Journalist
Kim Dong-young and Han Jun-gu
davekim0807@ajupress.com
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Samsung SDI signs battery supply deal with German energy firm SEOUL, June 11 (AJP) - Battery manufacturer Samsung SDI said on Wednesday that it has signed a new supply agreement with Tesvolt, a leading German energy storage company. While the company did not disclose the value or exact timing of the deal, a Samsung SDI spokesperson confirmed that executives from both firms met on May 8 regarding the agreement. The contract will see Samsung SDI deliver its flagship battery solution, the Samsung Battery Box, to Tesvolt by the end of June. The deal builds on a longstanding partnership between the two companies, which began in 2017. According to Samsung SDI, the agreement could serve as a springboard for deeper collaboration, with further supply negotiations and joint marketing efforts planned for upcoming energy storage projects. Samsung SDI also noted during its first-quarter earnings call that it has already secured orders accounting for approximately 90 percent of its planned energy storage system battery production for 2025. 2025-06-11 10:27:12 -
Bank of Korea sounds alarm as won-backed stablecoin momentum builds SEOUL, June 10 (AJP) - As interest in won-denominated stablecoins intensifies, the Bank of Korea is cautioning that a premature rollout could jeopardize the nation’s monetary stability. Central bank officials say that without carefully designed regulations, stablecoins could pose systemic risks and weaken the South Korean currency's status as legal tender. In response, the Bank of Korea will host a high-profile conference on July 1 to address the implications of stablecoin adoption and outline possible countermeasures. While the bank is expected to acknowledge the growing inevitability of stablecoins in the global financial landscape, it will stress the importance of a measured approach rooted in financial stability concerns. “Won stablecoins are currency substitutes, and if non-bank institutions issue them freely, it could significantly undermine monetary policy effectiveness,” said BOK Governor Rhee Chang-yong during a press briefing on May 29. Stablecoins — digital assets typically pegged to traditional fiat currencies such as the U.S. dollar or euro — are increasingly viewed as tools for faster, lower-cost payments with reduced volatility. Yet their adoption in South Korea remains tentative, with policymakers weighing risks and potential frameworks Market interest spiked earlier this month after Kim Yong-beom, policy chief of the presidential office, floated the idea of a “Korean-style” model that would allow private financial institutions and fintech firms to issue won-backed stablecoins, alongside banks. However, significant legal hurdles remain. Experts say the launch of a functional won-denominated stablecoin would likely require extensive amendments to a web of financial statutes. Analysts expect the Bank of Korea to maintain its cautious stance until a unified regulatory approach emerges among government agencies and ruling party lawmakers. 2025-06-10 14:26:34 -
Korean Air charts global ambitions as group nears 70-year milestone Editor's Note: This article is the 21st installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, June 5 (AJP) - As Hanjin Group prepares to mark its 70th anniversary this November, South Korea’s largest transportation conglomerate is plotting a course for global expansion. The centerpiece of the group’s transformation is Korean Air, which solidified its standing as a global aviation player in December 2024 by finalizing its 1.8 trillion won (approximately $1.31 billion) acquisition of longtime rival Asiana Airlines. The merger — four years in the making and mired in regulatory scrutiny — granted Korean Air a 63.88 percent stake in Asiana, propelling the combined carrier into the ranks of the world’s 10 largest airlines by capacity. At the helm is Chairman and Chief Executive Cho Won-tae, also known as Walter Cho, grandson of Hanjin’s founder. Under his stewardship, the merged airline has pledged full integration within two years, with no workforce reductions — a move aimed at assuaging labor concerns in a nation sensitive to corporate restructuring. But Cho’s ambitions stretch far beyond Korean airspace. In May, Korean Air announced a strategic 10 percent stake in WestJet, Canada’s second-largest airline, underscoring a push to strengthen its transpacific network. “We are pleased to invest in WestJet as part of our continued commitment to enhancing transpacific connectivity,” Cho said in a statement. The investment, he added, is intended to increase customer choice and reinforce the airline’s international footprint. These initiatives mark a striking evolution for a company that began in 1945 with a single truck at Incheon Port. Founded by Cho Choong-hoon, Walter’s grandfather, Hanjin grew rapidly through contracts with the U.S. military following the Korean War, and took to the skies in the 1960s with the acquisition of state-owned Korea Airlines, rebranded as Korean Air. In the decades since, the conglomerate has diversified its operations, launching shipping services, parcel delivery, and even educational institutions, including Inha University and Hankuk Aviation University. Korean Air posted record first-quarter revenue of 3.96 trillion won this year, up 3 percent from the previous year. But rising depreciation and maintenance costs — fueled by deliveries of Boeing 787-9 and 787-10 aircraft — cut into profitability. Operating profit fell 19 percent to 351 billion won, while net income declined 44 percent to 193 billion won. Passenger revenue increased modestly by 4 percent to 2.44 trillion won, and cargo revenue rose 6 percent to 1.05 trillion won, driven by strong demand in e-commerce, electronics, and auto parts. Meanwhile, Hanjin Logistics, the group’s delivery and freight arm, posted first-quarter revenue of 728 billion won, a 2.2 percent year-on-year increase, with operating profit up 12 percent to 26.2 billion won. Despite operational growth, the group remains dogged by governance issues. Since the death of his father, Cho Yang-ho, in 2019, Walter Cho has consolidated leadership, notably steering the Asiana merger to completion with support from the state-run Korea Development Bank. Yet his control may soon be tested. Hoban Group, a domestic construction and investment firm, has quietly increased its stake in Hanjin KAL, the group’s holding company. Though it trails Cho’s faction by a narrow 1.5 percentage point margin in shareholding, its growing influence has raised eyebrows. Hoban previously made an unsuccessful bid to acquire Asiana Airlines and would need to commit an estimated 2.6 trillion won to gain a controlling stake. For now, Hoban insists its interest is “purely financial,” denying any intention to pursue a management takeover. Nonetheless, its maneuvering introduces a layer of uncertainty just as Hanjin seeks to redefine itself on the global stage. As the conglomerate approaches its milestone anniversary, it faces a pivotal question: Can it maintain momentum in international markets while navigating increasingly turbulent corporate waters at home? For Hanjin — and for Walter Cho — the answer may define the next chapter in South Korea’s aviation legacy. 2025-06-05 09:37:49 -
Exhibition showcases trend of electric vehicles SEOUL, June 4 (AJP) - South Korea’s premier electric vehicle exhibition, EV Trend Korea 2025, opened in Seoul on Tuesday with an awards ceremony honoring standout innovations in the nation’s fast-growing EV sector. The three-day event, hosted by the Ministry of Environment at COEX convention center, brought together major industry stakeholders, including the Korea Battery Industry Association and the Korea Automotive Environmental Association. Ahn Se-chang, director general of the Climate Change Policy Bureau at the environment ministry, delivered opening remarks to a crowd of executives and policymakers. Attendees included Shin Seung-kyu, executive vice president of Hyundai Motor Group, and Glen Schmidt, vice president for government and external affairs at BMW Korea. Now in its eighth year, the exhibition is the largest in its history, according to organizers. Crowds flooded the venue on opening day, drawn by hands-on exhibits, live demonstrations and test-driving opportunities. A popular highlight was the EV camping display, showcasing vehicle-to-load (V2L) technology that allows EVs to power outdoor equipment and appliances. Among the headliners was Hyundai’s newly redesigned Nexo, the company’s hydrogen-powered SUV originally launched in 2018. The updated model boasts a projected driving range of more than 700 kilometers on a single hydrogen refill — completed in under five minutes — and will feature a panoramic curved display dashboard. The vehicle is set for release next month, according to Hyundai officials present at the show. 2025-06-04 16:15:51 -
Business groups urge new president to focus on economic recovery SEOUL, June 4 (AJP) - South Korean business groups called on President Lee Jae-myung to revitalize the country’s flagging economy and position it as a global economic heavyweight amid mounting domestic and international challenges. In a series of statements issued Tuesday, business leaders asked the new administration to prioritize economic stability, bolster industrial competitiveness, and enact reforms aimed at restoring growth in a nation grappling with sluggish consumption, falling birthrates, and global trade headwinds. The Korea Chamber of Commerce and Industry, one of the country's most influential business organizations, urged President Lee to “unite national capabilities” to confront structural issues such as low growth and regional population decline. In a policy paper, the group emphasized the need for proactive leadership in an era shaped by protectionist trade policies and the rapid advancement of artificial intelligence. “President Lee must steer the nation through a volatile global landscape and domestic uncertainty,” the chamber stated, calling for “decisive measures that restore public trust and energize economic fundamentals.” The Federation of Korean Industries echoed the call for urgent action, expressing confidence that “pragmatic, performance-oriented policies” could elevate South Korea into the ranks of the world’s top five economies. The group urged the government to foster innovation, revive the ailing manufacturing sector, and support emerging technologies as pillars of long-term growth. The Korea Enterprises Federation, meanwhile, pressed for bold regulatory reforms and a more flexible labor market, saying such measures are essential for enhancing competitiveness and sustaining prosperity. “Insightful and balanced leadership will be crucial in navigating the coming challenges,” the group said. The Korea International Trade Association advocated for a more profit-driven trade strategy, emphasizing the importance of minimizing external risks through coordinated diplomatic and trade policy efforts. “Rapid shifts in the global trade order require swift and adaptive responses,” the group said. As President Lee assumes office, expectations are high that his administration will move quickly to define its economic priorities and reassure markets. The coming months are expected to offer the first real test of how he balances labor-friendly campaign promises with the demands of a deeply concerned business sector. 2025-06-04 14:59:26 -
Conservative party officials in somber mood as exit polls show 12-point gap SEOUL, June 3 (AJP) - South Korea's main opposition People Power Party officials watched in somber silence as exit polls showed their candidate trailing the ruling Democratic Party's Lee Jae-myung by about 12.4 percentage points in Tuesday's presidential election. The party's election headquarters at the National Assembly Library fell into heavy silence when broadcasters announced the results at 8 p.m., immediately after voting concluded across the nation. Officials clad in red campaign jackets had gathered with cautious optimism. Emergency Committee Chairman Kim Yong-tae and other senior leaders took front-row seats as the critical moment approached. The mood shifted dramatically as exit poll figures appeared on television screens, showing their candidate Kim Moon-soo significantly behind, despite the campaign’s final-week rhetoric about a possible "golden cross" comeback. "We expected results within the margin of error, either slightly behind or slightly ahead, but this significant gap is quite disappointing," said co-campaign chief Na Kyung-won. "It's being received as somewhat shocking." Within ten minutes of the announcement, senior party officials began leaving the venue, their expressions marked by disappointment as the unexpected scale of the setback sank in. 2025-06-03 21:02:16 -
Lee Jae-myung promises pro-labor policies, aiming to revive economy SEOUL, June 3 (AJP) - Lee Jae-myung, presidential candidate of the liberal Democratic Party, is projected to win South Korea’s snap presidential election held Tuesday, with exit polls showing him ahead with 51.7 percent of the vote. His conservative rival Kim Moon-soo of the People Power Party follows with 39.3 percent, according to a joint exit poll survey by public broadcasters KBS, MBC, and SBS. The 61-year-old former Gyeonggi Province governor is seeking to implement sweeping economic reforms following months of political turmoil triggered by former President Yoon Suk Yeol's martial law declaration. Lee’s background sets him apart from South Korea’s political elite. Born into poverty as the seventh of nine children, he revealed in his autobiography that he spent his early years working in factories instead of receiving a proper education. A workplace accident left his left arm permanently damaged, but he persevered to earn a law degree and pass the national bar examination. His experience as a human rights lawyer defending exploited workers helped shape his pro-labor political philosophy. After becoming mayor of Seongnam City in 2010, Lee went on to serve as governor of Gyeonggi Province in 2018. He ran as the Democratic Party’s candidate in the 20th presidential election but lost to Yoon Suk Yeol. Now, he is running again in the 21st presidential election as the forerunner for his party. The Democratic Party candidate has pledged to introduce a 4.5-day workweek with no pay reduction, aiming to address South Korea’s notoriously long working hours. Lee also remains committed to advancing the Yellow Envelope Act, which would expand legal protections for workers and unions during labor disputes. His labor agenda includes stronger workplace safety measures and increased healthcare investment for workers in hazardous environments. As part of his economic revival plan, Lee has proposed a bold 100 trillion won (70.6 billion dollars) artificial intelligence initiative aimed at positioning South Korea among the world’s top three AI powers. The plan includes developing a "Korean ChatGPT" with free access for all citizens and acquiring more than 50,000 high-performance GPUs. His administration would also prioritize research and development investments while strengthening the country’s defense and content industries. In a Facebook post on June 2, Lee reaffirmed his commitment to the Korean people, saying: "I will pursue politics that has a positive impact on the people's livelihood and economy. I will definitely keep my promise of a country where we all prosper together, a Republic of Korea where each and every citizen's life is respected." 2025-06-03 20:32:03 -
Lee Jae-myung advocates pragmatic diplomacy and balanced global engagement SEOUL, June 3 (AJP) - Lee Jae-myung, presidential candidate of the liberal Democratic Party, is projected to win South Korea’s snap presidential election held Tuesday, with exit polls showing him ahead with 51.7 percent of the vote. His conservative rival Kim Moon-soo of the People Power Party follows with 39.3 percent, according to a joint exit poll survey by public broadcasters KBS, MBC, and SBS. At the center of Lee's diplomatic strategy is a push for pragmatic engagement with major powers while maintaining the foundation of the United States–South Korea alliance. He has cautioned against a one-sided foreign policy approach, arguing that South Korea must adapt to shifting global dynamics and avoid following any single country unilaterally. Lee emphasizes that even long-standing allies like the United States are adopting protectionist policies, which calls for greater strategic independence. His "New Asia Strategy" aims to update previous diplomatic frameworks to better match today’s geopolitical realities. It includes expanding strategic cooperation with China, Japan, and Russia. Lee argues that China and Russia should not be treated as enemies by default, while also acknowledging the need to address unresolved historical tensions with Japan. Lee also calls for stronger ties with the Global South, identifying Southeast Asia, Africa, and Latin America as key diplomatic and economic partners. This multipolar approach is central to his broader plan for securing South Korea’s long-term strategic autonomy in an increasingly complex world. He has pledged to launch an emergency task force focused on trade negotiations to better manage economic tensions with Washington. On North Korea, Lee calls for a shift from confrontation to phased engagement and gradual denuclearization. His campaign outlines a plan to restart inter-Korean dialogue, reduce military tensions through step-by-step measures, and pursue humanitarian initiatives such as family reunions. While maintaining deterrence, Lee supports restoring cooperative projects designed to build mutual trust between the two Koreas. In terms of defense, Lee emphasizes conventional capabilities within the U.S.–South Korea alliance and opposes the deployment of tactical nuclear weapons or pursuing an independent nuclear arsenal. He proposes adopting AI-enhanced military technologies and establishing a hybrid conscription system, offering service members the option of short-term military service or longer professional careers. His administration would also focus on strengthening missile defense systems and boosting the defense industry's international competitiveness. In a Facebook post on Tuesday, Lee promised to create a "robust security powerhouse where elite soldiers, armed with cutting-edge equipment and weapons, proudly dedicate themselves to defending the homeland." 2025-06-03 20:27:35 -
Police probe overseas IP addresses in SK Telecom cyber attack SEOUL, June 2 (AJP) - South Korean authorities have identified foreign internet addresses linked to the recent cyberattack on SK Telecom and are coordinating with at least three countries as part of an expanding international investigation, police said on Monday. During a press briefing, Park Hyun-soo, acting chief of the Seoul Metropolitan Police Agency, said that cybercrime teams are analyzing server log records tied to malicious code discovered in the breach. “We have found overseas IP addresses during the analysis and are conducting international cooperative investigations,” Park said. Police did not disclose the countries involved but confirmed they are working in conjunction with the National Intelligence Service. The scope of the collaboration suggests a broader effort to trace the source of the hack, which has raised alarms over potential foreign interference in the country's critical communications infrastructure. When asked whether the foreign IP addresses indicated that the cooperating nations had served as conduits for the attackers, officials declined to elaborate. “We are in the process of verification and cannot say that anything has been definitively established,” Park said. Speculation has circulated that China or North Korea may be connected to the breach. However, investigators emphasized that no conclusions have been reached. Authorities continue to examine the origin of the attack, including whether it bears hallmarks of state-sponsored activity. The breach, discovered in April, targeted South Korea’s largest telecommunications provider and is believed to have compromised the personal data of a significant portion of SK Telecom’s user base. 2025-06-02 15:52:27 -
UAE in talks with TSMC to build advanced chip plant SEOUL, June 2 (AJP) - The United Arab Emirates is in preliminary discussions with Taiwan Semiconductor Manufacturing Company (TSMC) to build a cutting-edge semiconductor fabrication facility as Gulf nations accelerate efforts to position themselves at the forefront of the global artificial intelligence race. TSMC has reportedly held multiple meetings in recent months with Steve Witkoff, the U.S. special envoy to the Middle East, and representatives of MGX Fund Management, a UAE-based investment firm backing the proposal, Bloomberg reported. The talks come amid a surge of high-level U.S. interest in the region's emerging technology ecosystem. A recent tour of the Middle East led by former President Donald J. Trump included several of Silicon Valley’s most prominent figures, among them Elon Musk of Tesla, Jensen Huang of Nvidia, Sam Altman of OpenAI, and Lisa Su of AMD. Their presence has helped spark a wave of AI- and data center-related investment announcements across the Gulf. The proposed chip foundry, if realized, would mark a milestone for the UAE and the broader region. It would also represent a significant expansion for TSMC beyond its traditional bases in Asia and recent projects in the United States and Japan. However, the project faces steep challenges — including limited local access to water, a critical resource for chip fabrication, and a shortage of specialized technical talent. Still, the vision is part of a broader, region-wide effort to reduce economic dependence on hydrocarbons by investing in advanced technologies. Both Saudi Arabia and the UAE have launched sweeping initiatives — Vision 2030 and the National AI Strategy 2031, respectively — aimed at cultivating domestic AI capabilities and attracting global tech leaders. In parallel with the TSMC talks, the UAE is pressing ahead with the Stargate UAE initiative, a joint venture with OpenAI, Nvidia, Oracle, and SoftBank to construct a 5-gigawatt AI data center in Abu Dhabi. When complete, the facility is expected to consume roughly as much electricity as three million average American homes. Saudi Arabia, for its part, has tasked the sovereign wealth fund–backed startup Humain with acquiring 18,000 of Nvidia’s cutting-edge Blackwell chips and forming a $10 billion strategic partnership with AMD. These moves underscore the region’s intent to leapfrog into the upper ranks of AI infrastructure development. 2025-06-02 14:33:19