Meta in talks to acquire Korean AI chip startup Furiosa AI Furiosa AI's next-generation processor RNGD/ Courtesy of Furiosa AI SEOUL, February 12 (AJP) - Meta Platforms Inc. is engaged in discussions to acquire South Korean artificial intelligence chip startup Furiosa AI, potentially strengthening its semiconductor capabilities amid the global AI competition, sources familiar with the deal said Wednesday. Founded in 2017 by former Samsung Electronics and AMD engineer June Paik, Furiosa AI specializes in developing AI inference processors for data center servers. The Seoul-based company debuted its first AI accelerator chip, also known as "NPU," "Warboy" in 2021, followed by its next-generation processor "RNGD" engineered to handle large language model (LLM) AI in August last year. Industry experts note that Furiosa AI's second-generation NPU RNGD surpasses market leader Nvidia's GPU L40S and even the high-end version of the U.S. tech giant's H100 in terms of performance-per-watt ratio for inference operations. The firm has secured about $115 million in funding to date, including a recent $1.5 million investment from venture capital CRIT Ventures in early February. The potential acquisition is in line with Meta's strategy to decrease its reliance on Nvidia's costly AI chips. The social media behemoth is already partnering with American semiconductor manufacturer Broadcom to develop custom AI processors. Meta has also recently unveiled plans to invest up to $65 billion in AI infrastructure and data center expansion this year. 2025-02-12 16:02:03

Seoul unveils ambitious makeover plan for Dongdaemun areas The Dongdaemun Design Plaza (DDP), Feb. 5, 2025/ Yonhap SEOUL, February 12 (AJP) - The Seoul Metropolitan Government on Wednesday announced an ambitious master plan to rejuvenate the areas surrounding the Dongdaemun Design Plaza (DDP), a former stronghold of South Korea’s fashion industry that has struggled in recent years. The initiative, set to begin next month and slated for completion by late 2026, aims to breathe new life into the aging commercial hub through a series of urban renewal projects and infrastructure upgrades. The Dongdaemun area, which emerged in the 1990s as the country’s premier destination for fashion wholesale and retail, has seen a steep decline, buffeted by shifting consumer habits and the economic fallout of the COVID-19 pandemic. As part of the revitalization effort, city officials plan to introduce green corridors connecting the DDP with nearby Hullyeon Park and other scattered green spaces. The plan also envisions new residential developments to counteract the effects of urban hollowing. The redesign seeks to address the district’s fragmented architecture, creating a more seamless pedestrian experience between the landmark plaza and surrounding commercial areas. “We are committed to laying the groundwork for new industries while transforming this district into one of downtown Seoul’s premier landmarks,” said Cho Nam-jun, head of the city’s Urban Planning Bureau. 2025-02-12 15:33:37

South Korea-Cuba diplomatic relations mark one year, but trade remains stagnant Getty Images Bank SEOUL, February 12 (AJP) - Nearly a year after establishing diplomatic relations, South Korea and Cuba have yet to see a significant expansion in trade, with annual commerce hovering around $20 million. The primary hurdle remains the longstanding U.S. sanctions on Cuba, which continue to constrain the Caribbean nation’s access to global markets. Trade volumes between South Korea and Cuba have shown little improvement since they formalized ties on Feb. 14 last year. The economic embargo imposed by Washington decades ago has effectively isolated Cuba from international commerce, limiting opportunities for growth in bilateral trade. Cuba’s economy, heavily reliant on food and energy imports, recorded a gross domestic product of $28.9 billion last year, with a per capita GDP of $2,730. The nation posted $1.7 billion in exports against $9.8 billion in imports, resulting in a trade deficit of $8.1 billion. Industry experts point to persistent U.S. sanctions, foreign exchange shortages, and payment risks as primary obstacles to trade expansion. “Despite the establishment of diplomatic relations, U.S. sanctions against Cuba remain a significant barrier to deepening trade ties,” an official from the Korea Trade-Investment Promotion Agency said. “We need to gradually enhance economic cooperation through Official Development Assistance in key Cuban sectors, such as agricultural food production, renewable energy, and resource recycling.” South Korean firms have maintained a presence in Cuba since the mid-1990s, exporting automobiles, electronics, and tires — often through third-party agents. The energy sector has emerged as a key area of cooperation. Power generation has played a pivotal role in bilateral relations, with Hyundai Heavy Industries supplying 464 containerized diesel generators to Cuba between 2005 and 2010. At its peak, the company held roughly 30 percent of Cuba’s power market. Korean consumer brands remain well-positioned in the Cuban market. Samsung Electronics and LG Electronics continue to command premium standing among consumers, while Hyundai Motor and Kia vehicles remain popular in the rental car sector. However, since 2015, South Korean automakers have ceded market share to Chinese competitors. Bilateral trade reached a high of $70 million in 2017 during the Obama administration’s diplomatic thaw with Cuba. However, trade volumes plunged to $13.8 million in 2022 amid the pandemic before rebounding to $35.7 million last year. South Korea’s exports to Cuba include plated steel, automobiles, zinc-coated steel, auto parts, and machinery, while it imports metals, tobacco, and food products in return. 2025-02-12 11:07:39

Hanwha Aerospace becomes first Korean defense firm to surpass 10 trillion won revenue A K9A2 Thunder self-propelled howitzer on display at a convention held in Washington, Oct. 15, 2024. Yonhap SEOUL, February 11 (AJP) - South Korean defense contractor Hanwha Aerospace posted record annual revenue of 11.2 trillion won ($7.71 billion) in 2024, becoming the first domestic firm in the sector to surpass the 10 trillion won milestone. The company’s operating profit soared 190.2 percent year-over-year to 1.7 trillion won, while net profit climbed 160.5 percent to 2.5 trillion won, according to a regulatory filing on Tuesday. Hanwha’s fourth-quarter performance remained strong, with operating profit reaching 892.5 billion won and revenue totaling 4.8 trillion won. The surge was fueled by robust exports of its flagship K9 Thunder self-propelled howitzers and K239 Chunmoo rocket artillery systems, marking the first time overseas sales have outpaced domestic revenue. A key driver of growth was a landmark agreement with Poland, which ordered 672 K9 Thunder howitzers and 288 K239 Chunmoo systems in July 2022. Deliveries are currently underway. Industry sources report that Hanwha has already shipped 136 K9 Thunder howitzers and 72 K239 Chunmoo systems to Poland, with an additional 228 howitzers and 146 launchers set for delivery by 2026. Expanding its global footprint, the company secured a 1.3 trillion won contract with Romania for 54 K9 Thunder howitzers, 36 K10 ammunition resupply vehicles, and associated munitions. Hanwha is poised to finalize a 430 billion won deal with Vietnam for 20 K9 Thunder howitzers early this year. “This performance reflects the materialization of our export contracts and steady domestic production,” a Hanwha Aerospace official said. “We will continue to enhance our global competitiveness to sustain export growth.” 2025-02-11 16:24:52

South Korea faces worst job market slump in decades A job information center in Seoul, Feb. 10, 2025/ Yonhap SEOUL, February 11 (AJP) - South Korea’s job market is experiencing its sharpest downturn since the Asian financial crisis more than two decades ago, with only three job openings available for every 10 job seekers in January. According to data released Tuesday by the Ministry of Employment and Labor, new job postings fell 42.7 percent year-over-year to 135,000 last month, while the number of job seekers declined 6.5 percent to 479,000. The job-to-applicant ratio sank to 0.28 — the lowest level since 1999. The downturn has hit the manufacturing and construction sectors particularly hard. The manufacturing industry has now seen employment insurance subscribers decline for 16 consecutive months, excluding mandatory foreign worker registrations. Meanwhile, the construction sector has reported shrinking employment insurance enrollment for 18 straight months. “The economic slowdown, particularly in manufacturing, construction, and business services, has significantly dampened corporate hiring,” said Cheon Kyung-gi, head of the ministry’s future employment analysis division. The deteriorating job market underscores broader economic challenges. The number of employed individuals fell by 52,000 in December 2024 compared with a year earlier, marking the first annual decline since the COVID-19 pandemic. Additionally, employment insurance subscribers grew by just 0.8 percent — or 115,000 people — in January, the weakest increase in 21 years, since the credit card crisis of 2004. 2025-02-11 15:27:22

Unused credit cards surge, driving up consumer costs Getty Images Bank SEOUL, February 11 (AJP) - Nearly one in three credit cards issued in South Korea remains unused, adding to a growing financial burden for consumers as card companies capitalize on rising annual fees, according to new data from the Credit Finance Association of Korea. By the end of 2024, the number of dormant credit cards - those left unused for more than a year - had climbed to 19.41 million, a sharp increase from 12.99 million in 2021. That figure accounts for roughly one-third of all new credit cards issued. Card issuers cite rising production costs - between 10,000 won ($6.88) and 15,000 won per card - as justification for higher annual fees. Yet, industry data shows that these fees have become a lucrative revenue stream, with collections rising from 1.13 trillion won in 2021 to 1.33 trillion won in 2023. “There’s little incentive to address the dormant card issue when raising annual fees provides an easy solution to cover costs,” said an executive at a major credit card company, speaking on condition of anonymity. A decade ago, many credit cards charged annual fees as low as 2,000 to 5,000 won. Those options have largely disappeared, with most cards now commanding fees exceeding 10,000 won. Beyond financial costs, dormant cards can negatively impact credit evaluations. The Korea Credit Information Services (KCS) considers card-related data when assessing credit limits, particularly for individuals holding three or more credit cards. The surge in inactive cards is largely driven by aggressive competition among issuers, particularly with the proliferation of Private Label Credit Cards (PLCCs). These co-branded cards, often launched in partnership with major retailers like Coupang, E-Mart, and Olive Young, lure consumers with short-term benefits but often go unused after initial promotions expire. Regulatory policies have also played a role. Government restrictions prevent the automatic cancellation of dormant credit cards before their standard expiration - typically five years - contributing to the growing backlog of inactive accounts. In response to the issue, banks and card companies launched a joint service last September to help users manage dormant cards. However, the initiative has gained little traction, with only about 1,500 users signing up to date. 2025-02-11 14:36:51

US tariffs may cut South Korean exports by $44.8 billion: KIEP Workers are examining machines at a Samsung Electronics factory. Courtesy of Samsung Electronics SEOUL, February 11 (AJP) - South Korean exports could decline by as much as $44.8 billion if the United States implements blanket tariffs on trading partners, including those with bilateral free trade agreements, the state-run Korea Institute for International Economic Policy (KIEP) has warned. The prediction comes as U.S. President Donald Trump announced plans to impose a 25 percent tariff on steel and aluminum imports while signaling the possibility of additional reciprocal tariffs, escalating global trade tensions. The warning raises concerns for South Korean firms, which have seen their North American revenues surge nearly 20 percent last year, reflecting a deepening reliance on the U.S. market. But looming tariff policies under the Trump administration are adding pressure to their outlook. According to corporate analysis firm Leaders Index, major South Korean corporations generated 313.5 trillion won (about $215.5 billion) in North American sales during the first three quarters of 2024, a robust 19.5 percent increase from the previous year’s 262.3 trillion won. The region’s share of total revenue climbed to 28.1 percent from 25.2 percent, underscoring the growing significance of the U.S. market for Korean businesses. The information technology and electronics sector posted the strongest gains, with 12 companies in the industry recording a combined 114.3 trillion won in North American sales — an increase of 42.7 percent from the previous year. SK hynix led the charge, nearly tripling its U.S. revenue to 27.3 trillion won, buoyed by its dominance in high-bandwidth memory chips for artificial intelligence applications. Samsung Electronics, another major player, saw a 24 percent jump in its American sales, reaching 84.7 trillion won. Meanwhile, South Korea’s automakers also recorded solid gains, with Hyundai Motor and Kia Corp. reporting increases of 17 percent and 12 percent, respectively, in the North American market. In response to the tariff risks, companies with U.S.-based manufacturing facilities, such as Samsung Electronics and Hyundai Motor, may need to ramp up domestic production to mitigate potential tariff-related disruptions, according to Leaders Index. 2025-02-11 10:13:56

US tariffs threaten jobs in Korea's manufacturing sector Workers assemble parts at a Hyundai Motor auto factory. Courtesy of Hyundai Motor Group SEOUL, February 10 (AJP) - South Korea’s automotive and steel industries are confronting the prospect of a major production overhaul as concerns grow over U.S. President Donald Trump’s proposed universal tariffs, a move that could upend the nation’s manufacturing sector. The specter of tariffs ranging from 10 to 20 percent on Korean vehicles, coupled with potential reciprocal measures, threatens to erode the economic gains secured under the Korea-U.S. Free Trade Agreement (KORUS FTA). Automakers, fearing a steep decline in competitiveness, are accelerating plans to shift production overseas. “The relocation of domestic manufacturing facilities will inevitably lead to job losses, potentially triggering a prolonged economic slowdown,” said Lee Cheol-in, an economics professor at Seoul National University. Manufacturing accounts for 28 percent of South Korea’s gross domestic product - a significantly higher proportion than in other industrial economies, including Germany (20.4 percent) and the United States (11.1 percent). With the sector serving as a pillar of the South Korean economy, any disruption could have far-reaching consequences. According to S&P Global, Hyundai Motor and Kia stand to see a 19 percent drop in operating profits if a 20 percent tariff is imposed. In anticipation of these challenges, Hyundai Motor Group has announced plans to expand production at its Metaplant America facility in Georgia, increasing its U.S. manufacturing capacity to 1.2 million vehicles annually by 2025. The shift is expected to diminish output at its Korean plants, which last year produced nearly one million vehicles for the U.S. market - representing more than half of the company’s total American sales. “Even in a best-case scenario, we anticipate a reduction of 100,000 to 300,000 units in domestic production,” said Lee Hang-koo, former head of the Junbuk Institute of Automotive Convergence Technology. “A decline of 100,000 units alone would necessitate the shutdown of one production line at Hyundai’s Ulsan plant for a year, impacting approximately 3,000 workers.” The situation is even more precarious for GM Korea, where speculation of a complete withdrawal from the market has intensified. The automaker relies heavily on U.S. exports, which accounted for 83.8 percent of its total production last year, with more than 418,000 vehicles shipped overseas. South Korea’s steel industry, already contending with China’s aggressive market dumping, faces additional pressure. Hyundai Steel Company and POSCO are exploring overseas expansion, with Hyundai Steel considering a $7 billion investment in the southeastern U.S. to mitigate the effects of potential tariffs. 2025-02-10 16:49:35

Korea's economy under greater downward pressure, state think tank warns Korea Development Institute (KDI) office in Sejong City/ Courtesy of KDI SEOUL, February 10 (AJP) - South Korea’s state-run Korea Development Institute (KDI) warned of mounting risks to the nation’s economy, citing sluggish production growth and worsening domestic and external conditions. In its February economic trends report, released Monday, the KDI noted that while industrial production showed some growth, broader economic challenges persisted. "Domestic demand remains weak due to sluggish consumption and a downturn in construction investment," the KDI said. "At the same time, export growth is slowing, particularly in non-semiconductor sectors." Consumer spending has been hit hard, with retail sales declining across key categories, including automobiles, home appliances, and clothing. The consumer sentiment index stood at 91.2 in January, well below the neutral threshold of 100, signaling widespread caution among households. Although facility investment has maintained its recovery, driven by increased spending in the semiconductor sector, construction activity remains depressed. Labor market conditions have also softened. The number of employed individuals dropped by 52,000 in December compared to the previous year, a decline attributed to job losses in construction and manufacturing, as well as the expiration of government-backed employment programs. Inflation edged higher in January, with consumer prices rising 2.2 percent year-on-year, driven primarily by a 7.3 percent surge in petroleum product prices. Core inflation, however, remained subdued at 1.9 percent, reflecting tepid domestic demand. Industrial production grew 1.4 percent in December, buoyed by an increase in working days and improved manufacturing output. However, the ongoing struggles in the construction sector continued to weigh on overall economic performance. The report also highlighted ongoing geopolitical uncertainties, which, along with domestic economic concerns, have dampened both household and business confidence. 2025-02-10 14:50:08

Trump's tariff plan for steel, aluminum imports rekindles trade tensions U.S. President Donald Trump salutes before a Superbowl game in Louisiana, Feb. 9, 2025. Reuters-Yonhap SEOUL, February 10 (AJP) - U.S. President Donald Trump has announced plans to impose a 25 percent tariff on steel and aluminum imports, a move that could disrupt trade relations with key allies, including South Korea. The decision builds upon tariffs first introduced during Trump’s initial term - 25 percent on steel and 10 percent on aluminum - which had previously allowed exemptions for select trading partners through duty-free quotas. South Korea, the fourth-largest supplier of U.S. steel imports after Canada, Brazil, and Mexico, has maintained a special quota status, enabling it to avoid tariffs on 54 product categories totaling 2.63 million tons. South Korean steelmakers, which have strategically limited exports to preserve quota benefits and circumvent the 25 percent tariff, may now need to reassess their approach to the U.S. market in light of the proposed changes. In addition to steel and aluminum tariffs, Trump is expected to outline further details on reciprocal tariffs in remarks scheduled for Tuesday or Wednesday. “And very simply, it’s, if they charge us, we charge them,” Trump said, reiterating his protectionist stance. The implications for South Korea remain uncertain despite the existing U.S.-Korea Free Trade Agreement (KORUS FTA), which has eliminated tariffs on about 98 percent of traded goods, according to a 2022 report by the Korea Institute for International Economic Policy (KIEP). South Korea’s vulnerability stems from its sizable trade surplus with the United States, which reached approximately 81 trillion won last year, making it the eighth-largest surplus country in U.S. trade relations. Trade analysts suggest that the broader economic impact could extend beyond immediate tariff concerns. “The implementation of universal tariffs could mark a turning point for Korean exports,” said Yang Ji-won, a senior researcher at the Korea International Trade Association (KITA). A KITA report released Sunday indicated that if universal tariffs take effect, South Korea’s total exports could decline by 1.9 percent based on figures from January to November of last year. The projected impact would be less severe, at 0.1 percent, if additional tariffs were limited to China, Canada, and Mexico. 2025-02-10 14:06:10