Cameras allowed for opening of Kim Keon Hee trial, but not for full proceedings SEOUL, September 22 (AJP) - A Seoul court has permitted media outlets to film the opening of the first trial for former First Lady Kim Keon Hee, who faces corruption charges. The Seoul Central District Court announced on Monday that it will open the courtroom for a media photo and video opportunity before the hearing begins at 2:10 p.m. on Wednesday. According to the court's decision, video and photography will be permitted from the beginning of the session until the presiding judge announces the conclusion of filming, prior to the formal start of the legal proceedings. Reporters and photographers must leave once proceedings begin. Kim, the wife of the ousted former President Yoon Suk Yeol, was indicted on Aug. 29 after a special prosecutor accused her of accepting bribes to lobby on behalf of the Unification Church, receiving free polling services from a businessman tied to candidate nominations, and conspiring in a stock manipulation scheme involving Deutsche Motors. She has denied wrongdoing. 2025-09-22 17:36:45

After Homeplus scandal, Lotte Card hack puts spotlight on MBK Partners SEOUL, September 22 (AJP) - A major data breach at Lotte Card has intensified scrutiny of MBK Partners, one of Asia’s largest private equity firms, which already faces mounting criticism over its troubled ownership of Homeplus, South Korea’s second-largest retail chain. The two incidents have stoked concerns that MBK, which manages more than $30 billion in assets, has prioritized short-term financial returns at the expense of adequate investment in security and corporate governance. Regulators are now weighing tougher oversight of the firm, and lawmakers have called executives to testify in a pair of parliamentary hearings. The most recent blow came with a hacking incident at Lotte Card. Earlier this month, the company disclosed that sensitive customer data had been compromised in a cyberattack. The breach followed years of uneven security investment under MBK’s ownership. Financial filings show that while spending on information protection rose briefly in 2021 to build a disaster recovery system, the overall share of IT budgets devoted to security has steadily declined, from 12 percent that year to 8 percent in 2023 — trailing behind rivals such as Shinhan Card and KB Kookmin Card. The hack compounded an already worsening situation for MBK, which has been under fire for its handling of Homeplus. The firm acquired the retailer from Tesco in 2015 for about $6 billion, in what was then South Korea’s largest buyout deal. But critics say MBK saddled the chain with debt while cutting back on reinvestment, leaving stores under-maintained and workers complaining of deteriorating conditions. Earlier this year, allegations surfaced that MBK had mishandled parts of the acquisition process, prompting regulators to launch an on-site inspection and begin sanction proceedings. The case reignited memories of a 2014 scandal, when Homeplus — then still owned by Tesco — was found to have illegally sold customer data to insurers. The chain has struggled to regain consumer trust ever since, and MBK’s stewardship has done little to restore confidence. The convergence of the two crises has prompted unusually sharp language from regulators. At his confirmation hearing this month, Lee Ok-won, chairman of the Financial Services Commission, promised a “thorough investigation into MBK” and pledged to impose tough penalties if serious violations are confirmed. The scandals are also feeding into a broader policy debate. A report commissioned by the FSC from the Korea Institute of Finance recommended canceling the registration of private equity managers that commit major legal breaches. The National Assembly’s Science, ICT, Broadcasting and Communications Committee is set to summon MBK Chairman Kim Byung-joo and Lotte Card Chief Executive Cho Jwa-jin on Sept. 24 for questioning over the hack. A separate hearing by the National Policy Committee will focus on the Homeplus controversy. 2025-09-22 16:16:56

South Korean leader warns US demands could risk crisis without currency safeguards SEOUL, September 22 (AJP) - South Korea's President Lee Jae Myung said he is determined to resolve long-standing tariff and trade frictions with the United States as quickly as possible, framing the issue as central to the viability of South Korea’s massive investment push in the American economy. In an interview with Reuters published Monday, Lee highlighted differences between Seoul and Washington over how to guarantee the commercial feasibility of a planned $350 billion investment package in the United States. He said if South Korea offers $350 billion in cash and invest it in the way the U.S. demands, without a currency swap arrangement, South Korea could face a situation similar to the 1997 financial crisis. The remarks come as the two allies continue to spar over tariffs, subsidies and trade rules linked to semiconductor, battery and electric vehicle supply chains. Washington has pressed Seoul to align with U.S. industrial policies, such as the Inflation Reduction Act, while South Korean officials have pushed back against measures they say disadvantage Korean automakers and chipmakers in the U.S. market. South Korea has already sought exemptions from certain U.S. tariffs, arguing that the existing framework undermines the economic rationale for its investment commitments. The two governments agreed in principle that joint projects must be commercially viable, but negotiators have struggled to bridge differences over how to codify such guarantees. President Lee said the core task now is to reach a concrete agreement that guarantees commercial rationality. This remains the biggest stumbling block, as proposals raised in working-level talks so far have failed to ensure commercial feasibility, Lee said. He drew comparisons with Japan’s agreements with the United States, emphasizing that Seoul faces a different set of financial constraints, including a smaller foreign reserve buffer. Asked whether talks could extend into 2026, Lee said, “We need to end this unstable situation as quickly as possible.” When pressed on whether South Korea might walk away from negotiations, he demurred: “I believe that at the very least, an alliance bound in blood will be able to maintain a basic level of rationality.” The dispute reflects a broader reordering of global trade, in which U.S. allies in Asia are being asked to deepen economic commitments in return for security guarantees. For Seoul, which has tied its growth strategy to advanced manufacturing exports, the outcome of the tariff negotiations could shape its economic trajectory for decades. 2025-09-22 10:12:53

Hanwha Aerospace to supply 24 more K9 howitzers to Norway SEOUL, September 19 (AJP) - Hanwha Aerospace said Friday it has signed a new contract with Norway’s defense procurement agency to supply 24 additional K9 self-propelled howitzers. The company did not disclose the value of the deal, citing an agreement with the Norwegian Defence Materiel Agency, known as NDMA. The signing ceremony was held on Sept. 18 in Oslo and attended by Hanwha’s chief executive, Son Jae-il, and Gro Jaere, director general of the NDMA. It is the third time Norway has purchased the K9, following orders for 24 howitzers in 2017 and four more in 2022. Hanwha said the Norwegian Army had praised the weapons system’s timely delivery, quality and battlefield performance. The new units will feature upgraded systems tailored to Norway’s requirements, including advanced communications. Hanwha will also provide a “customized solution” package, integrating the howitzers with Norway’s combat systems while offering training, maintenance and long-term logistical support. Hanwha said it expects the latest contract to bolster future sales in the Nordic region, where it is also promoting the Chunmoo multiple rocket launcher. 2025-09-19 13:57:45

Lotte Card data breach exposes information of nearly 3 million customers SEOUL, September 18 (AJP) - South Korea’s Lotte Card said Thursday that nearly one-third of its customers were affected by a major data breach stemming from a hacking attack in August. At a press conference in Seoul, CEO Cho Jwa-jin confirmed that the personal information of 2.97 million members was compromised in the Aug. 14 incident. “We sincerely apologize to our customers and relevant authorities for causing great concern,” Cho said. The leaked data was tied to online payment systems and, for about 280,000 customers, included sensitive details such as card numbers, expiration dates and CVC codes that could be exploited for fraud. Lotte Card said these customers will receive priority reissuance of their cards. For the remaining 2.69 million customers, only partial information was exposed, which the company said cannot be used alone to commit fraudulent transactions. Cho added that no customer names were leaked and that offline payment systems were unaffected. Lotte Card, the country’s fifth-largest card issuer with roughly 9.6 million members, has pledged to fully compensate victims. “Lotte Card will take full responsibility and reimburse all damages caused by this incident,” Cho said, promising to cover any secondary losses if they are confirmed to be linked to the breach. The company had initially reported to regulators on Sept. 1 that 1.7 gigabytes of data had been stolen. However, a subsequent investigation revealed the scale of the breach was far greater. Lotte Card also acknowledged that although the attack occurred on Aug. 14, but it began its probe at the end of the month. Meanwhile, private equity firm MBK Partners, the largest shareholder of Lotte Card, is facing criticism for allegedly prioritizing profit maximization over security investments as it seeks to sell the card company. MBK acquired an 80 percent stake in Lotte Card in 2019 for 1.38 trillion won ($1 billion). In 2022, it attempted to offload the stake for 3 trillion won, but the deal fell through. MBK lowered its asking price to 2 trillion won in May this year, yet no bidders have come forward. The company’s difficulties in securing a buyer have been compounded by scrutiny from regulators and prosecutors. MBK is under simultaneous investigation by financial authorities and law enforcement over its responsibility for a financial crisis at retail chain Homeplus, in which it holds a controlling stake. 2025-09-18 14:38:47

Fed rate cut opens door for Bank of Korea to loosen policy SEOUL, September 18 (AJP) - The Bank of Korea is widely expected to cut its benchmark interest rate as early as next month, after the U.S. Federal Reserve lowered borrowing costs for the first time in nine months, easing pressure on Korea’s currency and capital markets. The Fed’s decision on Wednesday (local time) to trim its policy rate by 0.25 percentage points to a range of 4 to 4.25 percent narrowed the gap with South Korea’s rate from a record 2 percentage points to 1.75. That reduction has given the BOK more space to address domestic economic challenges, which include sluggish growth, weak consumption and mounting financial risks. “If the U.S. rate cut is implemented and foreign exchange market volatility eases, we will have more room to focus on domestic conditions,” BOK Deputy Governor Park Jong-woo said in a recent monetary policy briefing. South Korea’s economy, Asia’s fourth-largest, has been struggling to regain momentum amid soft exports, tepid domestic demand and a prolonged slump in consumer sentiment. A prolonged downturn in the semiconductor cycle — the country’s top export driver — has further weighed on business investment and household income. Adding to the pressure, private consumption has stagnated under the weight of high borrowing costs and record household debt. Analysts say this backdrop makes a rate cut at the BOK’s Oct. 19 meeting increasingly likely. “From a growth perspective, we also need to lower our rates,” said Joo Won, an economist at the Hyundai Research Institute, predicting an October move. An Jae-gyun, a senior researcher at Korea Investment & Securities, argued that a rate cut paired with government fiscal stimulus would amplify the impact of spending. Still, policymakers face a delicate balancing act. South Korea’s housing market has defied tighter financial conditions, with Seoul home prices continuing to climb and speculative demand showing signs of revival. A rate cut could stoke further borrowing and worsen financial vulnerabilities. “As the upward trend and expectations for further rises in Seoul’s housing prices are still significant, it is necessary to decide on the timing of an additional rate cut after examining the effects on housing price expectations,” BOK board member Lee Su-hyung cautioned in a report last week. 2025-09-18 09:40:45

South Korea's industry minister defends nuclear expansion amid policy rift SEOUL, September 17 (AJP) - The battle over South Korea’s nuclear future flared again Tuesday, as Industry Minister Kim Jung-kwan insisted that two new reactors and one small modular reactor must be built, challenging President Lee Jae Myung’s push to emphasize renewable energy. Kim Jung-kwan, minister of trade, industry and energy, told reporters that two new reactors and one small modular reactor (SMR) must be built as planned, despite skepticism from President Lee and other senior officials. “My position is clear,” Kim said. “Even if a public deliberation process is carried out, we must move forward with two new reactors and one SMR.” The projects, part of the government's basic power supply plan, call for adding 2.8 gigawatts of new nuclear capacity and deploying a Korean-designed SMR by 2037–2038. Kim stressed that nuclear power remains essential for keeping electricity prices stable and ensuring reliable supply. His remarks highlight a policy split within the Lee administration. President Lee and Environment Minister Kim Sung-hwan have recently voiced doubts about the feasibility of building new reactors, instead emphasizing renewable energy expansion. At a news conference marking his 100th day in office last week, Lee questioned whether nuclear power could be a realistic solution, noting, “Even if we start building now, it may take more than 10 years to finish — is that really a solution?” The disagreement reflects South Korea’s decades-long debate over nuclear power. The country, which generates roughly one-quarter of its electricity from nuclear energy, has alternated between expansion and phaseout policies depending on the political leadership. Former President Moon Jae-in pledged to reduce reliance on nuclear after the 2011 Fukushima disaster in Japan, citing safety concerns. But his successor, Yoon Suk Yeol, reversed course, reviving stalled projects and promoting exports of Korean reactor technology. Now, with President Lee pledging aggressive climate action and renewable energy growth, the fate of new nuclear projects has again become uncertain. Supporters argue that nuclear power is indispensable for meeting surging electricity demand while cutting carbon emissions. Critics counter that high costs, lengthy construction timelines and safety risks make nuclear an unreliable option compared to renewables. Kim, the industry minister, suggested that time will ultimately favor the nuclear side of the debate. “The power supply plan is not about immediate issues but about preparing for demand after 2035,” he said. “Right now, additional reactors and an SMR may not be urgent, but given future electricity demand and the need for a balanced energy mix, I believe construction will eventually go forward.” 2025-09-17 13:18:00

Labor shortage, not low wages, drives foreign hiring by SMEs in South Korea, survey shows SEOUL, September 16 (AJP) - A recent survey by the Korea Federation of SMEs (KBIZ) reveals that more than nine out of ten small and medium-sized enterprises (SMEs) that employ foreign nationals do so primarily due to difficulties in hiring domestic workers. The survey, conducted in July on 503 businesses with 50 or more employees, found that 93.8 percent of respondents cited "difficulty in hiring domestic workers" as their primary reason for employing foreign workers. This starkly contrasts with other factors, such as "labor cost reduction" at 2.6 percent, "productivity improvement" at 1.2 percent, and "securing skilled or experienced personnel" at 0.2 percent. The demand for foreign workers is expected to remain high, with an overwhelming 98.2 percent of companies surveyed planning to either "maintain or expand" their foreign workforce. Only 1.8 percent indicated a plan to reduce it. South Korea's Employment Permit System, or E-9 visa, allows businesses to legally employ foreign workers in sectors facing labor shortages, such as manufacturing, construction, agriculture, and fisheries. While foreign workers are legally entitled to the same minimum wage as their domestic counterparts, their actual earnings can vary. Data from a late 2024 survey showed that nearly half of foreign wage earners in South Korea (48.9 percent) earned between 2 million and 3 million Korean won per month. 2025-09-16 15:25:39

KOSPI rises to new all-time high for 5th straight day SEOUL, September 16 (AJP) - South Korea's benchmark KOSPI index surged at the open on Tuesday, hitting a new all-time high for the fifth consecutive trading day and extending a historic rally. As of 9:23 a.m., the KOSPI was trading at 3,428.88, up 21.57 points (0.63 percent) from its previous close. The index opened strong at 3,421.13, immediately surpassing the record of 3,407.31 set just Monday. The new record marks the 11th consecutive session of gains for the index, driven by a positive overnight close on Wall Street. All three major U.S. indices finished higher on Monday (local time). The Dow Jones Industrial Average gained 49.23 points (0.11 percent) to close at 45,883.45. Both the S&P 500 and the Nasdaq Composite closed at new record highs, rising 0.47 percent and 0.94 percent, respectively. In the KOSPI market, major tech stocks are leading the advance. SK hynix is trading up 2.04 percent at 337,750 won, while market leader Samsung Electronics rose 0.52 percent to 76,900 won. 2025-09-16 10:19:16

Hyundai Motor averts strike with union deal SEOUL, September 16 (AJP) - Hyundai Motor's labor union has reached a new wage and collective agreement with management, averting a full-scale strike after months of tense negotiations. The agreement was finalized after a vote by union members. According to the company, Tuesday, 52.9 percent of its union members who participated approved the deal. The new agreement includes a 100,000 won monthly increase in the base salary, a performance bonus package of 450 percent plus 15.8 million won, 30 shares of company stock, and a 200,000 won gift certificate. Notably, the union’s primary demand to extend the retirement age was not granted. However, both parties have agreed to continue discussions and collaborate on the issue in preparation for any future government legislation that might alter the retirement age. The resolution comes after 21 rounds of negotiations since June. The union had staged partial, 2-to-4-hour strikes from Sept. 3 to 5 due to a breakdown in talks, and had also threatened a general strike. This ended a six-year streak of strike-free collective bargaining for Hyundai Motor. 2025-09-16 09:51:02