Reliance Industries bets big on deep-tech, reshapes India's digital future Editor's Note: This article is the 29th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, July 30 (AJP) - Reliance Industries, India's largest private-sector company, is navigating a complex energy and geopolitical landscape while accelerating its transformation into a deep-tech and advanced manufacturing leader. Once known primarily for its dominance in oil refining and petrochemicals, the Mumbai-based conglomerate is now positioning itself at the forefront of India's digital and industrial transition. The shift comes as new sanctions pressure the company's long-standing energy procurement strategy. On July 18, the European Union announced its 18th sanctions package against Russia, further reducing the price cap on Russian crude. Reliance, which had benefited from discounted Russian oil following the 2022 invasion of Ukraine, began adjusting course. That same week, the company made an unusual move by purchasing Murban crude from Abu Dhabi, signaling a strategic pivot away from its traditional reliance on Russian Urals. Reliance is also broadening its upstream footprint. On July 29, the company announced a joint operation agreement with Oil and Natural Gas Corporation and BP Exploration to explore hydrocarbon reserves in the Saurashtra basin in northwestern India. While oil remains a pillar of the business, Reliance's transformation has touched nearly every major sector of the Indian economy. The company's evolution from modest beginnings to industrial heavyweight traces back to 1957, when founder Dhirubhai H. Ambani began a yarn trading business in Mumbai with seed capital of around 300 dollars. In 1966, he formally established Reliance Commercial Corporation, focusing on importing polyester yarn and exporting spices. The company rebranded as Reliance Textiles Industries in 1973 and went public in 1977. From there, it systematically expanded across sectors, entering petrochemicals in 1980, oil refining in 2000, telecommunications in 2002, and retail in 2006. In 2010, it launched Reliance Foundation, which has since grown into India's largest non-profit organization. The pace of change quickened in 2016 with the launch of Reliance Jio, the company's telecom arm that reshaped India's data market. Starting in 2020, Reliance began forging partnerships with global tech firms to advance India's digital infrastructure. Today, the group operates across four core sectors: energy, retail, digital services, and media and entertainment. Reliance's financial performance has remained strong despite external headwinds. For the first quarter of 2025, the company reported consolidated revenue of 2,73,252 crore rupees, or 32.9 billion dollars, up 6 percent year-on-year. Net profit rose 78 percent to 26,994 crore rupees, or 3.3 billion dollars, largely driven by gains from the sale of its stake in Asian Paints. Reliance Jio posted 24 percent earnings growth, supported by an increase in average revenue per user to nearly 2.50 dollars. The retail division reported revenue of 84,171 crore rupees, or 10.1 billion dollars, up 11.3 percent. JioStar, its media venture, recorded revenue of 9,904 crore rupees, or 1.2 billion dollars, following a strong Indian Premier League season. Leadership remains firmly in the hands of the Ambani family. Chairman Mukesh D. Ambani, son of the company's founder, leads the group alongside his wife Nita Ambani, chair of Reliance Foundation. Their three children also play key roles. Akash Ambani chairs Reliance Jio Infocomm. Isha Ambani serves on executive boards. Anant Ambani leads the company's green energy initiatives. In a June 25 interview with McKinsey and Company, Mukesh Ambani spoke openly about the group's next chapter. "I used to push my leaders by saying, 'We have to be owners of technology. We must be innovators,'" he said. Regarding the ongoing AI competition, Asia's richest man emphasized that Reliance doesn't need to "go into the high-risk GPU game" but should focus on everything "downstream," attracting bright minds for digital transformation. As Reliance navigates sanctions-driven supply chain shifts while pursuing technological evolution, the conglomerate's ability to adapt and innovate positions it not just as India's industrial champion, but as a bellwether for how traditional energy giants can reinvent themselves in an era of digital disruption and geopolitical realignment. 2025-07-31 16:30:51

S.Korean agro-livestock industry takes breather as nation strikes trade deal with U.S. SEOUL, July 31 (AJP) - South Koreas agricultural and livestock sectors expressed relief on Thursday after the government said it had successfully defended the country's beef and rice markets during trade negotiations with the United States, despite facing intense pressure to open these sectors further. Kim Yong-beom, policy chief of the presidential office, told reporters that South Korea had faced "strong opening demands" from the U.S. regarding agricultural products but maintained its position on food security grounds. "There were even heated exchanges between both sides regarding beef age restrictions and rice imports, but we continued our defense and there were no additional concessions in this area," Kim said. South Korea has maintained a 30-month age limit on American beef imports since the 2008 bovine spongiform encephalopathy (BSE) crisis, commonly known as "mad cow disease." The restriction has remained a point of contention in bilateral trade relations for over a decade. American beef exporters have intensified lobbying efforts to persuade South Korea to lift the 16-year-old cattle age restriction, with the Office of the U.S. Trade Representative identifying the beef age limit as one of several non-tariff barriers affecting trade between the two countries. Local farmers had threatened collective action if the Korean government agreed to further liberalize the agricultural and livestock markets as bargaining chips in trade negotiations with the United States. According to sources familiar with the negotiations, Seoul initially considered making such concessions but ultimately decided to exclude these items, establishing them as non-negotiable boundaries. Instead, Korea considered expanding market access for feed crops, including corn and other biofuel feedstocks used in bioethanol production. The presidential office noted that appeals by the South Korean delegation to their U.S. counterparts may have contributed to the outcome. Korean negotiators emphasized to their American counterparts that South Korea was already a major importer of U.S. beef, with nearly 99.7 percent of its agricultural market open to American products. As for U.S. President Donald Trump's social media references to agricultural market opening statements saying, "they will accept American product including Cars and Trucks, Agriculture," Kim explained them to be "political expressions" and not reflected in ministerial-level negotiations. Despite Trump's previous remarks that were interpreted as attempts to link trade negotiations with security issues, defense cost-sharing arrangements were not included in the negotiation. Speculations say that specific defense burden-sharing matters may be discussed during a summit between President Lee Jae Myung and President Trump, which is expected to be arranged within two weeks through diplomatic channels. 2025-07-31 14:33:40

[[K-Tech]] LG CNS becomes first Korean firm to secure AI certifications from three major cloud providers SEOUL, July 31 (AJP) - LG CNS, the solution-developing wing of LG Group, said Thursday it has obtained Microsoft's "Build AI Apps on Microsoft Azure Specialization" certification, making it the first Korean company to hold generative artificial intelligence certifications from all three major global cloud service providers. The South Korean IT services company now holds AI specialist certifications from Microsoft, Amazon Web Services (AWS) and Google Cloud, the company said in a statement. The Microsoft certification requires partners to pass third-party audits on their technical capabilities in designing, building and operating applications based on its Azure platforms, while meeting standards for employee competency development. LG CNS and Microsoft have been collaborating on AI and cloud services, including jointly operating an "Innovation Journey Workshop" program for enterprise customers. The company previously became the first Korean firm to obtain AWS's "Generative AI Competency" certification and the first Asian company to receive Google Cloud's "Generative AI Service Specialization" certification. "Based on our globally recognized expertise, we will continue to provide differentiated customer value through AI services optimized for our corporate clients' businesses," said Kim Tae-hoon, senior vice president at LG CNS. 2025-07-31 13:41:08

South Korea strikes favorable tariff deal with US, presidential office says SEOUL, July 31 (AJP) - South Korea's presidential office said Thursday it secured a more favorable agreement than Japan in tariff negotiations with the United States, successfully limiting concessions while protecting key domestic markets. The announcement came after President Lee Jae-myung and US President Donald Trump revealed on social media that bilateral tariff talks had concluded with mutual 15 percent rates. The U.S. had initially planned to impose 25 percent reciprocal tariffs starting August 1, but these will be reduced to 15 percent under the new agreement. Kim Yong-beom, policy chief of the presidential office, said the deal included 15 percent tariffs on South Korean automobiles, though Seoul had argued for 12.5 percent until the final stages. The agreement establishes a $350 billion investment fund, with $150 billion dedicated to shipbuilding cooperation covering vessel construction, maintenance, and maritime equipment. An additional $200 billion fund will target semiconductors, nuclear power, secondary batteries, and biotechnology sectors where South Korean companies hold competitive advantages. Kim described the $200 billion as a "ceiling concept" with most funding expected to come through loans and guarantees rather than direct investment. The policy chief compared South Korea's deal favorably to Japan's earlier agreement, noting Korea's $350 billion commitment was smaller than Japan's $550 billion despite similar trade surplus levels. Excluding the shipbuilding fund led by Korean companies, South Korea's investment commitment represents just 36 percent of Japan's total, Kim noted. "We analyzed Japan's negotiations precisely and included far more safeguards in our agreement," Kim said. The agreement includes most-favored-nation treatment for future semiconductor and pharmaceutical tariffs, ensuring South Korea receives equal treatment with other countries. Kim added that South Korea successfully defended domestic rice and beef markets from additional opening requirements despite strong U.S. pressure, while topics such as defense cost-sharing, weapons purchases, and high-precision map data issues were not included in this agreement. Officials say specific dates for the Korea-U.S. summit promised by Trump within two weeks would be arranged through diplomatic channels. 2025-07-31 13:39:27

Health minister calls for tighter grip on e-cigarettes amid regulatory gaps SEOUL, July 31 (AJP) - Health Minister Jeong Eun-kyeong called for stricter oversight of liquid electronic cigarettes Thursday, arguing they should face the same regulatory framework as conventional tobacco products to close existing legal loopholes. Speaking to the National Assembly in written responses following her confirmation hearing, Jeong said synthetic nicotine-based liquid e-cigarettes pose health risks equivalent to traditional cigarettes and warrant identical regulatory treatment. "Synthetic nicotine liquid e-cigarettes are equally harmful to health as cigarettes and require the same regulations," Jeong said when asked about her stance on regulating the products. Under current tobacco business law, cigarettes are defined as products made entirely or partially from tobacco leaves, subjecting them to comprehensive oversight including manufacturing permits, health warnings, flavor restrictions and advertising limitations. However, most substances, also known as "e-liquids," "vape liquids," or "vape juices," contain nicotine that is extracted from the stem of tobacco plants or synthetically produced, and fall outside this legal definition, creating a regulatory blind spot that has allowed the products to operate with minimal restrictions. The minister pledged to support legislative efforts to expand the legal definition of tobacco from "tobacco leaves" to "tobacco and nicotine," bringing e-cigarettes under the same regulatory umbrella as conventional cigarettes. About 10 tobacco business law amendment bills are currently under review at the National Assembly's Strategy and Finance Committee, according to the health ministry. 2025-07-31 13:38:14

[[K-Trade]] S. Korea launches joint task force team to eradicate stock manipulation SEOUL, July 30 (AJP) - A joint team of South Korean financial regulators was launched on Wednesday, in a bid to eradicate stock price manipulation that has been plaguing the market. The joint response team, comprised of officials from the Financial Services Commission (FSC), the Financial Supervisory Service, and the Korea Exchange, is to detect illegal and unfair trading practices. "We will mark 2025 as the first year of exterminating stock manipulation by showing the wrongdoers how they can lose everything," said FSC Vice Chairman Kwon Dae-young at the hanging ceremony of the task force. "Once caught, they will be hit with penalties that exceed their illegal profits," Kwon added, promising that the team will take firm measures to set order in the capital market. Before the launch of the joint task force team, responsibilities for responding to unfair trading had been fragmented across several institutions, leading to delays in effective enforcement. The joint task force comes as President Lee Jae-myung holds onto his election promises of boosting fairness and transparency in South Korea’s markets, aiming to crack down on stock price manipulation and implementing a "one-strike-out" rule to deal decisively with major offenders. Starting October, those caught illegally trading stocks will be charged fines up to twice as much as their unjust gains, and the market monitoring system to be based on individuals rather than trading accounts. The current surveillance system focuses on accounts rather than individuals, making it difficult to pinpoint links between accounts held by the same individuals. Under a new "one-strike-out" rule, stock manipulators will be shut off from the capital market for up to five years, even disqualifying them from serving as executives at listed companies. 2025-07-30 16:41:41

[[K-Tech]] KITA urges nation to nurture fabless startups to boost semiconductor competitiveness SEOUL, July 30 (AJP) - South Korea must foster fabless semiconductor startups to strengthen its position in the rapidly expanding system semiconductor market driven by artificial intelligence growth, a trade association report said Wednesday. The Korea International Trade Association (KITA) released a report highlighting the urgent need to develop the fabless ecosystem as non-memory semiconductors increasingly dominate global markets. Korea's share of the global system semiconductor market stands at a mere 2 percent, trailing far behind the United States' commanding 72 percent, according to the report. Taiwan holds 8 percent, Japan 5 percent and China 3 percent. The disparity becomes more concerning as non-memory semiconductors, led by system chips, accounted for 75.3 percent of global semiconductor sales as of May. This share is projected to reach about 80 percent by 2028. Despite the challenges, Korea shows promise in fabless startup development, ranking fourth globally with 61 companies behind China's 567, the United States' 323 and India's 104. Korean fabless startups demonstrate strong innovation potential, with 42.6 percent holding at least one patent - the second-highest rate globally after Israel's 68.8 percent. However, the domestic ecosystem remains fragile, the report noted. Korean fabless startups attract an average of $37.8 million in cumulative investment, significantly less than China's $101.65 million and the United States' $82.72 million. About 95 percent of Korean fabless startups remain in early funding stages focused on product launches or business expansion, while mature companies pursuing overseas expansion represent 29.9 percent in the United States and 14.8 percent in China. The report recommended streamlining budget channels across multiple ministries and establishing clear allocation quotas for fabless firms within the government's semiconductor ecosystem fund. "The government should take the lead in creating the ecosystem, and in the long term, promote autonomous growth led by the private sector," said Heo Seul-bi, a KITA researcher. "If Korea concentrates on developing capabilities in neural processing units and edge devices where it has strengths, it can seize opportunities in global competition." 2025-07-30 14:18:29

[[K-Tech]] Krafton's Q2 net profit tumbles 95 percent despite record sales for first half of the year SEOUL, July 30 (AJP) - South Korean gaming giant Krafton, well-known for its flagship game “PUBG: Battlegrounds”, reported on Tuesday its second-quarter net income tumbled 95.4 percent due to increased operational costs. The company reported 15.5 billion won, around US$11.1 million, in net profit for the April to July period, down 95.4 percent compared to year-on-year, in a regulatory filing on Tuesday. Krafton attributed its sharp fall in net income to increased marketing expenses and labor fees. Despite its moody second quarter results, the company posted its highest sales for the January to June period, with sales nearing 1.53 trillion won, up 11.9 percent from the same period of last year. Operating profits for the first half of 2025 also rose 9.5 percent to 703.3 billion won. The firm analyzed its sales that mobile gaming contributed 960 billion won, followed by PC gaming with 543.2 billion won, console gaming and others with 33 billion won. Looking ahead, Krafton is to broaden its portfolio by digging new franchise intellectual properties under its five-year long-term strategy for new games. 2025-07-30 13:45:42

[[K-Tech]] Hyundai Motor's earnings drop sharply despite record sales, weighed down by US tariffs SEOUL, July 24 (AJP) - Hyundai Motor reported a double-digit drop in second-quarter operating profit on Thursday, as new U.S. tariffs and intensifying market competition eroded margins. Operating profit fell 15.8 percent from a year earlier to 3.60 trillion won, or about $2.6 billion — the company’s sharpest quarterly decline since the third quarter of 2020. The drop came even as revenue rose 7.3 percent to a record 48.29 trillion won, buoyed by strong sales of hybrid vehicles, solid performance in financial services, and favorable foreign exchange rates. Net income reached 3.25 trillion won, while Hyundai’s operating margin slipped to 7.5 percent, down from 9.5 percent a year ago. The company attributed the earnings decline primarily to the full brunt of recently imposed U.S. automotive tariffs, coupled with rising sales costs and increased use of incentives amid fierce competition in major markets. Global vehicle sales edged up 0.8 percent during the quarter. Overseas deliveries increased 0.7 percent to 877,296 units, while sales in the United States rose 3.3 percent to 262,305 units, as buyers rushed to secure vehicles ahead of anticipated price hikes stemming from the tariffs. Hyundai has so far kept U.S. prices steady despite the duties. Sales of eco-friendly vehicles — a category that includes hybrid, plug-in hybrid, and battery electric models — surged 36.4 percent year-on-year to 262,126 units globally. Electric vehicle sales totaled 78,802 units, while hybrid sales hit 168,703, reflecting growing adoption in Europe and an expanded hybrid lineup. Hyundai warned that trade-related uncertainty, particularly around U.S. tariff policy, remains the most significant risk to its outlook. The automaker also faces additional pressure with federal tax credits for electric vehicle purchases in the United States set to expire on October 1, potentially dampening demand in the second half of the year. Still, the company said it would maintain its annual earnings guidance for now. Hyundai added that it is preparing a “systematic response” ahead of the U.S. government’s expected announcement on tariff policy changes on Aug. 1. 2025-07-24 16:39:51

[[K-Tech]] From creepy-crawly to culinary contender: Companies bet big on edible insects SEOUL, July 24 (AJP) - The first bite delivered a crispy snap, followed by an unexpectedly savory burst — something between charred prawns and stir-fried anchovies. There was no musty aftertaste, no trace of the gamy aroma one might expect. “These are mealworms,” said Celina Lee, founder and chief executive of Grub Lab, a South Korean food-tech startup focused on edible insects. She watched her guest's reaction with a practiced calm, then offered a second helping — this time, a generous scoop of golden-brown slivers still bearing traces of their original form. “They taste better than they look, don’t they?” Grub Lab is one of South Korean firms betting that insects — once a novelty street snack — could become a cornerstone of future global diets. As the world grapples with the looming threat of food insecurity, the race to develop sustainable protein alternatives has accelerated, and insects are emerging as an unlikely frontrunner. With the global population expected to hit 10 billion by 2050, protein demand is projected to nearly double, putting unprecedented strain on agriculture and livestock production. In response, the food industry is advancing three main alternatives: plant-based meat for vegetarians, lab-grown meat for traditionalists, and edible insects for scalable, low-cost protein. South Korea, which has a long if sporadic tradition of insect consumption — including fried grasshoppers during harvest and silkworm pupae skewered on street corners — is positioning itself as a leader in the insect protein sector. A surge in patents, ranging from insect-based noodles to cheese, illustrates the scope of innovation. “Insects are remarkably efficient,” Lee told AJP. “They consume one-fifth the water and one-fifteenth the feed of traditional livestock, while emitting just a fraction of the carbon dioxide.” Referred to by industry insiders as “little cattle,” insects also require far less land, needing just one-fourteenth the space per gram of protein compared to cows. With breeding cycles as short as two months, they allow for multiple harvests per year — making them both cost-effective and climate-resilient. Market projections back the optimism. Precedence Research estimates that the global edible insect market, currently valued at $1.77 billion, will grow nearly sixfold to $9.14 billion by 2034. In terms of nutrition, insects outperform many conventional meats. According to South Korea’s Ministry of Food and Drug Safety, mealworms contain 53 grams of protein per 100 grams — about 1.5 times more than pork. Rice grasshoppers contain even more: 64.2 grams of protein per 100 grams and nearly 40 times the iron. Their fat content is significantly lower, and what fat remains consists mostly of healthy unsaturated fatty acids. “Insects are the protein of the future,” said Kim Jae-keun, a professor of smart food resources at Donga University of Health. “They’re a viable alternative, particularly as extreme weather events — like the unusually intense monsoon season we saw this July — drive up feed prices and threaten traditional livestock.” Kim sees smart insect farms as the next frontier: vertically integrated, climate-controlled facilities that can produce reliable yields regardless of external weather conditions. South Korea’s government is beginning to act on that vision. On July 16, officials in Gangwon Province broke ground on a 20 billion won ($14.5 million) industrial complex dedicated to insect smart farming. The 2.8-hectare facility will focus on mass-producing mealworms, grubworms, crickets, and silkworms. “We want zero waste,” said Seok Young-seek, the center’s director. “Insects aren’t just food. Their chitin shells can be used in bioplastics and sensors. Their waste becomes fertilizer. There’s enormous potential.” The first batch — an estimated 200 tons of mealworms — is expected by mid-2026. The complex has already drawn attention from major firms: LG CNS is participating in automation design, while food giants Pulmuone and Hanmi Nutrition have expressed interest in integrating insect protein into their offerings. Despite the momentum, government data shows the number of edible insect businesses in South Korea grew only modestly in recent years — from 2,535 in 2019 to 3,031 in 2023, an 18 percent increase. That growth pales in comparison to the 180 percent surge in the four years leading up to 2015. Total sales in 2023 reached just 47.3 billion won, marking a 5.3 percent increase from the previous year — a sign that consumer acceptance is still lagging. “It’s really the visual aspect that turns people off,” said Lee Joon-ha, an expert in industrial insects at the National Institute of Agricultural Sciences. “People associate bugs with filth or household pests. It’s a deeply ingrained aversion that’s hard to change.” To combat the stigma, officials have organized edible insect festivals and launched public campaigns, including naming contests for farmed bugs. But Lee says a more lasting shift will come only when insects are reimagined in the culinary space. “Right now, we mostly see insects powdered, juiced, or dried. That’s not enough,” he said. “We need genuinely appetizing, original food products — things people want to eat, not just tolerate.” Until then, startups like Grub Lab are pushing forward, hoping that taste, not appearance, will eventually win over the masses. “Once people try it,” Celina Lee said, offering another sample, “they usually come back for more.” 2025-07-24 14:14:35