Journalist
Kim Dong-young and Han Jun-gu
davekim0807@ajupress.com
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Samsung SDI to acquire stake in precursor maker Fino to secure battery supply chain SEOUL, March 27 (AJP) - Samsung SDI is set to invest about 30 billion won ($19.8 million) in Fino, a South Korea-listed subsidiary of China's CNGR Advanced Material, as part of efforts to strengthen its battery materials supply chain. Fino released regulatory filing Thursday it had approved a rights issue of about 14.29 million new shares through a board resolution. Samsung SDI will subscribe to about 6.13 million shares, or about 40 percent of the offering, at an issue price of 4,897 won per share to secure an estimated 7.5 percent stake in the company. The investment is aimed at securing supply chain stability from the precursor stage of battery production, a critical upstream material used in manufacturing cathodes. Precursors account for 70 to 80 percent of cathode production costs. Fino is building domestic production facilities through CNP New Material Technology, a joint venture with POSCO Future M, with production lines for both nickel-cobalt-manganese and lithium iron phosphate cathode materials. Samsung SDI is ramping up its energy storage system business in the United States through StarPlus Energy, a joint venture with Stellantis in Indiana. The company has secured more than 3.5 trillion won in ESS battery supply contracts with U.S. energy firms since late last year. The move comes as Washington tightens restrictions on Chinese-origin materials in ESS batteries, pushing Korean battery makers to reduce their reliance on Chinese suppliers to meet subsidy requirements under U.S. energy legislation. 2026-03-27 08:48:03 -
Korean game publishers play it safe as AI reshapes industry fault lines SEOUL, March 26 (AJP) - South Korea's major game publishers are sticking to safer bets — stable leadership and proven revenue drivers — as they navigate the uncharted waters of artificial intelligence. A wave of executive reappointments during this year's shareholder season reflects that caution. Krafton renewed the terms of Chairman Chang Byung-gyu and CEO Kim Chang-han for a third consecutive term, while Nexon retained CEO Lee Jung-hun after posting a record 4.5 trillion won in annual revenue. Netmarble and NHN are also set to extend leadership tenures on the back of strong earnings. The continuity underscores a structural shift in the industry, where blockbuster titles now take five years or more to develop, making leadership changes mid-cycle a costly risk. At the same time, publishers are accelerating a pivot beyond their traditional mobile-gaming base toward console and PC platforms, targeting global markets. Netmarble has launched its first cross-platform open-world title, The Seven Deadly Sins: Origin, spanning PlayStation 5, Steam and mobile, while NC — rebranded from NCSoft — is preparing console-focused titles such as Defect and Limit Zero Breakers. Pearl Abyss' Crimson Desert, a domestically developed triple-A open-world title, has already sold more than three million copies since its March debut, highlighting the industry's growing ambition to compete globally. Yet the rollout also exposed a new tension point: artificial intelligence. Players discovered AI-generated artwork embedded in Crimson Desert, including distorted visual elements, prompting an apology from Pearl Abyss. The company said the assets were created during early development using experimental tools and were unintentionally left in the final version. The backlash contrasted sharply with Nexon's Arc Raiders, which has been widely praised for using procedural AI to enhance gameplay environments. The title has sold over 14 million copies since its October 2025 launch, underscoring how AI can add value when deployed transparently. The divergence highlights a widening fault line across the industry: AI that enhances user experience tends to be rewarded, while undisclosed use — particularly in visible creative assets — risks consumer backlash. "AI output still reaches only about 90 percent of human quality," said Jung Nae-hun, a professor at the Tech University of Korea. "Studios tend to avoid using it for visible elements like characters or interfaces. When it slips through, it invites backlash." Korea's regulatory framework is also evolving. The Framework Act on Artificial Intelligence, which took effect in January, requires disclosure of AI-generated content, though the industry has raised concerns that additional rules could create overlap and confusion during iterative development processes. Beyond AI, publishers are facing broader structural challenges. Game production remains excluded from Korea's content production tax credit system, even as film and television receive incentives of up to 30 percent. Officials have acknowledged the gap, noting that flagship game titles now routinely cost more than 1 trillion won to develop. Meanwhile, legal risks are also emerging alongside technological shifts. A U.S. court recently ruled that Krafton breached its acquisition contract with Unknown Worlds Entertainment, after executives consulted ChatGPT in shaping a takeover strategy — a case that underscores the growing intersection between AI use and corporate governance. Despite these headwinds, the industry continues to grow modestly. Domestic game revenue reached 23.85 trillion won in 2024, up 3.9 percent on-year, while exports rose to $8.5 billion. Console games recorded the fastest growth, reinforcing the strategic pivot. North America's share of exports climbed to 19.5 percent, signaling early traction in Western markets, while industry employment expanded to around 87,600. Still, publishers say the numbers mask deeper constraints. "The biggest thing the government can do is curb excessive regulation," Jung said. "That remains a heavier drag on the industry than any tax gap." 2026-03-26 15:43:07 -
Naver's counterfeit crackdown lifts seller revenues by 34%, study finds SEOUL, March 26 (AJP) - Naver's anti-counterfeit measures have driven a 34 percent rise in seller revenues and a 20 percent increase in sales volume on its e-commerce platform, according to research released by the company's user protection and self-regulation committee. The findings, led by Kim Ji-young, a professor at Sungkyunkwan University, drew on transaction data from sellers who cooperated with Naver's counterfeit prevention program. Brands participating in the initiative also saw likes and visitor counts on their Smart Store pages climb 11 percent and 9 percent, respectively. Consumer sentiment tracked alongside the sales data. More than 80 percent of shoppers surveyed said the program was effective at protecting them from fake goods, while over 73 percent expressed satisfaction with Naver's overall enforcement efforts. Brands were even more bullish — more than 92 percent said cooperation with Naver had a meaningful impact on their image, and every respondent indicated plans to deepen the partnership. Naver deploys an AI-powered monitoring system to flag suspicious listings and behavior at an early stage. The platform also runs a mystery shopping program, in which staff purchase goods as ordinary consumers before sending items for expert authentication, and a buyer-participation appraisal service that lets customers submit products for free verification. Sellers found to be distributing counterfeits face immediate account termination under a one-strike-out policy, a measure Naver says has sharply curtailed fake goods on the platform. "This is a leading case in which platform self-regulation has simultaneously achieved consumer protection and merchant growth," committee chairman Kwon Hun-yeong said, adding that the body would continue research to help spread similar practices across other platforms. 2026-03-26 15:07:08 -
GM commits $600 mln to South Korea plants, doubling down on small SUV hub SEOUL, March 25 (AJP) - General Motors announced it will invest $600 million in its South Korean operations to upgrade production facilities and sharpen its global competitiveness, cementing the country's role as a key manufacturing hub for small SUVs. The Detroit automaker said Wednesday the latest commitment of $300 million — earmarked for press machinery upgrades and plant modernization — builds on an equal investment announced in December 2025 for product enhancement and technology improvements across its Korea-built SUV lineup, bringing the combined total to $600 million. GM Korea President and CEO Hector Villarreal said the investment reflects the company's confidence in its local workforce and operations. "Competition continues to grow across the global industry, with many new OEMs entering export markets around the world. While our work is not done, we have a strong foundation, and this investment is a sign of confidence in our operations," he said. Korea Development Bank Chairman Park Sang-jin, whose institution holds a stake in GM Korea as a secondary shareholder, said the bank would continue working with GM to ensure the unit sustains its competitiveness in global markets over the long term. 2026-03-25 15:40:29 -
Korea turns to coal, nuclear and diversification to improvise vs Gulf shock SEOUL, March 25 (AJP) - As the Middle East war grinds deeper and energy lifelines fray one by one, South Korea finds itself staring down a crisis it long feared but never quite prepared for — the real prospect of running short on the gas that powers homes and electricity grids, keeping Asia's fourth-largest economy running. QatarEnergy, the Gulf state's national energy company, announced Tuesday it would suspend LNG deliveries to South Korea, China, Italy and Belgium, citing severe damage to production facilities at the Ras Laffan industrial complex from Iranian missile strikes on March 18 and 19. The company's CEO Saad al-Kaabi said about 17 percent of Qatar's LNG export capacity had been knocked out, with repairs expected to take three to five years. The force majeure strikes at a critical artery of the South Korean economy, while rippling across Asia's tightly linked gas market. Natural gas accounted for about 20 percent of the country's primary energy consumption in 2024, roughly 56 million to 61 million metric tons of oil equivalent. Gas-fired plants generated about 26 percent of the nation's electricity last year, burning an average of 69,000 tons of LNG per day for power generation alone. Matching its needs, South Korea is the world's third-largest LNG importer behind China and Japan, bringing in about 46.7 million tons in 2025. Qatar supplied about 14.9 percent of that total, ranking as the third-largest source after Australia at 31.4 percent and Malaysia at 16.1 percent, according to the Korea International Trade Association. While the Qatari share is far from dominant, the knock-on effects of its withdrawal threaten to reshape the entire global supply landscape. Ras Laffan handles about 20 percent of the world's total LNG supply, and spot prices in Northeast Asia have already surged roughly 88 percent in under a month, climbing from $10.73 per million British thermal units in late February to $20.18 by mid-March. "This is no longer a matter of spot price spikes. The structural premise that long-term Middle Eastern contracts offer the cheapest and most reliable gas has been shaken at its foundation," said Lee Dong-wook, an analyst at IBK Securities. "What we are witnessing is a signal that Asia's entire gas procurement framework may need to be redrawn." With markets rattled and winter stockpiling season approaching, Seoul has moved swiftly. President Lee Jae Myung ordered a government-wide emergency response at a cabinet meeting on Tuesday. "The escalation and prolongation of the Middle East war are intensifying supply instability in crude oil and natural gas," Lee said, adding that "a preemptive emergency response system must be activated at the government level." The Ministry of Climate, Energy and Environment rolled out a sweeping energy conservation plan the same day. Starting at midnight Tuesday, about 1.5 million vehicles belonging to public institutions and their employees face mandatory weekday driving restrictions in a rotational system — the first such measure in 15 years, since the Middle East oil supply scare of 2011. The government's most aggressive move targets the power mix itself. Five nuclear reactors currently undergoing maintenance will be brought back online by May to lift the national utilization rate from 73 percent to above 80 percent. Coal-fired power plants will also be given greater latitude, with seasonal fine dust restrictions that cap output at 80 percent set to be eased on days when air quality permits. The government is further considering extending the lifespan of three coal plants slated for decommissioning this year. The Gulf-triggered LNG crunch is expected to leave a deeper carbon footprint across Asia, as countries are forced to fall back on fossil fuels to replace natural gas. In South Asia, Bangladesh is increasing coal-fired generation and imports, while Pakistan is leaning more heavily on domestic energy sources to avoid a repeat of LNG-driven power shortages seen during past supply shocks. Across Southeast Asia, the Philippines and Thailand are boosting coal-fired output, while Vietnam is negotiating additional coal supply to offset reduced LNG usage. Like Korea, Japan's major utilities are maintaining high coal utilization rates and ramping up nuclear output. Korea's ministry projects the recalibrated energy mix would cut daily LNG consumption in the power sector by up to 20 percent. The Gulf crisis has also accelerated Korea's push to wean itself off Middle Eastern fuel. It is expected to lend fresh momentum to the $44 billion Alaska LNG project, which Washington has been pitching to Seoul and Tokyo as a geopolitically secure alternative to Gulf supplies. POSCO International has already taken a stake in Glenfarne Alaska Partners, the project's lead developer, and U.S. Energy Secretary Chris Wright has said he is in discussions with Korean and Japanese firms over participation. Broader U.S. LNG imports are also gaining appeal. South Korea has steadily raised its American share to about 9.4 percent of total purchases, and a deal struck last year commits Korea Gas Corp. to an additional 3.3 million tons per year from U.S. terminals. But since new supply projects will take years to bear fruit, Seoul must navigate the immediate shortfall with the tools at hand. "Even if the Alaska LNG project is a full go, it will be at least 2040 before any results materialize. The Qatar cut will likely push Korea to seek extra supply from other contractors, including Canada and the United States," said Kim Seon-yong, a gas policy researcher at the Korea Energy Economics Institute. Kim noted that unlike crude oil, LNG is difficult to store for extended periods — but added that the timing offers a narrow window of relief, as peak winter demand is still months away. "The government can diversify its energy portfolio to cope with certain shortages from the Middle East conflict, but every energy source has an irreplaceable purpose," Kim said. "If geopolitical difficulties prevent Korea from stacking a full load by October, we may have to resort to expensive spot LNG options." 2026-03-25 15:36:36 -
S.Korea says U.S. cleared sanctions risk on Russian naphtha imports amid Middle East supply crunch SEOUL, March 25 (AJP) - South Korea said it had secured confirmation from the U.S. Treasury Department that domestic companies face no secondary sanctions risk when purchasing Russian crude oil and petroleum products using non-dollar currencies, clearing a major hurdle to alternative supplies as the Strait of Hormuz blockade tightens its grip on energy flows. Yang Ki-wook, the Ministry of Trade, Industry and Resources director-general of industrial resource security, said at a government briefing that Washington had confirmed payments in Chinese yuan, Russian rubles and UAE dirhams would not trigger secondary sanctions on South Korean buyers. The ministry said it had relayed the confirmation to domestic firms and would continue to coordinate with companies on any further difficulties. "Naphtha appears to have a relatively higher likelihood of being imported compared to crude oil," Yang said, noting that crude purchases face additional hurdles including quality verification and the need to complete transactions within tight deadlines. The announcement comes as Asia's fourth-largest economy scrambles to shore up energy supplies after Iran's blockade of the Strait of Hormuz — through which about 99 percent of South Korea's Middle Eastern crude imports pass — severely disrupted global oil flows. Yang also addressed QatarEnergy's force majeure declaration on long-term liquefied natural gas supply contracts with South Korea, China, Italy and Belgium, triggered by Iranian missile strikes that damaged two of Qatar's 14 LNG production trains at the Ras Laffan industrial complex. He said Seoul had not yet received formal notification from QatarEnergy but noted the government had already excluded Qatari volumes from this year's supply calculations in anticipation of such a move. Yang said further consultations between Korea Gas Corporation and QatarEnergy would be needed to assess the long-term contractual impact, but emphasized that supplies through year-end had already been secured through alternative sources. The ripple effects of the prolonged conflict are now reaching everyday consumer goods, with paint prices surging more than 40 percent and supply chain disruptions hitting items ranging from engine oil to garbage bags. Yang said the government was monitoring the situation down to what he described as the "capillary level," prioritizing items by urgency and prepared to impose export curbs or supply adjustment orders if necessary to stabilize the domestic market. Gas prices, meanwhile, are expected to face upward pressure in the second half of the year as the market shifts from a buyer-driven to a seller-driven environment, the ministry said, adding it was consulting with the Ministry of Climate, Energy and Environment and related agencies to minimize the burden on households. 2026-03-25 14:31:15 -
CJ CheilJedang builds food industry's first automated frozen kimbap line to chase global demand SEOUL, March 25 (AJP) - CJ CheilJedang has constructed the food industry's first automated frozen gimbap production facility at its CJ Blossom Campus in Jincheon, North Chungcheong Province, as the South Korean food giant moves to scale up its global kimbap business. The fully automated line handles every stage of production — from filling and rolling to cutting and tray packaging — and took about 18 months to develop, according to CJ on Wednesday. The company said the system reduces weight variation between products, raises output speed, and meets stringent international hygiene standards through a redesigned process layout. Quality improvements were also built into the line. CJ CheilJedang applied its frozen-rice cooking expertise to optimize the texture and sheen of each product's rice, while ingredient-specific heat treatment settings were calibrated to preserve the color and bite of individual fillings. Flash-freezing technology ensures quality holds through distribution and storage. The investment backs the company's Bibigo frozen gimbap line, which launched in 2023 as part of its broader K-food export push. The products have logged cumulative global sales of over 8 million units, with annual revenue growing at about 130 percent on average. CJ CheilJedang said it plans to use the Jincheon facility as a springboard for further export growth, with a focus on the U.S., Europe, and Australia. The company also intends to expand its U.S. grocery store presence in the second half of this year. "This goes beyond simply securing capacity — it is a strategic investment to accelerate the expansion of K-food's global footprint," a spokesperson said, adding that the firm aims to build Bibigo gimbap into a defining brand of Korean cuisine worldwide. 2026-03-25 09:15:48 -
Korea braces for fertilizer crunch on top of energy crisis in Gulf fallout SEOUL, March 24 (AJP) - As the Middle East war drags into its third week, the extensive closure of Strait of Hormuz is no longer just an energy story. Beneath the surface, it is beginning to choke the fertilizer supply chain that underpins global food production — a shift that could soon translate into higher food prices for import-dependent economies like South Korea. About 40 percent of South Korea's urea and ammonia — key inputs for nitrogen fertilizers — move through the chokepoint, according to the Korea International Trade Association. While domestic fertilizer output exceeds local demand, the industry remains structurally dependent on imported feedstocks. That dependency leaves Korea exposed to what analysts describe as a "second-round shock": not just higher energy prices, but a breakdown in the economics of fertilizer use worldwide. "The immediate impact will be on raw material costs for fertilizer exporters, but the bigger picture is that fertilizer prices, oil prices and exchange rates are all moving together, driving up overall agricultural production costs," said Chung Dae-hee, a researcher at the Korea Rural Economic Institute. "If imports of not just fertilizer but also pesticides and other raw materials remain disrupted, it will directly affect agricultural commodity prices." The Strait of Hormuz disruption is particularly acute because it hits the fertilizer chain at its source. Nitrogen fertilizers — which account for more than half of global usage — are produced from natural gas, much of it supplied or priced off exports from Gulf producers such as Qatar and Saudi Arabia. The same corridor also carries large volumes of ammonia and urea shipments to Asia. With shipping effectively halted since late February, at least 21 vessels carrying nearly 1 million metric tons of fertilizer remain stranded in the Gulf. Major suppliers including Qatar's Industries Qatar and Saudi Arabia's SABIC Agri-Nutrients have declared force majeure on deliveries to Asia. The result is a sharp spike in global fertilizer prices, with some contracts jumping from $750 to $1,000 per ton within weeks. More critically, the surge is already altering planting decisions. U.S. Department of Agriculture projections show corn acreage falling to around 94 million acres this year from nearly 99 million in 2025, as farmers shift to less fertilizer-intensive crops such as soybeans. Some growers are planning to cut fertilizer application by as much as 25 percent — a move that directly lowers yields. Brazil, which imports about 85 percent of its fertilizer, has warned of an "extremely high risk" to its 2026–2027 harvest. Any disruption there feeds straight into South Korea, which depends heavily on Brazilian and U.S. soybeans for cooking oil, animal feed and processed foods. The crisis extends well beyond fertilizer. South Korea's wheat self-sufficiency rate stands at around 2 percent, and the country ranks among the world's top five corn importers. Overall grain self-sufficiency — excluding rice — hovers near 20 percent, underscoring its exposure to global supply shocks. What makes the current disruption more severe than past crises is its reach across both energy and food systems. "Unlike the 2022 Ukraine shock, which primarily hit grain exports, this crisis is choking fertilizer inputs that every major food-producing country depends on," said Lorenzo Rosa, a principal investigator at the Carnegie Institution for Science, as cited by the World Economic Forum. That dynamic creates a lagged but more entrenched risk. While energy and shipping costs rise immediately, the impact on food supply emerges months later as lower fertilizer use translates into weaker harvests. At the same time, policy responses are compounding the pressure. China has expanded export controls on fertilizers, including nitrogen-potassium compounds and certain phosphate products, on top of existing urea restrictions. India's urea production has been disrupted by reduced LNG inflows from Qatar, while Bangladesh has shut down four of its five fertilizer plants, according to Hana Securities analyst Yoon Jae-sung. The United Nations World Food Programme warned on March 8 that rising fuel and food costs could push more households into food insecurity, calling the situation a rare "dual chokepoint" crisis spanning both the Red Sea and the Strait of Hormuz. "If agricultural production costs rise like this, margins that are already razor-thin will force producers to pass costs onto consumers," Chung said. "Food price increases are particularly sensitive for the public — it becomes a situation where nobody wins." Seoul is scrambling to contain the fallout. Agriculture Minister Song Mi-ryung convened an emergency review on March 20, pledging to mobilize all available resources while confirming that domestic fertilizer supplies remain stable through the first half of the year. "In the short term, what matters most is easing the cost burden on importers — freight support covering war-risk surcharges and rerouting premiums, relief on cargo detention fees, and reducing the self-pay ratio on exchange-rate hedging insurance," Chung said. "Over the medium to long term, diversifying import sources toward countries such as China and the United States will need to be explored." But diversification offers only partial relief in a market where supply is tightening globally at the same time. With its fertilizer industry reliant on imported inputs, limited strategic reserves, and a grain supply chain that depends overwhelmingly on overseas harvests, Korea is now confronting a deeper question emerging across global agriculture: not just how much food can be shipped — but whether farmers can afford to grow it at all. 2026-03-24 14:57:05 -
Samsung SDI signs mid-to-long-term LFP cathode supply deal with L&F SEOUL, March 24 (AJP) - Samsung SDI said it has signed a mid-to-long-term supply agreement with domestic battery materials maker L&F to secure lithium iron phosphate (LFP) cathode materials outside of China, as it accelerates its push into the North American energy storage system (ESS) market. Under the agreement announced Tuesday, Samsung SDI will procure about 1.6 trillion won ($1.06 billlion) worth of LFP cathode materials from L&F over three years beginning next year for use in ESS battery production. The deal also includes an option to extend supply for an additional three years. Samsung SDI plans to use the cathode materials at StarPlus Energy (SPE), its joint venture with Stellantis in Indiana, United States. SPE has been gradually converting some of its production lines from electric vehicles to ESS since the fourth quarter of last year, and is scheduled to begin mass-producing LFP batteries alongside its existing high-nickel NCA cells from the fourth quarter of this year. "We have proactively signed a supply agreement with a domestic partner in response to growing demand for China-free sourcing," a Samsung SDI spokesperson said. "Through this deal, we will further strengthen our competitiveness in the North American market and create more business opportunities." 2026-03-24 11:14:22 -
HMM marks 50th anniversary with new vision, growth strategy SEOUL, March 24 (AJP) - South Korean container shipping giant HMM unveiled a new corporate vision and growth strategy as it marked the eve of its 50th founding anniversary, signaling fresh ambitions to expand beyond its core shipping business. At a ceremony held at the company's headquarters Tuesday in Yeouido, Seoul, Chief Executive Choi Won-hyok and about 100 employees gathered to formally launch the vision statement "Move Beyond Maritime," which the company described as a commitment to becoming a world-class integrated shipping and logistics group. To anchor the new direction, HMM introduced a four-pillar strategy dubbed "W.A.V.E." — covering workforce development, AI-driven innovation, value-based growth, and environmental transformation. The framework reflects HMM's push to secure long-term competitiveness through talent, technology, and green transition. "Over the past half-century, we have weathered countless choices, challenges, hardships, and successes," Choi said. "All of our achievements stem from the dedicated efforts of those who have worked at sea and on the ground, at home and abroad." He added that HMM must now set sail on another voyage toward becoming a centennial company, and called on employees to work together toward joining the ranks of global top-tier carriers. Founded in 1976 with three tankers, HMM expanded into full containerization by 1986 and launched South Korea's first LNG carrier in 1994. The company posted a record operating profit of about 9.9 trillion won in 2022 after clawing back from a prolonged industry downturn in the 2010s, a revival driven in part by its 2020 delivery of the then-world's largest 24,000 TEU container vessels. HMM said it has since pressed ahead with decarbonization and digitalization efforts, becoming the first domestic carrier to secure methanol- and LNG-fueled container ships, while building a big-data analytics system through a centralized ship operations center. 2026-03-24 11:04:41