Journalist
Kim Dong-young and Han Jun-gu
davekim0807@ajupress.com
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Trump's escalating tariff policy raises global recession concerns U.S. President Donald Trump poses for a photo holding notes about Tesla cars in front of the White House in Washington D.C., March. 11, 2025. Reuters-Yonhap SEOUL, March 12 (AJP) - Concerns over a potential global recession triggered by U.S. President Donald Trump's tariff war have intensified in recent days as his escalating trade policies threaten global economic stability. Last week, the president imposed a 25 percent tariff on imports from Mexico and Canada while doubling levies on Chinese goods to 20 percent — only to announce two days later that he would delay some of those increases until April 2. A 25 percent tariff on steel and aluminum imports is also set to take effect on Wednesday. Adding to the uncertainty, Trump has proposed a sweeping policy of reciprocal tariffs, under which every country would face equivalent duties on U.S. goods beginning in April. Economists warn the move could provoke broad retaliation, amplifying risks to an already fragile global economy. The tariffs have already placed upward pressure on consumer prices, raising fears of stagflation — a toxic combination of high inflation and economic stagnation. Market analysts caution that these policies significantly heighten the likelihood of a global trade war that could stymie economic growth. In a Sunday morning interview that unsettled already jittery markets, Trump suggested an economic downturn might be imminent, describing a "period of transition" and emphasizing the scale of his trade policies. When pressed on the possibility of a U.S. recession this year, the president notably declined to rule it out. "It takes a little time. It takes a little time," Trump said, comments that sent financial markets reeling the following day. Major stock indexes plummeted, with the tech-heavy Nasdaq suffering its steepest decline in two and a half years, falling 4 percent to close at 17,436.10 on Tuesday. The Dow Jones Industrial Average and the S&P 500 also tumbled, losing 2.08 percent and 2.70 percent respectively on Monday, followed by additional declines of 1.14 percent and 0.76 percent on Tuesday. Asian markets, particularly vulnerable to trade disruptions, also declined. South Korea's KOSPI fell 1.28 percent on March 11 amid concerns about the nation's export-driven economy. A state-run economic institute projected a $44.8 billion decline in South Korean exports as a result of the tariffs. Japan's Nikkei slipped 0.64 percent, while Taiwan's Taiex dropped 1.73 percent as investors across the region weighed the potential fallout from escalating trade tensions. Despite the market turbulence his remarks triggered, Trump struck a different tone on Tuesday during a White House appearance, dismissing fears of an economic downturn. "I don't anticipate a recession at all," he told reporters. "I think this country is going to experience a boom." "Markets will go up and down, but we need to rebuild this country," he added, reaffirming his commitment to aggressive trade policies even as investors braced for continued volatility. 2025-03-12 13:47:52 -
Hyundai, Toyota refocus on China amid US market uncertainty Hyundai Motor's Genesis GV60 EV SUV model/ Courtesy of Hyundai Motor SEOUL, March 11 (AJP) - Hyundai Motor and Toyota Motor are recalibrating their strategies in China, while the United States grapples with economic uncertainty driven by President Donald Trump’s escalating tariff regulations. China, one of the world’s most significant automotive markets, saw its electric vehicle sector capture a 30.2 percent market share in 2024, marking a 38.8 percent year-on-year increase. Overall, vehicle sales — including wholesales and imports — rose 3.8 percent to 23.26 million units during the same period. Hyundai’s luxury brand, Genesis, is leading the South Korean automaker’s renewed push into China, with plans to introduce locally produced electric vehicles within the next three to five years. The vehicles will be designed to cater specifically to the preferences of Chinese consumers, a move industry analysts view as crucial for Hyundai’s long-term success in the region. The development process will involve close collaboration between Hyundai’s research teams in South Korea and China, while production is expected to take place at one of Hyundai’s existing manufacturing facilities in China, according to industry sources. Beijing Hyundai Motor Company, Hyundai’s joint venture in China, has already demonstrated positive momentum. In January, the company posted an 18.2 percent increase in year-on-year sales, delivering 16,810 vehicles as it seeks to solidify its position in China. "While local manufacturers continue to dominate, China remains an essential market that global automakers cannot afford to overlook," said a Hyundai Motor official. Toyota, meanwhile, has taken a similar approach, introducing its most affordable electric vehicle to date — the Bozhi 3X compact SUV — through its joint venture with Guangzhou Automobile Group. The model, which starts at approximately $14,400, received more than 10,000 orders within an hour of its launch, underscoring the strong demand for cost-effective electric vehicles in China. The Japanese automaker has also committed to producing at least 2.5 million vehicles annually in China by 2030. As part of its expansion strategy, Toyota plans to establish a new subsidiary in Shanghai dedicated to the development and production of electric vehicles and batteries for its luxury Lexus brand. With both Hyundai and Toyota deepening their investments in China, industry observers say the moves reflect a broader shift among global automakers, who increasingly view the Chinese market as a critical pillar of their long-term growth strategies. 2025-03-11 14:56:55 -
SK Energy to supply sustainable aviation fuel to Hong Kong carrier SK Energy’s plant/ Courtesy of SK Energy SEOUL, March 11 (AJP) - SK Energy announced Tuesday that it will supply more than 20,000 tons of sustainable aviation fuel to Cathay Pacific Airways by 2027, marking the first major agreement of its kind between a South Korean refiner and a Hong Kong-based airline. The deal, finalized on Monday, builds on a partnership that began in November, when Cathay Pacific started using SK Energy’s sustainable fuel for all aircraft departing from Incheon International Airport. The companies plan to expand the use of low-carbon fuel across additional routes. The agreement comes two months after SK Energy made its first exports of sustainable aviation fuel to Europe, reinforcing its position in the Asia-Pacific market, which accounts for more than 80 percent of South Korea’s refined fuel exports. In September, SK Energy began commercial production of sustainable aviation fuel, with an annual capacity of 100,000 tons. The company employs a co-processing method, integrating biofuel feedstock pipelines into its existing petroleum refining infrastructure to produce lower-carbon products, including sustainable aviation fuel and bio-naphtha. Global demand for sustainable aviation fuel has surged since 2021, when the International Air Transport Association adopted a resolution to cut carbon dioxide emissions from air travel by 50 percent from 2005 levels by 2050. 2025-03-11 13:20:34 -
Homeplus debt crisis deepens, shaking Korea's financial sector Homeplus logo/ Yonhap SEOUL, March 11 (AJP) - South Korea’s financial sector is reeling from the aftershocks of major retailer Homeplus’ surprise filing for court-led debt restructuring last week, raising concerns over potential losses for retail investors and sparking allegations of misconduct. The nation’s second-largest retailer entered court receivership on March 4, sending shockwaves through financial markets, where approximately 600 billion won (US$411.5 million) in debt securities are held primarily by individual and corporate investors. Industry officials said financial firms convened their first joint meeting on Monday to address the crisis, with representatives from around 20 securities firms and asset managers in attendance. The discussion centered on asset-backed short-term bonds (ABSTBs) tied to Homeplus' credit card receivables — a financial instrument that straddles the line between commercial and financial debt. Homeplus has stated it will defer repayment of financial obligations while continuing to honor commercial debts, leaving investors grappling with the classification of these securities — a determination that could have profound implications for their investments. Securities firms are bracing for potential mis-selling allegations if the bonds are deemed financial debt, which could translate into significant losses for retail investors lured by their higher interest rates. Meanwhile, Shinyoung Securities, one of the underwriters of Homeplus' debt and a participant in the joint meeting, is weighing legal action against MBK Partners, the private equity firm that controls the retailer. The firm suspects MBK Partners may have continued issuing bonds despite foreseeing a credit rating downgrade, a move that could constitute fraud under South Korean law. "Many market participants share these suspicions, and some institutions are calling for strong countermeasures, including criminal complaints," a Shinyoung Securities official said. While the firm is exploring legal options, it has also signaled a willingness to engage in dialogue first. In a notable escalation, Homeplus' promissory notes were declared dishonored by Standard Chartered Bank Korea on Monday, prompting the suspension of the retailer’s checking account transactions. Shinhan Bank is reportedly preparing to take similar action. Retail investors affected by the crisis have mobilized, forming an emergency committee that plans to stage a protest outside the Financial Supervisory Service on Wednesday. Their primary demand is for their investments to be classified as commercial rather than financial debt, which would afford them greater protection. Despite the turmoil, some market observers caution against overreaction, noting that even funds with minimal exposure to Homeplus debt have been pulled from sale at major securities firms, including KB Securities and NH Investment & Securities. 2025-03-11 09:56:51 -
SK Group accelerates digital transformation in manufacturing SK Group's booth at the CES 2025/ Courtesy of SK Group SEOUL, March 10 (AJP) - SK Group has unveiled a new initiative aimed at accelerating digital transformation (DT) across its manufacturing operations, convening top executives from more than 20 affiliated companies, including SK hynix and SK Telecom. According to industry sources, approximately 120 executives gathered last week at the Walker Hill Hotel in Seoul for the inaugural "SK Manufacturing Solutions Day," an event spearheaded by the recently established DT promotion team under the conglomerate’s SUPEX Council. The initiative seeks to foster collaboration and standardize digital capabilities across SK Group’s diverse business portfolio, enhancing overall competitiveness. "By continuously learning from and benchmarking best practices within our leading affiliates, we can drive collective growth," said Hong Kwang-pyo, head of the SUPEX Council's DT promotion team. "We intend to create regular forums for SK’s manufacturing affiliates to engage and collaborate." During the event, SK Group’s management and economics research institute highlighted case studies from global industrial leaders such as Siemens, General Electric, and John Deere, underscoring the critical role of Chief Information Officers (CIOs) and user-centric technological innovation. SK hynix presented its evolution from automation to fully autonomous semiconductor fabrication plants, while SK Telecom showcased AI-driven manufacturing enhancements. 2025-03-10 16:08:05 -
Trump tariffs backfire with global boycott of US products intensifying The word 'Boycott' is seen on a price tag for American wine in a liquor store in Canada, Feb. 3, 2025. AFP-Yonhap SEOUL, March 10 (AJP) - A wave of consumer boycotts against American products and companies is gaining momentum across multiple continents, as nations push back against U.S. President Donald Trump’s aggressive tariff policies. The movement, which began in Canada following the imposition of a 25 percent tariff on its exports, has swiftly spread to Mexico, Latin America, and several European nations. Iconic American brands, including Coca-Cola, McDonald’s, and Starbucks, have faced mounting resistance from consumers. In Canada, provincial leaders have taken decisive action. Ontario Premier Doug Ford announced on March 4 that American alcoholic beverages, including Kentucky bourbon, would be removed from government-run liquor stores. Three additional provinces — Quebec, Manitoba, and British Columbia — have followed suit, impacting a majority of the country’s population. The move comes amid heightened tensions after President Trump suggested Canada could be annexed as the United States’ “51st state.” Ford has also moved to terminate a 100 million Canadian dollar (US$70 million) contract with SpaceX, the aerospace company led by Elon Musk. Trump has previously referred to Musk as his “First Buddy.” In addition, the Ontario government has threatened to impose a 25 percent export tax on electricity supplied to approximately 1.5 million homes in Michigan, Minnesota, and New York. “He’s going after his closest friends, his closest allies in the world, and it’s going to absolutely devastate both economies,” Ford said in a statement. Canadian Prime Minister Justin Trudeau has also urged citizens to prioritize domestic products, with local businesses showing solidarity. In a symbolic gesture, several cafes have rebranded “Americano” coffee as “Canadiano.” Across the Atlantic, the boycott movement has gained traction in several European nations. Social media campaigns urging consumers to avoid American products have flourished in Denmark, Sweden, and France. In Germany, Tesla has borne the brunt of consumer backlash. The country saw a 76 percent drop in new Tesla registrations last month compared with the previous year, even as overall electric vehicle sales increased by 31 percent in the same period. The backlash intensified following Elon Musk’s public endorsement of the far-right Alternative for Germany (AfD) party ahead of the country’s recent general election. The endorsement sparked widespread protests and anti-Tesla demonstrations. Despite the growing momentum of the boycott movement, some analysts warn of unintended economic consequences. Canadian retailers, struggling with unsold American inventory, have reportedly resorted to mislabeling U.S. goods as Canadian-made to maintain sales. 2025-03-10 13:34:07 -
Homeplus struggles to regain supplier confidence amid debt restructuring A Homeplus outlet/ Yonhap SEOUL, March 10 (AJP) - Some suppliers that had halted deliveries to Homeplus have begun resuming shipments, even as others remain hesitant amid ongoing corporate rehabilitation proceedings. According to retail industry sources, leading food manufacturers, including Ottogi, Lotte Wellfood, and Samyang Foods, have gradually restarted their supply chains since March 7. However, companies such as Dongsuh Foods and Lotte Chilsung Beverage continue to withhold shipments, with negotiations still underway. Homeplus, once one of South Korea’s top retail chains with 126 stores nationwide, filed for court-supervised rehabilitation on March 4, citing deteriorating credit ratings and mounting short-term financial burdens. The retailer has sought to reassure employees and customers, emphasizing that store operations and salary payments would continue uninterrupted. It characterized the restructuring as a “preemptive measure” aimed at stabilizing the business. For suppliers, Homeplus represents both a critical business partner and a potential financial risk. The retailer’s vast footprint makes it a significant buyer, but concerns over payment delays have made some companies wary of resuming shipments. “Other major retailers settle accounts within two weeks, but Homeplus has an exceptionally long payment cycle,” said an executive at a food company that supplies Homeplus. “We can only feel secure if they shorten the settlement period or implement advance payments before we restart deliveries.” Previously, Homeplus operated on a system where payments for goods delivered in January would be settled in February, with some suppliers waiting as long as 60 days for payment. The retailer has now begun individual negotiations with suppliers, reportedly prioritizing talks with fresh food providers, including vegetable and dairy producers. Despite its financial restructuring, Homeplus has asserted that all general commercial transaction debts will be paid in full. The company cited available cash reserves of 309 billion won (about $213 million) as of March 6, along with an estimated monthly net cash inflow of approximately 300 billion won, as evidence of its ability to meet financial obligations. 2025-03-10 10:14:08 -
Korean shipbuilders face obstacles as US seeks icebreakers for Alaska LNG project An icebreaker/ Courtesy of Samsung Heavy Industries SEOUL, March 7 (AJP) - As the United States looks to expand its liquefied natural gas (LNG) capabilities in Alaska, South Korean shipbuilders are finding themselves at the center of a complex geopolitical and economic equation. The request for specialized icebreakers — essential for navigating Arctic waters — has emerged as a key point of leverage in ongoing trade negotiations between Washington and Seoul. The Alaska LNG project, a multibillion-dollar endeavor requiring the construction of a 1,300-kilometer gas pipeline, is expected to deliver approximately 3.5 billion cubic feet of gas per day from the North Slope fields. However, the project’s success hinges on securing icebreaking vessels — an area where the U.S. has limited domestic capacity. South Korea’s Minister of Trade, Industry, and Energy, Ahn Duk-geun, underscored his country’s readiness to assist during a February visit to Washington. This reflected Seoul’s broader effort to demonstrate its capability to meet a pressing American need amid broader trade discussions. South Korea’s major shipbuilders — HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean — possess the technical expertise to construct icebreakers. Both Samsung and Hanwha have previously supplied similar vessels to global markets. Yet, despite their capabilities, these companies face a formidable logistical challenge: their shipbuilding slots are fully booked until 2028, raising concerns over whether they can accommodate new American orders within a viable timeframe. Further complicating the matter is the Jones Act, which mandates that ships operating in U.S. coastal waters be built domestically. This restriction presents a significant barrier to direct exports of Korean-built icebreakers. Industry experts suggest alternative approaches, such as manufacturing vessel components in Korea for final assembly in the United States or acquiring American shipyards to comply with U.S. law. Hanwha Ocean has already taken steps in this direction, recently acquiring Philadelphia Shipyard through its subsidiary, Hanwha Systems. Other shipbuilders are weighing similar investments as they assess potential entry points into the North American market. Beyond governmental negotiations, industry leaders recognize the strategic value of participation. “This represents more than just fulfilling a government request — it’s an opportunity to establish a foothold in the North American market,” said an executive at a leading Korean shipbuilder. Still, significant financial considerations loom over any potential solution. Whether through contract modifications or shipyard acquisitions, the costs of adapting to U.S. regulatory constraints remain substantial. “While accommodating American requests is important at a national level, private enterprises must carefully balance potential profits against the investments required,” noted another industry insider. 2025-03-07 15:28:00 -
Calls grow for legal action against MBK Partners over Homeplus crisis A Homeplus outlet/ Courtesy of Homeplus SEOUL, March 7 (AJP) - South Korea’s main opposition Democratic Party has called for legal action against MBK Partners, a private equity firm, after its portfolio company, Homeplus, unexpectedly filed for court-supervised rehabilitation, alleging fraudulent intent. “It has been confirmed that Homeplus was selling corporate bonds to both institutional and individual investors right up until they entered the corporate rehabilitation process,” Cho Seung-rae, the party’s chief spokesperson, said in a statement, Thursday. The opposition party accused MBK Partners, Homeplus’ majority shareholder, of attempting to abscond with assets after years of financially strained, overleveraged management. “If they are trying to dismantle Homeplus and escape under the pretext of corporate rehabilitation, such actions cannot be tolerated,” Cho said. Drawing parallels to the 2012 case of LIG Construction — whose executives faced criminal charges for selling commercial paper despite impending bankruptcy — the Democratic Party insisted that MBK Partners should face similar judicial scrutiny. The party also sharply criticized government regulators, accusing them of failing to exercise proper oversight. It called for an immediate investigation to minimize investor losses and to “bring down the hammer of justice on MBK and management’s moral hazard.” Homeplus, one of Korea’s leading retail chains, filed for court-supervised debt rehabilitation on Tuesday, sending shockwaves through an industry already reeling from financial instability. The move follows last July’s crisis involving e-commerce platforms Tmon and WeMakePrice, which also struggled with liquidity issues. MBK Partners has not publicly commented on the accusations. 2025-03-07 10:26:48 -
Instant noodles lead South Korea's surging food exports SEOUL, March 6 (AJP) - South Korea's food exports have doubled over the past decade, reaching $7.02 billion last year, with instant noodles driving the growth, seeing an impressive annual increase of 20.1 percent. According to a report released on Wednesday by the Korea Chamber of Commerce and Industry (KCCI), food exports have maintained an average annual increase of 8 percent since 2015, with a slight surge in the last five years. Instant noodles dominated exports with $1.36 billion in sales last year, becoming the country's mainstay export item with a 20.6 percent share of the global market, followed by ready-to-eat meals, beverages, health supplements, and grocery ingredients like condiments. The U.S. remains the top export destination for South Korean products, while exports to Southeast Asian nations like Vietnam and the Philippines have grown significantly. "The growing influence of the Korean Wave, coupled with the latest trend for health-conscious food, has fueled interest in South Korean products across American and Southeast Asian markets," said Moon Jung-hoon, a professor at Seoul National University. He added that, amid major U.S. warehouse retail chains like Costco taking in more South Korean food items, the expansion of franchise outlets, along with enhanced local marketing efforts, has bolstered the global presence of South Korean products. It remains uncertain how U.S. President Donald Trump's aggressive tariff policies will shape the global trade environment this year, but the KCCI vowed to leverage the emerging popularity of South Korean cuisine overseas to further diversify export destinations and product portfolios. 2025-03-06 17:00:45