Political uncertainty stalls Korea's plan to develop next-generation reactors Nuclear reactors in Ulsan/ Courtesy of Korea Hydro & Nuclear Power SEOUL, February 19 (AJP) - South Korea’s ambitious plans for Small Modular Reactor (SMR) development have encountered setbacks as political disputes stall progress, while global competitors advance in the next-generation nuclear market. SMRs have emerged as a transformative force in power generation, offering cost-effectiveness and enhanced safety features, with expenses projected to be reduced by up to 33 percent compared with aging coal plants. According to industry experts, the global SMR market is expected to reach commercialization by 2030. The small reactors have also become crucial to the artificial intelligence boom, as mass computing requires unprecedented levels of electricity. Major technology firms, including Amazon, have invested in companies such as X-energy to secure their energy needs. Despite the global momentum, South Korea has struggled to advance beyond its initial plan to deploy a single SMR unit by 2035. The country has yet to select a construction site. Government agencies have also failed to provide clarity. The Ministry of Science and Technology missed its October 2024 deadline for a next-generation nuclear roadmap, while the Industry Ministry’s 2050 nuclear blueprint remains in limbo amid political turbulence surrounding President Yoon Suk Yeol. Further complicating matters, South Korea’s proposed K-ARDP program, modeled after the U.S. Advanced Reactor Demonstration Program (ARDP), faces uncertainty due to budget constraints. While South Korea’s SMR ambitions remain stalled, international counterparts are surging ahead, with roughly 80 designs under development worldwide. The United States leads with 20 designs, followed by Russia with 17 and China with nine. “SMRs are projected to supply about half of future nuclear power generation,” said Jeong Dong-wook, a professor of energy systems engineering at Chung-Ang University. “As this is an inevitable global technological trend, Korea needs to implement bold support measures, including regulatory reforms.” 2025-02-19 11:20:52

TikTok booms in Korea despite privacy concerns linked to DeepSeek TikTok's logo/ Reuters-Yonhap SEOUL, February 19 (AJP) - ByteDance’s TikTok has solidified its foothold in South Korea’s social media landscape, surpassing Facebook in combined monthly active users, even as concerns mount over data transfers linked to DeepSeek, a Chinese artificial intelligence app. According to data from mobile analytics firm Mobile Index, the short-video platform and its lightweight counterpart, TikTok and TikTok Lite, recorded approximately 4.9 million and 4.8 million monthly active users, respectively, in January. The combined user base of 9.7 million outpaced Facebook’s 8.6 million monthly active users but remained well behind Instagram’s 20 million users in the country. TikTok’s growth comes amid renewed scrutiny after South Korea’s Personal Information Protection Commission (PIPC) disclosed Tuesday that DeepSeek had transferred user data to ByteDance in violation of local privacy laws. In response, the commission has temporarily suspended new downloads of DeepSeek’s services but has yet to determine how the transferred data was utilized. The privacy concerns reflect broader international apprehensions surrounding the Chinese-owned platform. In the United States, where nearly half the population uses TikTok regularly, the platform remains a political flashpoint. While President Donald Trump has extended a previously imposed ban on the app by 75 days, his administration is reportedly pressuring ByteDance to divest its U.S. operations. Prospective buyers are now engaging directly with the White House rather than ByteDance, according to media reports. Despite these regulatory challenges, TikTok continues to gain traction in South Korea. Both the app maintained strong engagement, consistently drawing more than three million weekly active users in early February. 2025-02-19 11:08:03

Korean newspapers to file complaint against Naver over AI training Combined logos of the Korean Association of Newspapers (KAN) and Naver/ Courtesy of KAN and Naver SEOUL, February 18 (AJP) - The Korean Association of Newspapers (KAN) announced plans to file a complaint with the nation’s antitrust agency against Naver, alleging the company used news content without permission to train its artificial intelligence models. The move follows Naver’s recent acknowledgment that it had utilized news articles to develop its generative AI services, including HyperCLOVA and HyperCLOVA X. “With this complaint, we aim to establish a fair trade framework between newspaper companies and AI firms while ensuring the proper recognition of news content value,” the KAN said in a statement. The association contends that the unauthorized use of news articles for AI model training violates copyright laws and constitutes an abuse of market dominance under fair trade regulations. A task force comprising ten digital strategy executives has been evaluating the legality of AI companies’ use of news content. Key concerns include the lack of compensation for publishers, the use of news articles in language model training, and AI search services reproducing content without proper attribution. The KAN also plans to push for legislative reforms, including mandatory disclosure of AI training data sources and amendments to copyright laws to strengthen protections for news content. In response, Naver stated, “We have not officially received details of the complaint. However, since June 2023, following a revision of our terms of service, we have not been using news service data without consent.” 2025-02-18 16:38:45

New Balance to establish Korean subsidiary in 2027 New Balance's flagship store in Seongsu-dong, Seoul/ Courtesy of E-Land World SEOUL, February 18 (AJP) - New Balance plans to establish a South Korean subsidiary in 2027, a move that could signal a shift away from its longstanding partnership with E-Land World, which has overseen the brand’s operations in South Korea since 2008. The Boston-based athletic wear manufacturer said it would extend its licensing agreement with E-Land World until 2030, covering children's footwear and apparel lines. The decision comes as New Balance solidifies its presence in South Korea, where sales surpassed 1 trillion won (approximately $691.8 million) last year, making it the second-largest sportswear brand in the market, trailing only Nike. The new subsidiary is scheduled to begin operations on Jan. 1, 2027. While E-Land World is expected to remain a key business partner beyond that date, the specifics of their future collaboration remain unclear. Industry analysts suggest the arrangement could resemble that of luxury brand Thom Browne, which transitioned to direct operations while maintaining a retail management contract with Samsung C&T, its former licensee. However, shifting to direct operations in South Korea has posed challenges for some global brands. Puma, for instance, struggled after ending its 13-year licensing agreement with E-Land Group in 2008, with sales plunging nearly 50 percent from 200 billion won. “New Balance is eager to establish a direct presence in the Korean market, but severing ties with E-Land Group, which has successfully managed the brand for years, would be a delicate matter,” said an industry insider familiar with the negotiations. An E-Land Group official said that while details regarding the subsidiary remain undecided, dealer relationships will play a crucial role in determining future contract terms. 2025-02-18 15:52:47

Korea's move to regulate platforms faces US trade pressure U.S. President Donald Trump lands on West Palm Beach, Florida, Feb. 16, 2025. Reuters-Yonhap SEOUL, February 18 (AJP) - South Korea’s attempt to rein in dominant online platforms has hit a roadblock, as recent trade threats from the Trump administration cast uncertainty over the initiative. The Korea Fair Trade Commission (KFTC) is reassessing its position on the Platform Competition Promotion Act (PCPA), a proposed law designed to curb unfair practices by major digital platforms. The bill has faced resistance from Washington, raising concerns over potential trade frictions. “We will strengthen communication with the U.S. and coordinate with the National Assembly to ensure that changes in the trade environment are fully considered during the legislative process,” KFTC Chairman Han Ki-jeong said Monday at the Government Complex in Sejong. The proposed legislation seeks to shift the burden of proof onto platform operators in cases involving four types of violations, including self-preferencing and tied selling. It would also increase potential fines from 6 percent to 8 percent of revenue for noncompliance. Momentum for the regulatory push grew after the Tmon-WeMakePrice crisis in July, which underscored the need for stronger oversight of online platforms and galvanized public support for intervention. However, the initiative has faced stiff opposition from U.S. officials, particularly following comments by U.S. Trade Representative nominee Jamison Greer. On Feb. 6, Greer denounced the measure as “intolerable,” arguing that it discriminates against American companies. If enacted, the law would apply to platforms with market shares exceeding 60 percent and user bases of more than 10 million — a threshold that would encompass U.S. tech giants such as Google and Apple. Google is already under scrutiny by the KFTC over allegations of bundling its YouTube Music service with other offerings, though a final decision on the case has yet to be made. Facing mounting pressure, South Korean lawmakers are seeking to salvage the bill by emphasizing similar regulatory efforts underway in the United States. The issue is expected to be a focal point in an upcoming meeting of the National Assembly’s Policy Committee. “Even in the U.S., there is growing support for regulating big tech companies like Google and Apple to create more opportunities for new technology firms,” said Kim Nam-keun, a lawmaker from the opposition Democratic Party. 2025-02-18 14:25:22

Nongshim to establish European headquarters in Amsterdam Advertisement of Nongshim's instant noodle Shin Ramyun on a tram in Amsterdam, Netherlands/ Courtesy of Nongshim SEOUL, February 18 (AJP) - South Korean food company Nongshim announced plans to establish its European headquarters in Amsterdam this March, a move aimed at bolstering its presence in the region's growing instant noodle market. According to Nongshim, the new subsidiary, Nongshim Europe B.V., will take advantage of the Netherlands' extensive logistics infrastructure, including the Port of Rotterdam — Europe's busiest — as well as the country's well-developed rail and road networks. The expansion comes as Europe's instant noodle market, valued at approximately $2 billion in 2023, has experienced rapid growth, with a compound annual growth rate of 12 percent over the past five years. Nongshim has outpaced the broader market, recording an average annual sales increase of 25 percent during the same period, with growth accelerating to 40 percent in 2024. As the largest instant noodle company in South Korea, Nongshim aims to leverage Europe's diverse consumer tastes, where regional preferences shape brand dominance across different markets. The company also plans to strengthen its foothold in major European retail chains. “Our diverse product lineup, from Shin Ramyun to Shin Ramyun Toomba, positions us well to capture the European market,” a Nongshim representative said. “By expanding distribution and developing localized products, we are confident in achieving our $300 million sales target by 2030.” To support its international growth, Nongshim is constructing a dedicated export facility in Busan, expected to boost the company’s annual production capacity to 2.7 billion units by late 2026. 2025-02-18 10:41:38

Biotech firm DYD develops saliva-based diabetes test kit DYD's diabetes diagnosis kit/ Courtesy of DYD SEOUL, February 17 (AJP) - South Korean biotechnology company DYD announced plans on Monday to introduce a diabetes diagnostic kit capable of detecting the disease through saliva samples in under one minute. The device aims to provide a less invasive alternative to traditional blood-based testing. The diagnostic kit measures glycated albumin, a key biomarker for diabetes, using semiconductor biosensor technology that integrates next-generation surface technology with antibody conjugation techniques. DYD’s platform has already received technology certification from the Ministry of Trade, Industry and Energy in South Korea. Additionally, the company has completed reproducibility verification through clinical trials conducted at Maryland Medical Center in the United States. The saliva-based testing method offers significant advantages over conventional blood-based diagnostics. “We aim to provide a more convenient and accurate monitoring environment for diabetes patients worldwide through our entry into the global diagnostic kit market,” a DYD spokesperson said. 2025-02-17 16:15:45

South Korea launches safety certification system for EV batteries Electric vehicles plugged at a charging station in Incheon Airport, Feb. 17, 2025. Yonhap SEOUL, February 17 (AJP) - The Korean government on Monday introduced a mandatory certification system for electric vehicle (EV) batteries, a move aimed at strengthening safety regulations following a high-profile battery fire last year. The new policy requires all EV batteries to undergo 12 stringent safety tests, including assessments for thermal shock, combustion resistance, and overheating prevention. These tests will be conducted by the Korea Automobile Testing & Research Institute before the batteries can be approved for installation in vehicles. The initiative builds upon a pilot program launched in September with Hyundai Motor’s IONIQ 9, amid growing concerns over the previous self-certification system that allowed automakers to assess battery safety with government oversight occurring only after incidents. “The battery certification system represents a risk-sharing partnership between the government and industry in response to emerging technologies,” a spokesperson from the Ministry of Land, Infrastructure and Transport said. Under the new framework, either automakers or battery manufacturers can apply for certification. The system also introduces a tracking mechanism that assigns unique identification numbers to batteries, enabling authorities to monitor them from production through disposal. The regulatory overhaul comes in the wake of an Aug. 1, 2024, fire that broke out in the underground parking garage of an apartment complex in Incheon. The blaze, which originated from an unplugged Mercedes-Benz electric vehicle, triggered widespread public concern over EV safety and prompted urgent calls for stricter oversight of battery technology. 2025-02-17 14:59:48

US conducting cross-border subsidy probe into Korean pharmaceutical capsules U.S. President Donald Trump arrives in Daytona Beach to attend the Daytona 500 race held in Florida, Feb. 16, 2025. Reuters-Yonhap SEOUL, February 17 (AJP) - The United States has launched a countervailing duty investigation into pharmaceutical hard capsules exported from Vietnam-based facilities operated by South Korean companies, the Korea Trade-Investment Promotion Agency (KOTRA) reported on Monday. The move comes as the Trump administration intensifies its sweeping tariff offensive, targeting both allies and adversaries. Trade analysts expect stricter enforcement of existing import regulations, including anti-dumping and countervailing duties. The U.S. Department of Commerce initiated the investigation in November, following a policy revision in March that broadened the scope of countervailing duty laws to include cross-border subsidies. The updated regulations aim to curb foreign government subsidies that could distort competition in the U.S. market. Under the revised framework, subsidies from third countries are now treated as equivalent to those provided by the exporting country. The inquiry into pharmaceutical capsules is part of a broader expansion of U.S. trade scrutiny. American officials have also widened an investigation into South Korean epoxy resins, a critical material used in semiconductors, automobiles, aerospace, and medical industries. Authorities are examining whether Korean companies sourced raw materials for epoxy resins at below-market prices from Chinese state-owned enterprises or firms operating under Chinese government directives. As of late last year, the United States had 53 active import restrictions against South Korea, including ongoing investigations. These comprised 37 anti-dumping cases, 12 countervailing duty cases, two safeguard measures, and two circumvention probes. Steel and metal products faced the highest number of trade measures, with 36 cases. Plastics, rubber, and textiles each accounted for four cases, while the electronics sector was the subject of three investigations. “The second Trump administration is expected to employ all available trade enforcement tools to address deficits and bolster domestic manufacturing,” a KOTRA official said. The administration has already enacted additional tariffs, including a 10 percent levy on Chinese goods and 25 percent duties on steel and aluminum. Officials have signaled plans to escalate the use of tariffs as a strategic economic weapon. 2025-02-17 13:59:35

Korean business delegation heads to Washington amid trade tensions Acting President Choi Sang-mok (middle in grey suit) poses for a photo with Korea Chamber of Commerce and Industry delegation led by SK Group Chairman Chey Tae-won (Choi's left), Feb. 16, 2025. Courtesy of the Ministry of Economy and Finance SEOUL, February 17 (AJP) - A high-profile delegation of South Korean business leaders, led by Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI), is set to visit Washington this week, marking the first major private-sector mission since President Donald Trump began his second term. The visit comes as the Trump administration signals plans to impose retaliatory tariffs on nations with value added tax (VAT) systems, a move that could affect South Korea’s 10 percent VAT rate relative to the United States’ 6.6 percent. The delegation includes executives from South Korea’s 20 largest conglomerates, among them Cho Hyun-sang, vice chairman of HS Hyosung, and Kim Won-kyung, president of Samsung Electronics. Leading the group is Chey, who also serves as chairman of SK Group. “We need you to thoroughly explain our investment achievements in the United States and explore opportunities for collaboration with the new administration,” South Korea’s acting president and finance minister, Choi Sang-mok, told the delegation during a dinner meeting on Sunday. The mission aims to reinforce South Korea’s standing as a key investor in the United States, having funneled approximately $160 billion into greenfield projects since 2017, particularly in the automotive, semiconductor, and battery industries. A gala dinner is planned for Wednesday at the Great Hall of the Thomas Jefferson Building, with roughly 150 guests expected, including members of Congress, state governors, and senior administration officials. The business leaders will also meet with White House economic policymakers on Thursday to discuss cooperative initiatives, including increased imports of American energy, partnerships in shipbuilding, and the development of semiconductor supply chains. Other South Korean business groups are also engaging with U.S. counterparts amid the evolving trade landscape. The Korea International Trade Association is pursuing a “bottom-up” strategy, working with state governments where Korean firms have a significant presence to shape federal policy. Meanwhile, the Federation of Korean Industries is preparing to host a U.S.-Korea investment forum next month and plans to dispatch its think tank chief to Washington to strengthen ties with American policymakers. 2025-02-17 10:57:52