Journalist
Hong Seungwan
veryhong@ajunews.com
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Emart and Lotte Mart Expand Profitability Through AI and International Growth As South Korea's leading discount retailers, Emart and Lotte Mart, report improved profitability for the first quarter, they are pursuing distinct strategies for continued growth this year. Emart is focusing on artificial intelligence (AI) commerce, while Lotte Mart is seeking opportunities in international markets and automation logistics infrastructure. According to the retail industry on May 15, Shinsegae Group's Emart recorded an operating profit of 178.3 billion won for the first quarter, the highest figure for that period since 2012. With improved profitability in its core business, Emart is expected to accelerate investments in future projects. Earlier this year, Shinsegae Group announced a partnership with U.S. AI company Reflection AI to implement AI commerce. Emart is anticipated to lead this transition within the group due to its extensive product offerings and customer interactions. Shinsegae Group is also pursuing a project to build a 250 MW AI data center in South Korea in collaboration with Reflection AI. While specific locations and timelines have yet to be confirmed, both companies are reportedly discussing project directions through regular video conferences. Once the transition to AI commerce is fully underway, Emart is expected to develop a model that connects product search, recommendations, payment, and delivery through conversational AI. This approach will shift from customers searching for products to AI suggesting items based on purchase intent, preferences, and price range. An Emart representative stated, "We will accelerate investments in future new businesses, including the construction of the AI data center, based on the growth of our existing operations." Lotte Mart is looking for growth drivers abroad. The company reported an operating profit of 33.8 billion won for the first quarter, a 20.2% increase from the previous year, with international operations leading the improvement. Sales across all product categories increased steadily, particularly in Vietnam, where overseas operations generated an operating profit of 25 billion won. With an 18% increase in sales from Vietnam driving overall international performance, Lotte Mart plans to continue leveraging its presence in Vietnam this year. Currently, Lotte Mart operates 15 stores in Vietnam and plans to open two new locations in the second half of the year. Shin Dong-bin, Chairman of Lotte Group, is also emphasizing the importance of the Vietnamese market. During a visit to Lotte Mall Westlake Hanoi on April 23, he remarked, "Vietnam is a key country for our global business, and it is encouraging to see growth in our core sectors such as food and retail." Strengthening online grocery competitiveness is another growth avenue. Lotte Mart aims to launch its automated logistics center, the Busan Zeta Smart Center, in August, utilizing the smart platform from the UK’s Ocado. This center will feature AI and robotics to reduce the time from customer orders to product picking and delivery preparation. Following the center's opening, Lotte Mart plans to introduce early morning delivery and two-hour delivery services in the Busan and Gyeongnam regions to continue its performance improvement. Meanwhile, the situation with Homeplus could also impact the profitability of Emart and Lotte Mart. Homeplus, currently undergoing corporate rehabilitation, has temporarily suspended operations at 37 stores until July 3. An industry insider noted, "Even if Homeplus resumes operations, if it cannot quickly recover its product assortment, many customers who switched to Emart and Lotte Mart may remain with them." * This article has been translated by AI. 2026-05-15 10:07:04 -
Rep. Park Hee-seung: AI Marks Turning Point for Pharma and Bio Industries Rep. Park Hee-seung of the Democratic Party of Korea, a member of the National Assembly's Health and Welfare Committee, stated that the global pharmaceutical and biotechnology industries are at a significant turning point driven by artificial intelligence (AI). He explained that AI is enhancing research and development (R&D) efficiency throughout the entire drug development process and is leading to structural changes in the industry. In a written address at the 16th Global Healthcare Forum held on May 14 at the Korea Press Center in Jung-gu, Seoul, hosted by Aju Economy, Park said, "Technological advancements are a key driver facilitating licensing out and mergers and acquisitions (M&A) with global big pharma companies." He emphasized that the K-bio industry must move beyond mere technology validation to establish a comprehensive value chain that attracts capital and enables global expansion. "To secure competitiveness in the rapidly changing global market, strategic policy support and close collaboration among industry, academia, and research institutions are more crucial than ever," he added. As a member of the Health and Welfare Committee, Park pledged to listen to voices from the field, stating, "I will work to create effective policy foundations that allow companies to shorten drug development timelines based on AI technology and successfully enter the global market." He concluded, "I hope today's event serves as an opportunity to seek concrete strategies to enhance the global competitiveness of the K-pharmaceutical and bio industries and for the public and private sectors to pool their wisdom."* This article has been translated by AI. 2026-05-14 19:16:15 -
Oasis Market Reports 32% Increase in Q1 Operating Profit Driven by Direct Sourcing and Logistics Efficiency Oasis Market has improved its profitability in the first quarter of this year. The company plans to secure growth momentum through direct sourcing of fresh produce, logistics efficiency, and the advancement of AI-based commerce.On May 14, Oasis Market reported that its operating profit for the first quarter reached 8.3 billion won, a 32.4% increase compared to the same period last year. During the same timeframe, sales rose by 3.2% to 139.3 billion won, with online sales increasing by 8% year-over-year.The company attributed its improved profitability to its direct sourcing network and enhanced logistics operations. It also announced plans to focus on advancing AI commerce starting in the second quarter. The goal is to enhance both online and offline shopping experiences through the AI assistant MAY and the futuristic Route series of stores.Last month, MAY was fully upgraded to provide an interactive shopping service that supports everything from product search to payment. For instance, if a customer says, "Show me antibiotic-free pork belly" in the app, it presents related products and facilitates payment. If asked for a recipe, it recommends all necessary ingredients.In its physical stores, Oasis Market has introduced the Route Mini self-checkout system. Recently installed at the Sangwangsimni Station location, Route Mini automatically recognizes products placed on it and transitions to the payment screen. The compact design has reduced checkout space by nearly 10%, allowing the company to utilize the freed-up area for product displays.An Oasis Market representative stated, "We will build a trusted growth foundation for customers using the AI assistant MAY and the smart Route series as a stepping stone."Meanwhile, Oasis Market has been working to resume operations at TMON, which it acquired last June, but delays in negotiations with credit card companies have left the timeline for service resumption uncertain.* This article has been translated by AI. 2026-05-14 19:00:05 -
NS Home Shopping Hosts International Museum Day Event at Napoleon Gallery NS Home Shopping will celebrate International Museum Day on May 18 by hosting interactive programs at the Napoleon Gallery located in its Pangyo headquarters.The company announced on May 14 that it will hold special programs on May 20 and 27 in honor of International Museum Day, designated by the International Council of Museums (ICOM).The program will feature explanations of artifacts related to Napoleon and his life, followed by a hands-on activity where participants can create custom keycap keyrings. After learning about the gallery's key artifacts, attendees will have the opportunity to craft keyrings featuring their own supportive messages.NS Home Shopping aims to make history and cultural content more accessible through this event, which will take place on the first floor of the Napoleon Gallery at its Pangyo headquarters.A company representative stated, "In celebration of International Museum Day, we prepared an interactive program to help people experience the value of history and culture in a more approachable way. We hope this will be a time to encourage oneself through Napoleon's spirit of challenge and gain new energy."Additionally, NS Home Shopping is a subsidiary of the Harim Group. Harim Group Chairman Kim Hong-guk gained attention in 2014 when he purchased Napoleon's bicorne hat at an international auction for 2.6 billion won. At the time, he stated, "I bought the hat to inspire a spirit of challenge among domestic entrepreneurs."* This article has been translated by AI. 2026-05-14 17:26:44 -
Coupang Launches Emergency Relief Program with Rocket Delivery Coupang announced on May 14 that it is launching an "Emergency Relief Coupang Hope Box" program to deliver relief supplies to disaster victims via its rocket delivery service during domestic disasters and emergencies. The company plans to stockpile 2,500 sets of emergency relief supplies at its fulfillment center in Sejong, ready for immediate dispatch in the event of a disaster. This number was determined based on the patterns of domestic disasters, the annual number of disaster victims, and the needs of evacuation shelters. Sejong is strategically located for nationwide delivery connections. On May 13, Harold Rogers, Coupang's interim CEO, visited the fulfillment center to inspect the stockpiled relief supplies. "Let’s actively help disaster victims facing difficulties when disasters occur nationwide by utilizing our rocket delivery logistics network," Rogers said. Coupang has established an operational system to quickly deliver emergency relief supplies to disaster sites across the country, including the Yeongnam and Honam regions. After delivery, the relief supplies will be handed over to the disaster relief organization Peace Winds Korea, which will distribute them to evacuees in temporary shelters. The emergency relief supplies consist of ten items from Coupang's private brand subsidiary CPLB, including living boxes, comforters, pillows, towels, socks, compressed wet wipes, and foldable three-layer mattresses. If disasters persist or the scale of damage increases, additional relief supplies will be produced and distributed based on the situation on the ground. Jung Seok-yun, the executive director of Peace Winds Korea, stated, "The speed of initial response is crucial in disaster situations. We expect that combining Coupang's nationwide logistics network and delivery capabilities will enable faster and more reliable emergency relief." Last year, Coupang delivered over 35,000 relief items, including daily necessities and snacks, to wildfire-affected areas in Uiseong, North Gyeongsang Province, in March. In July of the same year, it also supported over 40,000 relief items, including daily necessities, hygiene products, and clothing, to areas affected by heavy rainfall.* This article has been translated by AI. 2026-05-14 13:02:08 -
Japanese Kitchen Furniture Brand Faces Consumer Backlash Over Delayed Installations A Japanese kitchen furniture brand is facing criticism from domestic consumers for delaying construction despite receiving a substantial deposit. One consumer, referred to as A, stated, "I signed a contract in mid-January with a promise of completion, but the construction has been delayed for nearly four months."According to A's report on May 14, the domestic distributor of the Japanese system kitchen brand Cleanup Kitchen has not completed the installation despite receiving a deposit of 60 million won (approximately $50,000). A had contracted for kitchen systems and tables in late November last year, requesting that the work be finished before moving in January, but claims the project remains stalled. Photos provided show exposed plumbing and wiring, with markings on the walls, indicating the site has been abandoned without kitchen furniture.The company has attributed the delays to a shortage of parts in Japan and shipping delays, but A claims they have not provided a clear timeline for completion or solutions to the issues.The situation has been exacerbated by the company's lack of communication. A expressed frustration, saying, "The company has avoided contact or failed to respond to messages, and I was even blocked from receiving calls. The Gangnam showroom where I signed the contract has closed, and they haven't informed me where they have relocated." A added, "Last month, they even wrote a letter promising to finish the installation within a week, but they failed to keep that promise."On May 11, a visit to the Cleanup Kitchen showroom in Gangnam revealed that demolition was underway. The sign remained, but most of the interior had been removed. A staff member at the site stated, "Demolition started the day before, and I have no information on where they are relocating."A representative from the domestic distributor explained in a phone call that delays in construction were due to supply issues stemming from the ongoing conflict in the Middle East, which has caused raw material prices to rise by over 30%. Cleanup Kitchen's headquarters in Japan stated, "There is nothing we can do to assist at this time, but we will report that inquiries have been made regarding this issue."Consumer complaints related to delays and incomplete work in interior construction continue to rise. According to data submitted to the National Assembly by Kim Seung-won, a member of the Democratic Party, the Korea Consumer Agency recorded 25,476 consumer consultations related to interior construction from 2020 to August of last year. Of these, 6,266 cases, or 24.6%, were related to incomplete contracts, while 6,827 cases, or 26.8%, involved quality issues.During the same period, there were 2,556 applications for consumer compensation related to interior construction, but the average settlement rate at the compensation stage was only 34%. This means that 6 to 7 out of 10 victims do not recover their losses.An industry insider noted, "If some construction has been completed, it is difficult to apply fraud charges because it does not appear to be intentional deception. For high-value interior contracts, it is essential to specify materials, delivery times, compensation for delays, and liability for defects in the contract."Additionally, a survey conducted by the Korea Consumer Agency involving 40,000 people included interior construction among the 'warning markets' alongside wedding services and school uniforms, indicating significant consumer concern. Kim Seung-won remarked, "Despite thousands of cases of interior construction damage occurring each year, consumer compensation remains inadequate. The consistent occurrence of these issues reflects a failure in management and oversight, as well as systemic neglect."* This article has been translated by AI. 2026-05-14 12:48:56 -
Hanjin to Support Small Business Exports via Incheon Airport GDC and European Fulfillment Center Hanjin has been selected as the implementing agency for the government’s logistics support program for online export small and medium-sized enterprises (SMEs). The company plans to utilize the Incheon Airport Global Logistics Center (GDC) and its European Fulfillment Center to reduce logistics costs for SMEs engaged in overseas e-commerce exports. On May 13, Hanjin announced its selection as the implementing agency for the 2026 online export logistics support program, which is overseen by the Ministry of SMEs and Startups and the Korea SMEs and Startups Agency. This initiative aims to alleviate logistics costs for SMEs currently exporting or preparing to export through global direct-to-consumer platforms, thereby enhancing their competitiveness in overseas markets. The program will run until December of this year. Hanjin will deploy its Incheon Airport GDC and the European Fulfillment Center, which opened in December last year, for this initiative. Participating companies can receive support covering 70% of related costs from the Korea SMEs and Startups Agency when utilizing Hanjin’s overseas fulfillment hubs. Hanjin believes this will help SMEs reduce fixed costs associated with storage, packaging, and shipping abroad. For small sellers who find fulfillment services financially burdensome due to low shipment volumes, Hanjin will connect them with its digital logistics platform, One Click Global. This service simplifies the entire export logistics process, from domestic collection to customs clearance and international shipping. A Hanjin representative stated, "By combining our fulfillment infrastructure with the One Click Global service, we will continue to provide practical support to help small businesses secure real price competitiveness in the global market." In addition, Hanjin supported small and medium-sized enterprises through a joint logistics program for online exports last year. Regionally, shipments to Japan increased by 82.8% compared to the previous year. Although logistics costs for routes to the United States were high due to customs issues, Hanjin maintained its existing freight rates to lessen the financial burden on participating companies.* This article has been translated by AI. 2026-05-13 18:16:10 -
CJ Cultural Foundation Celebrates 20th Anniversary, Focuses on Sustainable Creative Ecosystem The CJ Cultural Foundation held a discussion on the sustainability of the popular culture and arts ecosystem in celebration of its 20th anniversary.On May 12, the foundation hosted a 'Leaders Talk' event at CGV Cheongdam Cine City in Seoul, focusing on the sustainability of the popular culture and arts industry and the role of supporting creators.Kim Jin-gak, a professor of cultural arts management at Sungshin Women's University, addressed the challenges and directions necessary for ensuring sustainability in the popular culture and arts sector. The discussion was moderated by cultural critic Lim Hee-yoon and featured panelists including Jo Gang-joo, a senior researcher at the Korea Arts Council, filmmaker Min Kyu-dong, and Kim Kwang-hyun, chair of the Korean Popular Music Awards.Participants agreed that supporting emerging creators is fundamental to broadening the cultural and artistic ecosystem. They also highlighted the CJ Cultural Foundation's ongoing efforts to discover and nurture creators across various fields, including music, performance, and film.The event included an awards ceremony recognizing contributions over the past two decades. The foundation presented a special award to Kim Dong-ho, former executive director of the Busan International Film Festival, for establishing the festival as a hub for Asian cinema and laying the groundwork for the globalization of Korean film. Appreciation plaques were also awarded to musician Jung Won-young, S&Co. artistic director Seol Do-yoon, and filmmaker Min Kyu-dong for their contributions to discovering new creators.A representative from the CJ Cultural Foundation stated, "We will continue to work with the cultural and arts community to create a healthy creative ecosystem that allows creators' potential to flourish across various genres and stages."Additionally, the CJ Cultural Foundation continues to support emerging directors abroad. Recently, a short film by Vietnamese director Nguyen Tien An, funded through the 'Korea-Vietnam Youth Dream Short Film Production Support Project' in collaboration with CGV Vietnam, has been selected for competition at the Cannes Film Festival. Nguyen's film, 'The Dream is a Snail,' is among the ten invited short films for the 79th Cannes Film Festival. The award results will be announced at the closing ceremony on May 23.* This article has been translated by AI. 2026-05-13 17:54:00 -
LVMH Chairman Bernard Arnault Visits South Korea After Three Years Bernard Arnault, chairman of Louis Vuitton Moët Hennessy (LVMH), visited South Korea for the first time in three years, touring major domestic retail channels such as Shinsegae and Lotte. His visit underscores the strategic importance of the Korean market as Louis Vuitton has recorded its highest-ever performance in the country amid a slowdown in global luxury market growth.According to the retail industry, Arnault arrived at Shinsegae Department Store's flagship location in Sogong-dong, Seoul, around 12:30 p.m. on May 11, accompanied by his daughter, Delphine Arnault, CEO of Christian Dior. The store features the "Louis Vuitton Visionary Journey Seoul," which opened at the end of last year. This location is the largest Louis Vuitton store in the world, spanning six floors and offering both product sales and experiential spaces showcasing the brand's history and culture.Shinsegae representatives, including CEO Park Joo-hyung and Head of Merchandise Division Jang Soo-jin, welcomed Arnault. The department store was closed to the public that day, so specific internal routes were not disclosed. However, during his previous visit to Korea in 2023, Arnault toured stores of LVMH brands such as Dior and Tiffany & Co., suggesting he likely visited key brand outlets again this time. Arnault then visited the nearby Lotte Department Store, where CEO Jeong Hyun-seok personally greeted him. After touring the Louis Vuitton store in the Avenue L section, Arnault moved to the Tiffany & Co. store, where he conversed with CEO Jeong for about ten minutes. He later returned to Avenue L to check out the Bulgari store. At Lotte Department Store in Jamsil, Shin Dong-bin welcomed Arnault and accompanied him throughout the 40-minute visit. Shin's eldest son, Shin Yoo-yeol, head of future growth at Lotte Holdings, was also present.Although the Jamsil location was bustling with regular customers, Arnault toured the main and basement floors without any crowd control, visiting key stores.Arnault's visit highlights the growing stature of the Korean luxury market. Since his last visit three years ago, luxury consumption in Korea has remained robust, particularly for high-end brands. According to Louis Vuitton Korea's audit report, the company's domestic sales reached 1.85 trillion won last year, a 6.1% increase from the previous year, while operating profit rose by 35.1% to 525.6 billion won.Experts predict that this growth trend in the Korean luxury market will continue. Kim Myung-joo, a researcher at Korea Investment & Securities, stated, "The high growth in the luxury category that began last year has become even more pronounced this year," adding that the rise in semiconductor companies' stock prices and substantial bonuses have contributed to increased liquidity in the market. 2026-05-12 03:30:41 -
Iran Delivers Response to U.S. Proposal for War Resolution Iran has reportedly conveyed its response to the U.S. proposal for ending hostilities through Pakistan, signaling a potential shift toward serious negotiations between the two nations. According to Yonhap News on May 10, Iran's state-run IRNA news agency reported that the Iranian response to the recent U.S. proposal was delivered to Pakistan on that day. IRNA stated, "The negotiations at this stage will focus on ending the regional conflict as outlined in the proposed plan." However, the specific details of Iran's response have not been disclosed. President Donald Trump indicated on May 8 that he expected to receive Iran's response that evening, stating, "I will probably get a letter tonight." U.S. media outlet Axios reported on May 6 that the two countries were nearing an agreement on a one-page Memorandum of Understanding (MOU), a sentiment echoed by Reuters and Al Arabiya. The MOU is said to include a declaration of an end to hostilities, the reopening of the Strait of Hormuz, restrictions on Iran's nuclear program, and the lifting of sanctions against Iran, along with a commitment to commence negotiations within 30 days for detailed agreements.* This article has been translated by AI. 2026-05-11 04:18:12