444 stores in China, has made South Korea a cornerstone of its broader push into markets including France and the United States. Mixue, China’s biggest bubble tea chain by store count, has also opened more than 10 locations in Seoul, concentrating on university districts. The company runs over 53,000 outlets worldwide — 48,000 of them in mainland China — and reported $2.09 billion in revenue in the first half of this year, up nearly 40 percent from a year earlier. Premium players are also eyeing the Korean market. HeyTea has established shops in Gangnam, Myeongdong and Hongdae, part of a global network of more than 100 overseas locations. Chagee, another high-end brand and the first Chinese milk tea chain to list on Nasdaq, announced plans to enter South Korea soon. It already operates more than 7,000 stores worldwide. The international rush reflects limits at home. China’s once-booming milk tea industry is now saturated, with thousands of outlets crowding cities and margins narrowing. Seeking new growth, companies are turning abroad — and finding opportunities in markets like South Korea, where younger consumers are increasingly receptive to Chinese lifestyle brands, helped along by a recent surge in bilateral tourism after China eased visa restrictions. Still, analysts caution that success is not guaranteed. Building brand awareness may be easier than building reliable supply chains, especially for drinks that depend on imported tea leaves, fruit and dairy. The state-run China Securities Journal noted that ensuring ingredient quality overseas remains one of the biggest risks to the industry’s global expansion. 2025-09-01 14:08:49

S. Korean households cut food spending to nine-year low amid persistent inflation SEOUL, September 1 (AJP) - South Korean households reduced their food spending to the lowest level in nearly a decade, as high prices forced families to cut back even on basic groceries. Adjusted for inflation, monthly household spending on food and nonalcoholic beverages fell 1 percent in the second quarter from a year earlier, to 341,000 won, or about $245, according to government data released on Monday. That was the lowest level since 2016. In nominal terms, spending rose 1.8 percent to 423,000 won. But the increase failed to keep pace with a 2.9 percent rise in food prices over the same period, reflecting a prolonged squeeze on family budgets. Food costs have been rising faster than overall consumer prices for more than five years. In the second quarter, the food price index reached 125.33, compared with 116.32 for the broader consumer price index, both based on 2020 levels. The pressure has been compounded by extreme weather and currency swings that raised costs for food producers, who in turn have passed them on to consumers. Prices of instant noodles jumped 7.6 percent in July from a year earlier, while confectionery and ice cream rose 6 percent. Families have also been reining in restaurant visits. Spending at eateries edged up just 0.2 percent in the second quarter, to 353,000 won per household. Economists warn that conditions could worsen in the months ahead. With the government weighing increases in electricity and gas rates later this year, households already struggling with higher grocery bills may find little relief. 2025-09-01 09:33:01

South Korea unveils record 728 trillion won budget with big bets on AI, R&D SEOUL, August 29 (AJP) - South Korea’s government on Friday signed off on a record 728 trillion won ($524.3 billion) budget for 2026, an 8.1 percent increase over this year and the first major fiscal blueprint of President Lee Jae Myung’s administration. The spending plan marks a sharp break from the austerity policies of Lee’s predecessor, Yoon Suk Yeol, who kept budget growth near 2 to 3 percent. Instead, the new administration is seeking to jolt Asia’s fourth-largest economy with large-scale investments in artificial intelligence, research and development, and social programs. “The administration faced the critical task of breathing life into a sluggish economy and frozen livelihoods immediately upon taking office,” Deputy Prime Minister and Finance Minister Koo Yoon-cheol said Friday. The budget earmarks a record 35.3 trillion won for research and development, a nearly 20 percent jump from this year, while tripling AI spending to 10.1 trillion won. A centerpiece of the plan is a 2.1 trillion won allocation for high-performance graphics processors to build what the Lee administration calls “sovereign AI” — though the number of planned units has been scaled back from 50,000 to 15,000. Defense spending will climb by 5 trillion won to 66.3 trillion won. The funds will support stealth fighter programs and AI-enabled weapons systems, including a 113.2 billion won investment in bomb-detection and disposal robots. Social welfare will also expand substantially. Outlays are set at 269.1 trillion won, up 20 trillion from this year, with increases in basic livelihood allowances for households and targeted support for single-person families. The government also plans to bolster regional higher education, doubling funding for local universities. A pilot of Lee’s “basic society” platform — providing 150,000 won monthly stipends to residents in depopulating rural areas — will begin next year at a cost of 170.3 billion won. The expansionary budget carries a heavy fiscal burden. Tax revenues are projected at 674.2 trillion won, leaving a deficit of about 54 trillion won. National debt will rise to 1,415 trillion won, pushing the debt-to-GDP ratio above 50 percent for the first time. The fiscal deficit will widen to 4 percent of GDP, surpassing the government’s self-imposed 3 percent ceiling. Officials have pledged to stabilize debt in the “high-50 percent range” by 2029. The budget bill will be submitted to the National Assembly on Sept. 3, where it is expected to face heated debate before a final vote in December. 2025-08-29 15:10:40

Business sentiment in South Korea remains pessimistic for 42nd month SEOUL, August 29 (AJP) - South Korea’s corporate outlook sank further into pessimism for the 42nd straight month, weighed down by U.S. trade measures that have struck at the heart of its semiconductor and steel industries, the nation’s largest business group said Friday. A survey of the country’s 600 biggest companies by the Federation of Korean Industries showed the Business Survey Index for September at 93.2, below the 100 threshold that separates optimism from pessimism. The gauge has not crossed into positive territory since April 2022. Manufacturers reported particularly bleak sentiment, at 92.6, while non-manufacturing firms fared only slightly better at 93.8. The sharpest drop came in electronics and communications equipment, which includes semiconductors. That sector plunged 16.4 points to 94.7, after U.S. President Donald Trump threatened to slap 100 percent tariffs on chips — a warning that rattled an industry central to South Korea’s economy. Metals and metal processing remained mired in the 80s for a third straight month, as Washington’s 50 percent duties on steel, aluminum and copper products went into effect in August. “External trade risks and the prolonged slump in construction, which is depressing demand for cement and other raw materials, are the main forces behind the sustained weakness,” the federation said in its report. 2025-08-29 10:44:50

South Korea becomes anchor in US plan to revive shipbuilding industry SEOUL, August 28 (AJP) - What began as a series of bruising trade talks between Washington and Seoul ended in an unexpected sector: shipbuilding. The negotiations, initially centered on tariffs, culminated in a $150 billion partnership aimed at reviving America’s depleted maritime industry with South Korean know-how. On Aug. 25, President Donald Trump hosted President Lee Jae Myung of South Korea at the White House, just a month after the latest round of negotiations. At their first summit, Trump threw his support behind what Seoul has branded the “Make American Shipbuilding Great Again” initiative, or MASGA — a plan that South Korea advanced as part of the deal. The initiative promises sweeping investments: new U.S. shipyards, training programs to rebuild a skilled workforce and joint maintenance contracts that would pair South Korean companies with American personnel to service Navy vessels. “We’re going to be buying ships from South Korea. We’re also going to have them make ships here with our people, using our people,” Trump said in the Oval Office. “We love their ships.” He tempered the enthusiasm with a note of caution: “Shipbuilding is a tough one to start. You know, it takes a while.” A day later, Lee toured Hanwha Philly Shipyard in Philadelphia, a Korean-owned facility once emblematic of America’s industrial might but long since hollowed out. Hanwha acquired the site last year for $100 million, securing its first liquefied natural gas (LNG) carrier order in half a century. Now, it serves as the partnership’s first tangible proof of concept. “Just as Korean entrepreneurs and workers created the miracle of Korean shipbuilding on barren land, let Korea and the United States join forces to make the MASGA miracle a reality,” President Lee said at the shipyard, echoing the rhetoric of industrial rebirth. For the United States, the partnership marks a rare attempt to confront decades of decline. The Merchant Marine Act of 1920, better known as the Jones Act, shielded domestic shipbuilders from foreign competition but also stifled innovation and global competitiveness. Later restrictions, including the Byrnes-Tollefson Amendment of the 1960s, further isolated American yards by mandating domestic construction of military vessels. The consequences have been stark. Submarine repairs now take an average of 20 months before even entering multiyear overhauls and refueling cycles. Meanwhile, China has seized dominance, capturing about 60 percent of global shipbuilding orders last year and surpassing the U.S. in fleet size, according to defense data. Washington’s response has mixed sticks with carrots: tariffs and fees on Chinese-built ships alongside expanded cooperation with allies. South Korea, the world’s second-largest shipbuilder after China, emerged as the partner of choice. In the first half of this year, Korean shipyards claimed more than a quarter of global orders, buoyed by their dominance in advanced vessels such as LNG carriers. That dominance comes with scars of its own. After the 2008 financial crisis, South Korea’s major shipbuilders — Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering — collapsed under debts and losses. Daewoo’s downfall, marred by accounting fraud, ended in a takeover by Hanwha and the birth of Hanwha Ocean. Now resurgent, Korean shipbuilders are moving quickly in the United States. Hanwha Ocean has signed contracts with the U.S. Navy for repair work on several ships, including the Wally Schirra, the Yukon and the Charles Drew. On the same day as Lee’s shipyard visit, the company announced $5 billion in new investment in Philadelphia and orders for 11 vessels. Hyundai has secured its own foothold, signing a memorandum of understanding on U.S. maritime investment and winning its first Navy maintenance deal earlier this month. Samsung followed suit on Aug. 26, entering a partnership with Vigor Marine Group for naval support ship work. For Trump, the deal represented both an economic and symbolic victory. “We really gave up the shipbuilding industry foolishly many years ago,” he said. “We’re going to be making our own ships again, soon.” Whether the promise can outpace the challenges remains uncertain. But in an era of intensifying competition at sea, Washington and Seoul are betting that a cross-Pacific alliance can breathe new life into an industry long left for dead. 2025-08-29 09:40:29

Bank of Korea holds key rate steady as housing market concerns continue SEOUL, August 28 (AJP) - The Bank of Korea left its benchmark interest rate unchanged at 2.5 percent on Thursday, pausing its easing cycle for a second month as policymakers weighed mounting risks from rising household debt. The central bank’s monetary policy committee said it would maintain the current rate while monitoring domestic and global conditions, citing persistent volatility in Seoul’s housing market and elevated borrowing levels. The decision follows four rate cuts since October, which lowered the key rate from 3.25 percent in a bid to revive the sluggish economy. But housing prices in the capital region have continued to climb, despite government measures introduced in June that capped mortgage loans at 600 million won, or about $432,000. Apartment prices in Seoul rose 0.09 percent in the third week of August. Household lending also remained high, though the pace of borrowing has eased. Officials said many of the loans currently being processed were approved before the June restrictions, keeping upward pressure on debt. The widening rate gap with the United States added another layer of caution. South Korea’s benchmark rate trails U.S. rates by a record two percentage points. Still, the central bank raised its 2025 growth forecast to 0.9 percent, from 0.8 percent, pointing to stronger consumer sentiment following a supplementary budget and progress in trade talks with Washington. “We project next year’s economic growth at 1.6 percent,” BOK Governor Rhee Chang-yong said at a news conference. “Looking at quarterly growth rates, we expect low growth to persist through the first half before rising close to potential growth in the second half. Given the likelihood of continued low growth through the first half of next year, there is a high possibility that the rate-cutting stance will be maintained.” 2025-08-28 13:36:42

LG H&H weighs sale of beverage unit amid broader restructuring push SEOUL, August 28 (AJP) - LG Household & Health Care, South Korea’s leading consumer goods company, is weighing the sale of its beverage subsidiary Haitai HTB. The company has tapped Samjong KPMG as lead adviser to evaluate options for Haitai HTB, formerly Haitai Beverage, as part of a broader review of its drinks division. Haitai HTB, best known for its Sunkist and Cocopalm juices, generated 414 billion won ($301 million) in revenue and 3.6 billion won in operating profit last year. LG, which acquired Haitai in full in 2010 and rebranded it six years later, reported overall beverage revenue of 1.82 trillion won in 2023, with operating profit of 168.1 billion won. The review does not extend to its Coca-Cola bottling operations, which remain a core part of its drinks portfolio. The possible divestment comes as LG H&H faces mounting pressure from investors after posting disappointing second-quarter results. Revenue fell 8.8 percent from a year earlier to 1.6 trillion won, while operating profit plunged 65.4 percent to 54.8 billion won, sharply missing market forecasts. The company has also struggled in its flagship cosmetics business, where pandemic disruptions in China — once its largest overseas market — eroded growth. While global demand for so-called K-beauty products has surged, LG H&H has failed to keep pace and has been restructuring its overseas operations. An LG spokesperson said the company was exploring “various options,” emphasizing that no final decision had been made. “This review is not only about divestment,” the spokesperson said, “but about structural reorganization and distribution optimization across multiple fronts.” 2025-08-28 10:00:05

Korea Zinc emerges as key player in global battle for critical minerals Editor's Note: This article is the 33rd 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 27 (AJP) - As Washington scrambles to secure supplies of critical minerals, a South Korean metals giant has emerged as an unlikely player in the great-power contest — and a target of boardroom intrigue at home. Korea Zinc, the world’s largest non-ferrous metal smelter, shipped its first batch of antimony to Baltimore in June, a milestone for both U.S.-Korea ties and Washington’s efforts to cut reliance on Chinese-dominated supply chains. The mineral, essential for producing ammunition and missiles, is among the materials the Pentagon deems vital for national security. “South Korean exports of antimony to the U.S. will play an important role in diversifying supply chains away from their original dependence on China,” said Park So-young, a senior researcher at the Korea International Trade Association. Yet even as Korea Zinc positions itself as a linchpin in Western supply chains, the company faces an existential threat at home: a hostile takeover attempt by its founding partner and largest shareholder, Young Poong. The drama traces back to 1974, when entrepreneurs Chang Byung-hee and Choi Ki-ho created twin corporate empires — Young Poong, controlled by the Chang family, and Korea Zinc, run by the Chois. For nearly five decades, the arrangement held. Korea Zinc built smelters for zinc, copper and lead, then expanded globally with Sun Metals Corporation in Australia in 1996. By late 2023, it had begun building the world’s first integrated nickel smelter. The balance shifted in 2022, when Choi Yun-birm, grandson of co-founder Choi Ki-ho, became chairman and began cutting ties with Young Poong. A year later, Young Poong, backed by private equity giant MBK Partners, launched a tender offer to acquire nearly 15 percent of Korea Zinc. The battle has since spiraled into lawsuits, shareholder clashes and speculation about Chinese influence. Korea Zinc struck back in January, with its Australian unit buying a 10 percent stake in Young Poong — a countermove that all but ensured a prolonged stalemate. Despite the turmoil, Korea Zinc reported its strongest-ever half-year results in August: 7.66 trillion won (about $5.5 billion) in revenue, up 41 percent from a year earlier, and 530 billion won in operating profit. It was the company’s 102nd consecutive profitable quarter. The surge was fueled by its unique capacity to extract more than 10 types of rare metals from ore concentrates. Antimony sales alone rose nearly 30 percent in volume, with revenue more than quintupling. Silver and gold revenues also jumped, reflecting strong demand for precious and industrial metals. Betting on the future Choi has framed the company’s “Troika Drive” strategy — focused on green hydrogen, secondary battery materials and resource recycling — as essential for Korea Zinc’s survival. Speaking at the company’s 51st anniversary in August, he alluded to the takeover fight without naming names. “Last September, we faced a shocking challenge that made us reconsider our company’s reason for existence and the values we must protect,” he said. On Aug. 25, Korea Zinc announced a memorandum of understanding with Lockheed Martin to supply germanium, a key mineral used in night-vision gear and satellite systems. The company plans to invest about $100 million in a new germanium plant in South Korea, slated to open in 2028. The contest for Korea Zinc carries stakes beyond corporate Korea. In an era when minerals underpin both clean-energy transitions and national defense, the company’s independence — and its orientation toward Western supply chains — could prove as consequential as the metals it refines. 2025-08-28 09:47:28

Hyundai consolidates shipbuilding units as US defense ties deepen SEOUL, August 27 (AJP) - HD Hyundai Heavy Industries and HD Hyundai Mipo Dockyard said Wednesday they would merge by the end of the year, creating South Korea’s largest shipbuilder as the country seeks to expand its role in global naval modernization and deepen cooperation with the United States. The boards of both firms and their parent company, HD Korea Shipbuilding & Offshore Engineering, approved the consolidation, which will fold Mipo into Hyundai Heavy. Shareholders and regulators must still sign off, but the companies expect the transaction to close in December. The combination unites the world’s biggest commercial shipbuilder with a leading mid-sized yard, a move Hyundai executives say will yield economies of scale, sharper technological capabilities and stronger competitiveness against consolidated rivals in China and Japan. The merged entity will lean heavily into the global defense boom. Hyundai Heavy is already South Korea’s top naval shipbuilder, with a track record in destroyers, submarines and export contracts, while Mipo brings dry-dock capacity and facilities that are suited for warship projects. Together, the companies have set a target of 10 trillion won, or $7.15 billion, in annual defense revenue by 2035. The merger comes just days after HD Hyundai signed a memorandum of understanding on maritime investment with U.S. counterparts, part of a $150 billion initiative dubbed “Make American Shipbuilding Great Again,” or MASGA. The effort underscores Seoul’s growing role as Washington’s shipbuilding partner at a time when global navies are racing to modernize fleets. Hyundai executives also framed the consolidation as a way to accelerate development in specialized vessels such as icebreakers — tied to the Alaska liquefied natural gas project — and to scale up investment in green propulsion systems across vessel sizes. By pooling research, they said, the combined company could cut costs and shorten development timelines. To further streamline its global operations, HD Korea Shipbuilding & Offshore Engineering plans to establish an overseas investment arm in Singapore in December. The new unit will oversee Hyundai’s shipyards in Vietnam and the Philippines, and spearhead international expansion in bulk carriers and tankers, where Chinese competitors have been capturing market share. 2025-08-27 17:19:44