Journalist

John Na
  • South Koreas halt on state asset sales strains debt-laden public firms
    South Korea's halt on state asset sales strains debt-laden public firms SEOUL, November 21 (AJP) - President Lee Jae Myung’s order to halt the sale of state-owned assets over concerns of potential undervaluation has left major public agencies scrambling for alternatives, despite growing fiscal pressures and the need to offload underperforming holdings. According to industry officials, Korea National Oil Corp. (KNOC) has suspended its long-running effort to sell Harvest, a Canadian oil and gas producer it acquired in 2009. KNOC, which has remained in a state of capital impairment for six consecutive years, began divesting Harvest’s 38 asset groups in 2021 but has managed to sell only 17. Several additional transactions were reportedly close to completion before the presidential directive forced a pause. Facing rising investment needs — including the development of deep-sea gas field in the East Sea — KNOC has increasingly relied on corporate bonds to stay afloat. From 2021 through the first half of this year, the company issued more than 11 trillion won in bonds, with annual issuance continuing to climb. Other state-run energy giants are also feeling the strain. Korea Electric Power Corp. (KEPCO), which holds more than 200 trillion won in debt, has delayed the sale of multiple assets, including properties in Daegu and housing units across the country. Korea Gas Corp. (KOGAS) similarly canceled planned divestitures of unused assets in Gangwon Province. These agencies had been preparing to coordinate with relevant ministries to ensure asset prices were fair and transactions justified. But with sales now on hold, officials warn that financial burdens could deepen if the freeze persists. The government’s plan to dispose of tax-paid stocks has also come to a standstill. These shares — turned over to the state in lieu of large inheritance taxes — include holdings from the family of the late NXC founder Kim Jung-ju and from the family of Taekwang Industrial’s Park Yeon-cha. Without buyers, the state continues to hold sizable stakes it never intended to keep. Delays in handling these assets could have downstream effects on government programs that rely on proceeds from such sales. “The sale of tax-paid stocks is paused, but urgent cases can proceed with approval from the prime minister,” a senior finance ministry official said. The administration is now reviewing systemic reforms to prevent state assets from being sold below value. Deputy Prime Minister and Finance Minister Koo Yun-cheol said the government plans to craft a set of measures by mid-next month, which could include mandatory reporting to the National Assembly and the president for large-scale transactions. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-21 10:10:58
  • South Korea, Saudi Arabia deepen ties in shipbuilding, automobiles, AI under Vision 2030
    South Korea, Saudi Arabia deepen ties in shipbuilding, automobiles, AI under Vision 2030 SEOUL, October 27 (AJP) - South Korea and Saudi Arabia agreed on Monday to expand cooperation across a range of industries — including shipbuilding, automobiles, and artificial intelligence — as the two nations seek to strengthen ties aligned with Riyadh’s Vision 2030 initiative. Moon Shin-hak, South Korea’s deputy minister of trade, industry and energy, met with Abdullah bin Ali Al-Ahmari, Saudi Arabia’s deputy minister of industry and mineral resources, in Seoul to discuss joint projects and support for South Korean companies operating in the kingdom. The talks followed the fifth Korea-Saudi Vision 2030 Committee meeting held in September, where the two sides reviewed progress on flagship cooperation projects. During Monday’s meeting, Moon highlighted South Korean companies’ role in advancing Saudi Arabia’s Vision 2030 goals — particularly in industrial diversification and technology development — and called for continued support from the Saudi government. Both countries agreed to strengthen collaboration on major industrial projects, including the International Maritime Industries (IMI) shipyard in the King Salman Maritime Complex and Hyundai Motor’s assembly plant in King Abdullah City. They also discussed advancing eco-friendly ship technologies and developing hydrogen infrastructure for next-generation vehicles. Moon proposed expanding cooperation in artificial intelligence and digital infrastructure, including semiconductor development, data centers, and smart manufacturing systems. He also suggested joint initiatives in emerging fields such as digital twins, cloud computing, and robotics. Al-Ahmari welcomed the proposals, saying Riyadh viewed South Korea as a key partner in building high-tech industries and sustainable manufacturing capacity. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-27 14:27:14
  • KEPCO strengthens ties with Vietnam in nuclear energy push
    KEPCO strengthens ties with Vietnam in nuclear energy push SEOUL, October 14 (AJP) - South Korea’s state-run Korea Electric Power Corporation, or KEPCO, is deepening its partnership with Vietnam’s National Power Corporation (PVN) as part of an effort to secure future nuclear power projects in the Southeast Asian nation. KEPCO said Monday that it held a joint workshop with PVN in Hanoi on Sept. 30 to discuss training and workforce development for Vietnam’s planned nuclear energy expansion. The meeting followed a memorandum of understanding signed in August. The initiative brings together KEPCO, Korea Hydro & Nuclear Power, the KEPCO International Nuclear Graduate School and the Korea Atomic Energy Research Institute. They are working with PVN, as well as Vietnamese universities and research institutes, to lay the groundwork for cooperation in education and technology. About 40 experts from both countries attended the session. Vietnam, which has revived its long-delayed nuclear ambitions, aims to begin construction of the Ninh Thuan 1 and 2 nuclear plants by 2035 and add eight gigawatts of capacity by 2050. The plan would require training roughly 4,000 skilled professionals in nuclear operations and safety. At the workshop, KEPCO shared its experience in nuclear workforce training and program development. Company officials also met with representatives from Vietnam’s Ministry of Industry and Trade and PVN to explore broader cooperation — including localization, technology transfer and financing structures — to support Korea’s potential participation in Vietnam’s future nuclear projects. A KEPCO official said the company aims to strengthen cooperation in localization and financing to help secure participation in Vietnam’s upcoming nuclear projects. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-14 10:05:27
  • Trade chief urges US to treat South Korea, Japan on separate terms
    Trade chief urges US to treat South Korea, Japan on separate terms SEOUL, October 01 (AJP) - South Korea’s trade minister said Wednesday that he is working to persuade Washington to recognize the differences between the South Korean and Japanese economies in tariff talks with the United States. Speaking at a policy forum in Seoul, Trade Minister Yeo Han-koo said that while the U.S. trade deficit with both South Korea and Japan appeared similar last year, the two economies diverge sharply in their industrial structures and foreign exchange systems. “We are actively explaining these differences to the U.S.,” Yeo said. The minister also raised questions about Japan’s $550 billion investment pledge to the United States, noting uncertainties about how Tokyo intends to finance the commitment. On automobiles, a recurring source of friction, Yeo said Seoul remains engaged in negotiations over U.S. tariffs. A July agreement sought to lower the 25 percent tariff on cars to 15 percent, but the deal has yet to be finalized. He underscored the auto industry’s importance to South Korea and said maintaining competitive leverage in talks with Washington was a priority. Yeo described the current trade negotiations as more complicated than the 2018 renegotiation of the KORUS Free Trade Agreement, forecasting further challenges in the coming years. With nearly 40 percent of South Korea’s exports going to the U.S. and China, Yeo said the country must adopt a more strategic approach. He urged diversification into emerging markets, particularly Southeast Asia, citing its youthful demographics and affinity for Korean culture. The government, he said, is preparing to strengthen its “New Southern Policy” to seize those opportunities. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-01 15:27:47
  • Celltrion secures $300 million in export insurance to bolster global expansion
    Celltrion secures $300 million in export insurance to bolster global expansion SEOUL, October 01 (AJP) - Celltrion, one of South Korea’s leading biopharmaceutical companies, has obtained $300 million in short-term export insurance from the Korea Trade Insurance Corporation (K-Sure), a move aimed at strengthening its overseas operations and cash flow. The agreement marks the first time the state-run insurer has extended such support to the overseas branch of a Korean pharmaceutical and biotechnology company, underscoring the government’s efforts to expand the global reach of the country’s bio sector. The insurance allows banks to purchase export receivables between Celltrion’s headquarters and its international branches, while guaranteeing compensation if payments are delayed or uncollected. By improving lenders’ capital adequacy ratios, the program enables Celltrion to access financing on more favorable terms, easing working capital constraints. Celltrion has increasingly relied on its overseas branches to tailor sales to local markets, and the company is preparing for significant exports of new treatments in the second half of the year. The added financial buffer is expected to help sustain research, global production capacity, and international competitiveness. “We are pleased to offer effective support to the growing pharmaceutical and bio sectors,” said Jang Young-jin, president of K-Sure. “We will continue to ensure our companies can secure working capital under favorable conditions through trade insurance.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-01 14:12:07
  • Seoul weighs phased investments, revenue sharing to counter US tariff demands
    Seoul weighs phased investments, revenue sharing to counter US tariff demands SEOUL, September 24 (AJP) - Negotiations between Washington and Seoul over a $350 billion investment package remain mired in disagreement, delaying the conclusion of a deal that was expected to ease tariffs and deepen economic ties between the two allies. In July, the two countries reached a preliminary understanding to lower mutual tariffs from 25 percent to 15 percent, including reductions on automobiles, in exchange for South Korea committing to a massive investment in the United States. But the details of how the funds would be allocated — and who would control them — have proved contentious. Among the scenarios under discussion are dividing responsibilities, with South Korea leading a $150 billion shipbuilding project while the United States oversees the remainder, or alternatively, allowing Washington to lead the entire package with tariff concessions adjusted accordingly. Yeo Han-gu, South Korea’s chief trade negotiator, departed for Kuala Lumpur this week to attend the ASEAN Economic Ministers’ Meeting, where he is expected to hold talks with U.S. Trade Representative Jamieson Greer. The agenda includes the stalled investment package and a range of non-tariff barriers. Experts caution that South Korea should avoid simply mirroring Japan’s recent approach, in which Tokyo pledged $550 billion in cash to Washington, backed by its unlimited currency swap with the Federal Reserve. Instead, they urge Seoul to develop a strategy more closely aligned with its economic realities. “It’s unrealistic to execute $350 billion quickly,” said Heo Jeong, an economics professor at Sogang University. He recommended phased investments, conditional currency swap agreements, and targeted corporate projects. “Setting annual limits and negotiating conditional swaps with the U.S. could help South Korea maintain control,” he added. Heo also proposed linking revenue sharing to job creation and supply chains, noting that manufacturing investments typically require one to two years before generating returns. Allocating a portion of the funds — 5 to 10 percent — to research and development in collaboration with American programs, with joint ownership of resulting intellectual property, could further strengthen the partnership, he said. Kang Gu-sang, who leads the North America–Europe team at the Korea Institute for International Economic Policy, stressed the importance of highlighting Korea’s contributions to American shipbuilding. “Ensuring benefits for Korean companies is essential,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-24 10:24:30
  • Gmarket-Aliexpress merger gets conditional approval from anti-trust regulator
    Gmarket-Aliexpress merger gets conditional approval from anti-trust regulator SEOUL, September 18 (AJP) - South Korea’s Fair Trade Commission (FTC) has conditionally approved the high-profile merger between an affiliate of Shinsegae Group and Chinese e-commerce powerhouse Alibaba Group's Korean unit. On Thursday, the commission announced its decision to greenlight the merger of Shinsegae affiliate Gmarket and Alibaba's AliExpress Korea, but only under strict conditions designed to prevent the two companies from sharing consumer data and to ensure their platforms operate independently. The FTC's primary focus was on the potential anti-competitive effects of combining the vast datasets of the two e-commerce platforms. Gmarket holds information on over 50 million members in South Korea, while Aliexpress has global purchase data spanning more than 200 countries. The commission warned that combining this data with Alibaba's advanced AI and cloud technology could raise market entry barriers, and stifle innovation. A new joint venture, Grand Opus Holding, was established to house both Gmarket and Aliexpress Korea. The merger followed Apollo Korea, a Shinsegae affiliate, acquiring a 50 percent stake in Grand Opus Holding in January. The regulator’s concern was particularly pronounced in the rapidly growing domestic online direct purchase market. The FTC noted that the share of Chinese direct purchases has surged, rising from 35 percent in 2022 to 60 percent in 2024. Within this market, Aliexpress holds a leading 37.1 percent share, while Gmarket has a 3.9 percent share. The merger could boost their combined market share to 41 percent. Lee Byung-geon, the director of the Corporate Merger Review Bureau, emphasized the importance of the ruling. "We will continue to scrutinize the effects of data integration in mergers and conduct in-depth research on its impact on competition and consumer welfare," he stated. "Our goal is to foster innovative investment in the digital era and protect consumer welfare in the online platform market." * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-18 13:58:11
  • South Korea prepares response to Mexicos tariff hike plan
    South Korea prepares response to Mexico's tariff hike plan The South Korean government is taking steps to address Mexico's planned tariff hikes, a move that threatens to disrupt supply chains and raise costs for major South Korean companies. The tariffs, which are part of Mexico's new legislative initiative, are expected to target 1,463 product classifications, a significant increase from previous measures. Affected items include auto parts, steel, home appliances, and textiles — all sectors where South Korean firms have a major presence. South Korean firms, including Kia Motors, have heavily invested in Mexico, using it as an export hub to the United States under the USMCA (United States-Mexico-Canada Agreement) trade pact. These companies often import raw materials and components from South Korea for assembly in Mexico, making them vulnerable to new import duties. A Ministry of Trade, Industry and Energy official said, "We will work closely with industry and local embassies to minimize impacts on our companies through thorough monitoring." In the past, South Korean companies have used Mexico's tariff reduction programs, such as PROSEC (Program for Sectoral Promotion) and IMMEX (Manufacturing, Maquila, and Export Service Industry), to mitigate the effects of tariffs. However, the details of Mexico's new tariff plans are still unclear, raising concerns about whether these existing programs will be sufficient to absorb the economic impact. Mexican President Claudia Sheinbaum has stated that the tariffs are intended to protect domestic industries and are not aimed at any specific country. Despite this, South Korea is among the countries without a free trade agreement with Mexico that could be significantly affected. The new measures are currently under review by the Mexican Chamber of Deputies and, if approved, could take effect as early as Jan. 1 next year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-17 10:06:20
  • South Korean auto exports hit record high despite global tariffs
    South Korean auto exports hit record high despite global tariffs South Korea's automobile industry is demonstrating remarkable resilience in the face of global economic pressures, reporting record-breaking exports and strong domestic performance for the second consecutive month. According to a report released by the Ministry of Trade, Industry and Energy, Tuesday, the sector's growth was driven by robust demand for eco-friendly vehicles and a successful pivot to new markets. Auto exports reached a record $5.5 billion in August, marking an 8.6 percent increase from the same period last year and representing the highest value ever recorded for the month. The cumulative export value from January to August also hit a new high of $47.7 billion, underscoring the sustained strength of the industry. While exports to North America saw a decline, the overall surge was led by strong demand from Europe, driven primarily by the sale of eco-friendly vehicles. The report highlights the critical role of the eco-friendly vehicle segment in the export boom. Overseas shipments of these vehicles grew by 26.6 percent to 69,000 units, extending an eight-month streak of growth. Electric vehicle (EV) exports were a key driver, soaring by 78.4 percent to 23,000 units. The EV3 model, in particular, was a top performer, leading sales across European markets. The domestic market mirrored the export success, with sales increasing by 8.3 percent year-on-year to 139,000 units. Eco-friendly cars captured a significant share of the domestic market, accounting for more than half of all sales with a 36.1 percent increase to 70,000 units. EV sales alone jumped by 55.7 percent to 24,000 units, while hybrid, plug-in hybrid, and hydrogen fuel cell vehicles also experienced considerable growth. The robust demand at home and abroad spurred an increase in production. Domestic auto production rose by 7.1 percent to 321,000 units, marking the highest August output since 2013. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-16 13:37:40
  • South Koreas trade chief heads to US for tariff talks
    South Korea's trade chief heads to US for tariff talks South Korea's Trade Minister Yeo Han-koo is traveling to Washington, D.C., on Monday to advance stalled tariff negotiations with the United States. This visit follows Industry Minister Kim Jeong-gwan's recent meeting with U.S. Commerce Secretary Howard Lutnick. Yeo plans to meet with U.S. trade officials, including Jamieson Greer from the U.S. Trade Representative's office, to discuss follow-up agreements. In July, both nations agreed to reduce mutual tariffs from 25 percent to 15 percent in exchange for South Korea's $350 billion investment in the U.S., but details remain unresolved. Earlier this month, a South Korean delegation visited Washington for talks but failed to bridge differences on investment issues. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-09-15 11:02:03