Journalist
Kim Dong-young and Han Jun-gu
davekim0807@ajupress.com
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North Chungcheong Province vies for manufacturing AI center with four municipalities A manufacturing factory with AI implemented/ Courtesy of North Chungcheong Province SEOUL, April 26 (AJP) - North Chungcheong Province has launched a bid to establish a manufacturing AI center in collaboration with four local municipalities, officials announced on Saturday. The province is participating in a regional specialized revitalization project for manufacturing data competition organized by the Ministry of SMEs and Startups, alongside Cheongju City, Chungju City, Jincheon County, and Eumseong County. The initiative, which comes with about 6 billion won (US$4.16 million) in national funding over three years, aims to deploy AI technology and manufacturing data to address challenges in regional specialized industries. If selected, North Chungcheong plans to build a manufacturing AI center at its Techno Park of Chungbuk Innovation City, creating a platform where small and medium-sized enterprises can collect, standardize and utilize their process data. "We will do our utmost to attract the Manufacturing AI Center to play a direct role in creating an AI-based manufacturing innovation ecosystem," said Kim Su-in, director of the science and talent bureau at North Chungcheong Province. The Ministry of SMEs and Startups will select up to three regions for the project, with 11 provinces and metropolitan cities currently competing, creating a competitive ratio of about 4 to 1. Final selection results are expected to be announced next month following on-site and face-to-face evaluations. 2025-04-26 11:08:59 -
Four PPP presidential candidates prepare for crucial primary debate (From left) Kim Moon-soo, Ahn Cheol-soo, Han Dong-hoon, Hong Joon-pyo pose for a photo at the People Power Party (PPP)'s headquarters prior to a presidential candidate selection. Jointed Press Corps SEOUL, April 26 (AJP) - South Korea's ruling People Power Party (PPP) will host a high-stakes debate on Saturday featuring the four remaining candidates in its presidential primary: Ahn Cheol-soo, Han Dong-hoon, Hong Joon-pyo, and Kim Moon-soo. The debate is expected to revolve around the contentious issue of former President Yoon Suk-yeol's impeachment, with Hong and Kim, who opposed the measure, facing off against Ahn and Han, who supported it. Analysts anticipate fierce exchanges over responsibility for the declaration of martial law and the subsequent impeachment. During previous one-on-one debates, tensions flared when Kim criticized Ahn for "impeaching a president from his own party," while Ahn retorted that Kim must "sincerely apologize to the public before crossing the river of impeachment and finding a path to victory." Hong and Han similarly clashed, with Hong accusing Han of "providing a crucial catalyst for the martial law declaration," while Han countered that "flatterers like Hong who flanked the president bear responsibility for the martial law crisis." The party will conduct voting among its delegates (50 percent) and public opinion polls (50 percent) on April 27-28, with results to be announced on April 29. Any candidate securing more than 50 percent of votes will be confirmed as the party's presidential nominee. If no candidate achieves a majority of 50 percent votes, the top two finishers will advance to a final round determined by party member votes and general public opinion surveys, each accounting for half the votes, the selection to be finalized by May 3. The snap presidential election, set for June 3, comes due to the impeachment of disgraced former President Yoon Suk Yeol over his botched Dec. 3 declaration of martial law late last year. 2025-04-26 10:18:43 -
As Trump targets pharma, Korean biotech firms reassess US strategies U.S. President Donald Trump gestures as he arrives in Maryland, April 13, 2025. Reuters-Yonhap Editor's Note: This is the fourth in a series of stories examining how the Trump administration's economic policies affect South Korea's key industries. SEOUL, April 23 (AJP) - South Korean pharmaceutical companies are bracing for the fallout from U.S. President Donald Trump's tariffs and drug price reforms that could reshape the global pharmaceutical landscape and disrupt overseas supply chains. The Trump administration has launched a national security investigation into the pharmaceutical sector — a move widely seen as laying the groundwork for potential tariffs. While the exact contours of the proposed levies remain unclear, Trump has previously floated the idea of a 25 percent tariff. The prospect has triggered anxiety among global drugmakers and supply chain strategists, who warn of higher costs and pricing instability. Analysts say that if implemented, the tariffs could erode the price competitiveness of foreign manufacturers over the medium to long term, with ripple effects across the pharmaceutical industry. Adding to industry unease, media reports suggest that the Trump team is considering linking U.S. drug prices to those paid in other developed countries — a proposal that could compound pressures on pharmaceutical firms already grappling with tighter margins. In South Korea, some companies are already taking precautionary steps. Celltrion, a leading biopharmaceutical manufacturer, announced in February that it had transferred nine months’ worth of inventory for U.S.-bound products in anticipation of potential disruptions. The company is also considering shifting portions of its production to American contract manufacturing organizations (CMOs) to mitigate risks. As a longer-term strategy, Celltrion is evaluating increased exports of drug substances — components that typically face lower tariffs — as a way to maintain market access. SK Biopharmaceuticals, which sells the epilepsy treatment Cenobamate in the United States, said it has secured a six-month inventory buffer and contracted with an FDA-approved manufacturer capable of stepping in quickly if needed. Currently, the company completes its final packaging in Canada before shipping to the U.S. Samsung Biologics finds itself in a particularly delicate position. Despite its U.S. sales accounting for just over a quarter of its revenue, the company lacks production capacity in the United States — a contrast to rivals such as Thermo Fisher Scientific, Catalent, and Switzerland’s Lonza Group. Industry insiders caution that while Samsung Biologics may not be directly affected by initial tariff measures, an expanded policy scope could expose the firm’s key products — including monoclonal antibodies — to new costs and uncertainties. The policy push has also drawn criticism from American pharmaceutical executives. Joaquin Duato, CEO of Johnson & Johnson, argued that tariffs could backfire by introducing supply chain volatility. “There’s a reason pharmaceutical tariffs are zero,” he said. “If you want to build capacity in the U.S., the most effective lever isn’t tariffs — it’s tax policy.” Even for companies willing to reshore, logistical hurdles remain steep. According to the Pharmaceutical Research and Manufacturers of America, building a new biopharmaceutical facility can cost up to $2 billion and take as long as a decade to complete. Eli Lilly CEO Dave Ricks told the BBC that existing price agreements with insurers and government programs mean that companies cannot simply pass tariff costs to consumers. “So we have to eat the cost of the tariffs and make trade-offs within our own companies,” he said, noting that the result could be reduced staffing or cuts to research and development. Yet Trump’s agenda has not been without concessions to the industry. His campaign has floated plans to scale back portions of the Biden administration’s Inflation Reduction Act, particularly provisions that allow Medicare to negotiate drug prices — a policy pharmaceutical companies argue discourages innovation. Current law allows negotiations for complex biologic drugs 13 years after market entry, and for simpler pills and capsules after nine years. Trump has proposed extending those timelines by at least four years, a move likely to be welcomed by manufacturers but viewed with skepticism by consumer advocates concerned about higher drug costs. The Trump team has also pointed to past efforts to expedite the FDA’s approval process for biosimilars — a measure intended to encourage market competition and lower costs. Still, South Korean industry officials remain cautious. “If Trump decides to push forward with tariffs, the combination of tariffs and biosimilar incentives may become a zero-sum game,” said Hwang Ju-rie, director of public and international relations at the Korea Biotechnology Industry Organization. “The benefits and drawbacks could cancel each other out.” Hwang noted that over 90 percent of South Korea’s biotech firms remain in the research phase, meaning only a handful of FDA-approved products — largely from larger firms — would be directly affected in the near term. “For now,” she added, “the industry is watching closely. Nothing is certain.” 2025-04-25 09:29:12 -
Harmful chemicals detected in children's toys from Chinese e-commerce platforms Key chains with hazardous substances sold on Chinese e-commerce site. Courtesy of Seoul Metropolitan Government SEOUL, April 24 (AJP) - Several children’s toys sold on major Chinese e-commerce platforms contain toxic substances at levels far exceeding safety standards, the Seoul Metropolitan Government announced on Thursday. City officials said they tested 25 toys purchased from global platforms including Temu, Shein, and AliExpress. Four products failed to meet domestic safety regulations, with one “keyring doll” found to contain phthalate plasticizer (DEHP) at concentrations up to 278 times the permitted limit in its face, hands, and feet. DEHP, or di(2-ethylhexyl) phthalate, is classified by the International Agency for Research on Cancer as a potential human carcinogen. It is also known to disrupt endocrine function and has been linked to reproductive harm. Other items flagged in the inspection included modeling clay that contained CMIT (chloromethylisothiazolinone) and MIT (methylisothiazolinone), chemical preservatives banned in humidifier disinfectants in South Korea after being implicated in a public health crisis. Exposure to these substances at elevated levels can cause severe irritation to the skin, eyes, and respiratory system. In addition to chemical hazards, two educational toys failed physical safety assessments. One toy, designed in the shape of a weighing scale, had dangerously sharp base plates that posed puncture risks. Another toy — a sorting game involving clips and fabric balls — lacked proper safety labeling and was found to develop sharp edges when damaged. In response, Seoul officials have formally requested that the e-commerce platforms remove the non-compliant products from sale. Authorities also issued a public advisory urging caution when purchasing children's products via international direct-to-consumer websites. The city government said it would expand the scope of its inspection in May to include children’s textile items, anticipating a surge in seasonal demand ahead of Children's Day on May 5. 2025-04-24 15:19:26 -
South Korea's economy shrinks in first quarter A snack bar in Seoul preparing for opening/ Yonhap SEOUL, April 24 (AJP) - South Korea’s economy contracted in the first quarter of 2025, weighed down by a prolonged political uncertainty and concerns about U.S. tariffs, according to preliminary data released by the Bank of Korea on Thursday. Gross domestic product fell 0.2 percent from the previous quarter, marking the country’s second economic contraction in just three quarters. The latest reading sharply contrasts with the central bank’s earlier forecast of 0.2 percent growth and raises fresh doubts about the viability of its full-year growth target of 1.5 percent. The bank attributed the downturn to a confluence of headwinds, including prolonged political uncertainty, anxiety over U.S. trade policy, record-setting wildfire damage, and a temporary halt in operations at multiple construction sites. Private consumption edged down 0.1 percent as households cut back on entertainment, cultural activities, and medical services. Government spending also dipped 0.1 percent, largely due to reduced healthcare expenditures. The steepest declines came from investment. Construction investment plunged 3.2 percent — with building construction particularly hard hit — while facilities investment fell 2.1 percent, driven by reduced spending on machinery, including semiconductor manufacturing equipment. Exports, a key pillar of South Korea’s economy, slipped 1.1 percent amid weak demand for chemical products, machinery, and industrial equipment. Imports fell more sharply, declining 2.0 percent, mainly due to decreased purchases of crude oil and natural gas. Among industry sectors, electricity, gas and water services posted a robust 7.9 percent gain, while agriculture, forestry and fishing rose 3.2 percent, buoyed by strong performance in the fishing industry. Real gross domestic income, a measure of purchasing power, declined 0.4 percent, underscoring the mounting challenges facing Asia’s fourth-largest economy. 2025-04-24 10:57:06 -
SK hynix posts soaring profits on surging AI chip demand SK hynix headquarters in Icheon, Gyeonggi Province/ Yonhap SEOUL, April 24 (AJP) - SK hynix reported a sharp rise in first-quarter profits on Thursday, fueled by surging demand for advanced memory chips used in artificial intelligence applications. The company’s operating profit jumped 157.8 percent from a year earlier to 7.44 trillion won, or about $5.21 billion, according to a regulatory filing. Revenue rose 41.9 percent to 17.64 trillion won, while net profit soared 323 percent to 8.11 trillion won. “The memory market improved faster than expected in the first quarter as AI development competition intensified alongside inventory buildup demand,” SK hynix said in a statement. The firm credited its strong performance to expanded sales of premium products, including its fifth-generation HBM3E 12-layer high-bandwidth memory chips and DDR5 memory modules — key components commanding high prices in the growing AI market. Despite the typically slow first quarter for the industry, SK hynix’s operating profit margin climbed to 42 percent, extending its streak of profitability growth to eight consecutive quarters. 2025-04-24 09:46:53 -
Prosecutors raid Korea Zinc, brokerages in market manipulation probe Korea Zinc's logo/ Courtesy of Korea Zinc SEOUL, April 23 (AJP) - Prosecutors raided the headquarters of Korea Zinc and several major brokerage firms on Wednesday as part of a widening investigation into allegations of unfair trading practices tied to a multibillion-dollar rights offering announced last year. Investigators from the Southern Seoul District Prosecutors’ Office carried out search and seizure operations at six corporate offices and five private residences, including those of Korea Zinc executives and branches of Mirae Asset Securities and KB Securities. Authorities confiscated computers, internal communications, approval records, and other documents as they examine whether the company breached capital market laws in the lead-up to its 2.5 trillion won (approximately $1.75 billion) rights issue announced in October 2024. The probe follows a referral by the Financial Supervisory Service in January, after questions surfaced over Korea Zinc’s disclosure practices during the period of a share buyback program conducted between October 4 and 23 of last year. During that time, the company publicly stated it had “no plans to make changes to its financial structure following the buyback.” However, prosecutors are now scrutinizing whether Korea Zinc’s board had already been engaged in planning the rights issue — potentially misleading the market. According to local media reports, Mirae Asset Securities, the lead underwriter, commenced due diligence for the offering on Oct. 14, well before the official announcement on Nov. 6. Regulators later ordered Korea Zinc to amend its securities filings, saying the disclosures could have misled investors. The company ultimately withdrew its rights offering plan on Nov. 13, only a week after it was made public. At the center of the investigation is whether Korea Zinc sought to manipulate the market by repurchasing and canceling shares, then planning to issue new ones — a tactic that could constitute illegal market manipulation. The raid is the first major prosecutorial action against Korea Zinc since a high-profile management dispute erupted last year, when private equity firm MBK Partners allied with Young Poong Group in a hostile takeover attempt. That battle has since escalated into a series of legal entanglements. 2025-04-23 16:20:02 -
Tariff tensions between US and China will dent Korea's growth: report Flags of U.S. and China/ Reuters-Yonhap SEOUL, April 23 (AJP) - South Korea's economy could see its growth rate shaved by as much as half a percentage point this year if trade tensions between the United States and China continue to escalate, according to a report from Citigroup. The analysis underscores the deepening vulnerability of export-driven economies like South Korea's amid intensifying geopolitical frictions between the world’s two largest economies. Even under scenarios in which Seoul manages to secure more favorable terms with Washington, economists warn that the broader conflict could deliver a lasting blow to growth. "Even if U.S.-Korea trade negotiations conclude successfully, the continued conflict between the U.S. and China will make it difficult to substantially alleviate the negative impact of tariffs on growth rates," said Kim Jin-wook, chief economist at Citi Research. The report outlines three trade scenarios with varying degrees of severity. In the most adverse cases, where tariffs remain high and retaliatory measures persist, South Korea's gross domestic product could shrink by 0.5 percentage points this year, with deeper declines of up to 2.3 percentage points projected by 2026. Those conditions could prompt the Bank of Korea to cut its benchmark interest rate sharply — from the current 2.75 percent to as low as 1.00 percent by the end of next year. A more optimistic outlook assumes easing tensions between Washington and Beijing, including a significant reduction in Chinese retaliation. Under this scenario, South Korea's economic drag would be more modest, with growth trimmed by just 0.2 percentage points this year and 0.9 points in 2026. The central bank would likely respond with a milder rate cut to 2.00 percent. Citigroup had initially forecast 2025 growth at 0.8 percent and 1.6 percent for 2026, but noted that its projections carry a high degree of uncertainty due to the unpredictable nature of global trade policy. 2025-04-23 14:46:29 -
Prosecutors take over high-profile stock manipulation case linked to former first lady Sambu Construction headquarters/ Yonhap SEOUL, April 23 (AJP) - South Korea’s financial watchdog said it will refer a high-profile stock manipulation case possibly involving the country’s former first lady, Kim Keon Hee, to prosecutors on Wednesday. The Securities and Futures Commission, which oversees investigations into irregularities in the nation’s financial markets, will vote during its regular meeting on filing criminal complaints against individuals implicated in the manipulation of shares in Sambu Construction. The anticipated move comes more than seven months after the Korea Exchange forwarded its findings on suspicious trading activity to the Financial Supervisory Service (FSS), the country’s top financial regulator. “It is difficult to deny that certain stakeholders realized profits of more than 10 billion won,” or approximately $7.4 million, said Lee Bok-hyun, the head of the FSS, during a press briefing in early March. He added that the agency aimed to “resolve the matter within April if possible.” The regulator has examined more than 200 trading accounts, including those of major shareholders, in its investigation. Officials said they analyzed trading patterns and capital flows to trace the origin of the illicit profits. Shares of Sambu Construction skyrocketed from roughly 1,000 won in May 2023 to more than 5,000 won by July of that year. During this period, DYD, the company’s largest shareholder, participated in a Ukraine reconstruction forum held in Poland, further raising questions about market sentiment and timing. The case has drawn particular attention due to the involvement of Lee Jong-ho, the former head of Blackpearl Invest and a key figure in the Deutsche Motors stock manipulation scandal, which has also been linked to Kim Keon-hee. Lee is believed to have referenced Sambu Construction in a group chat with former Marine Corps members, posting a cryptic message that read, “Sambu check," before the stock price began soaring. Sambu Construction has been under mounting financial pressure. Trading of its shares has been suspended following two consecutive years of adverse audit opinions. The firm entered court-led rehabilitation proceedings last month as it faces a deepening liquidity crisis. 2025-04-23 11:29:14 -
Korea urged to boost efforts to stabilize pharmaceutical supply chains Getty Images Bank SEOUL, April 22 (AJP) - South Korea is lagging behind other major nations in implementing systems to address pharmaceutical supply chain instabilities, according to a report by the Korea Institute of Science&Technology Evaluation and Planning (KISTEP). In its latest edition of "Science, ICT Policy and Technology Trends," KISTEP underscores the urgent need for specific legislation and comprehensive mapping of supply chains to ensure a stable supply of medications during crises. The report calls attention to the vulnerabilities exposed by the COVID-19 pandemic and emphasizes the necessity of preparing for future disruptions. “While major nations have adopted phased measures to tackle pharmaceutical supply chain instabilities, South Korea’s efforts remain comparatively insufficient,” said Jeong Soon-kyu, principal researcher at the Korea Health Industry Development Institute. Although South Korean authorities have supported research and development for emerging epidemics and promoted domestic manufacturing of essential medications, the report highlights significant gaps in other areas. These include inadequate support for domestic companies to secure raw materials, expand manufacturing facilities, and localize ingredient production. Such deficiencies leave the country vulnerable to global supply chain disruptions. Currently, China and India dominate the global production of pharmaceutical ingredients, accounting for 44 percent and 20 percent, respectively. South Korea’s reliance on imports for these critical components underscores the need for enhanced domestic production capabilities. The report noted that the country has faced persistent medication shortages, with 46 essential drugs either ceasing production or importation over a three-year period. As of April last year, 490 medications were identified as facing supply instabilities, including 95 designated as essential or shortage-prevention drugs. Jeong warned that rapidly shifting global supply chains, shaped by geopolitical tensions, climate disasters, and economic uncertainties, further complicate the situation. “Swift collection and utilization of accurate information are increasingly critical in managing supply chain risks,” he said, pointing to the impacts of U.S.-China tensions, Middle East conflicts, the Russia-Ukraine war, and climate-related disasters. To address these challenges, the report recommends increased government support for domestic pharmaceutical companies. Proposed measures include facilitating technology exports to U.S. firms, enabling contract manufacturing arrangements, acquiring overseas production facilities, and improving access to procurement opportunities for biosimilars in European markets. Jeong also highlighted South Korea’s advanced ICT capabilities as a potential asset in mitigating supply chain vulnerabilities. Integrating technologies such as big data, artificial intelligence, and blockchain into pharmaceutical supply chains could enhance crisis response and improve efficiency in identifying and addressing weaknesses. The report advocates for a comprehensive approach to supply chain management, encompassing risk assessment, investment in manufacturing capacity, and strategic stockpiling of essential medications. It also emphasizes the need for governance frameworks that support sustained policy implementation. Jeong expressed optimism about the potential for progress. “With sustained government support over the next five years, South Korea could establish a holistic system for pharmaceutical supply stabilization, resolving supply shortages for specific medications by 2030,” he said. 2025-04-22 13:48:19