AJU PRESS - ASIA NEWS HUB

Journalist

Kim Dong-young davekim0807@ajupress.com

Krafton opens cultural gaming hub in Seongsu-dong, Seoul SEOUL, July 10 (AJP) - Krafton, the South Korean game developer best known for the global hit PlayerUnknown’s Battlegrounds (PUBG), is venturing beyond screens with the launch of a new three-story cultural and gaming complex in Seoul’s Seongsu-dong, a district known for its blend of street culture and creative retail. Set to open to the public on Friday, the “PUBG Seongsu” complex was unveiled to the media on Thursday, offering a first look at Krafton’s ambitious attempt to build an immersive, real-world destination for fans and the wider public. Occupying a series of renovated red-brick industrial buildings, the complex combines e-sports infrastructure with lifestyle and cultural amenities. It features a 72-seat PC gaming zone, a two-story cafe equipped with DJ booths and a library, outdoor playgrounds designed for skateboarding, and event halls capable of hosting themed exhibitions and catering. There are also do-it-yourself workshop spaces tailored for local youth. “This space will serve as a multi-purpose cultural venue central to exhibitions, performances, and community engagement,” said Jeong Hyeon-seop, the project’s lead producer. The company said it will use the site to host regular fan gatherings, streamer-led meetups, game forums, and small-scale e-sports competitions, reinforcing its ties with PUBG’s community while attracting a broader demographic beyond hardcore gamers. Kim Beom-soo, head of Krafton’s communications team, said the project aims to reimagine the role of game studios in public life. “We designed PUBG Seongsu as a place where games intersect with everyday culture, not just digital entertainment,” he said. Krafton, which went public in 2021, has increasingly sought to diversify its brand presence while staying rooted in the battle royale genre that propelled it to international prominence. The new complex reflects a growing trend among game publishers to establish offline spaces where gaming, fashion, art, and fandom converge. To mark the opening weekend, visitors will be invited to participate in a “stamp rally” mission — an interactive scavenger hunt designed to guide them through the complex’s offerings. 2025-07-10 16:09:27
Bank of Korea halts rate cuts amid soaring housing prices SEOUL, July 10 (AJP) - The Bank of Korea left its benchmark interest rate unchanged at 2.5 percent on Thursday, pausing its monetary easing cycle as policymakers contend with a surge in housing prices and rapidly rising household debt. The decision underscores mounting concern within the central bank over asset bubbles forming in the capital region. In recent weeks, apartment prices in Seoul have accelerated at their fastest pace in nearly seven years. “Stabilizing market sentiment to prevent further price surges in metropolitan housing and managing household debt are critical priorities,” said Rhee Chang-yong, the bank’s governor, during a news conference. Data from the Korea Real Estate Board showed apartment prices in Seoul rose 0.43 percent in the fourth week of June from the previous week — the sharpest weekly gain since September 2018. The price rally has been accompanied by a spike in household borrowing. Bank lending to households rose by 6.2 trillion won ($4.5 billion) last month, while total financial sector lending jumped 6.5 trillion won, marking the largest monthly increase in eight months. In response, financial regulators in June rolled out tighter mortgage rules in Seoul and neighboring areas, capping home loans at 600 million won in an effort to curb speculative buying. The central bank had begun cutting rates in October, lowering borrowing costs in successive moves aimed at reviving domestic demand and insulating South Korea’s export-driven economy from global headwinds, including protracted trade tensions with the United States. The rate is now down from a peak of 3.25 percent. Still, policymakers remain cautious. While domestic consumption is expected to recover gradually — bolstered by improving business sentiment and government stimulus — exports are forecast to lose momentum amid ongoing U.S. tariff actions and uncertainty surrounding trade negotiations. The BOK maintained its inflation forecast at 1.9 percent for both headline and core consumer prices, in line with projections made in May. Officials expect inflation to hover around 2 percent this year, citing subdued demand-side pressures and stable global oil prices. 2025-07-10 14:03:43
Trump's 200 percent drug tariff threat draws cautious response SEOUL, July 9 (AJP) - South Korean pharmaceutical and biotech companies are preparing for potential U.S. tariffs on drug imports after President Donald Trump announced plans for sweeping trade measures that could impose duties of up to 200 percent. While the announcement has prompted firms like Celltrion and SK Biopharmaceuticals to activate contingency strategies, industry analysts say the broader impact on the Korean pharmaceutical sector is likely to be modest — at least for now. Speaking during a Cabinet meeting at the White House, Trump said the United States would impose high tariffs on imported pharmaceuticals, part of what he described as a broader effort to onshore critical industries. “They’re going to be tariffs at a very high rate, like 200 percent,” Trump said, adding that companies would have “about a year, year and a half” to adjust before the tariffs take effect. Commerce Secretary Howard Lutnick later told CNBC that more specific details about the tariff plan would be released by the end of the month. In Seoul, the announcement sent pharmaceutical stocks into a brief tailspin before recovering, as major players rushed to reassure investors. Celltrion published a letter to shareholders early Wednesday, outlining measures it has already taken to shield itself from possible fallout. The company said it had stockpiled two years’ worth of product inventory for the U.S. market and had secured contracts with American contract manufacturing organizations to localize production. The firm is reportedly weighing the acquisition of a U.S.-based pharmaceutical manufacturer to solidify its local presence. SK Biopharmaceuticals, which markets the epilepsy drug Cenobamate in the U.S., said it has completed due diligence on a production facility in Puerto Rico and secured U.S.-based manufacturing partners approved by the Food and Drug Administration. Samsung Biologics said it expected minimal direct exposure, given its focus on outsourced development and production rather than direct exports. Some industry observers expressed skepticism about the policy’s trajectory, noting that similar threats from Trump did not translate into major structural changes for the industry. “South Korea has relatively few drug substance or finished drug exporters at present, aside from major pharmaceutical companies,” said Hwang Ju-rie, director of public and international relations at the Korea Biotechnology Industry Organization. “For tariffs to significantly impact the industry, we would need at least another decade, as most biotech firms remain in the research and development phase.” 2025-07-09 16:12:57
South Korea's economy stalls despite stimulus, KDI warns SEOUL, July 8 (AJP) - South Korea’s economy continues to lose steam despite the rollout of a supplementary budget earlier this year, the state-run Korea Development Institute said in its latest monthly report, highlighting persistent weakness in the construction sector and mounting external pressures. In its July economic trends report released Tuesday, the institute offered a downbeat assessment of the economy’s trajectory, stating that growth indicators remained “at a similarly subdued level as in the previous month.” “The Korean economy remains at a similarly subdued level as in the previous month, due to continued weakness in the construction sector and worsening external conditions,” the report said. The KDI’s gloomy appraisal marks the third consecutive month it has flagged a slowdown, underscoring concerns that May’s supplementary budget — which prioritized disaster recovery efforts — has failed to generate a significant rebound. The warning comes at a fraught moment for Asia’s fourth-largest economy. With exports under mounting strain, U.S. President Donald Trump has threatened to impose a 25 percent tariff on all South Korean goods starting Aug. 1 — a move that would strike at the heart of the nation’s trade-driven growth model. At home, the government is preparing a second supplementary budget, this time centered on direct stimulus measures, including unprecedented “cash-like” coupon distributions to households. While the KDI acknowledged continued strength in semiconductor exports — a bright spot amid otherwise softening manufacturing activity — it noted that overall production momentum had slowed. In particular, auto exports, already under pressure from U.S. tariff threats, have declined for a second straight month. Manufacturing output fell 3.0 percent month-over-month in May, with automotive production slipping 2.0 percent. Construction, which has been a persistent drag, showed little sign of recovery. Despite the weak indicators, the report pointed to a rebound in consumer sentiment as a potential source of near-term support. The consumer sentiment index jumped to 108.7 in June, up sharply from 101.8 in May, suggesting a possible turnaround in domestic demand as the government readies further stimulus. The KDI expressed cautious optimism that the second supplementary budget — unlike the first, which was narrowly targeted — may help stabilize momentum in the months ahead. Still, analysts warn that without a resolution to external risks, including the trade tensions with the Trump administration, any domestic recovery may prove fragile. 2025-07-08 15:14:00
Trump says will impose 25 percent tariffs on all Korean goods starting August SEOUL, July 8 (AJP) - U.S. President Donald Trump has vowed to impose 25 percent tariffs on all South Korean goods starting Aug. 1, unless Seoul agrees to a new trade deal with the United States. In a letter posted to his social media platform, Trump gave the government of President Lee Jae Myung just three weeks to reach an agreement before the sweeping duties take effect. The announcement comes as his previous tariff measures are set to expire on Tuesday, heightening pressure on Seoul to make concessions or face far-reaching consequences for its export-driven economy. “Our relationship has been, unfortunately, far from reciprocal,” Trump wrote, criticizing what he described as an imbalanced trading relationship. “Starting on August 1, 2025, we will charge Korea a tariff of only 25 percent on any and all Korean products sent into the United States, separate from all sectoral tariff.” The proposed tariff, Trump argued, is a corrective measure aimed at reducing what he characterized as a "significant trade deficit" with South Korea. However, he acknowledged that the 25 percent rate would still fall “far less than what is needed” to eliminate the disparity. The letter also included a veiled warning: if Seoul retaliates with countermeasures, Washington would match those actions with additional tariffs “on top of the base 25 percent rate.” Despite the combative tone, the president appeared to leave a door open for negotiation. He suggested that the tariffs could be adjusted — “upward or downward” — depending on future talks and Seoul’s willingness to remove what he described as “trade barriers.” In a gesture aimed at encouraging foreign direct investment, Trump said that South Korean companies that manufacture in the United States would benefit from fast-tracked regulatory approvals, processed “quickly, professionally, and routinely — in other words, in a matter of weeks.” The ultimatum to South Korea was one of two issued Monday. In a separate statement, Trump said the United States would impose 25 percent tariffs on all Japanese imports, raising the rate from a previously established 24 percent as part of a parallel campaign to “rebalance” trade relationships in the Asia-Pacific region. Trump's new timeline is likely to intensify diplomatic and economic discussions in Seoul, where the export-heavy economy is deeply intertwined with American markets. 2025-07-08 10:49:49
S. Korea, UK hold FTA upgrade talks in Seoul to strengthen partnership SEOUL, July 7 (AJP) - South Korea and the United Kingdom kicked off their fifth round of negotiations to upgrade their bilateral free trade agreement in Seoul, with about 60 delegates from both sides gathering in Seoul for five days of intensive talks. The negotiations, running from Monday through Friday, aim to modernize the Korea-UK FTA that was hastily signed after Britain's exit from the European Union. The original deal largely mirrored the terms of South Korea's existing trade pact with the EU bloc. The South Korean team is headed by Kwon Hye-jin, the country’s chief trade negotiator from the Ministry of Trade, Industry and Energy. Team Britain is led by Kwon’s counterpart Adam Fenn, chief negotiator at the United Kingdom's Department for Business and Trade. The two countries are seeking to ease rules of origin requirements to make them more business-friendly while introducing new trade standards covering supply chains and digital commerce. This marks their fifth attempt to bridge gaps on key sticking points. Negotiators will tackle 16 separate areas including services, investment, digital trade, rules of origin and government procurement as they work to narrow differences on major issues dividing the two sides. "The importance of concluding free trade agreements to counter deepening protectionism is growing day by day," Kwon said. She expressed hope the upgraded FTA would help both nations jointly respond to global supply chain risks and expand trade and investment cooperation. The negotiation follows previous March talks held in London, discussing subjects such as bioeconomy, gender equality, and strengthening economic bonds between South Korea and the UK. 2025-07-07 14:38:43
S. Korea to launch campaign to lower wedding costs SEOUL, July 7 (AJP) - The South Korean government announced Sunday that it will launch a national campaign to address the soaring cost of weddings and shift public perceptions around the issue. The initiative follows President Lee Jae-myung's campaign pledge to ease the financial burdens associated with marriage. High wedding costs are often cited as one of the reasons young people are delaying marriage and starting families. The Fair Trade Commission (FTC) recently commissioned research aimed at promoting more rational spending in the wedding services market, which continues to draw criticism for its inflated pricing practices. According to data released in May by the Korea Consumer Agency (KCA), the average wedding service contract in South Korea costs around 21 million won ($15,353). In Seoul's Gangnam district, well-known for its luxurious lifestyle culture, the average rises to about 34 million won, highlighting stark regional disparities. These figures include only core wedding services such as venue rental, dresses, and makeup, excluding additional extras. Many couples turn to professional planners to navigate the complexity of wedding arrangements, despite the added expense. "Without a wedding planner, couples must arrange everything themselves, and coordinating schedules becomes extremely difficult. Even with the extra costs, the time saved is a lifesaver," said a 30-year-old woman who recently got married. In terms of consumer satisfaction, the wedding service industry ranked last among 40 sectors in the KCA’s 2024 survey, scoring just 50.4 out of 100. The average score across all industries was 65.7. The wedding sector received the lowest marks across all categories, including fairness of pricing, reliability, diversity of choices, and consumer protection. In response, the FTC plans to hold public contests to collect ideas on improving consumer culture. It also intends to issue guidelines to help prevent financial disputes tied to weddings. The FTC issued warnings in April to several well-known wedding planning companies for false and misleading advertising. In February, the National Tax Service launched a broad audit of the wedding service industry, focusing on pricing practices for photography, dress rentals, and cosmetic services. 2025-07-07 11:03:09
HYBE founder Bang Si-hyuk grilled by regulators over alleged IPO fraud SEOUL, July 3 (AJP) - South Korean financial regulators have summoned Bang Si-hyuk, the founder and chairman of HYBE, for questioning over allegations of fraudulent trading practices linked to the firm's initial public offering. Bang, the influential music executive who oversaw HYBE’s transformation into a global entertainment powerhouse, appeared before the Financial Supervisory Service (FSS) late last month to address accusations that he misled investors in the run-up to the company’s 2020 stock market debut, sources from the FSS said Thursday. According to the allegations, Bang privately informed early investors and venture capital firms that HYBE had no plans to go public, only to subsequently arrange for those stakeholders to sell their shares to a private equity fund reportedly controlled by a close associate. That fund then profited significantly from HYBE’s IPO, generating an estimated 400 billion won, or roughly $294 million. Industry sources said Bang had a profit-sharing agreement with the fund — entitling him to more than 30 percent of its trading gains — but failed to disclose the arrangement in HYBE’s official securities filings. Regulators are investigating whether the alleged omission constitutes a breach of disclosure requirements under South Korean financial law. The FSS is currently reviewing the case and is expected to determine next steps through the Financial Services Commission’s Securities and Futures Commission. A formal referral to prosecutors remains under consideration. HYBE, formerly known as Big Hit Entertainment, went public in October 2020 and quickly became one of South Korea’s most valuable entertainment companies, propelled by the global success of BTS and an expanding roster of K-pop talent and international acquisitions. Neither HYBE nor Bang has publicly commented on the investigation. 2025-07-03 17:30:36
Republicans press Trump administration to challenge Korea's online platform regulation SEOUL, July 3 (AJP) - A group of 43 House Republicans is urging the Trump administration to confront South Korea over a proposed law regulating online platforms, warning that the measure could become a flashpoint in ongoing trade talks between the two countries. In a letter sent to U.S. Trade Representative Jamieson Greer, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, the lawmakers called the proposed regulation a discriminatory barrier that unfairly targets American digital companies. The effort was led by Representatives Adrian Smith of Nebraska and Carol Miller of West Virginia. The legislation, championed by President Lee Jae Myung and previously pursued by his predecessor, Yoon Suk Yeol, has drawn criticism from U.S. tech firms and policymakers who argue it mirrors the European Union’s Digital Markets Act — a law that imposes strict rules on large online platforms. "One barrier that we urge you to address in any negotiations is proposed legislation advanced by the Korea Fair Trade Commission and embraced by the new Lee Jae Myung government, which disproportionately targets U.S. digital companies for heightened regulatory requirements," the lawmakers wrote in the letter, which was posted on Representative Smith’s website. The Republicans said the bill imposes "disparate legal and enforcement standards designed to undermine" innovative U.S. business models, while giving a pass to Chinese digital giants such as ByteDance, Alibaba and Temu. They accused the Korean government of advancing policies that “serve the strategic interests of the Chinese Communist Party.” The lawmakers also took aim at South Korea’s Fair Trade Commission, accusing it of conducting aggressive enforcement actions — including early-morning inspections — against American firms. They claimed such tactics constrain U.S. companies’ ability to operate freely in the Korean market. The letter marks a rare, coordinated intervention by a large bloc of congressional Republicans into a specific regulatory proposal in a close U.S. ally, and highlights the growing scrutiny of digital trade barriers abroad. It also signals a broader willingness by Republican lawmakers to link digital market access to broader strategic concerns about China’s influence in the region. While the Trump administration has not publicly responded to the letter, analysts here say the issue could become a sticking point in future trade negotiations with Seoul. 2025-07-03 15:34:48
Korea seeks to address China's export controls on key materials SEOUL, July 3 (AJP) - South Korea and China held a new round of bilateral supply chain talks in Seoul on Thursday, as the two countries grapple with growing disruptions stemming from Beijing’s tightening export controls on key industrial materials. The meeting brought together senior officials including Kim Jong-chul, director-general for international trade relations at South Korea’s Ministry of Trade, Industry and Energy, and Wang Liping, his counterpart from China’s Ministry of Commerce. Since August 2023, China has steadily expanded its list of export restrictions on strategic resources, starting with gallium and germanium — materials essential to semiconductor and defense technologies. In the months that followed, Beijing added graphite, antimony, tungsten and tellurium to the list. Tensions escalated further in April, after Washington raised tariffs on a wide range of Chinese imports. In response, China imposed new export controls on seven rare earth elements, including samarium, used in cobalt magnets; gadolinium, for medical imaging contrast agents; and dysprosium, vital to electric vehicle motors. Other materials now under restriction include lutetium, used in radiation therapy; scandium, a strengthening additive in aerospace aluminum alloys; yttrium, for solid-state lasers; and terbium, essential for display phosphors. At Thursday’s meeting, South Korean officials urged Beijing to minimize the impact of these measures on domestic manufacturers and to ensure the continued flow of critical inputs. Seoul also proposed that Chinese authorities host a series of policy briefings later this year to enhance transparency and predictability in supply chain management. The dialogue is part of a broader framework known as the “supply chain hotline,” a government-to-government mechanism launched in December 2023 to facilitate communication and preempt disruptions. The first meeting was held in Seoul, followed by a second session in the eastern Chinese city of Yantai in November. While no major breakthroughs were announced, both sides expressed commitment to ongoing dialogue amid a rapidly shifting geopolitical and trade landscape. 2025-07-03 13:32:08