Scrutiny intensifies on MBK Partners chief amid Homeplus crisis Financial Supervisory Service Governor Lee Bok-hyun speaks at a media conference, March 19, 2025. Yonhap SEOUL, March 20 (AJP) - South Korea's Financial Supervisory Service (FSS) has launched an investigation into private equity firm MBK Partners over its role in the court-supervised restructuring of the retail chain Homeplus. FSS Governor Lee Bok-hyun said Wednesday the regulator's task force had begun an inspection of MBK, the majority shareholder of Homeplus. The inquiry follows heightened concerns about MBK's transparency, particularly after Chairman Kim Byung-ju failed to appear at a National Assembly hearing on Tuesday. "We have initiated an investigation into MBK to verify allegations surrounding the financial distress of Homeplus," Lee said, adding that Kim's absence from the parliamentary inquiry was "regrettable." Under South Korean capital market laws, the FSS has the authority to examine private investment entities when deemed necessary for financial market stability or to uphold fair trading practices. Investigators are particularly focused on whether MBK issued commercial paper and short-term bonds while having prior knowledge of the company’s credit downgrade and an impending court receivership — actions that could constitute criminal offenses if proven. The FSS had previously opened investigations into Shinyoung Securities, which underwrote Homeplus' short-term bond issuance, as well as Korea Investors Service and Korea Ratings, following Homeplus’ application for court receivership on March 13. 2025-03-20 16:13:19

China's Temu expands in South Korea with major logistics hub Logo of Temu shown on a laptop/ Getty Images SEOUL, March 20 (AJP) - Chinese e-commerce giant Temu has secured its first major logistics facility in South Korea, signaling a significant escalation in its expansion strategy just two years after entering the market. According to industry sources, the company has signed a long-term lease for a sprawling distribution center in Gimpo near Seoul. The 165,000-square-meter facility — roughly the size of 23 soccer fields — features ten floors above ground and one below, equipped with both ambient and cold storage capabilities. Strategically located near Incheon International Airport, Gimpo International Airport, and Incheon Port, the facility will provide Temu with streamlined access to South Korea’s capital region. Operations will be managed by Lotte Global Logistics. This marks the first time a Chinese e-commerce company has established such a large-scale logistics presence in South Korea. The move follows Temu’s February announcement that it was actively recruiting local sellers for its open-market platform. Industry analysts suggest that the facility will serve as a pivotal outpost for Temu’s efforts to penetrate the Korean market. By reducing delivery times for low-cost Chinese products, the logistics hub could enable nationwide one- to two-day shipping and same-day delivery within the Seoul metropolitan area. "By integrating budget-friendly Chinese goods with expedited delivery, Temu has the potential to disrupt the competitive landscape," said an industry insider. Temu’s aggressive push into South Korea comes as it faces mounting challenges in the United States, where President Donald Trump’s anti-China policies have presented significant hurdles. Initially launched in the U.S. in September 2022 as a subsidiary of NASDAQ-listed Pinduoduo Holdings, Temu has struggled under the policies of the second Trump administration, despite the U.S. being its primary market. 2025-03-20 14:02:23

National debt of South Korea surpasses 6,000 trillion won for first time Bundles of banknotes/ Yonhap SEOUL, March 20 (AJP) - South Korea’s national debt surpassed 6,222 trillion won ($4.27 trillion) for the first time in the third quarter of 2024, reaching approximately 2.5 times the country’s gross domestic product, according to data released on Thursday by the Bank for International Settlements. The country’s non-financial sector credit — which includes household, corporate and government debt — rose 4.1 percent from a year earlier to 6,222 trillion won as of the third quarter of 2024. Corporate debt accounted for the largest share at 2,798 trillion won, followed by household debt at 2,283 trillion won. Government debt stood at 1,141 trillion won, according to the data. Government debt has surged by approximately 120 trillion won, or 11.8 percent, in a year, outpacing the growth rates of corporate and household debt, which increased by 2.9 percent and 2.1 percent, respectively. 2025-03-20 13:35:41

Korean pharma leader Celltrion's biosimilar push gains momentum Celltrion's plant/ Courtesy of Celltrion Editor's Note: This article is the 11th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, March 19 (AJP) - South Korean biopharmaceutical firm Celltrion is making significant strides in the U.S. biosimilar market, a rapidly evolving and highly competitive sector, even as potential tariffs cast uncertainty over the industry’s future. The company has started the year on strong footing, securing four approvals from the U.S. Food and Drug Administration as of March 19, with two additional applications pending. Among its latest approvals are Omlyclo, a treatment for food allergies and asthma; Osenvelt and Stoboclo, both for osteoporosis; and Avtozma, designed for arthritis patients. Biosimilars are biologic drugs developed to be highly similar to already approved reference products whose patents have expired. They offer a cost-effective alternative without compromising efficacy or safety. On March 13, Celltrion launched Steqeyma, its biosimilar treatment for autoimmune diseases, including plaque psoriasis and Crohn’s disease, in the U.S. market. “Celltrion is the leader in biosimilar transactions in South Korea and is poised to maintain a strategic advantage over domestic competitors,” said Nelluri Geetha, a pharmaceutical analyst at GlobalData. Celltrion's biosimilar product Remsima/ Courtesy of Celltrion Founded in 2002 by Chairman Seo Jung-jin, Celltrion has focused on developing biosimilars for blockbuster drugs nearing the end of their patent protection, supported by an expanding global distribution network. The company’s first biosimilar, Remsima, a treatment for rheumatoid arthritis, was approved by South Korea’s Ministry of Food and Drug Safety in 2012. However, its global rollout took longer, receiving FDA approval in April 2016 and European Medicines Agency approval in February 2017. Since then, Remsima has emerged as Celltrion’s flagship product. In 2020, Celltrion announced plans to merge with subsidiaries Celltrion Pharm and Celltrion Healthcare. The merger was met with investor pushback amid allegations of accounting irregularities. Ultimately, Celltrion merged with Celltrion Healthcare in December 2023, while plans to integrate Celltrion Pharm were abandoned in August 2024. In September 2024, the company established Celltrion Biosolutions, a contract development and manufacturing organization, aiming to offer tailored biopharmaceutical services. Celltrion reported annual revenue of 3.56 trillion won ($2.46 billion) in 2024, marking a 63.5 percent increase year-over-year, though operating profit declined by 24.5 percent to 492 billion won. The company’s biosimilar segment grew by 57.7 percent to 3.11 trillion won, bolstered by both established and newly launched products. Notably, sales of the Remsima product line surpassed 1.2 trillion won, accounting for 35.6 percent of total revenue. Remsima also achieved a historic milestone, becoming the first biosimilar to exceed the market share of its reference product, Janssen’s Remicade. Despite its success, Celltrion faces looming challenges as the Trump administration weighs new trade policies. In February 2025, President Donald Trump announced plans to impose a 25 percent tariff on pharmaceutical imports, a move that could disrupt Korea’s duty-free drug exports to the U.S. under the Korea-U.S. Free Trade Agreement. South Korea exported $1.5 billion worth of pharmaceutical products to the U.S. last year, representing 16 percent of its total pharmaceutical exports. Any immediate shift in production to mitigate tariffs is unlikely. The Pharmaceutical Research and Manufacturers of America estimates that constructing a new biopharmaceutical manufacturing facility can cost up to $2 billion and take five to 10 years to become operational. Celltrion Group Chairman Seo Jung-jin, right, speaks at the 2025 JP Morgan Healthcare Conference held in San Francisco, Jan. 16, 2025. At left is his son and CEO of Celltrion Seo Jin-seok. Courtesy of Celltrion In response, Celltrion has implemented a series of preemptive measures to cushion the impact of potential tariffs. The company announced on Feb. 19 that it had already transferred approximately nine months’ worth of inventory for products destined for the U.S. market. Additionally, it plans to leverage local contract manufacturing organizations to sustain its supply chain. For longer-term stability, Celltrion is also exploring the export of drug substances, which are subject to significantly lower tariffs, as a strategic workaround. Speaking at the 2025 J.P. Morgan Healthcare Conference on Jan. 14, Chairman Seo reaffirmed the company’s commitment to making biopharmaceuticals accessible at reasonable prices. “We will continue to develop both biosimilars and innovative new drugs. With our expanding portfolio, we aim to enhance corporate value and establish ourselves as a global leader in pharmaceutical innovation,” he said. 2025-03-20 10:12:11

Credit card delinquency rate hits decade-high in South Korea Getty Images Bank SEOUL, March 19 (AJP) - The delinquency rate for credit card companies in South Korea climbed to its highest level in a decade last year, as tightening bank loan regulations and worsening economic conditions placed additional strain on borrowers. The Financial Supervisory Service (FSS) reported that the delinquency rate for the country’s eight major credit card firms reached 1.65 percent at the end of 2024, marking a 0.2 percentage point increase from the previous year. This figure represents the highest level since 2014, when the rate stood at 1.69 percent. Despite the rise in delinquencies, the sector remained profitable. Net earnings for credit card companies totaled 2.59 trillion won, or approximately $1.78 billion, reflecting a modest 0.3 percent increase from 2023. The growth was driven by higher lending revenues and commission fees. Regulators attributed the increase in delinquencies primarily to economically vulnerable borrowers, including small business owners and individuals with lower credit scores, many of whom turned to high-interest credit card loans after facing barriers to traditional bank lending. "While asset quality indicators such as delinquency rates and non-performing loan ratios continue to rise, the pace has slowed," the FSS noted in its provisional report. Financial institutions outside the credit card sector also faced challenges. Non-credit card financial firms saw their net profits decline by 7.9 percent to 2.49 trillion won, as higher interest expenses and securities-related costs outweighed gains in leasing, rental, and installment financing. The delinquency rate for these firms rose to 2.10 percent, up 0.22 percentage points from the previous year, while the non-performing loan ratio increased by 0.66 percentage points to 2.86 percent. Despite the growing financial risks, regulators reassured that credit card companies maintain sufficient capital buffers, with all firms holding loss provisions exceeding 100 percent. However, the FSS cautioned that the uncertain economic climate demands vigilance. 2025-03-19 13:45:52

US biotech firms urge Korea to ease restrictions on modified crops Getty Images Bank SEOUL, March 19 (AJP) - U.S. biotechnology companies are pressing South Korea to revise its laws governing living modified organisms (LMOs), arguing that the country’s approval process for agricultural imports is overly stringent and lacks transparency. The Biotechnology Innovation Organization (BIO), the world’s largest biotech trade group based in Washington, recently submitted a formal request to the Office of the United States Trade Representative (USTR), describing South Korea’s regulatory framework for LMOs as “non-tariff barriers that have remained unresolved for over a decade.” At the heart of the dispute is South Korea’s multi-agency risk assessment process, which requires approvals from various ministries — including the Ministry of Health and Welfare, the Ministry of Environment, and the Ministry of Oceans and Fisheries — depending on the intended use of the product. “Despite global standards and the Korea-U.S. Free Trade Agreement, South Korea imposes risk assessments for LMO agricultural imports, rendering the approval process unpredictable,” BIO stated in its submission. “Resolving this issue is impossible without amending Korea’s LMO law.” Among the companies affected is J.R. Simplot, an Idaho-based potato producer, which has been awaiting South Korean approval for three LMO potato varieties since 2016. The review process, now in its ninth year, underscores the challenges faced by American agricultural firms seeking access to the South Korean market. The renewed push for regulatory changes comes amid high-level trade discussions between the two nations. Agricultural sanitary and phytosanitary measures were reportedly a focal point in a March 14 meeting between South Korea’s trade minister, Cheong In-kyo, and USTR Representative Jamieson Greer. South Korean officials have acknowledged industry concerns but remain cautious. “If an official request regarding amendments to the LMO law is received, we will review the possibility of improvements after gathering opinions from relevant ministries,” a government official said. 2025-03-19 10:47:24

Korea's pavilion nears completion for Osaka Expo The media facade in front of the Korean Pavilion at the Osaka Expo/ Courtesy of Korea Trade-Investment Promotion Agency SEOUL, March 18 (AJP) - A delegation from the Korea Trade-Investment Promotion Agency (KOTRA), led by its chief executive, Kang Kyung-sung, has visited the site of Expo 2025 in Osaka, Japan, to assess preparations for the Korean Pavilion. Expo 2025, which will take place from April 13 to October 13 on the artificial island of Yumeshima in western Osaka, is set to explore the theme "Designing Future Society for Our Lives." South Korea’s Ministry of Trade, Industry and Energy, in collaboration with KOTRA, is overseeing the construction of the Korean Pavilion, a three-story structure spanning 954 square meters on a 3,501-square-meter plot within the expo grounds. The pavilion aims to present South Korea’s vision for a future society that integrates tradition, nature, technology and culture. The exterior of the pavilion, which features three exhibition halls, was completed and inspected on Dec. 27, with interior work currently underway to ensure readiness for the expo’s opening next month. Inside, visitors will encounter displays on artificial intelligence, renewable energy and future mobility solutions, as well as a massive media facade that combines spatial design with Hansan Mosi, a fine ramie fabric traditionally woven in South Korea, and cutting-edge digital media technology. A dedicated section of the pavilion will also highlight Korean cuisine, offering visitors a taste of the country’s culinary heritage. Organizers anticipate a daily attendance of roughly 200,000 people from approximately 160 nations. “The Korean Pavilion will serve as a platform to convey South Korea’s vision for the future and showcase our technological leadership on the global stage,” said Kang. He emphasized that the expo would provide an opportunity to strengthen trade and investment ties between South Korea and Japan, particularly as the two nations mark the 60th anniversary of their diplomatic relations this year. 2025-03-18 16:10:16

South Korea, US to begin talks on Alaska LNG project Venture Global's LNG facility/ AP-Yonhap SEOUL, March 18 (AJP) - South Korean Minister of Trade, Industry and Energy Ahn Duk-geun is set to meet with Alaska Governor Mike Dunleavy next week to explore potential South Korean investment in a large-scale liquefied natural gas (LNG) project backed by the Trump administration. Dunleavy is expected to visit South Korea between March 24 and 25 as part of efforts to attract investment in the Alaska LNG development project, which has gained prominence in U.S.-South Korea trade and energy discussions, industry sources said Tuesday. Trump underscored the potential involvement of South Korean and Japanese firms in the project during a recent congressional address. The multibillion-dollar Alaska LNG initiative includes the construction of a 1,300-kilometer gas pipeline to transport approximately 3.5 billion cubic feet of natural gas per day from the North Slope fields. If realized, the project would boost U.S. energy exports and reduce the trade deficit while providing South Korea with a new energy source to enhance supply diversification and energy security. South Korean steel, shipbuilding, and construction firms could benefit from contracts related to the project’s infrastructure. “This project, highlighted as a key administration priority, could become an important negotiation card if it materializes,” a South Korean government official said. However, the initiative presents significant financial and logistical challenges. Investment costs could reach the equivalent of 10 percent of South Korea’s annual budget, and Alaska’s harsh climate is likely to drive expenses even higher. The project also requires specialized icebreakers for Arctic navigation, an area where South Korean shipbuilders have expertise but are constrained by packed production schedules. The project’s long-term viability is also uncertain. Environmental concerns tied to Alaska’s sensitive ecosystem could pose regulatory hurdles in future administrations, while fluctuating global LNG demand and the shift toward renewable energy add further unpredictability. South Korean officials have indicated they will carefully assess both opportunities and risks before making any commitments. The LNG discussions come as the Trump administration prepares to implement reciprocal tariff measures next month, positioning the project as a potential bargaining chip in broader trade negotiations between Washington and Seoul. 2025-03-18 10:56:33

Hanwha Ocean lands $1.61 billion order for container ships LNG carrier Lebrethah delivered by Hanwha Ocean/ Courtesy of Hanwha Ocean SEOUL, March 18 (AJP) - South Korean shipbuilder Hanwha Ocean has secured a contract to construct six ultra-large container vessels for Taiwan’s Evergreen Marine, one of the world’s leading shipping companies. The deal, valued at 2.33 trillion won (approximately $1.61 billion), marks the highest price ever paid for container ships of this class, capable of carrying 24,000 twenty-foot equivalent units (TEUs). The vessels will be dual-fuel, designed to operate on both liquefied natural gas (LNG) and conventional marine fuel, a move aligned with tightening global environmental regulations. The order highlights Hanwha Ocean’s competitive edge over Chinese shipbuilders. Hanwha Ocean attributed its success to superior production efficiency and advanced engineering. The deal comes amid a shifting global trade landscape. Last month, the United States announced plans to impose steep fees on Chinese-built vessels entering American ports, a development that could further benefit South Korean shipbuilders. The contract also signals growing demand for next-generation vessels. In February, reports surfaced that German shipping giant Hapag-Lloyd was in negotiations with Hanwha Ocean for a separate order of six LNG dual-fuel container ships, valued at around $1.2 billion. “Hanwha Ocean has built more ultra-large container vessels than any other shipbuilder in the world,” said Kim Charles, the company’s chief executive. “We will continue to lead the eco-friendly ultra-large container ship market with our differentiated technological expertise.” 2025-03-18 10:47:27

Korea leads global patent race in hair loss cosmetics A customer browses cosmetics at a CJ Olive Young shop in Seoul, March. 12, 2025. Yonhap SEOUL, March 17 (AJP) - South Korea has emerged as the world leader in hair loss cosmetics patent applications, according to an analysis released Monday by the Korean Intellectual Property Office (KIPO). The study, which examined patent filings across major intellectual property offices over the past 22 years, found that South Korean entities accounted for 42.9 percent — 576 cases — of global applications, far surpassing Japan’s 20.2 percent (272 cases) and the United States’ 17.2 percent (231 cases). South Korean companies showed particular strength in baldness treatments based on natural ingredients and biomaterials, commanding 50 percent and 56.4 percent of patent applications in those categories, respectively. The country ranked second in patents for synthetic materials, trailing only the United States. The global hair loss cosmetics market, which includes functional products aimed at preventing hair loss by improving blood circulation and regulating hormones, is projected to reach approximately 31 trillion won ($21.4 billion) by the end of the year. Among individual companies, the South Korean biotech firm Caregen led with 115 patent applications, followed by cosmetics giant AmorePacific with 72 filings. LG Household & Health Care also secured a spot among the top 10 global applicants. “This patent analysis confirms that the hair loss cosmetics market represents a blue ocean opportunity where our country has secured a technological advantage,” said Lim Young-hee, director of KIPO’s chemistry and biotechnology examination bureau. “We will share these findings with industry stakeholders and continue fostering communication to ensure that our cosmetics industry thrives on the foundation of intellectual property,” Lim added. 2025-03-17 16:15:16