AJU PRESS - ASIA NEWS HUB

Journalist

Han Ji-hyun hanji@ajunews.com

Hyundai Motor Group reports record US sales in Q3, driven by EVs, hybrids SEOUL, October 02 (AJP) - Hyundai Motor Group reported its best-ever third-quarter sales in the U.S. market, Thursday, signaling resilience despite trade tensions and the looming expiration of key electric vehicle tax credits. The surge was largely attributed to burgeoning demand for its environmentally friendly vehicles. The combined U.S. sales for Hyundai and its affiliate Kia reached 480,175 units in the third quarter, a substantial 12 percent increase compared to the same period last year. This performance outpaced most major rivals in the U.S., with only Toyota reporting a higher year-over-year sales increase. The engine of the sales growth was the group's accelerated push into the electric vehicle segment. In the quarter, sales of eco-friendly models — including both electric vehicles and hybrids — soared by 54.5 percent to 135,547 units. Sales of battery-electric vehicles alone climbed 54.4 percent to 45,488 units for the quarter, while hybrid sales also saw a robust gain of 54.6 percent. The momentum was particularly visible in September, where electric vehicle sales nearly doubled year-over-year, driven by models like the Hyundai Ioniq 5 and the Kia EV6. For the month of September, the group’s total sales reached 136,510 units, a 12.8 percent increase from a year earlier. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-02 15:21:17
[[South Korea-Japan Ties]] Seoul should forge strategic industrial alliance with Tokyo, KOTRA chief urges Editor's Note: Aju Business Daily is publishing a special series to mark the 60th anniversary of the normalization of diplomatic ties between South Korea and Japan. The series reflects on the renewed relationship between the two neighbors. SEOUL, October 1 (AJP) - "If South Korea becomes a reliable partner in Japan's major manufacturing projects including semiconductors, hydrogen, ammonia, secondary batteries, and shipbuilding, the country's competitiveness in advanced industry competitiveness can make a quantum leap," said Park Yong-min, head of the Korea Trade-Investment Promotion Agency (KOTRA)'s office in Tokyo. In an interview with Aju Business Daily on Sept. 16, he vowed, "KOTRA will be at the forefront of securing a competitive edge in exports." Park said that Japan increasingly recognizes the need to partner with South Korea amid the U.S.-China rivalry and its own focus on nurturing advanced industries. Reflecting on his career, Park said, "When I first started working in Japan about 30 years ago, there was skepticism about South Korea's technology and corporate resilience. Now, Japanese companies are actively seeking partnerships with South Korean firms." Since joining KOTRA in 1995, Park has worked in Japan, Canada, China, and the U.S.' Silicon Valley, supporting South Korean companies' global expansion. He now works in Japan, overseeing four trade offices while formulating strategies for South Korean firms seeking to expand into the Japanese market. Park explained that while the two neighbors were once competitors, they now complement each other, with South Korea focusing on manufacturing and Japan on materials and equipment. "For advanced industries to remain competitive, core technology, manufacturing, and component design must work seamlessly together, making the two countries ideal partners," he said. Japan serves as a perfect testbed for South Korean startups, offering a market 2.5 times larger than South Korea's, with geographic proximity and similar political and cultural backgrounds. Comparing Japan to Silicon Valley, he said, "While Silicon Valley teaches success, Japan is where business ideas can be turned into revenue." He highlighted promising sectors like artificial intelligence (AI), digital transformation, healthcare, and pet industries, where South Korean startups can address Japan's social issues like low birthrates and aging populations. Park cited Caplix, which launched an unmanned rental car solution in Okinawa in 2022, as an example. Caplix's facial recognition kiosks allow rental processes to be handled automatically, tackling labor shortages in Japan's aging society. Since Japan's Digital Agency was established in 2018, local governments have allocated significant budgets for digital transformation projects to address issues like automation, low birthrates, and aging populations. "KOTRA has supported South Korean startups and exporters by connecting them with local importers and helping them adapt to Japan's policy changes and relevant regulations," Park said. He emphasized that South Korea and Japan can form an effective value chain in advanced industries such as semiconductors, automobiles, batteries, and hydrogen, helping mitigate supply chain risks amid U.S.-China tensions and tariff disputes. "We are looking at sectors where South Korea and Japan can create a synergy through collaborative projects," he added. Park urged South Korean exporters to be proactive, stressing that many fail despite having high-quality products with competitive prices, due to a lack of understanding of Japan's customs procedures and distribution networks. "Without patience for lengthy administrative processes and bold local hiring and investment, success is difficult," he advised. "Now is the time to strengthen partnership as both South Korea and Japan seek new frameworks for cooperation," said Park, wrapping up the interview. "Within the broader framework of building a supply chain between the two countries, KOTRA is developing long-term projects such as expanding collaboration in research and development and forming joint ventures." * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-01 09:44:02
[[South Korea-Japan Ties]] K-wave sweeps Osaka Expo and Koreatown Editor’s Note: Aju Business Daily is publishing a special series to mark the 60th anniversary of the normalization of diplomatic ties between South Korea and Japan. The series reflects on the renewed relationship between the two neighbors. SEOUL, September 30 (AJP) - Visitors queued for hours to enter the Korean Pavilion at Expo 2025 in Osaka, Kansai, featuring K-pop stars and entertainment, as it has turned into one of the hottest draws during the world fair running from April to October. "There is no official ranking, but the Korean section stands only next to Japan, the United Stets, France, and Italy in popularity," said Park Young-hwan, director of the Korean Pavilion, noting daily visitors, largely families and young people, have surged from 10,000 to 15,000 amid fever around the KPop Demon Hunters to top 2 million so far this month. The expo closes on Oct. 13. Korean dishes were the first to be sold out at the Expo food court. The renewed K-wave is visible beyond the fairgrounds, from the Tsuruhashi Station to Shin-Okubo, the Koreatown in Shinjuku's Ikuno ward. Fans of Korean culture and food fill the neighborhood packed with Korean stores and eateries including well-known Korean franchise names like Nene Chicken and Jaws Tteobokki. Within a 500-meter radius of Shin-Okubo Station, visitors can find a variety of Korean cultural products. Popular items include tteokbokki, chicken, kimbap, and kimchi pork belly, alongside trendier treats like yogurt ice cream and spicy hot dogs. The 'Jongno' hot dog shop and 'Gwangjang Market' restaurant, known for raw beef and octopus dishes, often demand long waiting. Most visitors are women in their 20s to 40s, drawn by K-pop and sweets. "Trying Korean style is a fad for my age, said Airi, 25, giggling with her friend Sukimo, 23. Local merchants say customers have grown more sophisticated, able to distinguish between different brands of seaweed and rice cakes and less needing shop assistance. According to the Shinjuku Korean Merchants Association, Korean-run shops in Shin-Okubo more than tripled from 396 in 2017 to 1,485 this year. The surge in consumer traffic has sent property values soaring, with commercial properties now fetching 850 to 880 million yen per 3.3 square meters, two to three times higher than in 2020. An S Real Estate representative, who has been in doing business in the town for 20 years, said landlords have become selective about tenants with soaring demand for ground-floor retail spaces. Commercial properties yield annual returns of 6.5% to 9%. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 11:02:03
[[South Korea-Japan Ties]] Korea, Japan explore power link as AI drives electricity demand Editor’s Note: Aju Business Daily is publishing a special series to mark the 60th anniversary of the normalization of diplomatic ties between South Korea and Japan. The series reflects on the renewed relationship between the two neighbors. SEOUL, September 30 (AJP) - As artificial intelligence drives a surge in global electricity demand, South Korea and Japan are positioning themselves as unlikely but pragmatic partners in rethinking the future of power infrastructure. Park Tae-geun, chief executive of LS Electric Japan, said the two countries’ complementary strengths could help overcome some of the most pressing challenges in energy efficiency. Japan brings more than a century of expertise in alternating current (AC) technology, while South Korea has emerged as a leader in high-voltage direct current (HVDC) systems. “AC technology is still dominated by the United States, Europe and Japan,” Park said in an interview in Tokyo. “But South Korea’s HVDC is highly competitive. Together, we can chart a path forward.” The stakes are rising quickly. The International Energy Agency projects that electricity consumption by data centers will double by 2030, a surge driven by the computing power needed for artificial intelligence. Direct current (DC) distribution systems — more than 10 percent more efficient than conventional AC — are increasingly seen as essential for powering next-generation data centers. South Korea has already notched key milestones, including the creation of international standards for medium-voltage DC and the localization of HVDC transformer technology. Japan, with its longstanding grid know-how, offers a foundation for scaling the systems across Asia. The collaboration is already taking shape. LS Electric is working with Kyudenko, a subsidiary of Kyushu Electric Power, to supply HVDC transformers for a 470-megawatt solar project on Ukujima Island. The companies also see opportunities in Japan’s growing market for battery energy storage systems. Perhaps the most ambitious idea is what some executives call a “Korea-Japan Energy Highway” — an undersea grid connection linking Busan to Kyushu via Tsushima Island. Such a project, if realized, could stabilize power prices, accelerate renewable energy adoption and serve as a regional model for cross-border cooperation. CEO Park acknowledged that the plan will require more than corporate initiative. “For this to succeed, political and diplomatic support is indispensable,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-30 10:02:51
INTERVIEW: Stronger South Korea-Japan cooperation needed to navigate U.S.-China rivalry and foster future industries SEOUL, September 29 (AJP) - "Japan is a 'nation of accumulation,' known for its craftsmanship built over time. In contrast, South Korea is a 'nation of flow,' quickly adapting and integrating changes. By combining these strengths, South Korea and Japan can create a new balance against the U.S. and China," said Professor Guk Joong-ho of Yokohama City University. In an interview with Aju Business Daily earlier this month, Guk highlighted the need for South Korea and Japan to strengthen cooperation amid the intensifying U.S.-China rivalry, as the WTO's free trade system is no longer effective. He emphasized the importance of securing leadership in future industries such as artificial intelligence (AI), semiconductors, and energy through bilateral collaboration. Guk, who holds a Ph.D. in economics from Hitotsubashi University, has been teaching at Yokohama City University since 1999 and is a visiting professor at Keio University. He has over 30 years of experience studying South Korea-Japan relations. He suggested that South Korean exporters could fill gaps in Japanese industries, such as traditional liquor, where Japan excels in quality but lacks marketing and digital skills. By leveraging South Korea's digital expertise, both countries could benefit. Looking ahead to the years following U.S. President Donald Trump's presidency, which ends in 2029, Guk advised South Korea to prepare for a multipolar world by engaging with international groups such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Shanghai Cooperation Organisation (SCO), BRICS, and the Global South. He also stressed the importance of fostering talent exchange to strengthen advanced industries. "In Japan, there is a culture in which talented individuals who studied at universities do not hesitate to return to their hometowns after graduation to contribute to local communities," he said, proposing the establishment of a talent exchange program that "matches individuals interested in the culture and economy of both countries and provides adaptation training, which could be an effective approach." Guk added generational differences in perceptions of South Korea, with younger Japanese showing more favorable attitudes toward Korean culture. But he warned of the growing influence of right-wing politics in Japan, which could impact bilateral relations. Guk concluded that patience and understanding of Japan's cautious approach are crucial for successful cooperation. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-29 09:32:21
GM Korea faces crisis amid tariff woes, market slump SEOUL, September 23 (AJP) - GM Korea is grappling with significant financial challenges stemming from steep U.S. tariffs and a struggling domestic market. The company, led by President Hector Villarreal, is facing criticism for its passive business strategy and a lack of proactive measures to secure its long-term future in the country. The most immediate threat to GM Korea's viability is a 25 percent U.S. import tariff imposed in April. Industry estimates suggest the company incurred approximately $750 million in tariff costs in the second quarter alone, representing nearly 50 percent of its total $1.1 billion tariff expenses. This financial burden is immense, amounting to roughly 55 percent of GM Korea’s entire operating profit from the previous year, which was reported at $1.36 billion. GM Korea's business model is heavily skewed toward exports, a strategy that has made it particularly vulnerable to the recent trade tensions. Of the nearly 500,000 vehicles sold annually, about 95 percent are exported. Last year, only 24,824 vehicles were sold in the domestic South Korean market, highlighting the company's limited local presence and reliance on its role as a manufacturing base for global supply chains. Industry observers attribute the company's current predicament to a "passive" market strategy and a failure to adapt to a changing global landscape. An insider noted that while GM's operations in other countries like Mexico and China have found profitable niches, GM Korea has failed to secure its own competitive edge for the future. Against this backdrop, GM Korea is actively pursuing the sale of its assets. In May, the company announced plans to sell nine service centers and land at its Bupyeong plant. President Villarreal defended the move, stating it is "crucial for sustainability" by maximizing the value of idle assets and rationalizing unprofitable service centers. These asset sales have fueled speculation that GM Korea may be preparing to exit the Korean market. The company received $800 million in public funds in 2018 after closing its Gunsan plant, with a commitment to maintain its operations for 10 years. The Bupyeong plant land, valued at approximately $620 million, is a prime location that could be repurposed for residential development. An auto industry source warned that if GM were to profit from such a real estate deal and then leave, the city of Incheon could face economic devastation similar to what Gunsan experienced. The source added that the sale of service centers and a lack of investment in future technologies like electric vehicle (EV) production suggest the company has no intention of boosting its domestic sales or future-proofing its operations in South Korea. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-23 08:58:09