GS charts new course with digital pivot, generational shift Editor's Note: This article is the 19th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, May 21 (AJP) - As it marks its 20th anniversary this year, GS Group — one of South Korea’s largest conglomerates — is doubling down on digital transformation in a bid to reverse slowing growth and streamline operations in an increasingly volatile economic landscape. The group commemorated the milestone on March 28 with a ceremony at the newly inaugurated GS Art Center, where leaders of its corporate relatives — LG, LIG, and LS — gathered in a rare family reunion of the once-unified LG empire. “GS has consistently pursued growth despite rapidly changing business environments,” said Chairman Huh Tae-soo in a celebratory toast. “We’ve cultivated a world-class petroleum export business in a country without a single drop of oil, built retail networks that enhance daily convenience, and expanded our construction business to improve quality of life.” As the group embarks on its third decade, Huh emphasized a return to the founding ethos of “change and challenge,” positioning innovation as a catalyst for the next phase of growth. Now ranked among South Korea’s top 10 business groups, GS traces its roots to LG Group, co-founded by Koo In-hoe and Huh Man-jung in 1947. Family expansion and growing concerns over succession eventually led to the separation of LG into four corporate branches: LG, LIG, LS, and GS. GS Group officially came into being in 2004 under the leadership of Huh Chang-soo, who established GS Holdings and spun off the group’s construction, oil refining, and logistics arms — forming what are now GS Engineering & Construction (GS E&C), GS Caltex, and GS Retail. During its early years, GS pursued rapid expansion. In 2009, the group acquired trading firm SsangYong for 120 billion won ($84 million), rebranding it as GS Global to capitalize on international networks. In 2014, it executed its largest deal yet: a 564.9 billion won acquisition of STX Energy, which became GS E&R. The group’s assets more than tripled from 18.7 trillion won in 2004 to 58.5 trillion won in 2014, while revenue nearly tripled to 64 trillion won. Although growth has moderated in recent years, the company has focused on consolidating core businesses. But challenges remain. GS Group’s total fair assets fell 1.9 percent over the past year to 79.31 trillion won — bucking the trend of Korea’s major conglomerates, whose combined assets rose 7.4 percent to 3,301.8 trillion won. GS Caltex continues to anchor the group’s performance, accounting for 57 percent of total sales, 30 percent of assets, and 27 percent of EBITDA in 2024, according to Korea Credit Rating. Last year, GS Caltex posted 47.61 trillion won in revenue and 548 billion won in operating profit — down 2 percent and a steep 67.5 percent, respectively, from the previous year. A GS spokesperson cited a slowdown in Chinese demand and uncertainties surrounding U.S. tariff policies as key headwinds for the refining and petrochemical sectors. “The resolution of tariff uncertainties and a rebound in global demand will be crucial for our second-half performance,” the official said. Still, GS Caltex is pressing forward on sustainability. On May 14, the company announced it had led regulatory improvements at the International Maritime Organization (IMO) to promote bio-marine fuels. Amid external pressure and a tightening market, GS Group reported first-quarter revenue of 6.24 trillion won in 2025 — a 0.8 percent decline from the previous year and a 2.6 percent dip from the prior quarter. Operating profit rose 29.5 percent quarter-on-quarter to 800.2 billion won, but still marked a 21.3 percent drop year-on-year. Net profit surged 297.1 percent from the previous quarter to 291.5 billion won, though it remained 38.8 percent lower than the same period last year. In response, the group trimmed its number of affiliates in 2024 to boost operational efficiency. Key moves included GS E&C’s sale of stakes in Zeit O&M and GS Elevator to private equity firm Genesis. Inside the company, a generational shift is also underway. Chairman Huh Tae-soo is overseeing a fourth-generation leadership transition, with younger executives stepping into key roles. Among them is Huh Suh-hong, appointed CEO of GS Retail in 2024. Seen as a departure from GS’s traditionally conservative approach, Huh Suh-hong has pushed for bold moves — including the acquisition of biosimilar company Hugel, signaling a shift toward healthcare and consumer innovation. Now leading the retail arm, he aims to reposition the company amid growing competition from e-commerce players. “We’re laying the groundwork for a new era,” he said recently. To that end, GS Group is investing in artificial intelligence across its petroleum, construction, and retail divisions — part of a broader effort to reignite growth and remain competitive in a fast-evolving global economy. 2025-05-22 09:52:33

CJ CheilJedang showcases Korean cuisine at National Restaurant Association Show SEOUL, May 21 (AJP) - CJ CheilJedang, one of South Korea’s leading food manufacturers, showcased its signature Korean culinary products at the 2025 National Restaurant Association Show, held May 17–20. The 106th iteration of the world’s largest foodservice exhibition drew approximately 50,000 attendees and featured 2,225 companies across 900 product categories, serving as a global stage for emerging trends and innovations in the food industry. CJ CheilJedang operated two dedicated booths — one promoting its popular Bibigo brand, and the other highlighting Seoulfully, a line of premium Korean flavoring sauces developed for professional chefs. The company emphasized its proprietary fermentation technology as a core differentiator. Five CJ products were honored with 2025 Food and Beverage Awards, recognized for their innovation and impact on contemporary menu development. “The enthusiastic response from global industry professionals at this year’s show affirms the strong potential of our Korean sauces and flavors in international markets,” a company spokesperson said. 2025-05-21 13:40:58

FDA conducts inspection of Samsung Biologics production facilities SEOUL, May 21 (AJP) - Inspectors from the U.S. Food and Drug Administration have begun a formal inspection of Samsung Biologics’ production facilities in Songdo, Incheon, according to industry sources, Wednesday. The inspection, which commenced on Monday and is scheduled to run through May 27, is focused on evaluating the company’s manufacturing processes. FDA officials visited Plants 3 and 4 on Tuesday, conducting what sources described as an "unusually detailed review." Such thorough site visits by foreign regulators are relatively rare, particularly in South Korea. In anticipation of the inspection, Samsung Biologics has mandated that employees adhere to strict safety protocols, including the use of personal protective equipment. The measure is reportedly intended to ensure compliance with both regulatory standards and internal safety procedures. Industry insiders noted that some members of the inspection team are Korean nationals. A spokesperson for Samsung Biologics declined to provide specifics, citing client confidentiality. "We cannot comment on inspection-related matters as they involve client information," the company said in a statement. The representative added that the current inspection is unrelated to a separate FDA initiative involving unannounced foreign facility visits. The FDA has signaled plans to expand its oversight of overseas manufacturers of pharmaceuticals and food products. According to the Korea Biotechnology Industry Organization, the effort builds on a pilot program launched under an executive order signed by President Donald Trump on May 5. The program, initially implemented in India and China, aims to align the scrutiny of foreign facilities with the standards applied to domestic manufacturers. Under the order, the FDA was granted broader authority to increase foreign inspection fees and to enhance risk-based oversight mechanisms. The agency was also tasked with ensuring that overseas facilities are inspected within 90 days of receiving orders and with making inspection frequency data publicly available by country and manufacturer. Samsung Biologics, a key player in South Korea’s biopharmaceutical industry, has provided contract manufacturing services for a range of global pharmaceutical companies. 2025-05-21 10:24:12

Nvidia pledges AI supercomputer for Taiwan as Computex 2025 opens SEOUL, May 20 (AJP) - Asia’s largest information technology trade show, Computex 2025, opened Tuesday with more than 1,400 companies from around the world unveiling their latest innovations, underscoring the central role of artificial intelligence in the industry’s future. The exhibition kicked off with momentum following a keynote speech on Monday by Jensen Huang, chief executive of Nvidia, who announced plans to build Taiwan’s first large-scale artificial intelligence supercomputer. The project, developed in partnership with Hon Hai Precision Industry, also known as Foxconn, and the Taiwanese government, is part of Nvidia’s broader strategy to expand its infrastructure footprint in the region. “Having a world-class AI infrastructure here in Taiwan is really important,” Huang said during his address, adding that the company’s cutting-edge Blackwell AI platform would be made available to researchers, startups and established firms including TSMC. Huang’s speech drew a full house, with industry leaders including SK hynix President Kwak Noh-jung seated in the front row. He also detailed Nvidia’s ongoing AI collaborations with Samsung Electronics, Nokia and Kyocera, citing progress on a next-generation AI-based wireless access network (AI-RAN) being developed with Samsung. In a surprise announcement, Huang revealed plans for Nvidia Constellation, a new office in Taiwan designed to support the company’s growing local workforce. The weeklong event has drawn a roster of high-profile speakers, including Qualcomm President Cristiano Amon and Foxconn Chairman Young Liu, signaling Computex’s evolution from a regional hardware showcase into a global platform for artificial intelligence and next-generation computing. South Korea’s tech firms made a strong showing this year. SK hynix returned with a dedicated exhibition booth to highlight its high-bandwidth memory technologies, including the sixth-generation HBM4, which was first introduced in March at Nvidia’s GTC 2025 conference. The company currently supplies Nvidia with fifth-generation HBM3E 12-layer memory. Samsung Display, meanwhile, made its Computex debut, presenting a lineup of OLED technologies, including its new Ultra Thin One (UT One) panel, designed for high-resolution, low-power IT devices. The company also featured a robot demonstration using Rainbow Robotics’ dual-arm mobile unit to showcase the flexibility and lightweight nature of its OLED displays. Several South Korean semiconductor startups are also aiming to establish their global footprint through the exhibition. Mobilint is introducing a proprietary neural processing unit for on-device AI applications, while Padu is promoting its customizable solid-state drive platform, Flex SSD. Computex 2025 runs through May 23 at the Taipei Nangang Exhibition Center. 2025-05-20 16:41:43

Lotte Department Store to host global retail forum next month SEOUL, May 20 (AJP) - Lotte Department Store will co-host the World Department Store Summit (WDSS) in Seoul next month, marking the first time the global retail conference is held in South Korea, the company announced on Tuesday. The two-day event, set for June 11 and 12 at the Lotte Hotel Seoul, will bring together senior executives from more than 20 department store groups across 10 countries. This year’s theme, “How to Best Captivate Customers,” will explore strategies for consumer engagement in an evolving retail landscape. The summit is organized by the Intercontinental Group of Department Stores, a Zurich-based alliance comprising 44 members from 38 countries. Lotte is the only South Korean retailer in the organization. “Hosting the IGDS summit for the first time in Korea is recognition of K-retail by the global market,” said Chung Joon-ho, chief executive of Lotte Department Store, who is slated to deliver the keynote address. The agenda features eight sessions focused on retail transformation, emerging technologies, consumer trends, innovation, and service excellence. Notable speakers include Brad Bickley, global president of Nuna, and Fanya Chandler, president of Nordstrom. First launched in London in 2008, the WDSS has since been held in 15 cities, including New York (2010), Zurich (2016), and Berlin earlier this year. The summit will conclude with a tour of Lotte’s flagship store in Myeongdong, where delegates will examine the retailer’s operational model and future plans. 2025-05-20 15:56:09

Won-based digital currency becomes hot topic in presidential race SEOUL, May 20 (AJP) - Stablecoins have become an unexpected battleground in South Korea’s presidential election, as major candidates debate the merits and risks of introducing a won-based digital currency. While proponents frame the move as a way to bolster national financial sovereignty, critics warn of regulatory gaps and potential misuse. The opposition Democratic Party (DP), led by presidential contender Lee Jae-myung, has proposed the issuance of a stablecoin backed by the South Korean won. The party argues that such a step would counterbalance the increasing dominance of the U.S. dollar in global digital asset markets and advance South Korea’s position in the fast-evolving financial technology landscape. Stablecoins — digital assets pegged to traditional fiat currencies like the dollar or euro — have drawn attention worldwide for their promise of faster, cheaper transactions. Their growing use as payment methods, however, has also raised red flags among regulators due to the risk of illicit activity and insufficient oversight. During a nationally televised debate on May 18, Reform Party candidate Lee Jun-seok pressed Lee Jae-myung for details on the Democratic Party’s proposal. “I’m curious about what mechanisms the DP will establish to prevent the illegal circulation of won-based stablecoins,” Lee Jun-seok said. “How much will be set aside as reserves?” Lee Jae-myung replied that the proposed system would rely on a “one-to-one reserve system” to ensure stability, but stopped short of addressing concerns over criminal misuse or the framework for financial compliance. Those concerns are not unfounded. According to blockchain analytics firm Chainalysis, stablecoins accounted for roughly 63 percent of all illicit crypto transactions globally in 2024. The Financial Action Task Force has since called for the application of international anti-money laundering standards to digital assets, including stablecoins. Adding to the scrutiny, experts gathered on May 19 for a panel discussion hosted by the Federation of Korean Industries, where they urged lawmakers to proceed with caution. “Korea should expedite second-phase legislation in line with global trends,” said Kim Hyo-bong, an attorney at Bae, Kim & Lee. Kim noted that the United States is advancing its comprehensive digital asset regulation — the so-called GENIUS Act — while the European Union has already enacted its Markets in Crypto-Assets (MiCA) regulation. Lee Seung-seok, a researcher at the Korea Economic Research Institute, warned that premature adoption of stablecoins — particularly those tied to foreign currencies — could have unintended macroeconomic effects. “If dollar-based stablecoins become widely accepted in Korea, they could trigger structural changes in the won-dollar exchange rate,” he said. “This could lead to increased demand for foreign currency and decreased use of the won, potentially causing exchange rates to spike.” 2025-05-20 14:10:12

Lee Jae-myung bets big on artificial intelligence to revive economy Editor’s Note: This is the first in a two-part series examining the economic campaign promises of Democratic Party presidential candidate Lee Jae-myung. SEOUL, May 20 (AJP) - South Korea’s Democratic Party presidential candidate, Lee Jae-myung, is wagering his economic revival plan on a massive national investment in artificial intelligence, vowing to elevate the country into the ranks of the world’s top AI powers with a bold 100 trillion won ($70.6 billion) initiative. “I will position Korea as one of the world’s top three AI powers,” Lee declared in a Facebook post on April 14, framing AI as the centerpiece of his campaign for economic leadership. The former Gyeonggi Province governor unveiled his plan at Pangyo Techno Valley, the nation’s equivalent of Silicon Valley, outlining a vision to transform South Korea into a global economic powerhouse. At the heart of this vision is a commitment to scale the country’s AI capabilities to match or exceed those of leading nations and to increase the government’s AI-related budget to globally competitive levels. “If all citizens use the so-called ‘Korean ChatGPT,’ we can rapidly accumulate vast datasets,” Lee said. “This will lead to productivity innovation, the creation of new industries, and a strengthened national competitiveness.” The pledge comes amid growing concern that South Korea is falling behind in the global AI race. According to Stanford University’s “AI Index Report 2025,” private investment in AI in South Korea fell to $1.33 billion last year from $1.39 billion the year before, dropping its global ranking from ninth to 11th. By comparison, the United States led with $110 billion, followed by China with $9.3 billion. Industry experts have underscored the urgency of building a domestic AI ecosystem. “The utmost priority is not just supporting small and medium-sized enterprises, but fostering a strong internal market,” said Lee Kyung-il, chief executive of Saltlux, an AI company based in Seoul. “We need South Koreans using the best AI technologies and receiving high-quality training to stimulate market competition.” Lee’s “AI for All” initiative, which proposes free access to advanced AI tools for every citizen, reflects his broader “basic society” philosophy. But critics argue that the plan lacks specificity, particularly in defining the AI models to be supported. With existing tools like ChatGPT and Google’s Gemini already offering free versions, analysts question whether his proposal is truly groundbreaking. Still, the campaign’s ambitions are formidable. Lee has promised to acquire more than 50,000 high-performance GPUs and to establish a national AI data integration cluster. He also pledged regulatory exemptions to support emerging AI-driven industries. But experts warn that simply amassing hardware is not enough. “Becoming a global AI leader requires more than processors,” said one professor affiliated with an AI research institute. “We need significant investment in research and development, high-quality datasets, advanced model designs, and the engineering capability to make full use of the hardware.” Beyond technical capacity, energy consumption may present the most immediate obstacle. The NVIDIA A100 Tensor Core GPU, a common workhorse in AI data centers, consumes up to 400 watts. With 50,000 units, consumption could reach 20 megawatts — equivalent to a small or mid-sized thermal power plant. Factoring in infrastructure like cooling systems, power usage could soar to 30 megawatts. Over the course of a month, that translates to 21,600 megawatt-hours — roughly equal to the monthly electricity use of more than 80,000 South Korean households, based on data from the Korea Electric Power Corporation. The International Energy Agency estimates that global electricity demand from data centers will more than double by 2030, reaching 945 terawatt-hours — surpassing the current annual electricity usage of Japan. South Korea’s Ministry of Trade, Industry and Energy projects that domestic AI data centers will require about 8.2 terawatt-hours of electricity by 2025, increasing to 30 TWh by 2038. These projections present a challenge for the Democratic Party, which has historically opposed nuclear energy. Meanwhile, global tech giants including Amazon, Google and Microsoft are moving to adopt small modular reactors to meet surging energy needs. Compounding the difficulty, South Korea’s power grid is already under strain. The high-voltage direct current (HVDC) project intended to transmit electricity from the East Coast to the metropolitan region is now nearly seven years behind schedule due to opposition from local governments. With transmission bottlenecks already limiting power flow from regions to the Seoul capital area, some coal-fired power plants in the Yeongdong region reportedly operated at just 20 to 30 percent capacity last year. To address these constraints, Lee has proposed the construction of a “West Coast Energy Highway” by 2030, intended to deliver 20 gigawatts of offshore wind power from the southwest coast through a subsea transmission grid. A broader plan envisions a U-shaped energy corridor connecting the Honam and Yeongnam regions to eastern offshore wind farms by 2040. But energy experts remain skeptical. “To advance the plan as promised, massive resources must be secured, and we need the technical ability to lay submarine cables across the west coast,” said Yoo Seung-hoon, a professor at Seoul National University of Science and Technology. “There are still no detailed financial or technical plans for implementation and commercialization.” Yoo added that similar pledges by rival candidates also suffer from a lack of specificity, particularly given South Korea’s challenges with community opposition to large-scale infrastructure projects. Even as the government allocates substantial venture capital for AI development, some in academia warn the approach may be misdirected. “Many of our brightest minds still leave the country to work abroad,” said Choi Jae-sik, a professor at the KAIST Graduate School of AI. “We may be lacking the systems necessary to reward their efforts here. Culture matters, and we need solutions that people can relate to.” Despite the hurdles, Lee has continued to cast his vision in existential terms. “An overwhelming and complex crisis looms before us,” he said in a May 12 speech launching his campaign. “To overcome the trade crisis driven by the United States and the fierce global AI competition, the nation must unite. Every citizen must be part of the solution.” 2025-05-20 11:04:52

SK Telecom breach exposes nearly 27 million subscriber records SEOUL, May 19 (AJP) - Nearly all customers of SK Telecom, South Korea’s largest wireless carrier, may have been affected by a major cybersecurity breach that exposed nearly 10 gigabytes of sensitive subscriber identification data, the government said on Monday. A joint investigation by the Ministry of Science and ICT and the Korea Internet & Security Agency (KISA) found that the breach compromised more than 26.95 million subscriber identification numbers — a figure that exceeds the company’s reported 25 million customers. The data breach, which was discovered last month, is believed to have gone undetected for nearly three years. Investigators determined that malicious code was first implanted on June 15, 2022, allowing attackers persistent access to SK Telecom’s internal systems through 23 compromised servers. Officials said 25 types of malware were deployed in the attack, 24 of which exploited the Berkeley Packet Filter — a tool used to monitor network traffic that made the intrusions especially difficult to detect. “The extracted database may include test data or temporary identifiers used by SK Telecom,” said Lee Dong-geun, head of the Korea Internet Security Center at KISA. He added that additional analysis is required to determine how many legitimate customer accounts were affected. Initial findings from April 29 had pointed to five infected servers, but a broader investigation later revealed that 18 more systems had been compromised, significantly expanding the scope of the breach. The revelation has raised national security concerns, with some experts arguing that the scale of the incident warrants government-level intervention beyond corporate responsibility. Despite the scope of the intrusion, investigators said the stolen data could not be used to clone smartphones or gain physical access to mobile networks. However, SK Telecom has been directed to implement additional safeguards for potentially affected users. The National Intelligence Service has launched security audits across central government agencies, local governments, and public institutions in response to the breach. As of Monday, no further intrusions had been detected in either public or private networks. 2025-05-19 16:52:56

South Korea downplays market fallout from US credit downgrade SEOUL, May 19 (AJP) - South Korea’s Ministry of Economy and Finance convened an emergency meeting on Monday to evaluate the potential ripple effects of Moody’s downgrade of the United States’ sovereign credit rating, concluding that the impact on domestic markets would likely remain limited. The meeting, held via conference call and chaired by Vice Finance Minister Yoon In-dae, came two days after Moody’s Investors Service lowered the U.S. long-term issuer rating to Aa1 from Aaa. The outlook was simultaneously revised from negative to stable. Moody’s said the downgrade reflects “the increase over more than a decade in government debt and interest payment ratios to levels that are significantly higher than similarly rated sovereigns.” However, the agency emphasized that the United States “retains exceptional credit strengths such as size, resilience and dynamism and the continued role of the U.S. dollar as the global reserve currency.” South Korean officials characterized the move as a delayed realignment with other major ratings firms. Fitch Ratings cut the U.S. rating in August 2023, and S&P Global Ratings downgraded the country in 2011. In Washington, the White House dismissed the downgrade, attributing it to fiscal mismanagement under the previous administration. “If Moody’s had any credibility, they would not have stayed silent as the fiscal disaster of the past four years unfolded,” said spokesperson Kush Desai. While Seoul’s response was measured, officials acknowledged that the downgrade could exacerbate short-term volatility, especially amid ongoing uncertainties tied to U.S. trade policy. The Ministry of Finance pledged to maintain close oversight of global and domestic markets through its regular meeting on macroeconomic and financial issues, known as F4. 2025-05-19 15:20:23

Korean grape exports soar to record high SEOUL, May 19 (AJP) - South Korea’s grape exports surged to an all-time high in the first quarter of 2025, nearly doubling from the same period a year earlier, according to customs data released Monday. Export volume reached 1,412 metric tons between January and March, an 89.8 percent increase year-over-year, the Korea Customs Service said. Despite a decline in average prices — from 5,389 won per kilogram in March 2024 to 4,978 won this year — the total value of grape exports climbed to $13.83 million, up 45 percent. That marks the fastest growth rate among South Korean fresh food products generating more than $10 million in export revenue. Taiwan was the largest importer, accounting for 42.1 percent of total shipments, or 594 tons. It was followed by Hong Kong (225 tons), the United States (157 tons), Vietnam (146 tons), and Singapore (114 tons). Officials attribute the increase in demand largely to the popularity of Shine Muscats, a premium grape variety prized for its sweetness, durability, and extended shelf life. “The exceptional quality, sweetness, and superior shelf life of our flagship Shine Muscats have driven increasing demand across overseas markets,” said an official from the Ministry of Agriculture, Food and Rural Affairs. Expanded domestic cultivation has also bolstered supply and improved international price competitiveness, further fueling the export boom, the official said. Agricultural experts expect growth to continue, particularly after Australia eased quarantine restrictions in late April on Shine Muscats — a move that opens a key market previously limited to other South Korean grape varieties such as Campbell Early and Geobong. The updated regulations require only standard protocols: registered export districts, fruit bagging, and cold disinfestation treatment — measures already in place for other varieties. 2025-05-19 11:16:34