Naver posts mixed earnings results for 1st quarter SEOUL, May 9 (AJP) - Naver posted robust first-quarter sales while its net profit fell, according to figures released by the South Korea's largest portal on Friday. Sales for the first three months of this year reached 2.79 trillion won (US$1.99 billion), up 10.3 percent from the same period last year, backed by steady growth across its diverse business sectors despite intensifying competition and challenges in emerging technologies including artificial intelligence (AI). Operating profit jumped 15 percent to 505.3 billion won, but net profit tumbled 23.8 percent to 423.7 billion won. The search-related division, which takes the lion's share of the company's business sectors, saw an 11.9 percent surge in revenue to 1.01 trillion won, driven by AI-optimized advertising. The commerce unit followed with a 12 percent growth on-year, with on-platform transaction volume increasing by 10.1 percent. The fintech division saw an 11 percent increase, processing 19.6 trillion won in payments through its app Naver Pay, up 17.4 percent from the previous year. "Naver secured unmatched competitiveness by building an ecosystem that AI cannot replace, connecting our own content and data," said CEO Choi Soo-yeon. Addressing concerns about AI's impact on the market overall, Choi commented that, based on internal data, there were no adverse effects, with traffic continuing to rise for business-related queries where the company maintains relative strength, compared to market rivals. Naver also revealed plans to launch a service in partnership with grocery delivery app Kurly in the second half of the year, further strengthening its recently launched separate shopping platform. 2025-05-09 16:40:58

Rising demand for data centers reshapes global real estate market, research reveals SEOUL, May 9 (AJP) - A surge in global demand for data centers is significantly influencing the dynamics of the real estate market around the world, according to a recent analysis by Cushman & Wakefield. The global commercial real estate services firm compared data centers worldwide and found that development pipelines have reached historic levels this year, with North and South America driving market growth. Virginia stands at the forefront with ongoing development exceeding 15 gigawatts in planned capacity, along with the expansive presence of data centers for tech giants such as Amazon, Google, and Microsoft. "We expect total capacity to continue expanding across all global regions, with each projected to see at least double-digit growth based on current development pipelines," said John McWilliams, a head researcher at Cushman & Wakefield. Development strategies are pivoting from urban centers toward peripheral locations. Phoenix, Sydney, and Virginia are garnering attention as suburban markets capable of accommodating high-power integration, reflecting an industry-wide push to secure expansive sites for sustainable campus-style developments. Non-traditional industrial sectors including electric vehicle and semiconductor companies, have joined the competition to acquire sites with pre-established utility connections. These properties have become valuable strategic assets amid long wait times for power supply. While the Midwest region of America maintains relatively affordable costs, areas such as Indianapolis and Iowa face mounting price pressures due to demand spillover from neighboring high-cost markets. The Asia-Pacific region continues its steady growth despite supply constraints. Ten of the world's top 30 locations are included in this region, with Johor Bahru in Malaysia and Singapore recording the lowest vacancy rates. Beijing secured eighth place in overall rankings, surpassing several U.S. cities, and ranks second globally behind Virginia in operational market size. Notable growth in the Asia-Pacific region also includes Seoul, which ranked ninth in the established market rankings, while Busan secured third place in the emerging market rankings. 2025-05-09 15:58:21

Riding tailwind of LNG Carriers, South Korea sets sights on lucrative next-generation liquid hydrogen carriers SEOUL, May 9 (AJP) - Riding tailwind of LNG carrier sales, South Korea eyes lucrative next-generation liquid hydrogen carriers Amid heated competition with China for market dominance in global shipbuilding, South Korea is intensifying concerted efforts to develop liquid hydrogen carriers as the next lucrative frontier for the industry. The Ministry of Trade, Industry and Energy said on Friday that it has formed a task force for the development of liquid hydrogen carriers. Liquid hydrogen carriers are seen as next-generation, high-tech vessels that could help South Korean shipbuilders maintain their competitive edge and tap into emerging markets, following their success with liquefied natural gas (LNG) carriers. These vessels would transport hydrogen in liquid form at temperatures of -253°C, reducing its volume to 1/800th and improving transportation efficiency by more than tenfold, though no commercial large-scale ships of this type currently exist. In November 2024, the ministry mulled strategies for liquid hydrogen carriers fueled by hydrogen, aiming to use vaporized hydrogen from the cargo or separate non-carbon fuels such as ammonia and hydrogen as the propulsion system for the ships. Currently, major market player HD Hyundai is pioneering high-pressure direct injection ammonia dual-fuel engines, securing orders for the world's first ammonia-powered vessels in October 2024. In such vessels, hydrogen may also be used as energy sources, as ammonia breaks down into hydrogen and nitrogen. The push for liquid hydrogen carriers comes in line with the United Nations' campaigns for net-zero coalitions, which aim to cut emissions as much as possible to achieve a balance where greenhouse gas emissions are offset by removals from the atmosphere. While LNG remains the most readily available option currently, hydrogen is emerging as a prominent alternative to meet global carbon neutrality requirements in the near future. The ministry pledged to pour approximately 55.5 billion won ($39 million) in liquid hydrogen carriers this year and plans to construct the world's largest demonstration vessel by 2027. With over 100 organizations participating in around 43 projects simultaneously, the task force will collaborate with shipbuilding companies, universities, and research institutes to accelerate commercialization. "We will actively support these projects and relevant technologies to develop large-scale liquid hydrogen carriers and facilitate construction processes by streamlining legislation and other measures, while establishing a supply chain for them, with the goal of having them recognized as global standards," said a ministry official. 2025-05-09 14:27:46

Lotte Cinema, Megabox agree to merge, challenging CGV Logos of Lotte Cultureworks and Megabox JoongAng/ Courtesy of Lotte Group, JoongAng Group SEOUL, May 8 (AJP) - South Korea’s second- and third-largest cinema operators, Lotte Cinema and Megabox JoongAng, have agreed to merge, forming a formidable new entity poised to reshape the nation’s film exhibition landscape. JoongAng Holdings, the parent company of Megabox, announced on Thursday that it had signed a memorandum of understanding (MOU) with Lotte Group to combine their film-related subsidiaries: Megabox JoongAng and Lotte Cultureworks, which oversees Lotte Cinema. The move marks one of the most significant realignments in South Korea’s media and entertainment sector in years. The newly formed joint venture will be jointly managed by both conglomerates, pending a business combination review by the Fair Trade Commission. Further details of the merger are expected to emerge in the coming months, following additional negotiations and regulatory scrutiny. The merger, if finalized, would directly challenge the country’s largest cinema chain, CJ CGV, altering long-established dynamics in the competitive multiplex market. According to the Korean Film Council, CJ CGV operated 1,346 screens nationwide in 2024, making it the country’s dominant exhibitor. Lotte Cinema managed 915 screens, while Megabox operated 767. The merger would give the new entity control of 1,682 screens — overtaking CGV in sheer scale. The agreement also extends beyond exhibition, encompassing a merger of the two groups’ film distribution arms: Lotte Entertainment, which backed major hits including the Along With the Gods series and Hansan: Rising Dragon, and Plus M Entertainment, the distributor behind 12.12: The Day and The Roundup franchise. In a joint statement, both companies framed the merger as a bid to revitalize South Korea’s film industry, which has struggled to regain momentum following the COVID-19 pandemic. “This MOU is intended to combine the strengths of both companies to improve competitiveness, enhance financial stability, and provide differentiated customer experiences,” a Lotte Group spokesperson said. A representative from JoongAng Group added that the partnership would focus on expanding content diversity, investing in domestic film production, and improving audience services. “Our goal is to establish a sustainable business environment by securing competitive content, creating premium viewing experiences, and fostering stability in the Korean film market.” The companies also signaled plans to expand high-end cinema formats, such as Megabox’s Dolby Cinema and Lotte Cinema’s Superplex, as part of their strategy to draw audiences back to theaters. 2025-05-08 17:25:00

Korea, Czech deepen nuclear, tech ties despite court ruling delaying major deal SEOUL, May 8 (AJP) - South Korea and the Czech Republic have signed a suite of bilateral agreements aimed at strengthening cooperation in nuclear energy and advanced technology sectors, even as a key contract for the construction of nuclear reactors was postponed by a Czech court ruling. In a two-day diplomatic visit led by South Korean Minister of Trade, Industry and Energy Ahn Duk-geun, the two countries signed 14 MOUs and cooperation agreements, underscoring a shared commitment to long-term strategic collaboration. Minister Ahn met with Czech Prime Minister Petr Fiala and Senate President Miloš Vystrčil in Prague, reaffirming bilateral ties amid growing energy and technological challenges in Europe. The centerpiece of the talks — a planned contract between Korea Hydro & Nuclear Power (KHNP) and Czech energy company ČEZ to construct two nuclear reactors at the Dukovany site — was delayed following a court decision a day earlier. While details of the legal ruling remain limited, the postponement introduced a notable complication into what had been anticipated as a major breakthrough in South Korea’s push to export nuclear technology. Still, officials from both nations pressed ahead with the broader agenda. During the meetings, Ahn and Fiala discussed partnerships spanning industry, energy, construction, infrastructure, and science and technology. In the presence of Prime Minister Fiala, the two countries' industry ministers signed a renewed nuclear cooperation agreement, building on a memorandum signed last year. The pact includes commitments by South Korea to support the Dukovany project, participate in nuclear development in third countries, and collaborate on the construction of two additional reactors in the Czech Republic. As part of the broader effort, KHNP and its consortium, known as “Team Korea,” signed ten MOUs with Czech companies aimed at facilitating technical cooperation and supply chain partnerships for the country’s planned nuclear expansion. Beyond energy, the two governments signaled deeper ties in future-focused industries. A new memorandum on battery cooperation was signed, with both countries agreeing to align their industrial policies in response to the European Union’s forthcoming battery regulations. Additional agreements included initiatives to support academic and research institutions, such as partnerships between South Korean institutes and Czech universities to establish joint R&D centers. Among them were plans for an advanced vehicle technology hub in Ostrava and a robotics cooperation center in Prague. “This year marks the 35th anniversary of diplomatic ties and the 10th anniversary of our strategic partnership,” said Ahn. “South Korea and the Czech Republic have built a relationship of trust. We will maintain close communication with the Czech side to reach a final agreement on the nuclear project as soon as possible.” 2025-05-08 16:27:02

Lee Jae-myung courts business leaders, pledging support for growth Lee Jae-myung, the presidential candidate of the main opposition Democratic Party (DP) speaks at a meeting with South Korean business leaders at the Korea Chamber of Commerce and Industry in Seoul on May 8, 2025. Joint Press Corps SEOUL, May 8 (AJP) - Lee Jae-myung, the Democratic Party’s presidential candidate, met Thursday with leaders of South Korea’s major business groups, stressing the central role of the private sector in reviving the nation’s faltering economy. “Companies are at the center of economic revival,” Lee told a gathering at the Korea Chamber of Commerce and Industry in Seoul, which included the heads of five influential business federations. “The era when government leads economic and industrial issues has already passed. We must trust the expertise and capabilities of the private sector, with government providing solid support.” The forum brought together some of South Korea’s most powerful corporate figures, including Chey Tae-won, chairman of the Korea Chamber of Commerce and SK Group; Sohn Kyung-shik, chairman of the Korea Enterprises Federation; Ryu Jin of the Federation of Korean Industries; Yoon Jin-sik of the Korea International Trade Association; and Choi Jin-sik, who leads the Federation of Middle Market Enterprises of Korea. Lee has in recent months sought to position himself as pragmatic on economic matters. On Thursday, he praised South Korea’s rapid transformation from a post-colonial nation into an industrial and democratic powerhouse, crediting the private sector for its role in driving exports and economic development. Still, the mood among business leaders was cautious. Many expressed concerns over persistent stagnation in consumption, investment, and exports, as well as heightened geopolitical tensions on the Korean Peninsula. “Our economic situation is very difficult,” said Sohn, the business federation chairman. “Diplomatic issues remain unresolved, and economic momentum is weakening.” Ryu of the Federation of Korean Industries called for bold government action to support emerging industries. “Aerospace, artificial intelligence, robotics, biotechnology, next-generation shipbuilding, defense industries, and smart farming all urgently require active government backing,” he said. He also pointed to the need for infrastructure investment and tax reform to reduce the burden on businesses. In recent weeks, Lee has faced scrutiny over his proposal to introduce a 4.5-day workweek, raising concerns among business leaders about potential labor disruptions. Addressing those concerns, he sought to reassure his audience that no such measure would be implemented unilaterally. “Some worry that I might suddenly push this through using emergency fiscal measures,” he said. “That’s not possible. It requires thorough dialogue and preparation between labor and management.” 2025-05-08 15:38:40

In shift from oil, Saudi Aramco bets on clean energy Khursaniyah Plant operated by Saudi Aramco/ Courtesy of Saudi Aramco Editor's Note: This article is the 17th 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 7 (AJP) - Saudi Aramco, the oil behemoth that has long fueled the Saudi economy, is increasingly steering its focus toward cleaner technologies, signaling a significant pivot in one of the world’s most carbon-intensive industries. On April 21, Aramco, through its subsidiary Saudi Aramco Technologies Company (SATC), announced a joint development agreement with China’s BYD, one of the world’s leading electric vehicle manufacturers. The partnership aims to advance technologies related to new energy vehicles, including those that improve powertrain efficiency and reduce emissions. “The collaboration between SATC and BYD aims to support energy efficiency improvements, and it builds on Aramco’s extensive research and development of new energy solutions,” said Ali A. Al-Meshari, a senior vice president at Aramco. The move is part of a broader strategy to diversify beyond crude oil and position itself as a global leader in low-carbon and chemical innovation. “Aramco is exploring a number of ways to potentially optimize transport efficiency, from innovative lower-carbon fuels to advanced powertrain concepts,” Al-Meshari added. Founded in 1933 through a concession agreement between the Saudi government and Standard Oil of California, Aramco has grown into one of the most profitable companies in the world. Its first commercial oil production came in 1938 at the Dammam No. 7 well, known as the “Prosperity Well.” The company was rebranded as the Arabian American Oil Company (Aramco) in 1944, and by 1962 it had produced 5 billion barrels of crude oil. Saudi Arabia assumed full ownership of Aramco in 1980. The company was formally renamed Saudi Arabian Oil Company, or Saudi Aramco, in 1988. Under the leadership of Ali I. Al-Naimi, its first Saudi president and later the nation’s oil minister, Aramco began expanding its global footprint, acquiring refining and marketing assets across Asia and Europe. Its first major international acquisition came in 1991 with a 35 percent stake in South Korea’s SsangYong Oil Refining Company, later renamed S-Oil. That was followed by interests in the Philippines’ Petron Corporation and Greece’s Motor Oil (Hellas). In 2024, Aramco reported net income of $106.2 billion, down from $121.3 billion in 2023, reflecting a 12.4 percent decline. The company cited production cuts of 500,000 barrels per day that began in April 2023, part of broader measures by the Organization of the Petroleum Exporting Countries (OPEC) to manage global supply. Revenue fell modestly to $434.6 billion, while operating profit dropped 10.8 percent to $206.5 billion. Despite the earnings dip, Aramco has underscored its commitment to emissions reduction and sustainability. "We are leveraging the Kingdom's advantage in solar and wind resources and geology to capture any and all value additive opportunities,” said Aramco CEO Amin H. Nasser. “Renewables are a key component of our decarbonization levers.” The company has also aligned its strategy with Saudi Arabia’s Vision 2030, an ambitious plan to reduce the kingdom’s dependence on oil and diversify its economy. As part of that effort, Aramco recently signed a non-binding agreement with Ma’aden, the region’s largest mining firm, to begin lithium production by 2027 — a key step toward building a local electric vehicle supply chain. Aramco has also taken a stake in MidOcean Energy, a move intended to build its capabilities in liquefied natural gas. The company is reportedly investing around 10 percent of its total capital expenditure into a dedicated green energy division known as the New Energies Organization, focused on lower-carbon solutions. In South Korea, Aramco is advancing the Shaheen project, a major petrochemical venture under S-Oil that is expected to come online in late 2026. With a price tag of $6.64 billion, Shaheen aims to produce high volumes of ethylene, propylene, butadiene, and benzene — chemicals essential to modern manufacturing — while prioritizing energy efficiency and emissions reductions. The project is viewed as a potential catalyst for South Korea’s declining petrochemical sector, and is expected to secure long-term supply agreements with the Onsan National Industrial Complex in Ulsan. As Aramco transforms itself from a petroleum powerhouse into a more diversified energy and chemicals firm, its decisions are likely to reverberate across the global energy landscape. For both Saudi Arabia and its international partners, such as China and South Korea, the company’s new trajectory may prove critical in shaping the future of energy security and sustainability. 2025-05-08 10:27:48

Samsung's Harman acquires premium audio brand B&W in $350 mln deal A prototype automobile incorporating Harman International Industries technology showcased at the CES 2025/ Courtesy of Samsung Electronics SEOUL, May 7 (AJP) - Samsung Electronics' subsidiary Harman International Industries has agreed to acquire the consumer audio business of United States-based med-tech firm Masimo for $350 million, marking Samsung's largest acquisition since purchasing Harman itself for about $8 billion in 2016. The deal, revealed on Wednesday, will bring several luxury audio brands under Harman's umbrella, including the prestigious British loudspeaker manufacturer Bowers & Wilkins (B&W), Denon, Definitive Technology, Marantz, and Polk Audio. Founded in 1966, B&W has built a reputation for its distinctive designs, premium materials, and exceptional sound quality that has garnered acclaim from audio professionals and enthusiasts worldwide. The acquisition is expected to bolster Harman's already formidable position in the global audio market, where it currently holds about 60 percent market share in portable audio with brands such as JBL, Harman Kardon, and AKG. "Built on a shared legacy of innovation and excellence in audio technology, this combined family of brands, together with the talented employees of both companies, will deliver complementary audio products, strengthen our value proposition and offer more choices to consumers," said Dave Rogers, president of Harman's lifestyle division. Masimo vice chairman Quentin Koffey also expressed great satisfaction in the deal, saying, "Finding the right home for this business has been a stated priority of the new board from day one, and this transaction represents an important milestone." Samsung Electronics indicated that the deal carries strategic significance beyond the audio market, potentially enhancing sound technology across its mobile devices, televisions, and home appliances through expanded synergies. The South Korean tech giant has already incorporated Harman's design and engineering expertise into various fields since acquiring the company, including connected car systems for automakers, audio and visual products, enterprise automation solutions, and services supporting the internet of things. Samsung had previously said during its March annual shareholders meeting that the company would pursue meaningful mergers and acquisitions to address investor concerns about growth, the firm determined to produce tangible results this year. 2025-05-07 14:16:44

KHNP pledges to comply with Czech court order blocking nuclear deal Dukovany Nuclear Power Station/ AFP-Yonhap SEOUL, May 7 (AJP) - Korea Hydro & Nuclear Power (KHNP) said Wednesday it would honor legal proceedings in the Czech Republic, following a court decision to block the signing of a multibillion-dollar nuclear power contract. A regional court in Brno issued an injunction on Tuesday, just one day before KHNP and Czech utility Elektrarna Dukovany II (EDU II) were scheduled to finalize a deal to build two nuclear reactors at the Dukovany site. The move comes as part of an ongoing legal dispute involving French energy firm Électricité de France (EDF), which filed a complaint challenging KHNP’s selection as the preferred bidder. The Czech Republic’s competition authority dismissed EDF’s appeal in late April, but the Brno court will now examine the case. “We respect the legal procedures of the Czech Republic and will fully comply with all related laws and regulations,” KHNP said in a statement. The company leads the South Korean consortium bidding for the project, often referred to as “Team Korea.” KHNP also defended the integrity of the tender process, saying it had been conducted “fairly, transparently, and in accordance with the law” under the supervision of the Czech government, national power company CEZ, and EDU II. The company expressed disappointment over what it described as ongoing efforts by a competitor to overturn the bidding result. 2025-05-07 10:40:00

S. Korean government secures $9.6 billion extra budget SEOUL, May 01 (AJP) - South Korea’s ruling and opposition parties agreed on Thursday to pass a 13.8 trillion-won ($9.6 billion) supplementary budget aimed at revitalizing the economy. Officials from the ruling People Power Party and the main opposition Democratic Party said they had reached a deal to approve the budget at a parliamentary plenary session scheduled for later on Thursday. As part of the agreement, the parties allocated 400 billion won for the issuance of local currency vouchers to support small merchants and the self-employed — a significant reduction from the 1 trillion won originally proposed by the Democratic Party. The agreement also includes 170 billion won to fund discounts on agricultural, livestock and fisheries products in an effort to stabilize consumer prices. 2025-05-01 13:44:40