Journalist

김동영
Kim Dong-young and Han Jun-gu
  • Major banks may face sanctions over alleged collusion on mortgage terms
    Major banks may face sanctions over alleged collusion on mortgage terms KB Kookmin, Shinhan, Woori ATMs in downtown Seoul/ Yonhap SEOUL, April 22 (AJP) - South Korea’s antitrust watchdog has wrapped up a re-investigation into allegations that the country’s four largest banks colluded on mortgage lending practices, with regulatory sanctions expected to follow in the coming months. The Fair Trade Commission (FTC) has issued formal examination reports to KB Kookmin, Woori, Shinhan, and Hana banks, according to industry sources. The case centers on claims that the lenders shared approximately 7,500 data points related to loan-to-value (LTV) ratios — key figures that determine how much homebuyers can borrow against their property’s value. Investigators say the exchanges may have allowed the banks to align lending conditions, restrict competition, and boost profits at the expense of borrowers. The investigation, which began in early 2023, was initially expected to conclude last year but was extended after the commission opted to conduct further on-site inspections and gather additional evidence. Inspectors visited the banks in February and spent two months compiling the revised examination report. The updated report, according to sources, bolsters claims that the data-sharing practice materially influenced lending terms. However, it also walks back an earlier recommendation for criminal prosecution, focusing instead on administrative penalties. Notably, the FTC has widened the revenue base used to calculate fines to include loan extensions in addition to newly originated mortgages — a move that could result in penalties amounting to billions of won. The banks have denied any collusion, arguing that while information was shared, it did not result in uniform lending practices. They point to discrepancies in their LTV ratios after the exchanges as evidence of independent decision-making. “The deadline for the banks to submit their opinions is expected in early May,” one industry official said. “A final decision could be announced by late May or early June.” If confirmed, the sanctions would represent the first enforcement action under the “information exchange collusion” clause added to South Korea’s Fair Trade Act in 2020 — a legal provision designed to address more subtle forms of market coordination. A spokesperson for the Fair Trade Commission declined to comment, saying, “We cannot confirm specific details of the case.” 2025-04-22 10:35:14
  • South Korea cracks down on origin fraud in exports to US
    South Korea cracks down on origin fraud in exports to US A Korea Customs Service officer explains cases of falsely labeled exports to the United States, April 21, 2025. Yonhap SEOUL, April 21 (AJP) - South Korean customs officials have uncovered a surge in falsely labeled exports to the United States during the first quarter of 2025, raising concerns over a growing trend of trade fraud aimed at circumventing punitive American tariffs. The Korea Customs Service (KCS) announced Monday that it has launched a special trade security investigation unit focused on combating origin fraud in exports — specifically targeting products subject to U.S. anti-dumping duties and import restrictions. Officials say that foreign-made goods are increasingly being disguised as South Korean in origin through tactics such as label substitution and forged documentation, in order to exploit South Korea’s preferential trade status with the United States. In the first three months of 2025 alone, authorities have identified approximately 28.5 billion won (about $20 million) worth of goods falsely labeled as Korean in origin — already exceeding the full-year total of 21.7 billion won reported in 2024. While South Korea's reputation for manufacturing quality has long been leveraged by unscrupulous exporters, recent cases indicate a growing shift toward using false labeling explicitly to dodge U.S. tariffs. In one case last November, customs officials intercepted a Chinese mattress manufacturer attempting to export products with falsified Korean certificates of origin. More recently, in January, authorities uncovered a Chinese-owned company operating in South Korea that was exporting Chinese-made lithium battery cathode materials to the U.S. under fraudulent Korean origin claims. “Export circumvention through origin fraud can severely undermine the credibility of legitimate Korean products and risk triggering expanded non-tariff barriers,” said Ko Kwang-hyo, commissioner of the Korea Customs Service, following a public-private sector meeting. The agency said it is bolstering cooperation with industry stakeholders to improve information sharing and enforcement capacity in an effort to protect domestic manufacturers and uphold the integrity of South Korea’s trade commitments. 2025-04-21 15:15:39
  • Koreas customs revenue shrinks amid free trade push
    Korea's customs revenue shrinks amid free trade push Containers stacked at Busan Port/ Yonhap SEOUL, April 21 (AJP) - South Korea’s customs duty revenue has dwindled to just 0.6 percent of total tax income, a sharp decline driven by an aggressive expansion of free trade agreements and the use of tariff quota mechanisms. In contrast, the United States has seen its customs receipts rise to 1.6 percent of total tax revenue, reflecting a more protectionist trade stance. According to a report released by the National Assembly Budget Office, South Korea collected 7 trillion won (approximately $4.93 billion) in customs duties last year — down 300 billion won, or 4.3 percent, from the previous year. The decline in customs revenue mirrors a broader contraction in trade activity and tariff obligations. South Korean imports dropped by 1.7 percent in 2024, falling from $643 billion in 2023 to $632 billion. Meanwhile, the country’s growing network of trade pacts continues to erode the tax base once supported by import duties. The nation’s effective tariff rate has dropped significantly — from 1.7 percent in 2012 to just 0.8 percent in 2024. South Korea now maintains 22 FTAs encompassing 59 countries, including major economic partners such as the United States, China, and the European Union. Further liberalization came with the implementation of the Regional Comprehensive Economic Partnership (RCEP) in February 2022. The agreement, which includes 15 countries across Asia-Pacific — including China, Japan, Australia, and New Zealand — established de facto free trade between Seoul and Tokyo, two of the region’s largest economies. The United States, by contrast, has moved away from trade liberalization in recent years. Under President Donald Trump, customs revenue as a share of federal tax income rose from 1.1 percent in 2014 to 1.9 percent in 2019. It has remained in the 1.7 to 1.8 percent range in the years since. Officials in Seoul have expressed concern that Washington’s continued reliance on high tariffs, particularly those aimed at China, may have indirect effects on Korea’s export-oriented economy. “If China’s exports to the U.S. decrease due to America's high tariff policy against China, there are concerns that South Korea’s intermediate goods exports to China could decline,” an official from the National Assembly Budget Office said. The agency also warned that escalating global trade tensions — sparked by retaliatory tariff measures between the U.S. and China — could create additional uncertainty and weigh on global economic growth. “In the long term, there is a possibility that the world economy and trade could slow down,” the report noted. 2025-04-21 11:02:51
  • Koreas dried seaweed exports hit new records in first quarter
    Korea's dried seaweed exports hit new records in first quarter A dried seaweed, or gim, farm/ Courtesy of the Office of Hongseong-gun, South Chungcheong Province SEOUL, April 21 (AJP) - South Korea’s dried seaweed exports soared to record levels in the first quarter of 2025, fueled by rising global appetite for seaweed, particularly in the United States and China. Exports of dried seaweed — known as gim in Korean — reached $281 million between January and March, marking a 21.1 percent increase from the same period last year, according to data released Monday by the Korea Agro-Fisheries & Food Trade Corporation. Export volume rose 7.5 percent to 10,161 tons, an 844.3 percent surge compared with the first quarter of 2015. The United States remained the largest overseas market, importing $57.9 million worth of Korean seaweed, followed by China ($51.1 million), Japan ($34.4 million), and Thailand ($34.2 million). China posted the most dramatic growth, with imports jumping 86.5 percent year-over-year. Officials attributed the spike to a surge in popularity of gimbap, a Korean rice roll wrapped in seaweed, boosted by the ongoing Korean Wave — the global popularity of South Korean pop culture, including television dramas and films. “The Korean Wave has triggered a gimbap boom in China, driving up demand for dried seaweed,” an official from the Ministry of Oceans and Fisheries said. “Meanwhile, seaweed snacks continue to gain popularity in the U.S., significantly boosting exports of seasoned products.” Government officials say the recent export performance has put South Korea on track to reach its $1 billion annual seaweed export goal three years ahead of schedule. Last year’s exports narrowly missed the milestone, totaling $997 million. The ministry credited the gains to its targeted export strategy, including the launch of the premium “K FISH” brand and the establishment of dedicated Korean seafood sections on major international e-commerce platforms. 2025-04-21 10:15:54
  • Gold prices hit record high amid trade tensions
    Gold prices hit record high amid trade tensions A bar of fine gold from the Korea Gold Exchange next to international gold prices chart/ Yonhap SEOUL, April 18 (AJP) - International gold prices surged to new highs this week as investors sought refuge from rising global trade tensions. Spot gold touched an all-time high of $3,350 per troy ounce on Wednesday before settling at $3,338.43, marking a 3.61 percent gain from the previous session. On the New York Mercantile Exchange, June gold futures also mirrored the momentum, closing at $3,355.10 per ounce — sustaining a remarkable upward trend in precious metals. By Friday afternoon, however, the momentum had softened. Spot gold traded at $3,315.13, down 0.03 percent from the previous day, while June futures fell to $3,328.40. Analysts attributed gold’s ascent to heightened investor anxiety surrounding U.S. trade policy and ongoing global economic uncertainty, which has bolstered demand for traditional safe-haven assets. A weakening U.S. dollar further amplified gold’s rise. Because gold is priced in dollars, a decline in the greenback typically makes the metal more attractive to foreign investors. 2025-04-18 14:31:49
  • Foreign investors extend Korean stock sell-off for eighth month
    Foreign investors extend Korean stock sell-off for eighth month Getty Images Bank SEOUL, April 18 (AJP) - Foreign investors pulled approximately 1.6 trillion won ($1.12 billion) from South Korean equities in March, extending a months-long exodus that has now reached its eighth consecutive month, according to data released Friday by the Financial Supervisory Service. The outflows spanned both of the country's major equity markets. Investors sold 1.12 trillion won on the benchmark KOSPI and an additional 513 billion won on the tech-heavy KOSDAQ. Singapore-based investors led the retreat, divesting 2.6 trillion won worth of shares, followed by Norwegian investors, who sold off 600 billion won. Despite the broader trend, not all foreign investors turned away from the South Korean market. British investors purchased 700 billion won in stocks, while their American counterparts added 600 billion won, offering a counterpoint to the prevailing sell-off. As of the end of March, foreign investors held 703.9 trillion won in South Korean equities, representing 27.3 percent of total market capitalization. In contrast to their stock market activity, foreign investors increased their presence in the Korean bond market, funneling a net 5.87 trillion won into bonds in March — their second consecutive month of net investment. Asian investors accounted for the largest share of bond inflows, purchasing 2.9 trillion won. Investors from the Middle East and the United States followed with 800 billion won and 400 billion won, respectively. By category, foreign investors showed a clear preference for government bonds, with net purchases totaling 4.6 trillion won. They also added 1.2 trillion won in monetary stabilization bonds. Overall, foreign holdings of listed bonds rose to 278.6 trillion won by the end of March, representing 10.6 percent of the total bond market. 2025-04-18 13:44:14
  • Daewoo E&C signs deal for $700 million fertilizer plant in Turkmenistan
    Daewoo E&C signs deal for $700 million fertilizer plant in Turkmenistan Daewoo Engineering & Construction CEO Baek Jung-wan, left, walks with Deryageldi Orazov, chairman of the Arkadag New City Construction Committee from Turkmenistan. Courtesy of Daewoo Engineering & Construction SEOUL, April 18 (AJP) - Daewoo Engineering & Construction has signed a preliminary agreement to build a fertilizer plant in Turkmenistan, a project valued at approximately $700 million, South Korea’s Ministry of Trade, Industry and Energy announced on Friday. Commissioned by Turkmenhimiya, Turkmenistan’s state-owned chemical company, the facility is slated for construction in the eastern city of Turkmenabat, near the Uzbek border. Once completed, the plant is expected to produce 300,000 tons of phosphate-based fertilizer annually, bolstering the Central Asian nation’s agricultural and export capacity. Daewoo Engineering was named the preferred bidder for the project in October 2024, and both parties aim to finalize the contract by the end of this year. Following the agreement, South Korea’s Minister of Trade, Industry and Energy, Ahn Duk-geun, met with Baimurad Annamammedov, Turkmenistan’s Deputy Prime Minister for Energy, Construction and Industry, in Seoul. The two officials held high-level talks focused on expanding industrial cooperation, particularly in the development of plant infrastructure. During the meeting, Minister Ahn called for Turkmenistan’s continued support for South Korean firms in future infrastructure and energy projects, underscoring Seoul’s commitment to deepening economic ties with the gas-rich Central Asian nation. 2025-04-18 10:03:02
  • Bank of Korea holds rate steady amid growing economic headwinds
    Bank of Korea holds rate steady amid growing economic headwinds Bank of Korea Governor Rhee Chang-yong hits the gavel during a monetary policy committee meeting held at the BOK headquarters in Seoul, April 17, 2025. Joint Press Corps. SEOUL, April 17 (AJP) - The Bank of Korea left its benchmark interest rate unchanged at 2.75 percent on Thursday, choosing caution in the face of mounting global uncertainty, despite signs of faltering domestic growth. The decision comes as central banks around the world grapple with intensifying economic turbulence, fueled in part by an escalation in global trade tensions. The U.S. Federal Reserve earlier this week signaled a pause in its easing cycle, underscoring the fragile international outlook as the Trump administration’s sweeping tariffs ripple through global markets. "The Monetary Policy Committee decided to maintain the base rate at the current level of 2.75 percent for the conduct of monetary policy until the next monetary policy decision," the BOK said in a statement. While inflation remains stable, policymakers flagged increasing downside risks to growth, citing a sluggish first quarter and a deteriorating external trade environment. The central bank noted that uncertainties stemming from shifting U.S. tariff policies and an unresolved supplementary budget have added to the complexity of its policy calculus. The rate decision follows a series of easing measures by the BOK, which lowered the base rate by 0.25 percentage points in both October and November last year — its first consecutive cuts since the global financial crisis. After holding steady in January, the bank delivered another quarter-point cut in February, reflecting persistent concerns over anemic growth. South Korea’s economy expanded by just 0.1 percent in the final quarter of 2024, as domestic demand faltered and external risks intensified. The central bank had initially projected growth of 1.5 percent for 2025, but officials now acknowledge the outlook may be downgraded amid deepening global headwinds. Economists say the BOK may resume rate cuts as early as next month, should the currency stabilize and macroeconomic conditions continue to worsen. “The BOK’s economic growth forecast is also expected to be significantly downgraded in May, at which point the benchmark rate will likely be lowered,” said Park Jeong-woo, an economist at Nomura Securities. 2025-04-17 11:36:33
  • Korean wedding industry under crackdown for false advertising
    Korean wedding industry under crackdown for false advertising Getty Images Bank SEOUL, April 17 (AJP) - South Korea’s antitrust regulator has issued warnings to several prominent wedding planning firms for engaging in false and misleading advertising. The Fair Trade Commission (FTC) disciplined three companies — IniWedding, Weddingbook, and Wedding Crowd — for promotional claims that regulators said were unsubstantiated and potentially deceptive. The firms advertised themselves as the “largest in Korea,” “industry leader,” and having “top-tier credit ratings from representative evaluation agencies,” without providing objective or verifiable evidence to support the assertions. The commission concluded that the marketing language used across company websites, mobile apps, and social media platforms amounted to arbitrary self-promotion rather than factual representations grounded in certified evaluations or independent data. “These were not statements backed by any credible or quantifiable verification,” an FTC spokesman said. “They were essentially slogans.” While the violations were deemed minor, the commission opted to issue formal warnings instead of levying fines, citing the companies’ cooperation during the investigation and their voluntary removal or modification of the disputed content. The move is part of a broader government initiative aimed at curbing the high costs associated with weddings, which have been identified as a contributing factor to delayed marriage and low birth rates in South Korea. The average cost of weddings — including venue rentals, dresses, and makeup — has come under scrutiny as policymakers attempt to lower barriers to marriage and family formation. In a parallel effort, the National Tax Service in February launched a sweeping tax audit of the wedding services industry, with a particular focus on pricing practices for studios, dress rentals, and cosmetic services. Authorities have pledged greater oversight of what they describe as opaque and often inflated costs in the sector. 2025-04-17 10:22:19
  • Navers AI pivot signals Koreas bid for global tech prominence
    Naver's AI pivot signals Korea's bid for global tech prominence Naver buildings in Seongnam, Gyeonggi Province/ Courtesy of Naver Editor's Note: This article is the 14th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, April 17 (AJP) - Once a modest search engine born out of a Samsung SDS skunkworks project in the late 1990s, Naver Corp. has reimagined itself as South Korea's digital juggernaut. Now, the tech conglomerate is placing an ambitious bet on artificial intelligence, virtual content, and a sprawling ecosystem of digital services — staking its future not just on national dominance, but global relevance. In a move emblematic of its evolving identity, Naver announced a strategic partnership with Hyundai Motor Group on March 28 during the automaker's annual developer conference. The collaboration will integrate Naver's generative AI model, HyperCLOVA X, into Hyundai's software-defined vehicles, creating in-car AI assistants tailored to individual drivers — and, more broadly, signaling Naver's deeper incursion into the auto-tech sector. But the Hyundai deal is only one node in a rapidly expanding web. Through its corporate venture arm D2SF, Naver recently invested in Scone, a startup focused on virtual IP and digital content. Earlier in March, the company unveiled "MotionStage," an advanced 3D content studio, at its second headquarters. The facility enhances its capabilities in immersive media — an area seen as ripe for monetization amid growing demand for virtual and AI-driven experiences. The pivot comes as international players exit the South Korean market, leaving space for domestic champions. Following Twitch's withdrawal earlier this year, Naver's livestreaming platform Chzzk has surged, reporting a 910,000 increase in monthly active users in January — a 55 percent year-over-year leap that places it within striking distance of market leader Soop. Naver's influence extends to e-commerce, where its AI-powered Plus Store app became the most downloaded shopping platform in the country this March, surpassing even global powerhouse Temu, according to data from analytics firm IGA Works. Internationally, Naver is pursuing a multifaceted expansion strategy: investing in U.S.-based customer-to-customer marketplaces, offering fintech solutions, and collaborating with Saudi Arabia on digital infrastructure in property development. This global push reflects the company’s transformation since its founding in 1997 as "Web Glider," a Samsung-backed internal startup. After spinning out as Naver Com in 1999 under founder Lee Hae-jin, the company quickly rose to prominence. It was rebranded as NHN (Next Human Network) in 2001, then reclaimed the Naver name in 2013 after a corporate split. Now, it is reaping the rewards of years of reinvention. For the 2024 fiscal year, Naver posted revenue of 10.7 trillion won (approximately $7.9 billion), up 11 percent from the prior year. Operating profit soared 32.9 percent to 1.98 trillion won, while fourth-quarter revenue climbed 13.7 percent to 2.89 trillion won — marking eight straight quarters of profit growth. Speaking in February, CEO Choi Soo-yeon framed 2025 as a "crucial" year for operationalizing Naver’s "On-Service AI" strategy. "We will enhance our platforms with AI technology to create new value and business opportunities, ultimately strengthening Naver’s unique competitive edge," she said. In keeping with that vision, Naver this month launched its "Be Local" campaign via its mapping service, highlighting cultural hotspots for tourists through collaborations with brands like CJ Olive Young, Musinsa, and Innisfree. Foreign visitors can access translated reviews and directions through Papago, Naver's AI-powered translation tool, which converts Korean text into English, Chinese, and Japanese. The return of Lee Hae-jin as chair of Naver's board on March 26 — seven years after stepping down — adds a symbolic and strategic layer to the company's transformation. His reappointment is widely interpreted as a move to sharpen Naver's focus in the escalating global AI arms race, particularly through HyperCLOVA X, first launched in 2023. In public remarks following his return, Lee offered a philosophical rationale for Naver's expansion: "It's incredibly unfortunate for the world to rely on just one or two AI platforms. To preserve the diversity of the internet, we need a wide range of search engines and services." To that end, Naver is leaving the door open to international cooperation. "We are open to collaboration with global big tech firms and various external LLMs," Choi noted in February. "Such discussions are ongoing." While the competition is fierce — with models like ChatGPT, Claude, and Gemini dominating headlines — Naver continues to leverage its local expertise, deep user base, and technological agility to carve out a distinct presence. What began as a humble search engine has matured into one of Asia's most versatile digital players — and one of the world's tech firms to watch. 2025-04-17 09:42:22