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Kim Dong-young and Han Jun-gu
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Finance minister to lead delegation to Washington for critical tariff negotiations Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, right, and Minister of Trade, Industry and Energy Ahn Duk-geun/ Yonhap SEOUL, April 16 (AJP) - South Korea will dispatch a high-level economic and trade delegation, led by Deputy Prime Minister and Finance Minister Choi Sang-mok, to Washington next week in a bid to avert the impact of sweeping U.S. tariffs. Choi is expected to meet with U.S. Treasury Secretary Scott Bessent on the sidelines of the G20 finance ministers' meeting in Washington. Separately, South Korea’s Industry Minister Ahn Duk-geun is scheduled to hold talks with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. South Korean officials indicated that talks could shift to a “2+2” format involving joint discussions between finance and trade leaders. “Discussions about the negotiation format are still ongoing,” a senior official said. The diplomatic push follows the United States’ decision to pause the implementation of newly announced “reciprocal” tariffs for 90 days, granting key trading partners, including South Korea, time to reach negotiated agreements. “The U.S. Treasury has proposed a meeting with Deputy Prime Minister Choi during his G20 visit next week to discuss trade issues,” the finance ministry said in a statement. The South Korean government seeks to secure favorable terms ahead of the tariff deadline. Officials are preparing a comprehensive proposal that addresses U.S. concerns over trade imbalances and non-tariff barriers. Measures under consideration include increased imports of American liquefied natural gas, crude oil, agricultural goods and defense equipment. The package also outlines plans to expand South Korean investment in U.S.-based manufacturing, particularly in automobiles, semiconductors and other high-value exports — a move designed to help narrow the bilateral trade deficit, a key priority of U.S. President Donald Trump. U.S. Treasury Secretary Bessent told Bloomberg on Monday that allies who engage early could benefit from a “first-mover advantage,” adding, “Usually, the first person who makes a deal gets the best deal.” Industry officials say Seoul may also bring strategic projects to the table, including U.S.-South Korea cooperation on shipbuilding and South Korean participation in the Alaska LNG pipeline project. While not directly tied to tariff-related concerns, these ventures could offer Seoul additional leverage. Trump recently highlighted his interest in the Alaska pipeline via his social media platform, Truth Social, referring to a phone call with South Korea’s Acting President Han Duck-soo. He cited a discussion about South Korea’s “tremendous and unsustainable surplus,” as well as issues ranging from shipbuilding to large-scale LNG purchases. Domestically, the South Korean delegation faces pressure from political developments at home. With a presidential election scheduled for June 3, analysts say the current administration may have limited room to make binding commitments. Speaking before the National Assembly on Tuesday, Choi acknowledged the constraints. “Since negotiations involve another party, we will maximize our efforts to protect national interests now,” he said. “The remaining issues could be finalized after the new administration takes office.” 2025-04-16 15:31:55 -
Hyundai Mobis to showcase new technologies at Chinese auto exhibition Hyundai Mobis' augmented reality head-up display (AR-HUD)/ Courtesy of Hyundai Mobis SEOUL, April 16 (AJP) - Hyundai Mobis, a key affiliate of Hyundai Motor Group, said Wednesday that it will unveil a suite of technologies tailored for the Chinese market at next week’s Auto Shanghai 2025. The company plans to establish a 300-square-meter private booth at the National Exhibition and Convention Center in Shanghai, one of China’s premier automotive trade fairs. The event, opening April 23, is expected to draw major global automakers and suppliers eager to court the world’s largest auto market. Hyundai Mobis said it will highlight two innovations developed by its Shanghai-based R&D team: an augmented reality head-up display (AR-HUD) and an immersive audio demonstration vehicle based on the Kia EV6 platform. The AR-HUD projects high-resolution virtual images — comparable in size to a 70-inch screen — directly onto the windshield, offering navigation and driving data with enhanced clarity, even in bright sunlight or when viewed through sunglasses. The audio concept vehicle, equipped with 47 speakers, features active road noise control and delivers theater-quality sound inside the cabin, underscoring the company's advancements in acoustic technology. “We are exploring new avenues with global clients in the Chinese market, which continues to be a hub for research, production, and logistics,” said Kim Deok-kwon, senior vice president and head of Hyundai Mobis’ China operations. “By closely analyzing local consumer preferences, we aim to develop customized and competitive technology solutions.” The move is part of Hyundai Mobis’ broader strategy to strengthen its global footprint by aligning its product development with regional market demands, particularly in high-growth segments such as electric vehicles and intelligent mobility systems. 2025-04-16 14:40:37 -
Former US congressman to lead Hyundai Motor Group's Washington office Former Republican U.S. Representative Drew Ferguson/ Courtesy of Hyundai Motor Group SEOUL, April 16 (AJP) - Hyundai Motor Group has appointed former Representative Drew Ferguson, a Georgia Republican, to lead its Washington office, the South Korean automaker announced Wednesday. Ferguson, who served four terms in Congress representing Georgia’s 3rd District from 2017 to 2024, will assume the role on May 1. He will oversee Hyundai's communications with the U.S. government and Congress, as the automaker ramps up its American manufacturing presence. The appointment coincides with heightened concerns across the auto industry over renewed protectionist trade policies, including tariffs. In March, Hyundai Motor Group pledged $21 billion toward U.S. manufacturing initiatives, including its forthcoming Hyundai Motor Group Metaplant America (HMGMA) in Georgia. Ferguson, who served as House Republican Chief Deputy Whip from 2019 to 2023, was a vocal supporter of President Donald Trump’s economic agenda, including efforts to boost domestic manufacturing, cut taxes, and create jobs. Before his time in Congress, Ferguson was mayor of West Point, Ga., from 2008 to 2016, a town that hosts a Kia Motors manufacturing facility. His experience there is expected to provide familiarity with Hyundai’s corporate structure and manufacturing priorities. 2025-04-16 10:45:55 -
Korea, China hold FTA talks on services, investment in Beijing Getty Images Bank SEOUL, April 15 (AJP) - South Korea and China on Tuesday began a new round of negotiations aimed at expanding their bilateral free trade agreement, with a particular focus on the services and investment sectors. The four-day discussions, which will run through Friday, are taking place in Beijing and involve approximately 40 government officials. The South Korean delegation is led by Kwon Hye-jin, the country’s chief trade negotiator, while Lin Feng, director-general of China’s Ministry of Commerce, heads the Chinese side, according to South Korea’s Ministry of Trade, Industry and Energy. The talks mark the 11th round of negotiations focused on enhancing provisions for services, investment, and financial cooperation. These sectors were not fully liberalized under the original free trade agreement, which went into effect in 2015. Formal negotiations to expand the scope of the deal began in 2018, with the most recent session held in January 2025. “We intend to engage constructively in these discussions to ensure the agreement delivers practical benefits for our service industries,” the South Korean trade ministry said in a statement. The latest round comes as global trade faces renewed uncertainty. Both South Korea and China are seeking to shore up economic stability and reduce trade imbalances amid growing protectionist pressures, particularly from the United States. 2025-04-15 16:20:06 -
S. Korea prepares for high-stakes tariff talks with US U.S. President Donald Trump signs an executive order as Treasury Secretary Scott Bessent, second from right, and Commerce Secretary Howard Lutnick look on in the White House, Washington D.C., April 9, 2025. AFP-Yonhap SEOUL, April 15 (AJP) - South Korea is preparing for a critical round of trade negotiations with the United States next week, as Seoul seeks to mitigate the fallout from a sweeping tariff policy introduced by the Trump administration. The talks come amid heightened tensions after President Donald Trump earlier this month announced steep "reciprocal" tariffs on dozens of trading partners, including South Korea, Japan, and Vietnam. The administration has since paused implementation of the measures for 90 days, offering a window for diplomatic resolution. Ahn Duk-geun, South Korea’s Minister of Trade, Industry and Energy, is expected to lead the delegation to Washington, where he will meet with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. South Korean officials say the primary goal is to secure exemptions or reductions from the proposed tariffs, which they warn could significantly disrupt Korean exports. U.S. Treasury Secretary Scott Bessent confirmed the forthcoming discussions in an interview with Bloomberg on Monday, noting that Washington has already held talks with Vietnamese officials and will meet with Japanese representatives later this week. "We had Vietnam in last week. We have the Japanese in on Wednesday... South Korea next week," Bessent said. "So it's going to move fast." Bessent added that allies may benefit from what he described as a “first mover advantage,” noting, “Usually, the first person who makes a deal gets the best deal.” He declined to say which country would finalize an agreement first, stating, “It’s their choice.” The Wall Street Journal also reported separately that Bessent has identified South Korea, Britain, Australia, India, and Japan as his top priorities for new trade arrangements. As part of its strategy, Seoul is expected to present a roadmap addressing longstanding U.S. concerns over trade imbalances and non-tariff barriers. These include regulatory restrictions on vehicle imports, offset requirements in defense procurement, and limitations on pet food containing ruminant ingredients — all of which Washington has cited as rationale for its tariff stance. Still, some within the South Korean government are urging caution. “With semiconductor and biotechnology issues still developing, it may be more advantageous to observe how other countries respond and proceed carefully,” one government official said, speaking on condition of anonymity. Adding to the complexity is South Korea’s upcoming presidential election, which analysts say may limit Seoul’s negotiating flexibility in the short term. “This is a moment of both risk and opportunity,” said Lee Ji-young, a trade policy expert at the Korea Institute for International Economic Policy. “Much will depend on how quickly the parties can reach a mutually acceptable path forward.” 2025-04-15 10:03:46 -
US naval commander visits HJ shipyard Commander of U.S. Naval Forces Korea Rear Admiral Neil Koprowski, fourth from left, poses for a photo during his visit to HJ Shipbuilding and Construction's Yeongdo shipyard, April 10. Courtesy of HJ Shipbuilding and Construction SEOUL, April 14 (AJP) - Rear Admiral Neil Koprowski, commander of U.S. Naval Forces Korea, visited the Yeongdo shipyard of HJ Shipbuilding and Construction last week, the company said in a statement Monday. During the visit, Admiral Koprowski toured the Busan-based shipyard with his staff, inspecting ongoing naval vessel construction and facilities capable of large-scale maintenance, repair, and overhaul (MRO) operations. He was greeted by Yoo Sang-cheol, the shipbuilder’s chief executive, and other senior executives. “HJ Shipbuilding and Construction, located in the heart of Busan, has sufficient capabilities to carry out large-scale maintenance and construction work,” Admiral Koprowski said during the visit, according to the company. The visit comes amid renewed momentum in the U.S. maritime sector following an executive order signed by U.S. President Donald Trump on April 9, directing the development of a plan aimed at revitalizing American shipbuilding and allied collaboration. The initiative could open the door for greater participation by South Korean firms in U.S.-led MRO projects. South Korean shipbuilders accounted for 55 percent of global shipbuilding orders in March, according to data from maritime analytics firm Clarksons. 2025-04-14 15:19:40 -
China halts rare earth exports; Korean industries brace for impact Samsung Electronics' smartphones/ Yonhap SEOUL, April 14 (AJP) - China has suspended exports of rare earth minerals essential to a range of advanced technologies — including electric vehicles, semiconductors and robotics, the New York Times reported Monday. Analysts say China's move could reverberate across global supply chains and disrupt key sectors of South Korea’s manufacturing industry. According to the report, Beijing has halted shipments of rare earth elements and associated magnetic materials widely used in high-tech production. The suspension is widely interpreted as a retaliatory response to steep tariffs imposed by the Trump administration. The export ban is expected to remain in place until China implements a new regulatory framework, one that could permanently restrict the sale of these materials to American companies, including those in the defense industry. China’s Ministry of Commerce had signaled the move on April 4, when it announced new export controls on seven specific rare earth elements — samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium — to be enforced through a licensing system. South Korean automakers, including Hyundai Motor, are closely monitoring the developments. Dysprosium, in particular, is crucial for the production of electric vehicle motors and battery components, and prolonged supply disruptions could have serious implications for the sector. The impact on the domestic display industry, however, is expected to be more limited. While terbium and yttrium are used in small quantities in the manufacture of color filters and phosphors for OLED displays, industry sources said the relatively minor volumes involved may buffer major disruptions. Semiconductor and battery manufacturers are also bracing for the potential fallout. Experts warn that China’s tightening control over rare earth exports may accelerate efforts among global tech firms to diversify supply chains and reduce reliance on a single source of these critical materials. 2025-04-14 10:04:31 -
U.S. sets 10 to 25 percent tariff range for negotiations with South Korea, shipbuilding to be key leverage point National security multi-purpose vessel (NSMV) Empire State/ Courtesy of Hanwha Philly Shipyard SEOUL, April 11 (AJP) -The United States Trump administration has established guidelines for upcoming 90-day reciprocal tariff negotiations, setting a ceiling at country-specific rates announced on April 2 and a floor at the universal 10 percent basic tariff rate. South Korea, which led the global shipbuilding market in January 2025 with 62 percent of total compensated gross tons (CGTs) for 13 shipbuilding orders, now holds a bargaining chip as Trump recently signed an executive order on Wednesday aimed at revitalizing American shipbuilding capabilities and countering Chinese maritime dominance. The executive order notably includes provisions for incentives to encourage allied nations' shipbuilding companies to invest capital in the United States to strengthen American shipbuilding capacity. President Trump and Acting Prime Minister Han Duck-soo reportedly also mentioned shipbuilding as an area for U.S.-Korea cooperation during their first phone call. The U.S. shipbuilding industry has been in decline for decades, a trend taken a toll by the Merchant Marine Act of 1920, known as the Jones Act, which fostered monopolies among domestic shipbuilders and eroded global competitiveness. Last year statistics say China had surpassed the United States in total fleet size, fielding 234 vessels to the U.S. Navy’s 219. South Korea is already a strong ally for rehabilitating U.S. maritime supremacy, as both major players Hanwha Ocean and HD Hyundai Heavy Industries secured Master Ship Repair Agreements (MSRAs) with the U.S. Naval Supply Systems Command this year, though these contracts remain limited to MRO. Aside from shipbuilding, the Trump administration seeks cooperation with Alaska's liquefied natural gas (LNG) project, as U.S. Treasury Secretary Scott Bessent highlighted as an area of interest. Previously, the U.S. had suggested South Korea, Japan, and Taiwan to be on board the project, especially reaching out to South Korea for specialized icebreakers — essential for navigating Arctic waters — that Korean shipbuilders also take pride in. 2025-04-11 15:20:13 -
Fitch affirms South Korea's credit rating while impeachment turmoil Civilians watching the news cheer on as the Constitutional Court unanimously upheld President Yoon Suk Yeol's impeachment, April 4, 2025. Yonhap SEOUL, April 11 (AJP) - Global credit rating agency Fitch Ratings revealed it had anticipated former President Yoon Suk Yeol's impeachment when maintaining South Korea's sovereign credit rating at 'AA- stable' in February, a decision that helped calm market concerns. In a recent report titled "Korean Court Decision on Presidential Impeachment Eases Political Risk," Fitch said the ruling eliminated a significant political uncertainty factor that had been looming over the nation's economic outlook. "We had assumed that the court would uphold the impeachment when we affirmed Korea’s ‘AA-’ sovereign rating with a Stable Outlook in February 2025," Fitch noted in its assessment of the political landscape. Major financial institutions including J.P. Morgan and Citigroup had similarly predicted the impeachment outcome, with both including early presidential elections in their second-quarter forecasts for the Korean peninsula. While the impeachment ruling has removed immediate political uncertainty, Fitch expressed concerns about potential fiscal policy shifts depending on which candidate wins the upcoming presidential election. "We believe it is likely a Democratic Party government would adopt a looser fiscal policy stance than the current administration," Fitch reported, though adding that regardless of the candidate elected, the South Korean government is likely to take proactive policy responses to address the economy issues including national debt. South Korea's national debt increased by 48.6 trillion won last year to reach 1,175.2 trillion won, while the managed fiscal balance recorded a deficit of 104.8 trillion won, equivalent to about 4.1 percent of GDP. The international ratings firm ended its report with a solemn warning that the upward trend in government debt may "put downward pressure over the medium term" to the economy. 2025-04-11 13:45:04 -
Offline retailers ramp up in-store brand strategy to weather slow consumption A premium Daiso branch in Busan/ Courtesy of Shinsegae Simon SEOUL, April 11 (AJP) - In an effort to combat sluggish consumer spending and stay competitive against online shopping platforms, South Korea’s major offline retailers are increasingly turning to popular in-store brands to draw foot traffic. E-Mart, the country’s largest hypermarket chain, significantly expanded its in-store brand ratio from 30 percent to 70 percent when it reopened a megastore in the western port city of Incheon in March 2023, featuring well-known names such as footwear retailer ABC Mart. Competitor Lotte Mart also revamped its Uiwang branch, south of Seoul, in May 2024 by introducing famous retail partners like Daiso and Donggwang Factory Outlet. “Through our renovations, we've incorporated numerous family-friendly establishments such as children’s cafes, transforming our spaces to encourage customers to linger longer,” a Lotte Mart official said. This strategy has extended to high-end department stores as well. Lotte Department Store welcomed Musinsa Standard—the offline brand of the popular online fashion platform Musinsa—to its store in the southern satellite city of Suwon. Meanwhile, Shinsegae Department Store launched a dedicated dessert zone called Sweet Park at its Gangnam flagship mall, featuring renowned global names like Japan’s Gariguette and Belgian chocolatier Pierre Marcolini. According to industry analysts, the move reflects a broader response to prolonged economic stagnation, which has led to a contraction in the number of hypermarkets operated by South Korea’s top three chains -- from 423 in 2019 to 368 by the end of 2024. “For brick-and-mortar retailers, bringing in recognizable in-store brands serves a dual function -- generating rental income and elevating the overall appeal of the store,” said Lee Jong-woo, a business professor at Ajou University. “The race to attract brands with strong consumer pull, such as Daiso and Musinsa, is expected to intensify.” 2025-04-11 10:09:17