Korean firm to supply high-voltage cables to UK's National Grid High-voltage cables from Taihan Cable & Solution/ Courtesy of Taihan Cable & Solution SEOUL, March 17 (AJP) - South Korea's Taihan Cable & Solution has signed a agreement with Britain’s National Grid to supply high-voltage direct current (HVDC) cable systems. The agreement, finalized in February, grants Taihan eligibility to bid on National Grid’s HVDC cable system projects over a period that could extend up to eight years. The total project value is estimated at approximately 40 trillion won ($27.5 billion). National Grid, a British multinational electricity and gas utility company, pursued the agreement to ensure a stable supply chain for HVDC cable systems and transformers amid surging global demand. HVDC cable systems, essential for long-distance power transmission, are seeing increased demand due to the expansion of renewable energy infrastructure and the development of super grid networks connecting national power grids. "This agreement reflects the competitiveness of our HVDC cable technology in Europe, a key market in the power industry," said Song Jong-min, vice chairman and CEO of Taihan. The company previously secured its first HVDC project in the United States in September 2024, marking a significant step toward expanding its presence in European markets. "We will continue to enhance the reliability and technological capabilities of our HVDC cable systems to strengthen our foothold not only in Europe but also in global markets," Song added. 2025-03-17 13:56:20

Weak won fuels inflation fears as import costs rise Shops in Sinchon, Seoul/ Yonhap SEOUL, March 17 (AJP) - The value of the South Korean currency remains weak, raising concerns over potential inflationary effects despite broader trends of price stabilization. Economists warn that the prolonged depreciation of the won could push consumer prices higher in the latter half of the year, even as year-over-year inflation eased to 2.0 percent in February from 2.2 percent in January, according to data released Monday by Statistics Korea. Core inflation, which excludes volatile components such as food and energy, also edged down to 1.8 percent in February from 1.9 percent the previous month, reflecting persistent weakness in underlying price pressures. The Korea Development Institute (KDI) noted that subdued domestic demand has kept overall inflation in check. However, analysts caution that the won’s sustained weakness, which began late last year, could feed into consumer prices. “The exchange rate, hovering around 1,450 won per dollar, will inevitably continue to drive up import costs, particularly for energy and raw materials,” said Huh Jun-young, an economics professor at Sogang University. “Consumer price inflation could surpass 2 percent again in the coming months.” The won's struggles contrast sharply with the performance of other Asian currencies, including the Japanese yen and Chinese yuan, both of which have strengthened against a weakened U.S. dollar. The Bank of Korea projects inflation will average 1.9 percent this year, while the government and KDI forecast rates of 1.8 percent and 1.6 percent, respectively. Complicating South Korea's economic outlook are escalating trade policies under U.S. President Donald Trump, including a 25 percent tariff on steel and aluminum imports that took effect on March 12. Should these tariffs contribute to higher U.S. inflation, the Federal Reserve could respond by raising interest rates, potentially strengthening the dollar and exerting additional inflationary pressure on South Korea. Conversely, a slowdown in U.S. economic growth could dampen global demand, curbing Korean exports and alleviating price pressures domestically. “There is ongoing debate over whether Trump’s tariff policies will drive U.S. inflation higher,” said Jung Kyu-chul, head of KDI's macroeconomic analysis department. “For now, rising uncertainty appears to be suppressing economic activity and weighing on prices.” Even if overall inflation remains stable, consumers are likely to feel the impact of higher prices in key areas such as energy and imported goods. Processed food and other necessities may continue to see price increases despite the broader slowdown in inflation. 2025-03-17 10:17:11

Gold prices soar to record high on trade war concerns Getty Images Bank SEOUL, March 14 (AJP) - International gold prices breached the threshold of $3,000 per troy ounce on Friday, propelled by escalating trade tensions and investor anxiety stemming from the policies of the Trump administration. April gold futures on the New York Mercantile Exchange reached $3,000.5 per troy ounce as of 10:30 a.m. on Friday, a 0.31 percent increase from the previous session. Spot gold, meanwhile, had climbed 2.73 percent in the preceding five trading days, closing at $2,989.31 per troy ounce. The price of gold bullion has experienced robust growth, rising approximately 14 percent this year, following a 27 percent increase in 2024. Analysts attribute the ascent to heightened concerns over the Trump administration’s protectionist trade policies, which have reignited fears of a global trade war and increased market volatility. “Strong demand from exchange-traded funds and continued central bank purchases, coupled with geopolitical uncertainty and the uncertainty created by tariff changes, have fueled the appetite for gold,” said Suki Cooper, executive director of precious metals research at Standard Chartered Bank. Recent U.S. economic data, including February’s consumer and producer price indices, which fell short of market expectations, have bolstered anticipation of Federal Reserve interest rate cuts, further contributing to gold’s rise. The metal, traditionally viewed as a hedge against inflation and economic instability, has attracted significant investment as global tensions persist. “Gold is in a secular bull market,” said Alex Ebkarian, chief operating officer at Alliance Gold, a precious metals dealer, who expressed confidence that prices could trade between $3,000 and $3,200 this year. BNP Paribas, the French multinational bank, recently raised its 2025 average gold price forecast by 8 percent to $2,990 per troy ounce, reflecting increased institutional confidence in the metal’s trajectory amid global economic headwinds. “The gold market in the second half of 2025 will price in, or normalize, the trade risks led by President Trump,” said David Wilson, an analyst of commodity strategies at BNP Paribas. “If trade tensions do not persistently escalate, gold prices may struggle to maintain additional upward momentum in the second half of the year.” 2025-03-14 15:01:46

Korean automakers face high stakes as US tariffs reshape industry U.S. President Donald Trump speaks in front of a Tesla Model S with Tesla CEO Elon Musk in front of the White House in Washington D.C., March. 11, 2025. UPI-Yonhap Editor's Note: This is the second in a series of stories examining how the Trump administration’s economic policies affect South Korea's key industries. From trade restrictions to shifting global supply chains, we explore the challenges businesses faced, how they adapted, and the lasting effects on the country’s economy. SEOUL, March 12 (AJP) - South Korean automakers are navigating a precarious juncture as President Donald Trump’s aggressive "friend-shoring" policies send shockwaves through the global automotive landscape. The administration’s decision to impose a 25 percent tariff on Canadian and Mexican imports has left South Korean auto giants scrambling to recalibrate their North American strategies. The Alliance for Automotive Innovation, an industry group representing major manufacturers, including Hyundai Motor Company, sounded the alarm on March 4, warning that the tariffs would lead to significantly higher vehicle prices. "All automakers will be impacted," said John Bozzella, the alliance’s president. "Most anticipate that the price of some vehicle models will increase by as much as 25 percent." For Hyundai Motor Group, the stakes are particularly high. American manufacturers — General Motors, Ford, and Stellantis — secured a temporary reprieve from the tariffs under the U.S.-Mexico-Canada Agreement, but South Korean automakers face immediate financial pressure. Kia Corp., a Hyundai subsidiary, operates a manufacturing plant in Mexico with an annual production capacity of 400,000 vehicles, more than half of which are destined for the U.S. market. Analysts estimate that the new tariffs could add as much as $7,000 to the sticker price of Kia’s flagship K4 sedan. "The best way for us to navigate tariffs is to increase localization," said Hyundai Motor CEO José Muñoz. "We decided to invest heavily in America as the most important market." In response, Hyundai is accelerating the expansion of its Metaplant America in Georgia, a facility scheduled to begin operations in the first half of 2025. Initially designed for an annual output of 300,000 electric vehicles, Hyundai executives now say the site could eventually produce up to 500,000 units. By 2025, the company aims to boost its total U.S. manufacturing capacity to 1.2 million vehicles annually. Automobiles await to be shipped at Pyeongtaek-Dangjin Port, Feb. 19, 2025. Yonhap The shift comes at a cost. Hyundai’s Korean plants, which last year produced nearly one million vehicles for the U.S. market — more than half of the company’s American sales — may see a downturn in output. The transition raises concerns over potential job losses in South Korea as production shifts across the Pacific. Further adapting to the tariff pressures, Hyundai Motor Group and General Motors signed a memorandum of understanding in September 2024 for a wide-ranging supply chain alliance. Under the agreement, Hyundai and Kia would utilize GM’s 11 U.S. production facilities for Complete Knock Down (CKD) assembly, while GM would gain access to Hyundai’s factories to re-enter European and Indian markets. Beyond tariffs, South Korean automakers face additional headwinds in the electric vehicle sector. Recent changes to U.S. federal tax credits have reduced incentives for foreign manufacturers, impacting Hyundai’s ability to compete. In January, the company saw the number of its electric vehicle models eligible for federal incentives drop from five to two. In response to these shifts, Hyundai underscored its long-standing commitment to the American market. "For nearly four decades, Hyundai has been a driver of American growth and innovation," the company said in a statement. "Since entering the United States, Hyundai Motor Group has invested $20.5 billion, creating and supporting more than 570,000 American jobs." The company added that it was "closely monitoring new U.S. policy developments and reviewing various business strategies." As the American market grows increasingly unpredictable, Hyundai is looking to hedge its bets by strengthening its presence in China, where electric vehicles now command a 30.2 percent market share. The company’s luxury brand, Genesis, is spearheading the push, investing in collaborative research teams to develop locally produced EV models. With uncertainty looming over the industry, automakers and policymakers alike acknowledge the challenges ahead. As Honda stated following the tariff announcement: "You just can’t relocate automotive production and the supply chain overnight. That’s the challenge and the dilemma: auto tariffs in North America could end up increasing costs on consumers before jobs come back to the country." John Bozzella of the Alliance for Automotive Innovation echoed similar concerns, emphasizing the scale of investment required to adjust to shifting trade policies. "Automakers, battery makers, and suppliers are investing billions in American manufacturing to modernize the industrial base," he said. "But it’s worth remembering the sheer scale of the industry and the size of these automotive and advanced manufacturing facilities. They're massive." 2025-03-14 09:15:31

Homeplus extends discount promotions amid financial struggles Homeplus logo/ Yonhap SEOUL, March 13 (AJP) - Homeplus is extending its discount promotions until the end of the month, a move widely seen as an effort to counter deteriorating asset efficiency and mounting liquidity pressures under the private equity ownership of MBK Partners. The retailer’s fixed asset turnover ratio dropped to 0.96 as of Feb. 29, 2024, falling below the critical 1.0 threshold, according to industry sources citing the latest sales results. The figure indicates that Homeplus is struggling to generate sales proportionate to its asset base. The metric has been in steady decline since MBK Partners acquired Homeplus eight years ago. In February 2017, the ratio stood at 1.13, but it plunged to 0.73 in 2020 during the COVID-19 pandemic and has yet to recover to pre-pandemic levels. By contrast, market leader E-Mart maintained a robust 1.97 ratio as of December 2023, underscoring Homeplus’ underperformance in South Korea’s highly competitive retail sector. Analysts attribute the downturn to Homeplus’ sluggish response to the e-commerce boom and the sell-off of high-performing store locations, which has weakened its competitive standing. “We’ve been running encore sales events since launching our promotions in 2023,” a Homeplus spokesman said, dismissing speculation that the extended discounts are linked to the company’s ongoing financial struggles. However, market observers widely interpret the two-phase discount extension as a desperate attempt to bolster cash reserves amid concerns over unpaid commercial credit obligations. The retailer’s declining asset utilization has also complicated MBK Partners’ attempts to divest parts of the business. Efforts to sell the relatively profitable supermarket division have stalled, with no suitable buyers emerging since last year. 2025-03-13 13:46:12

Korean instant noodle exports hit record high in February A foreign tourist eat instant noodles at the "Ramyeon Library" in Seoul, March 12, 2025. Yonhap SEOUL, March 12 (AJP) - South Korea’s instant noodle exports surged to a record monthly high of $121.15 million in February, a 30.4 percent increase from the same period last year, according to data released Wednesday by the Korea Customs Service. Total exports for the first two months of the year reached $228.64 million, up 28 percent year-on-year, with export volume rising 30.2 percent to 57,190 tons. The figures highlight the growing global appetite for Korean instant noodles, fueled by the rising influence of Korean cultural content and a shift toward convenient meal options. Industry analysts note that instant noodles have led South Korea’s food exports, averaging an annual growth rate of 20 percent since 2015. In response to soaring demand, major producers are expanding their global reach. Nongshim, South Korea’s leading instant noodle maker, established its European headquarters in Amsterdam this month and announced plans for a dedicated export factory in Busan’s Noksan district, increasing its supply capacity to 2.7 billion products annually. Samyang Foods, another key player, expects to further bolster its international sales with the launch of its second Miryang plant, set to begin operations in June. 2025-03-12 15:50:04

US steel, aluminum tariffs take effect; South Korea's exemption quota scrapped An aluminum factory in Hwaseong City, Gyeonggi Province/ Yonhap SEOUL, March 12 (AJP) - The Trump administration’s 25 percent tariffs on steel and aluminum imports took effect on Wednesday, marking the first sweeping trade measure imposed on all U.S. trading partners since the president’s return to office in January. The tariffs, enacted through executive order last month, apply a uniform 25 percent duty on all imported steel and aluminum products, encompassing 253 derivative items. The policy eliminates South Korea’s previous exemption quota, which had allowed the country to export 2.63 million tons of steel annually without tariffs. The measure marks a significant escalation from Trump’s first term, with aluminum duties rising to 25 percent from the previous 10 percent. While 166 derivative products, including bolts, nuts, and springs, are now subject to immediate tariffs, duties on 87 items — such as automotive components, appliance parts, and aircraft components — have been temporarily postponed pending further guidance from the U.S. Department of Commerce. Industry analysts suggest that while the removal of quota limits could offer South Korean steelmakers an opportunity to expand their U.S. market share, the 25 percent tariff remains a substantial barrier to competitiveness. According to the International Trade Administration of the U.S. Department of Commerce, South Korea was the fourth-largest steel exporter to the United States last year, accounting for approximately $2.9 billion, or 9 percent, of U.S. steel imports — trailing only Canada, Mexico, and Brazil. Steel exports to the U.S. make up about 13 percent of South Korea’s total steel shipments, according to the Korea International Trade Association. The steel and aluminum tariffs come ahead of Trump’s planned implementation of reciprocal tariffs on April 2, a policy that would adjust duties based on other countries' tariff rates and non-tariff barriers against U.S. goods. 2025-03-12 13:55:42

Trump's escalating tariff policy raises global recession concerns U.S. President Donald Trump poses for a photo holding notes about Tesla cars in front of the White House in Washington D.C., March. 11, 2025. Reuters-Yonhap SEOUL, March 12 (AJP) - Concerns over a potential global recession triggered by U.S. President Donald Trump's tariff war have intensified in recent days as his escalating trade policies threaten global economic stability. Last week, the president imposed a 25 percent tariff on imports from Mexico and Canada while doubling levies on Chinese goods to 20 percent — only to announce two days later that he would delay some of those increases until April 2. A 25 percent tariff on steel and aluminum imports is also set to take effect on Wednesday. Adding to the uncertainty, Trump has proposed a sweeping policy of reciprocal tariffs, under which every country would face equivalent duties on U.S. goods beginning in April. Economists warn the move could provoke broad retaliation, amplifying risks to an already fragile global economy. The tariffs have already placed upward pressure on consumer prices, raising fears of stagflation — a toxic combination of high inflation and economic stagnation. Market analysts caution that these policies significantly heighten the likelihood of a global trade war that could stymie economic growth. In a Sunday morning interview that unsettled already jittery markets, Trump suggested an economic downturn might be imminent, describing a "period of transition" and emphasizing the scale of his trade policies. When pressed on the possibility of a U.S. recession this year, the president notably declined to rule it out. "It takes a little time. It takes a little time," Trump said, comments that sent financial markets reeling the following day. Major stock indexes plummeted, with the tech-heavy Nasdaq suffering its steepest decline in two and a half years, falling 4 percent to close at 17,436.10 on Tuesday. The Dow Jones Industrial Average and the S&P 500 also tumbled, losing 2.08 percent and 2.70 percent respectively on Monday, followed by additional declines of 1.14 percent and 0.76 percent on Tuesday. Asian markets, particularly vulnerable to trade disruptions, also declined. South Korea's KOSPI fell 1.28 percent on March 11 amid concerns about the nation's export-driven economy. A state-run economic institute projected a $44.8 billion decline in South Korean exports as a result of the tariffs. Japan's Nikkei slipped 0.64 percent, while Taiwan's Taiex dropped 1.73 percent as investors across the region weighed the potential fallout from escalating trade tensions. Despite the market turbulence his remarks triggered, Trump struck a different tone on Tuesday during a White House appearance, dismissing fears of an economic downturn. "I don't anticipate a recession at all," he told reporters. "I think this country is going to experience a boom." "Markets will go up and down, but we need to rebuild this country," he added, reaffirming his commitment to aggressive trade policies even as investors braced for continued volatility. 2025-03-12 13:47:52

Hyundai, Toyota refocus on China amid US market uncertainty Hyundai Motor's Genesis GV60 EV SUV model/ Courtesy of Hyundai Motor SEOUL, March 11 (AJP) - Hyundai Motor and Toyota Motor are recalibrating their strategies in China, while the United States grapples with economic uncertainty driven by President Donald Trump’s escalating tariff regulations. China, one of the world’s most significant automotive markets, saw its electric vehicle sector capture a 30.2 percent market share in 2024, marking a 38.8 percent year-on-year increase. Overall, vehicle sales — including wholesales and imports — rose 3.8 percent to 23.26 million units during the same period. Hyundai’s luxury brand, Genesis, is leading the South Korean automaker’s renewed push into China, with plans to introduce locally produced electric vehicles within the next three to five years. The vehicles will be designed to cater specifically to the preferences of Chinese consumers, a move industry analysts view as crucial for Hyundai’s long-term success in the region. The development process will involve close collaboration between Hyundai’s research teams in South Korea and China, while production is expected to take place at one of Hyundai’s existing manufacturing facilities in China, according to industry sources. Beijing Hyundai Motor Company, Hyundai’s joint venture in China, has already demonstrated positive momentum. In January, the company posted an 18.2 percent increase in year-on-year sales, delivering 16,810 vehicles as it seeks to solidify its position in China. "While local manufacturers continue to dominate, China remains an essential market that global automakers cannot afford to overlook," said a Hyundai Motor official. Toyota, meanwhile, has taken a similar approach, introducing its most affordable electric vehicle to date — the Bozhi 3X compact SUV — through its joint venture with Guangzhou Automobile Group. The model, which starts at approximately $14,400, received more than 10,000 orders within an hour of its launch, underscoring the strong demand for cost-effective electric vehicles in China. The Japanese automaker has also committed to producing at least 2.5 million vehicles annually in China by 2030. As part of its expansion strategy, Toyota plans to establish a new subsidiary in Shanghai dedicated to the development and production of electric vehicles and batteries for its luxury Lexus brand. With both Hyundai and Toyota deepening their investments in China, industry observers say the moves reflect a broader shift among global automakers, who increasingly view the Chinese market as a critical pillar of their long-term growth strategies. 2025-03-11 14:56:55

SK Energy to supply sustainable aviation fuel to Hong Kong carrier SK Energy’s plant/ Courtesy of SK Energy SEOUL, March 11 (AJP) - SK Energy announced Tuesday that it will supply more than 20,000 tons of sustainable aviation fuel to Cathay Pacific Airways by 2027, marking the first major agreement of its kind between a South Korean refiner and a Hong Kong-based airline. The deal, finalized on Monday, builds on a partnership that began in November, when Cathay Pacific started using SK Energy’s sustainable fuel for all aircraft departing from Incheon International Airport. The companies plan to expand the use of low-carbon fuel across additional routes. The agreement comes two months after SK Energy made its first exports of sustainable aviation fuel to Europe, reinforcing its position in the Asia-Pacific market, which accounts for more than 80 percent of South Korea’s refined fuel exports. In September, SK Energy began commercial production of sustainable aviation fuel, with an annual capacity of 100,000 tons. The company employs a co-processing method, integrating biofuel feedstock pipelines into its existing petroleum refining infrastructure to produce lower-carbon products, including sustainable aviation fuel and bio-naphtha. Global demand for sustainable aviation fuel has surged since 2021, when the International Air Transport Association adopted a resolution to cut carbon dioxide emissions from air travel by 50 percent from 2005 levels by 2050. 2025-03-11 13:20:34