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Hyundai, Kia Target North American Market with $100 Billion World Cup Strategy The competition among companies like Hyundai and Kia Motors, Samsung Electronics, and LG Electronics to capitalize on the North American World Cup is heating up. Hyundai and Kia, the only global automakers serving as official partners of FIFA, will support the tournament with a record 1,500 vehicles, including the humanoid robot 'Atlas.' Although Samsung and LG are not official sponsors, they plan to launch significant appliance discount promotions targeting home viewers as the tournament begins. This World Cup marks the first time it will be held in three countries: the United States, Canada, and Mexico. The number of participating teams has increased to 48, a 50% rise from the previous 32, and the total number of matches will be 104, up 62% from the prior 64. Newcomers like Uzbekistan and Jordan will make their World Cup debuts. A Swiss investment bank estimates the global economic impact of this record-setting North American World Cup at $80 billion. ◆ North American Market Opens... Hyundai and Kia Expect $20 Billion Boost from World Cup As the official mobility partner for FIFA World Cup 2026™, Hyundai and Kia announced on June 11 that they will provide a total of 1,500 vehicles, including 994 passenger cars and 506 buses, to the World Cup organizing committee. The fleet will consist of popular internal combustion and hybrid models such as the Palisade, Santa Fe, Tucson, Kona, Avante, and Creta, supporting national teams, officials, staff, and media across 16 cities in the U.S., Canada, and Mexico. Hyundai plans to showcase its vision as a mobility company by introducing four Spot robots from Boston Dynamics at the World Cup. These robots have been officially handed over to FIFA's security team and will perform security duties at key locations, including the Dallas International Broadcast Center (IBC) and stadiums in New York and New Jersey. There is also speculation that the humanoid robot 'Atlas' may participate in the opening ceremony's kickoff. Atlas has recently demonstrated advanced soccer skills, including the 'Ghost Rabona Kick.' Kia will set up booths at various stadiums from June 12 to July 10, offering interactive programs for soccer fans. The exhibition space will feature a triangular design reflecting the three host countries, showcasing vehicles themed around the host cities and allowing fans to create customized player cards wearing their national team jerseys. During the tournament, Kia will deploy 660 popular North American models, including the Telluride, Sportage, Carnival, EV9, and K4, to support matches and events. Additionally, shuttle services will operate in Los Angeles and Vancouver with about 70 vehicles to ensure safe and convenient transportation for customers. The shuttle vehicles will feature infotainment systems with themes that enhance the World Cup atmosphere and represent youth players participating in the OMBC program as 'The 49th Team,' transforming shuttles into platforms for mobility experiences rather than just transportation. As an official partner, Hyundai and Kia can expect at least eight minutes of exclusive brand exposure per match. This translates to an estimated value of about $40 million per game in global TV advertising rates. With 104 matches scheduled, the total media exposure value is projected to be approximately $41.6 billion. Given Hyundai and Kia's established brand recognition in North America, industry analysts anticipate a sales increase of 3% to 5% due to the World Cup advertising impact. Previously, Hyundai and Kia generated an estimated economic impact of $20 billion during the 2022 Qatar World Cup through stadium media advertising (estimated at $10 billion to $12 billion), TV commercials, and support for eco-friendly official vehicles like the Ioniq 5 and EV6. Their status as an official partner in the conservative Middle Eastern automotive market has significantly boosted global trust in their electrified models. ◆ Targeting Home Viewers... Samsung and LG Launch Aggressive Appliance Discounts Samsung Electronics and LG Electronics are also moving quickly to leverage the global excitement of the World Cup in their marketing strategies. Samsung is running the '2026 Samsung Electronics Thank You Festival' until July 5, offering up to 20% cashback in digital gift certificates for purchases of appliances and mobile devices, with a total budget of 400 billion won. Some models, like the Galaxy S26+ unlocked version, offer cashback rates of up to 25%. Additionally, Samsung is conducting separate promotions throughout June, including a 'Simultaneous Purchase Promotion for Appliances and Furniture' and a 'Robot Vacuum Trade-In Program.' LG Electronics is hosting a 'National Representative Appliance Support Festival' until July 6, providing up to 4.2 million points based on purchase amounts at 432 LG Best Shops and LGE.com, along with a coupon worth 500,000 won for use at the official online mall. Starting June 15, LG will also hold an online-only limited-time sale, offering up to 20% additional discounts off existing member prices. Both companies are focusing on large TVs as key promotional items to attract World Cup fans. With matches scheduled during weekday mornings due to time zone differences, they aim to capitalize on the demand from home viewers. Additionally, they plan to package air conditioners and dehumidifiers to maximize synergy ahead of the early heat waves and rainy season.* This article has been translated by AI. 2026-06-12 17:03:00 -
World Cup 26: Veterans steady, newcomers shine in Korea's first win SEOUL, June 12 (AJP) — South Korea's 2-1 comeback victory over Czechia in its opening Group A match at the 2026 FIFA World Cup was not the work of a single star. It was a victory built on balance — experienced leaders delivering in decisive moments while a new generation showed it was ready for football's biggest stage. Head coach Hong Myung-bo's side fell behind in the 58th minute when Ladislav Krejci powered home a header, but recovered through Hwang In-beom's equalizer in the 67th minute before substitute Oh Hyeon-gyu completed the turnaround in the 79th. The result gave South Korea its first World Cup opening-match victory since 2010 and offered an encouraging glimpse of a squad capable of combining experience with emerging talent. At the center of the comeback was Hwang. Questions lingered before the tournament after an injury-interrupted season at Feyenoord limited his playing time, but the midfielder answered them emphatically with a goal and an assist. For the equalizer, Hwang timed his run perfectly onto Lee Kang-in's through pass before showing composure to beat both the defender and goalkeeper. Twelve minutes later, he delivered a low cross from the right that Oh converted for the winner. The performance carried historical significance. Hwang became the first South Korean player to record both a goal and an assist in a World Cup match since Hong himself achieved the feat at the 1994 World Cup in the United States — 32 years before guiding Korea from the touchline in Guadalajara. FIFA later named Hwang Player of the Match. Behind him, goalkeeper Kim Seung-gyu provided the foundation for victory. After conceding from a set-piece situation, Kim recovered to produce a series of crucial saves as Czechia pushed for an equalizer. His sharp reflex stop from close range in the closing stages preserved Korea's lead and effectively secured all three points. The save left such an impression that Czechia coach Miroslav Koubek highlighted it afterward as one of the decisive moments of the match. While the veterans provided stability, several younger players delivered performances that suggested Korea's future may be arriving sooner than expected. Few carried greater responsibility than Lee Gi-hyuk. The defender entered the match with only three senior international appearances, two of them in pre-World Cup friendlies, yet found himself starting alongside Kim Min-jae and Lee Han-beom in a back three against Czechia's physically imposing attack. An early mistake briefly threatened to hand Czechia an opportunity, but Lee recovered quickly and never appeared overwhelmed by the occasion. Facing a barrage of crosses and long balls, he competed aggressively in the air, recorded eight headed clearances and showed composure in possession, helping Korea build attacks from the back under pressure. If Lee represented Korea's future in defense, Oh delivered the moment that may define the opening match. Introduced in the second half in place of Son Heung-min, the striker needed little time to justify the decision. In the 79th minute, Oh attacked Hwang's low cross and finished decisively to complete Korea's comeback. Against a Czech side that relied heavily on height and physicality, his movement inside the penalty area and instinctive finishing provided Hong with another valuable attacking option heading into the rest of the tournament. Kim Min-jae, meanwhile, quietly played the role expected of him. The Bayern Munich defender organized Korea's back line, guided his younger defensive partners and helped absorb the aerial pressure that Czechia generated throughout the match. Lee Han-beom also passed a significant test. Tasked with handling the intensity of a World Cup opener, the young defender held his ground and contributed to a defensive effort that recovered from an early setback to secure victory. World Cups often reveal whether a team has enough depth beyond its established stars. Against Czechia, South Korea received an encouraging answer. Its veterans delivered when the match demanded leadership. Its younger players responded when the pressure rose. For Hong, that combination may be the most valuable result of all as Korea prepares for a far sterner challenge against Mexico. 2026-06-12 16:59:53 -
Middle East Ceasefire Nears, Renewed Focus on Construction and Steel Stocks As geopolitical tensions in the Middle East ease and the possibility of a U.S.-Iran peace agreement becomes clearer, investor interest is returning to construction and steel stocks, which have been overlooked recently. On June 12, the KRX construction index surged 11.18%, the highest gain among all sectors on the KRX. The news of an imminent signing of a memorandum of understanding (MOU) between the U.S. and Iran has alleviated geopolitical uncertainties, leading to a flow of funds into construction and traditional infrastructure stocks that had been overshadowed by a focus on semiconductor stocks. Large construction firms with significant Middle Eastern contracts drove the index's rise. Hyundai Engineering, the leading stock in the KRX construction index, closed up 28.36% at 157,500 won, while KEPCO Engineering, an engineering firm specializing in nuclear power and infrastructure, rose 29.98% to hit the ceiling price of 151,300 won. GS Engineering and Daewoo Engineering also saw increases of 9.92% and 6.85%, respectively, contributing to the overall index gain. Other infrastructure-related companies, such as Seongkwang Bend (7.71%), HDC (6.50%), and Hanyang Engineering (5.57%), also showed strong performance. The exchange-traded fund (ETF) market also reacted positively. KODEX Construction and TIGER 200 Construction rose by 5.77% and 5.61%, respectively, while the steel sector, a key material for traditional infrastructure, saw TIGER 200 Steel Materials increase by 5.00%. Major steel companies like Hyundai Steel and POSCO Holdings closed up 8.71% and 5.31%, respectively. The market's momentum was largely driven by developments in the Middle East. President Donald Trump mentioned the nearing finalization of the MOU, causing West Texas Intermediate (WTI) crude oil prices to drop below $90 per barrel. This decline sparked optimism about peaking inflation and a preference for riskier assets. Consequently, the domestic market experienced strong buying activity, prompting a trading halt on the KOSPI index at one point. Market analysts suggest that with the recent adjustments in the domestic stock market alleviating the concentration of leading stocks, now is an opportune time to consider adding overlooked sectors with strong earnings visibility to investment portfolios, particularly in light of the Middle East ceasefire momentum. Han Ji-young, a researcher at Kiwoom Securities, stated, "Despite the recent correction phase, sectors that have not seen significant performance yet still hold their unique investment points are worth considering. Industries like machinery and shipbuilding, which have secured earnings visibility based on their order backlogs, could be good alternatives." Kang Jin-hyuk, a senior researcher at Shinhan Investment Corp., noted, "While consumer goods such as department stores and cosmetics, which had been defensive plays amid unstable investor sentiment, saw selling pressure, the swift turnaround in the Middle East situation has led to strong rebounds in construction stocks amid reconstruction expectations."* This article has been translated by AI. 2026-06-12 16:54:00 -
South Korea Stages Comeback to Defeat Czech Republic in World Cup Opener South Korea's national football team secured a 2-1 comeback victory against the Czech Republic in their opening match of the 2026 North and Central America World Cup on June 11. Japanese media outlets took note of the match, highlighting South Korea's quick offensive play, focus in the second half, and goalkeeper Kim Seung-kyu's crucial saves as key factors in the win. The Nihon Keizai Shimbun reported that South Korea achieved a comeback with two goals in the second half. The newspaper noted that while the Czech Republic scored first during a long throw-in, South Korea equalized with a goal from Hwang In-beom and then took the lead with a decisive goal from Oh Hyun-kyu. Kyodo News described Hwang In-beom's equalizer as a well-placed right-foot shot following a precise trap, while Oh Hyun-kyu scored the winning goal by tapping in a cross with his left foot. The report also mentioned that South Korea overcame late-game pressure from the Czech Republic thanks to Kim Seung-kyu's saves, noting that despite scoring first, the Czech team was overwhelmed by South Korea's rapid attacks. The Jiji Press covered the opening day results of the World Cup, including South Korea's comeback victory. The report stated that after conceding the first goal, South Korea equalized and then took the lead with Oh Hyun-kyu's goal. It also mentioned that in Group A, host nation Mexico defeated South Africa 2-0, allowing both South Korea and Mexico to secure three points. Public broadcaster NHK provided a separate article on the South Korea-Czech Republic match, along with a two-minute highlight video. NHK noted that South Korea, led by Premier League top scorer Son Heung-min, initiated attacks early but ended the first half without scoring. After conceding the first goal to Czech captain Krejčí in the second half, South Korea equalized with Hwang In-beom's right-foot shot and took the lead with Oh Hyun-kyu's left-foot finish from a right-side cross. NHK also highlighted that South Korea faced a late challenge from the Czech Republic but maintained their lead thanks to Kim Seung-kyu's saves. Japanese sports media focused on South Korea's performance and Hong Myung-bo's tactical substitutions. Nikkan Sports noted that despite conceding a goal in the 14th minute of the second half, "Hong Myung-bo's substitutions were effective." The outlet reported that Hwang In-beom not only scored the equalizer but also assisted Oh Hyun-kyu's winning goal, and mentioned that Hwang In-beom plays alongside Japanese internationals Ueda Ayase and Watanabe Tsuyoshi at Feyenoord in the Netherlands. Football Zone, a Japanese football media outlet, reported that South Korea threatened the Czech goal from the start. It highlighted strong long-range shots from Lee Kang-in and a dribble followed by a shot from Son Heung-min, noting reactions on Japanese social media such as "South Korea is indeed strong," "Lee Kang-in is sharp," and "They play good football." Overall, Japanese media assessed that South Korea's performance did not rely solely on Son Heung-min, as multiple players including Hwang In-beom, Lee Kang-in, Oh Hyun-kyu, and Kim Seung-kyu contributed significantly throughout the match. The team's focus in the second half, even after conceding the first goal, was also praised. South Korea began the group stage smoothly, securing three points alongside host nation Mexico. Meanwhile, Japan is set to face the Netherlands in their opening match of Group F on June 15 at 5 a.m. KST at the Dallas Stadium in the United States, alongside Sweden and Tunisia in their group. 2026-06-12 16:54:00 -
TSMC Dominates Foundry Market with 72% Share as Samsung Falls Behind Demand for artificial intelligence (AI) semiconductors is significantly reshaping the global foundry market. TSMC solidified its dominance with a market share exceeding 70% in the first quarter of this year, while Samsung Electronics experienced a decline in market share despite an increase in revenue. According to market research firm TrendForce, the revenue of the top 10 global foundry companies reached $47.953 billion in the first quarter, marking a 30.7% increase year-over-year and a 3.7% rise from the previous quarter, setting a new record for quarterly revenue. The growth in the market was driven by strong demand for high-performance computing (HPC) chips for AI applications. Shipments of advanced semiconductors and related components for AI servers remained robust, and inventory replenishment in the consumer electronics supply chain mitigated the seasonal downturn. TSMC reported first-quarter revenue of $35.855 billion, with a market share of 72.3%, an increase of 4.6 percentage points from the same period last year. Its revenue grew by 40.5%, outpacing the average market growth rate. Samsung Electronics recorded first-quarter revenue of $3.21 billion, with a market share of 6.5%. Although its revenue increased by 10.6% year-over-year, its market share fell by 1.2 percentage points. Consequently, the gap between TSMC and Samsung's market shares widened from 59.9 percentage points in the first quarter of last year to 65.8 percentage points in the first quarter of this year. Industry analysts suggest that Samsung's ability to rebound in the foundry sector hinges on securing advanced process customers, particularly large clients like NVIDIA, AMD, and Apple. The success of Samsung's foundry division will also depend on achieving yield rates for its 2-nanometer process and securing customers for its Taylor, Texas facility. China's SMIC reported first-quarter revenue of $2.555 billion, an 11.5% increase from the previous year, with a market share of 5.1%. The gap in market share between Samsung and SMIC narrowed from 1.7 percentage points in the first quarter of last year to 1.4 percentage points in the first quarter of this year. The foundry market is expected to continue its growth trend in the second quarter. TrendForce predicts that demand for AI-related advanced nodes and power management products will remain stronger than anticipated, potentially leading to new revenue highs for the top 10 companies. Price increases in the second half of the year could also be a factor. Foundry companies have indicated potential wafer price hikes, leading to speculation that clients may expedite orders to secure supply.* This article has been translated by AI. 2026-06-12 16:51:00 -
UK's Indo-Pacific minister in Seoul to boost cooperation with South Korea SEOUL, June 12 (AJP) - U.K. Minister for the Indo-Pacific Seema Malhotra has been in Seoul this week as she seeks to deepen cooperation with South Korea across various sectors and address shared global challenges. During her three-day visit which began on Thursday, Malhotra has been meeting with South Korean government officials and business leaders to discuss cooperation in advanced technologies, clean energy, and defense, according to the British Embassy in Seoul. She arrived from Viet Nam as part of a broader regional trip that reflects Britain's commitment to strengthening partnerships across the Indo-Pacific. Her visit also comes amid growing ties between the two countries under their "Global Strategic Partnership" (GSP), as they seek to strengthen economic resilience and address regional and global security challenges. "I am pleased to be making my first visit to Korea, one of the U.K.'s closest partners in Asia," Malhotra said in a statement released by the embassy. "In a more uncertain world shaped by conflict, economic disruption and climate change, trusted partnerships matter more than ever," she said. "That is why I am here to deepen our Global Strategic Partnership, which is driving secure, mutually beneficial growth, strengthening our economic resilience, and supporting our long-term security across both the Indo-Pacific and Euro-Atlantic." South Korea and the U.K. have developed a growing economic partnership, with bilateral trade in goods and services reaching 17 billion pounds (US$23 billion) last year. The two countries are also preparing to sign an upgraded free trade agreement later this year. The revised pact is expected to modernize bilateral trade by maintaining tariff-free access for most goods, strengthening services trade, and adding provisions on digital trade and supply chains. Energy security and resilient supply chains are among the key topics of Malhotra's visit. The embassy said both countries share a strong interest in protecting freedom of navigation and maritime security as globally integrated trading economies. Malhotra is expected to discuss international security issues including Russia's war in Ukraine and Britain's continued support for Kyiv, while also raising concerns about growing military ties between Moscow and Pyongyang. She is also expected to reaffirm London's commitment to peace and stability on the Korean Peninsula and to the complete denuclearization of North Korea, in line with U.N. Security Council resolutions. As part of her other schedule in Seoul on Thursday, Malhotra met K-pop girl group NMIXX, along with Colin Crooks, the British ambassador to Seoul, as they were appointed promotional ambassadors for the embassy's campaign, "Girls Can Dream, Girls Can Achieve: Nothing Is Impossible for a Girl Who Dreams." The campaign is designed to inspire girls to take the lead in shaping their own dreams and futures and to pursue their goals with confidence. 2026-06-12 16:46:20 -
U.S. Plans to Reduce One-Third of Fighter Jets Deployed in Europe The Trump administration plans to reduce the number of fighter jets stationed in Europe for NATO operations by one-third, according to a report by The New York Times citing two senior European officials. This move comes as President Trump has consistently criticized European nations for their low defense spending, arguing they are taking advantage of U.S. security support. The report indicates that the U.S. intends to cut the number of F-16 and F-15E fighter jets in Europe from approximately 150 to about 100. Additionally, the number of maritime reconnaissance aircraft will be reduced from 26 to 15, and all eight aerial refueling aircraft currently deployed will be withdrawn. The U.S. also plans to redeploy one missile-launching submarine and one aircraft carrier stationed in Europe, along with accompanying warships and aircraft. Furthermore, one of the two bomber groups originally sent for European defense may also be reassigned, according to The New York Times. Last week, the U.S. European Command stated it would "rightsize" its contributions to NATO. Reuters also reported last month that the U.S. plans to scale back its military capabilities available to allies in the event of a major crisis. President Trump has argued that European countries are overly reliant on U.S. defense and should increase their defense budgets to take more responsibility for their own security. He has urged allies in Europe and Asia to raise their defense spending to 3.5% of their respective gross domestic products (GDP).* This article has been translated by AI. 2026-06-12 16:45:00 -
Supreme Court Rejects Appeal to Disqualify Judges in Yoon Suk Yeol's Case The Supreme Court has definitively rejected an appeal from former President Yoon Suk Yeol to disqualify judges in his insurrection case, in which he was sentenced to life imprisonment in the first trial.On June 12, the Supreme Court's Second Division, led by Justice Oh Kyung-mi, dismissed Yoon's request to disqualify the judges handling his appeal. As a result, the trial, which had been suspended due to the disqualification request, is expected to resume soon.Yoon's legal team filed the disqualification request on May 13, arguing that they could not expect a fair trial from judges who had publicly expressed a presumption of guilt regarding the insurrection charges against him. The judges in question are part of the Seoul High Court's Criminal Division 12-1, which is overseeing Yoon's appeal.The disqualification request is a provision under criminal procedure law that allows either the prosecution or the defense to seek the removal of a judge if there are concerns about an unfair trial.The Seoul High Court's Criminal Division 12-1 previously sentenced former Prime Minister Han Duck-soo to 15 years in prison for his involvement in insurrection-related duties.Yoon's team claimed that this situation warranted a disqualification, asserting that the judges had already formed a biased opinion against him based on their comments regarding Han's case.However, the Seoul High Court's Criminal Division 1, presided over by Judge Yoon Sung-sik, dismissed the disqualification request on May 20, stating that the cases involving Yoon and Han are separate criminal matters and that there are no grounds for concerns about an unfair trial. Despite Yoon's objections, the Supreme Court upheld this decision on June 12.* This article has been translated by AI. 2026-06-12 16:42:00 -
World Cup '26: Not your typical TGIF if Team Korea kicks off and wins SEOUL, June 12 (AJP) - Few Friday lunch breaks could have been better. A long midday pause filled with live music, sunshine, a cool breeze, stress relief, shouting, groaning, jumping, dancing and, for some, a can of beer. For 90 minutes, South Koreans traded spreadsheets, classrooms and office meetings for something less tangible but equally important — a shared dose of pride, hope and celebration. Some took the entire day off. Others used half-day leave. Many stretched their lunch hour well beyond its usual limits. Companies wheeled televisions into break rooms, while public squares became giant outdoor stadiums. Some preferred air-conditioned offices. Others sought the collective roar of the crowd. At 11 a.m. on a weekday, South Korea's World Cup did not belong only to stadiums, sports bars or packed streets. It spilled into office lounges, classrooms, company cafeterias and the lunch-hour crowds gathered at Gwanghwamun Square. For workers stealing a few minutes between meetings, teachers watching between classes and fans unable to leave their desks for long, South Korea's opening match against Czechia became a World Cup squeezed into the middle of an ordinary workday. At Gwanghwamun Square in central Seoul, the answer was loud and public. The scene was uniquely Seoul: beneath the statue of King Sejong and framed by some of the country's largest digital displays, thousands gathered in a sea of red. The combination of history, technology and football created an atmosphere that felt both futuristic and unmistakably Korean. Before kickoff, CORTIS — a K-pop group under Big Hit Music, the label behind BTS — performed alongside rock band Transfixion in a joint set that included "For Victory," a song long associated with Korean football cheering. By kickoff, the broad plaza beneath King Sejong's statue had become a temporary stadium surrounded by office towers. Red jerseys filled the space between giant screens and food stalls. Drums echoed across the square as workers on lunch breaks stood shoulder to shoulder with students, tourists and longtime football fans. Among them were six employees from CJ Logistics who had hurried through lunch before joining the crowd. Their company had not organized a viewing event, but after hearing about the public cheering event nearby, they made their way to Gwanghwamun together — coffee cups in hand and office attire still on, knowing work would be waiting after the final whistle. "It would have been great to watch the match over chicken and beer, but just being able to spend the second half with this crowd was exciting," one employee said. "When Korea scored, I felt a real thrill. Today brought back a lot of memories from the 2002 World Cup." For others, the day was quieter but no less meaningful. There were no drums or sea of red shirts, only a cluster of employees gathered around the screen during their lunch break. When Czechia scored, the room fell silent. When South Korea equalized, someone let out a cheer before quickly remembering where they were. "We could not be at Gwanghwamun, but we still watched together with one heart," one employee said. "After Korea came back to win, everyone returned to their desks and got back to work." The same balancing act played out in schools. In a classroom in Seongnam, sixth-grade teacher Lee Hye-won sat alone at her desk while students ate lunch in the cafeteria. Student drawings lined the walls. The desks were empty and quiet. On her screen, South Korea was fighting for its first World Cup victory. "I wanted to be out at Gwanghwamun with the Red Devils, but I had to support the team in my own way," Lee said. "I ended up cheering in a very calm way, with a cup of coffee." At Gachon University, the academic affairs office looked much as it did on any other workday — computers on, files open and phones ringing. Choi Yoon-sung followed the match between tasks, with the game playing in one corner of the office while work continued around it. "Everyone still had their own responsibilities, so we had to find a balance between work and cheering," Choi said. "It felt like lunchtime was over in an instant." South Korea ended the day with a 2-1 comeback victory after Hwang In-beom equalized in the 67th minute and Oh Hyeon-gyu scored the winner in the 80th. The passion that once filled late-night streets during World Cups was still there on Friday. It had simply been compressed into lunch breaks, office lounges, coffee cups and small pockets of time carved out of an otherwise ordinary workday. For a couple of hours, work could wait. 2026-06-12 16:39:09 -
SK Networks Accelerates Shift to AI Company as Investment Results Begin to Show SK Networks is accelerating its transition to an artificial intelligence (AI)-focused business model. The company is moving away from its traditional operations in car rentals and telecommunications distribution, shifting towards a significant restructuring centered on AI, data, and robotics. As it marks the third year of its transformation into an AI company, market interest is growing as some investment results become visible.According to Mirae Asset Securities on June 12, SK Networks has emerged as the most purchased stock among the top 1% of investors over the past month, reflecting optimism about its shift to AI and expectations for improved performance.Over the past two years, the company has actively pursued its transition to an AI-centric business. Since the appointment of CEO Lee Ho-jung in 2023, SK Networks has sold SK Rent-a-Car, spun off Glowaide and SK Speedmate, and restructured its kitchen appliance business under SK Magic. This strategy aims to reduce the share of traditional businesses that once fueled growth and concentrate capital and resources on future growth areas like AI and robotics.A notable investment has been made in the domestic generative AI company Upstage. Following its initial investment in 2024, SK Networks has increased its stake to 12.9% through additional investments and the exercise of call options. Analysts suggest this move goes beyond mere financial investment, indicating a strategic partnership. Upstage's AI technology is expected to be integrated into SK Networks' operations and used to explore new business models.The company has also established a new AI organization. In 2024, SK Networks set up the 'Phoenix Lab' in Silicon Valley to develop AI technologies. This lab will collaborate with SK Networks and its subsidiaries to discover, invest in, and commercialize AI technologies. Last year, it launched a specialized AI solution for the pharmaceutical industry called 'Cheiron' and has been targeting the global market. Additionally, SK Networks secured $4 million in investments from global AI investors.The restructuring of its subsidiaries is also progressing. SK Magic changed its name to SK Intelix last year, signaling its transition to an AI and robotics company. This change reflects its intention to evolve beyond product sales and rentals into an AI-based service provider. Notably, it introduced an AI healthcare platform called 'Namux' last year and is now actively pursuing a wellness robot business. Recently, it signed a partnership agreement with Tower PMC, a premium residential management company, to expand the supply of wellness robots and AI-based home appliances in upscale residential areas in Gangnam and Seocho.Data operations are another key component of SK Networks' AI strategy. The company is nurturing Enco as a data specialist following its acquisition in 2023. Enco possesses competitive capabilities in enterprise data management and governance, essential for building the data infrastructure necessary for the expansion of AI services. As competition in AI model performance ultimately leads to a data competition, Enco's role is expected to grow.Recent results are becoming increasingly evident. In the first quarter of this year, SK Networks reported consolidated revenue of 1.7434 trillion won and operating profit of 33.4 billion won, marking increases of 6.5% and 102.4%, respectively, compared to the same period last year. The expansion of SK Intelix's subscription business and improved performance at Walkerhill contributed to these results. Notably, net profit surged to 42.7 billion won, significantly improving from the previous year.An industry insider noted, "The current results reflect gains from the appreciation of investment assets, and establishing a stable revenue model in new businesses like AI and robotics will be a future challenge. In particular, the performance of wellness robots, which SK Intelix is focusing on, is expected to draw attention."* This article has been translated by AI. 2026-06-12 16:36:00