Gov't to conduct survey to scrap red tape in service industry Seoul's eatery alley in Jongno is deserted, in this phot from December 2024. Yonhap SEOUL, February 25 (AJP) - A thorough survey will identify regulations and other red tape hindering the service industry's growth and competitiveness, the Ministry of Economy and Finance said on Tuesday. The survey, to be conducted through the state-run Public Procurement Service, aims to figure out excessive regulations or restrictions that exist only in South Korea, compared to other major economies. According to the ministry, productivity in the service sector remains significantly lower than its global counterparts, despite accounting for 70 percent of employment and 60 percent of value-added production. In 2021, productivity measured $66,000 per worker, compared to $128,000 in the U.S. and $86,000 in France. The five-month survey will identify redundant or overly restrictive regulations, assess cases where businesses face barriers due to regulatory red tape, and analyze the potential economic impact of various reforms. The ministry plans to prioritize regulatory improvements based on market demand and potential measures to stimulate business. "We will fully work on regulatory reforms to enhance the service industry's competitiveness based on the findings of this assessment," said a ministry official. 2025-02-25 10:17:05

Samsung Group begins new round of global recruitment Samsung Electronics Seocho headquarters/ Yonhap SEOUL, February 24 (AJP) - Samsung Group has launched a new round of international recruitment for research and development professionals, as global competition for technical talent continues to escalate. The recruitment initiative spans nine Samsung affiliates, including Samsung Electronics, Samsung Display, Samsung SDI, Samsung Electro-Mechanics, Samsung SDS, Samsung Biologics, Samsung Bioepis, and Samsung Heavy Industries. While maintaining its Korean language proficiency requirement of Test of Proficiency in Korean Level 3 or higher, this marks Samsung's fourth recruitment round since August 2023, when the company initially introduced its foreign hiring program with three affiliates. The latest campaign features relaxed eligibility criteria, allowing graduate school tenure to be recognized as relevant work experience for candidates with master's or doctoral degrees. Previously, the company required at least two years of work experience following a bachelor's degree. Samsung’s expanded hiring efforts come as global competition for engineering talent intensifies. U.S.-based Micron Technology, for instance, has actively begun recruiting Korean engineers for its operations in Taiwan and Japan for the first time, underscoring the increasing demand for highly skilled professionals in the semiconductor and technology sectors. 2025-02-24 16:07:29

CJ's instant cooked rice sales surge on US demand Bibigo instant rice/ Courtesy of CJ CheilJedang SEOUL, February 24 (AJP) - South Korean food manufacturer CJ CheilJedang reported record-breaking sales of its instant cooked rice product, reaching 914.6 billion won (US$638.1 million) in 2024, driven by robust growth in the U.S. market. The company's overseas revenue accounted for 24 percent of total sales of instant rice, with North America, predominantly the U.S., contributing 188.4 billion won, or 84 percent of international earnings. The instant rice brand has witnessed steady growth, with domestic and international sales climbing from 688 billion won in 2021 to 914.6 billion won in 2024, while export figures more than doubled to 223.1 billion won over the same period. A recent consumer survey by CJ CheilJedang of local white rice consumers in the U.S. revealed that 34.6 percent of participants purchase rice because they view it as a healthy option. The product, marketed under the Bibigo brand name overseas, has expanded its presence to 40 countries, including Australia, Mexico, Canada, and China, with cumulative sales reaching about 6 billion units as of the end of 2024. "CJ CheilJedang's success in the U.S. market has been further bolstered by the global Korean food phenomenon, with increasing numbers of American consumers seeking authentic sticky Korean rice for home consumption," a CJ CheilJedang spokesperson said. 2025-02-24 15:58:46

US commerce chief pledges fast-track support for Korean investors SK Group Chairman Chey Tae-won gives a speech on AI in Washington D.C., Feb. 22, 2025. Courtesy of SK Group SEOUL, February 24 (AJP) - U.S. Secretary of Commerce Howard Rutnik has vowed to streamline regulatory procedures for South Korean companies planning investments of $1 billion or more in the United States. The pledge came during a 40-minute meeting in Washington with a high-level South Korean business delegation, led by Chey Tae-won, chairman of SK Group and head of the Korea Chamber of Commerce and Industry. Executives from South Korean companies, including Samsung Electronics, Hyundai Motor, and LG, attended the meeting. Rutnik identified six key sectors for cooperation: shipbuilding, energy, nuclear power, artificial intelligence, semiconductors, and mobility. His commitment aligns with President Donald Trump’s recently signed "America First Investment Policy" memorandum, which aims to streamline approval processes for investment projects exceeding $1 billion from allied nations. “We recognize the critical role that South Korean companies play in advancing key industries, and we are committed to facilitating a more efficient investment landscape,” Rutnik said in a statement following the meeting. Chey, for his part, welcomed the initiative but emphasized the need for further incentives. “We will continue to explore investment opportunities, but there must be sufficient incentives to meet the administration’s push for increased U.S. production,” he said. He noted that concrete tax reduction measures had yet to be proposed. Speaking separately at a Trans-Pacific Dialogue event in Washington, Chey stressed the importance of trilateral cooperation among South Korea, the United States, and Japan, particularly in artificial intelligence and energy sectors. He also underscored that further U.S. investments from South Korean firms would hinge on clear and tangible tax incentives from the Trump administration. 2025-02-24 13:12:20

Trump targets foreign tech regulations, raising alarm in Seoul U.S. President Donald Trump addresses during a reception in Washington D.C., Feb. 22, 2025. AP-Yonhap SEOUL, February 24 (AJP) - A new memorandum signed by U.S. President Donald Trump is raising concerns in South Korea, as the directive calls for investigations into foreign governments that impose regulations on American technology firms. The move could threaten South Korea’s efforts to impose greater oversight on big tech companies. The directive, signed on Feb. 21, instructs the United States Trade Representative (USTR) to examine and, if necessary, implement retaliatory measures — including tariffs — against nations that levy digital taxes on U.S. firms such as Google and Meta. Though the memorandum does not explicitly target South Korea, its broad scope includes regulations related to cross-border data flows, mandatory local content funding, and network usage fees — issues central to legislative efforts currently under consideration in Seoul. “If the United States strengthens tariffs on other products due to big tech regulations, the government and domestic telecommunications companies need to carefully reconsider imposing network usage fees,” said Chang Sang-sik, director general of the Korea International Trade Association’s Institute for International Trade. The directive comes at a critical time for South Korea, where lawmakers are debating measures that would require foreign content providers to pay network usage fees — a practice that major tech firms, including YouTube, have long avoided in the Korean market. Further complicating matters is the Korea Fair Trade Commission’s proposed Platform Competition Promotion Act, which seeks to curb anti-competitive practices such as self-preferencing and tied selling. The legislation has met resistance from Washington, with USTR nominee Jamison Greer calling it “intolerable” earlier this month. Amid mounting concerns, South Korean officials have launched diplomatic efforts to seek exemptions from potential tariffs. Park Jong-won, deputy trade minister at the Ministry of Trade, Industry and Energy, met with officials from the U.S. Commerce Department and USTR between Feb. 17 and Feb. 20 to discuss the issue. Further discussions are expected, with South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, set to meet with U.S. Secretary of Commerce Howard Lutnik later this month. The talks come as South Korea contends with multiple tariff pressures across key industries, including steel and automobiles. 2025-02-24 11:33:43

Korea's job growth slows to 6-year low as young, middle-aged workers struggle A job fair held in Incheon, Sept. 26, 2024/ Yonhap SEOUL, February 20 (AJP) - South Korea’s labor market saw its slowest job growth in six years during the third quarter of 2024, as employment opportunities for workers in their 20s and 40s declined at an unprecedented rate, according to government data released Thursday. The number of jobs increased by 246,000 from a year earlier, marking the smallest third-quarter gain since 2018, Statistics Korea reported. The deceleration continues a downward trend from the 597,000 jobs added in 2022 and 346,000 in 2023. The losses were particularly severe among younger and middle-aged workers. Jobs for workers in their 20s declined by 146,000, while positions for those in their 40s dropped by 77,000 — the sharpest declines recorded since data collection began in 2017. By contrast, employment among those aged 60 and older surged by 274,000. Workers in their 50s gained 119,000 jobs, while those in their 30s saw an increase of 66,000. “While short-term employment opportunities have expanded for older workers, major industries are slowing their hiring, exacerbating job losses among younger workers and those in their 40s,” said Choi Jae-hyuk, deputy director of statistical research at Statistics Korea. 2025-02-20 15:55:20

Lotte Chemical to sell Pakistan unit to address liquidity concerns An aerial view of Lotte World Tower/ Getty Images Bank SEOUL, February 20 (AJP) - Lotte Chemical announced plans to sell its Pakistan subsidiary, Lotte Chemical Pakistan (LCPL), for 97.9 billion won ($67.9 million) as it seeks to address concerns over its financial health. The Seoul-based firm will divest its entire 75.01 percent stake in LCPL to a consortium comprising Pakistan’s Asia Park Investment and the United Arab Emirates-based Montage Oil DMCC. The transaction is expected to close in the first half of 2025. Lotte Chemical acquired LCPL in 2009 for approximately 14.7 billion won. The subsidiary operates a plant with an annual production capacity of 500,000 tons of purified terephthalic acid (PTA), a critical component in polyester fibers and plastic bottles. In 2023, LCPL reported sales of 532 billion won and an operating profit of 19.8 billion won. Since 2022, Lotte Chemical has received 29.6 billion won in dividends from LCPL, bringing the total value of its exit from the unit to approximately 127.5 billion won. The sale follows a failed attempt to offload the business to a local chemical company, a deal that collapsed due to regulatory hurdles. The company framed the divestiture as part of a broader strategy to streamline operations. “We will continue to optimize our portfolio by divesting non-core assets to strengthen our competitiveness and operational efficiency,” a Lotte Chemical official said. Lotte Chemical has been grappling with investor concerns over liquidity risks. In November, its parent conglomerate, Lotte Group, pledged the Lotte World Tower as collateral to reassure creditors. The group’s chairman later warned affiliates of an “existential threat” to the business. 2025-02-20 13:45:36

Celltrion, SK Bio brace for US tariff fallout Celltrion's plant/ Courtesy of Celltrion SEOUL, February 20 (AJP) - South Korean pharmaceutical and biotechnology companies are scrambling to devise contingency plans following U.S. President Donald Trump’s announcement of proposed tariffs of 25 percent or higher on imported drugs, a move that could disrupt one of their most critical export markets. Trump's announcement has sent ripples through South Korea’s pharmaceutical sector, where leading firms such as Celltrion and SK Biopharmaceuticals have established strong footholds in the U.S. market through various distribution channels. Celltrion sought to reassure shareholders, stating that it has already implemented preemptive measures to minimize the potential impact of tariffs in 2025. “As of the end of January, we have transferred approximately nine months’ worth of inventory for our products scheduled for U.S. sale in 2025,” the company said in a statement on Wednesday. In anticipation of regulatory shifts, Celltrion is pivoting toward exporting drug substances rather than finished products, as raw materials are expected to be subjected to lower tariff rates. The company also confirmed it is evaluating the possibility of securing U.S.-based production facilities for manufacturing active pharmaceutical ingredients if necessary. SK Biopharmaceuticals, which exports its epilepsy treatment through a Canadian contract manufacturer, said that it is considering alternative production arrangements, including the possibility of transferring production to U.S.-based facilities, as Canada could also be subjected to tariffs under Trump’s administration. Other major industry players, including Samsung Biologics, Samsung Bioepis, and Yuhan Corp., are closely monitoring the situation as they assess the potential ramifications for their U.S. operations. 2025-02-20 10:00:41

POSCO bets on innovation as tariffs, Chinese steel shake industry Editor's Note: This article is the seventh installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, February 19 (AJP) - For the 15th consecutive year, South Korean steelmaker POSCO has retained its title as the "World's Most Competitive Steelmaker," according to global steel analysis firm World Steel Dynamics. POSCO ranked as the world’s sixth-largest steelmaker by production volume in 2015 and has held the seventh spot through 2022 and 2023. As part of its sustainability efforts, POSCO recently achieved a significant milestone by localizing the manufacturing technology for electrode rods, a crucial component in electric furnace operations. These furnaces, which generate significantly lower carbon emissions than traditional blast furnaces, represent a key part of the company’s strategy to reduce its environmental footprint. However, POSCO — operating under its holding company, POSCO Holdings — faces mounting global challenges. The downturn in the electric vehicle market and disruptions in international trade have intensified pressures, exacerbated by U.S. President Donald Trump’s decision to impose a 25 percent tariff on imported steel and aluminum. A POSCO Holdings official told AJP that the company is closely monitoring the situation and will actively support government-led negotiations on the tariff. “We are maintaining vigilant oversight of the situation and will strengthen our efforts to pioneer the market through quality competitiveness, particularly in products that are challenging to manufacture in the United States,” the official said. Legacy of Growth POSCO was established on April 1, 1968, as part of South Korea’s drive for steel self-sufficiency, with Park Tae-joon serving as its first president. With substantial financial backing from the United States and Japan, the company reached its first milestone by producing its inaugural batch of molten iron in 1973. By the following year, POSCO had surpassed $100 million in steel exports. In 2022, the company underwent a strategic restructuring, creating POSCO Holdings as a parent entity focused on green energy materials, including lithium, nickel, hydrogen, and secondary battery components. Its steel-producing subsidiary, POSCO, remains Korea’s leading steel manufacturer. POSCO Holdings reported a 38.5 percent decline in annual operating profit for 2024, falling to 2.17 trillion won, reflecting the impact of a global steel market downturn and weakened demand in the electric vehicle sector. Sales declined by 5.8 percent to 72.69 trillion won, while net profit dropped 48.6 percent to 948 billion won. POSCO’s core steel business saw a 29.3 percent decline in operating profit, while its battery materials subsidiary, POSCO Future M, reported a sharp drop in operating profit to 1 billion won from 36 billion won year-over-year, affected by falling lithium and nickel prices as well as a U.S. Foreign Entity of Concern designation deferral. Beyond U.S. tariffs, POSCO faces additional pressure from an influx of low-cost Chinese steel flooding the market. Among the world’s top 10 steelmakers by volume, five are Chinese, including the industry’s largest producer. According to the Korea International Trade Association, South Korea’s steel imports from China surged 55.5 percent, from $6.67 billion in 2020 to $10.37 billion in 2024. In response, the South Korean government is considering anti-dumping measures to protect domestic manufacturers. While regional rival Nippon Steel is advancing its bid to acquire U.S. Steel, potentially strengthening its foothold in the American market, POSCO remains focused on navigating its own challenges. Analysts suggest that despite the U.S. tariff, Korean steelmakers may still find opportunities, as they are no longer constrained by the quota system that previously limited exports. POSCO Holdings and POSCO Group Chairman Chang In-hwa addressed these challenges in his New Year’s address on Jan. 2, warning that the company’s steel, battery materials, and engineering divisions face existential threats. Chang underscored the necessity of turning adversity into opportunity, emphasizing "absolute technological superiority" as the company’s cornerstone for maintaining competitiveness. Despite the current economic downturn, the steel giant remains committed to industry leadership, pledging to set new standards for environmental, social, and governance (ESG) practices in the sector. 2025-02-20 09:52:03

Korean government eyes railway underground project to revive construction sector An SRT train at Busan Station/ Getty Images Bank SEOUL, February 19 (AJP) - The South Korean government on Wednesday unveiled a 4.3 trillion won ($2.98 billion) initiative to move railway infrastructure underground in three major cities, an effort aimed at revitalizing the country’s struggling construction sector. Announced during an economic policy meeting at the Government Complex Seoul, the initiative is part of a broader social overhead capital (SOC) strategy. The project will cover railway sections in Busan, Daejeon, and Ansan, with construction expected to begin in approximately three years. The move comes at a critical time for South Korea’s construction industry, which has been grappling with a prolonged downturn. The industry’s struggles have already led to financial turmoil among major regional builders. In recent months, Sin Taeyang Construction in Busan, JEIL Engineering & Construction in North Jeolla Province, and Daezer Construction in South Gyeongsang Province have filed for bankruptcy. In Busan, the government plans to construct an artificial ground spanning approximately 370,000 square meters between Busanjin Station and Busan Station. The project, with an estimated cost of 1.4 trillion won, is expected to free up valuable urban space for development. A similar effort is planned in Daejeon, where 1.4 trillion won will be allocated to relocating railway switchyards underground, unlocking 380,000 square meters for redevelopment. In Ansan, a 1.5 trillion won project will move tracks beneath the surface between Choji Station and Jungang Station, facilitating the creation of a new urban center. To further bolster the construction industry, the government intends to frontload 70 percent of its annual social infrastructure budget, injecting 12.5 trillion won into the sector in the first half of 2025. The Construction Association of Korea welcomed the government’s plan, describing it as “sweet rain in a drought” for an industry struggling with dwindling orders. The railway initiative is part of a broader economic stimulus package that also includes port regeneration projects in Busan and Incheon, as well as plans for semiconductor industrial complexes in Yongin. 2025-02-19 16:54:37