Journalist

Kang Il Yong
  • Lee Jae-myung Signals HMM HQ Move to Busan; Charter Change May Reach March Meeting
    Lee Jae-myung Signals HMM HQ Move to Busan; Charter Change May Reach March Meeting Lee Jae-myung said on social media that South Korea’s largest shipping company, HMM, will move its headquarters to Busan soon, drawing attention to whether the company will put a charter amendment on the agenda for its March shareholders meeting. HMM’s union said it will respond with a hard-line fight if the company tries to amend the charter and push the move without labor-management talks. According to political circles on the 19th, Lee reposted a message on X (formerly Twitter) by Jeon Jae-su and wrote, “Following the relocation of the Ministry of Oceans and Fisheries and the establishment of a maritime court, we will also set up an investment corporation for the Southeast region, and we will soon relocate HMM as well.” Moving HMM’s headquarters from Seoul’s Yeouido district to Busan was one of Lee’s key presidential campaign pledges. HMM’s charter stipulates that its headquarters is in Seoul. To relocate to Busan, the company must first amend its charter through a shareholders meeting. A charter amendment requires a special resolution backed by at least two-thirds of the shareholders present. But government-affiliated institutions including the Korea Ocean Business Corp., Korea Development Bank and the National Pension Service hold about 70% of HMM shares, meaning the government could change the charter and move the headquarters if the item is put to a vote. Attention has now shifted to HMM’s board. The company’s inside and outside directors, including CEO Choi Won-hyuk, were all appointed before the Lee administration took office. Still, because they entered the board with recommendations from major shareholders, they are seen as not fully independent from the influence of the Korea Ocean Business Corp. and Korea Development Bank. Investment banking sources said there are no clear signs yet that HMM’s board plans to place a charter amendment on the agenda for the March meeting. However, the board could still convene in late February or early March and submit the item to align with the Lee administration’s pace. HMM’s onshore union, meanwhile, has signaled strong opposition to a move without its consent. It argues that rushing to relocate the headquarters of the country’s largest shipping company ahead of June local elections, without a thorough review of operational efficiency, makes little sense. About 800 people currently work at HMM’s Yeouido headquarters. With revisions to the Trade Union and Labor Relations Adjustment Act, known as the “Yellow Envelope Act,” set to take effect in March, the possibility of a general strike by HMM’s onshore union also remains open. An industry official said, “If the Lee administration wants to push ahead with relocating HMM’s headquarters to Busan without disruption, it first needs to persuade HMM employees,” adding, “If it tries to move a corporate headquarters without employees’ consent, as in the past attempt to relocate Korea Development Bank to Busan, it will face significant backlash.” 2026-02-19 15:06:00
  • Hyosung Heavy wins $538 million power equipment deal in US
    Hyosung Heavy wins $538 million power equipment deal in US SEOUL, February 10 (AJP) - South Korea's Hyosung Heavy Industries said on Monday it had secured its largest order to date in the United States. The company signed a contract worth about 787 billion won ($538 million) with a major U.S. transmission grid operator to supply 765-kilovolt ultra-high-voltage transformers, reactors and related equipment. It described the deal as the largest single U.S. project ever won by a South Korean power-equipment manufacturer. Hyosung Heavy said it was also the first South Korean company last year to secure a U.S. order covering a full package of ultra-high-voltage equipment, including 765-kV transformers and 800-kV circuit breakers. U.S. electricity demand is expected to grow roughly 25 percent over the next decade, driven by rapid construction of artificial intelligence data centers and increased adoption of electric vehicles, the company said. Utilities are accelerating investment in 765-kV transmission networks, which enable large volumes of electricity to be transmitted over long distances with lower losses compared with 345-kV and 500-kV systems. Hyosung Heavy said it has supplied about half of the 765-kV transformers installed across U.S. transmission networks and has held the top market share in that segment since the 2010s. Its capability to produce equipment including 800-kV circuit breakers positions the firm as a comprehensive supplier for U.S. ultra-high-voltage projects, it added. Hyosung Heavy established its U.S. subsidiary in 2001 and became the first South Korean company to export a 765-kV transformer to the United States in 2010. Since 2020, it has operated a transformer manufacturing plant in Memphis, Tennessee, which the company said is currently the only U.S. facility capable of designing and producing 765-kV transformers. “With the spread of AI and data centers, power infrastructure has become a core industry directly tied to national security,” Chairman Cho Hyun-joon said in a press release. “Based on our Memphis production base and ultra-high-voltage technology, we aim to become an indispensable partner in stabilizing the U.S. power grid.” In 2020, Hyosung Heavy decided to acquire a Tennessee-based ultra-high-voltage transformer facility and invest a total of $300 million to expand capacity. Once expansion is completed, the Memphis plant is expected to have the largest production capacity of its kind in the United States. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-10 09:25:40
  • Doosan Bobcat walks away from bid to acquire Germanys Wacker Neuson
    Doosan Bobcat walks away from bid to acquire Germany's Wacker Neuson SEOUL, January 23 (AJP) -Doosan Bobcat is walking away from around $3 billion acquisition talks with German construction equipment maker Wacker Neuson SE, formally ending negotiations that would have marked one of the South Korean company’s largest overseas deals. In a regulatory filing on Friday, the KOSPI-trading Doosan Bobcat said it had reviewed the potential acquisition but decided not to proceed, without disclosing further details. Shares were up 1.3 percent at 60,800 won as of 1:00 p.m. in Seoul. “After reviewing the acquisition of Wacker Neuson, we have decided not to move forward,” the company said. Wacker Neuson separately confirmed that discussions would not continue. In a disclosure released late Thursday under the European Union’s Market Abuse Regulation, the Munich-based company said talks with Doosan Bobcat regarding the acquisition of a majority stake and a possible public takeover offer had been terminated. “The Wacker Neuson Group remains focused on executing its Strategy 2030, pursuing sustainable growth,” the company said. The decision brings to a close roughly a year of negotiations between the two compact construction equipment makers. Wacker Neuson last month said it was in “advanced discussions” with Doosan Bobcat over the sale of about 63 percent of its shares by major shareholders, followed by an all-cash public takeover offer for remaining shares. Investment banking sources said the deal fell through largely over valuation, with the proposed purchase price seen as too high amid a global slowdown in construction equipment demand. Analysts had estimated the total transaction value at more than 5 trillion won ($3.4 billion), which would have made it Doosan Bobcat’s largest acquisition since it bought the Bobcat brand in 2007. Wacker Neuson is the market leader in Europe’s compact construction equipment segment, while Doosan Bobcat dominates North America. The acquisition had been widely viewed as a strategic move to accelerate Doosan Bobcat’s expansion in Europe and diversify its geographic revenue base. Both companies have been facing softer market conditions. Doosan Bobcat reported declining sales in both North America and Europe in 2025, while Wacker Neuson has also posted revenue declines across its major regions, reflecting high borrowing costs and weaker construction activity. Doosan Bobcat said it would continue to explore strategic opportunities to strengthen its global presence, but stressed that any move would be guided by financial discipline. 2026-01-23 13:04:38
  • Canadian delegates tour Hanwha Oceans shipyard ahead of submarine bidding
    Canadian delegates tour Hanwha Ocean's shipyard ahead of submarine bidding SEOUL, January 23 (AJP) - South Korea’s Hanwha Ocean said Friday that an Ontario cabinet minister visited its Geoje shipyard this week, as the company steps up efforts to win Canada’s submarine project. Victor Fedeli, Ontario’s minister responsible for economic development, job creation and trade and a provincial lawmaker representing Nipissing, toured the shipbuilder’s Geoje facility, the company said. The visit comes ahead of bidding for Canada’s submarine procurement program. During the tour, Fedeli reviewed shipbuilding operations and production automation equipment, including welding robots. He also boarded the Jang Young-sil, a Jangbogo-III Batch-II submarine launched in October 2025, to inspect its capabilities. Hanwha Ocean briefed Fedeli on the design and production process for its proposed submarine model, highlighting the company’s large-scale shipbuilding infrastructure and production capacity. The company also outlined its industrial cooperation plans under Canada’s Industrial and Technological Benefits (ITB) program, a key requirement of the bidding. Hanwha Ocean said the plans include investment and job creation across Canada, including in Ontario. Hanwha Ocean said it aims to expand cooperation with Ontario, part of Canada’s Great Lakes region, and expects such partnerships to strengthen negotiations under the ITB framework by supporting regional industrial development and employment. “It is very meaningful to be able to introduce in person the latest submarines that have already been proven through the Republic of Korea Navy,” Hanwha Ocean Chief Executive Kim Hee-cheol said in a statement. He added that discussions on cooperation with Ontario-based companies demonstrate a “firm commitment to building sustainable submarine construction and maintenance, repair and overhaul capabilities in Canada.” Hanwha Ocean said it has recently signed memorandums of understanding with more than 10 Canadian companies for shipbuilding and industrial cooperation. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-23 10:04:44
  • HMM to deploy AI navigation system on 40 ships in HD Hyundai tie-up
    HMM to deploy AI navigation system on 40 ships in HD Hyundai tie-up SEOUL, January 16 (AJP) - HMM said Friday it will deploy an artificial intelligence–based autonomous navigation system across 40 vessels, stepping up efforts to improve efficiency and cut emissions through advanced maritime technology. The South Korean shipping company will introduce the system through a technical partnership with HD Hyundai affiliates HD Korea Shipbuilding & Offshore Engineering and Avikus, a developer of autonomous navigation solutions. A contract-signing ceremony was recently held at HD Hyundai’s global research and development center in Pangyo, attended by senior executives from the three companies. Under the agreement, HMM will equip 40 ships with Avikus’s autonomous navigation technology. Unlike conventional systems that provide navigational assistance, the AI-based platform is designed to independently calculate optimal routes, with the aim of enhancing operational safety, improving fuel efficiency and reducing carbon emissions, the company said. HMM said it plans to consider a broader rollout across its fleet based on performance results. The partnership also includes joint research to further develop autonomous navigation technology. HMM will apply the system in commercial operations and share operating data, Avikus will supply and upgrade the navigation software, and HD Korea Shipbuilding & Offshore Engineering will provide ship platforms and technical support, the companies said. “AI-based technology is a core tool for strengthening competitiveness in a digital and environmentally sustainable shipping ecosystem,” HMM said in a press release. The firm said autonomous navigation represents a potential “game changer” for both shipbuilding and shipping. 2026-01-16 09:54:50
  • South Korea urged to diversify strategic mineral sourcing amid China risks
    South Korea urged to diversify strategic mineral sourcing amid China risks SEOUL, January 08 (AJP) - China’s curbs on exports of strategic minerals, including rare earths, are intensifying calls for South Korea to accelerate efforts to stabilize its supply chain, with business and academic circles urging the government to diversify sourcing and offer stronger incentives for refining and processing. South Korea’s government-led drive to secure strategic minerals has largely stalled for more than a decade. While trading houses and materials companies have periodically sought supplies outside China, officials said policy support has remained fragmented and insufficient. Industry officials contrasted South Korea’s approach with Japan, which suffered widespread industrial disruption after China restricted rare earth exports during a dispute over the Senkaku Islands. Since then, Japan has spent more than a decade expanding supply chains through long-term investments in Southeast Asia, South America and Africa, maintaining continuity regardless of changes in government. In October last year, Japan launched a critical minerals and rare earth supply-chain framework with the United States and Australia aimed at reducing dependence on China. Tokyo has also increased research and development spending on alternative materials to replace China-sourced rare earths used in wind turbines, electric-vehicle motors and batteries. Japanese automakers, including Honda and Toyota, have reported progress from those efforts since last year. The United States, which the report said has faced what it describes as China’s weaponization of strategic minerals since early last year, is also moving more quickly to cut reliance on China. Measures include restarting domestic graphite mining for the first time in 70 years. U.S.-based Titan Mining plans to produce 40,000 tons of graphite a year — roughly half of U.S. demand — with commercial sales targeted for 2028. The company’s expansion is backed by subsidies under the Inflation Reduction Act and direct federal support, the report said. Chief Executive Rita Adiani said China could no longer be regarded as a reliable supply-chain partner, adding Titan would supply “a significant portion” of U.S. needs. In South Korea, experts said the government should move faster to diversify strategic-mineral supply chains. Kang Cheon-gu, a visiting professor at Inha University’s Graduate School of Manufacturing Innovation, said state-level efforts were needed to expand sourcing from rare earth-producing countries outside China, including Australia, Indonesia, Malaysia and Vietnam. He also called for tariff exemptions on imports from those countries and long-term investment to secure overseas mines. Business groups are also urging broader government support for companies that help stabilize strategic-mineral supply chains, citing policies adopted in the United States and Japan. They argue South Korea should make more active use of the National Growth Fund, including direct investment and indirect support such as tax incentives for companies including Korea Zinc and Posco Future M. Korea Zinc, backed by large-scale U.S. government investment, has decided to build a smelter in the United States to produce 11 strategic minerals — including antimony, indium, gallium, germanium and bismuth — sectors long dominated by China. Posco Future M said it will invest in Saemangeum to build a plant capable of producing 37,000 tons of spherical graphite a year, with completion targeted for the third quarter of next year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-01-08 08:57:23
  • Samsung Heavy wins $520 million order for two LNG carriers
    Samsung Heavy wins $520 million order for two LNG carriers SEOUL, January 02 (AJP) - Samsung Heavy Industries said on Friday it has secured an order worth 721.1 billion won ($520 million) for two liquefied natural gas carriers. In a regulatory filing, the company said the contract was signed in December and that the vessels are scheduled for delivery in stages by September 2028. The name of the shipowner was not disclosed due to contractual confidentiality requirements, a common practice in shipbuilding deals involving commercial and strategic considerations. With the latest deal, Samsung Heavy said it booked total orders worth $7.9 billion for 43 vessels in 2025, surpassing its 2024 results of $7.3 billion for 36 ships. Orders last year included 11 LNG carriers, nine shuttle tankers, nine container ships, two ethane carriers, 11 crude oil carriers and a preliminary contract for offshore production facilities, the company said. As of the end of 2025, Samsung Heavy’s order backlog stood at 133 ships valued at $28.6 billion. A company official said Samsung Heavy exceeded the previous year’s order performance by prioritizing profitability and selectively accepting contracts, supported by a stable backlog, despite a volatile global business environment marked by U.S.-led trade tariff pressures. The official added that the company expects solid order momentum to continue this year, citing a recovery in demand for LNG carriers. 2026-01-02 15:30:03
  • Hyundai Group chair urges readiness for inter-Korean exchanges
    Hyundai Group chair urges 'readiness' for inter-Korean exchanges SEOUL, January 02 (AJP) - As the Lee Jae Myung administration signals renewed efforts to ease tensions with North Korea, Hyundai Group Chair Hyun Jeong-eun said the conglomerate must be ready to act swiftly should conditions for inter-Korean economic cooperation improve. In a New Year’s message to employees on Friday, Hyun reaffirmed her support for engagement with North Korea, saying expectations are rising again for a thaw on the Korean Peninsula. She expressed hope for “constructive change” in inter-Korean relations this year and urged employees to prepare thoroughly so the group can respond immediately if opportunities emerge. Hyundai Group, long associated with cross-border projects such as the Mount Kumgang tourism venture through affiliate Hyundai Asan, has been viewed as a potential private-sector partner in any future economic cooperation between the two Koreas. Hyun sent the message by email to about 6,000 employees across affiliates including Hyundai Elevator, Hyundai Movex and Hyundai Asan. Beyond inter-Korean issues, Hyun called for proactive execution across the group, urging employees to “show the will and action to lead this era of transition.” She said uncertainty often accompanies new opportunities and stressed that decisive action matters more than perfect information. 2026-01-02 14:25:24
  • State creditor bank demands more aggressive output cut from Korean naphtha makers
    State creditor bank demands more aggressive output cut from Korean naphtha makers SEOUL, December 30 (AJP) -The government is intensifying pressure on South Korea's major petrochemical producers to further reduce naphtha cracking capacity during the prolonged industrial slump, demanding more aggressive streamlining from Hanwha, DL and Lotte tenants of Yeocheon complex, industry sources said. According to the sources on Tuesday, Lee Bong-hee, executive vice president and head of corporate finance at the Korea Development Bank (KDB), visited Yeocheon NCC on Friday for an on-site inspection. He later held discussions with executives from Hanwha Solutions, DL Chemical and Lotte Chemical on voluntary reductions in naphtha cracking capacity. During the meetings, Lee asked the three companies to submit a concrete plan to permanently shut Yeocheon NCC’s third plant, which has been idled and has an annual capacity of 470,000 tons, the sources said. He also conveyed that if additional cuts are made at Yeocheon NCC’s first plant (900,000 tons) and second plant (910,000 tons), as well as at Lotte Chemical’s Yeosu NCC facility (1.23 million tons), the government and creditor banks could offer support in return. The state policy bank is the lead creditor bank for Hanwha Solutions, DL Chemical and Yeocheon NCC, and also serves as a creditor to Lotte Chemical. Lee oversees petrochemical restructuring and creditor-bank management at KDB. With the companies seeking bond maturity extensions and additional financing, his targeted visit to Yeocheon NCC was widely viewed as adding pressure on the firms to move faster on restructuring, the sources said. KDB has also urged the companies to submit detailed capacity-reduction plans alongside additional self-help measures, including further capital injections by major shareholders. The policy lender has made clear that it will not provide additional financial support unless the three companies reach agreement on concrete restructuring steps, the sources added. At the same time, Hanwha Solutions, DL Chemical and Lotte Chemical are accelerating preparations to establish a joint venture to consolidate their naphtha cracking operations. The companies aim to set up a jointly funded subsidiary by the first quarter of 2027 to jointly operate Yeocheon NCC’s first and second plants together with Lotte Chemical’s Yeosu NCC facility. They are currently conducting due diligence with Samil PwC and other advisers to finalize the joint venture structure and additional capacity-reduction measures, which they plan to submit to the government in January, the sources said. If the companies propose further cuts, total industry-wide reductions in naphtha cracking capacity could exceed the government’s initial target of 2.7 million to 3.7 million tons by roughly 1 million tons, according to industry estimates. Market participants are watching closely whether authorities and creditor banks will selectively accept voluntary restructuring plans. Companies fear that if their proposals fall short of official expectations, only the originally announced cuts may be recognized, limiting the scope of support. Lee Deok-hwan, emeritus professor of chemistry at Sogang University, cautioned that direct engagement by government-side officials with individual firms before voluntary restructuring plans are finalized could undermine trust in the process. “Companies may interpret such moves as groundwork for accepting only the measures favored by the authorities while rejecting others,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-30 17:43:18
  • OPINION: Why Korea Zincs US smelter deal makes strategic sense
    OPINION: Why Korea Zinc's US smelter deal makes strategic sense SEOUL, December 19 (AJP) - Korea Zinc recently signed a strategic partnership with the U.S. Department of Defense and the U.S. Department of Commerce, agreeing to pursue a joint investment to build a large, integrated smelter in Tennessee. The U.S. administration has increasingly treated critical minerals as strategic assets essential to national defense and economic security, elevating supply self-reliance and trusted supply chains to top policy priorities. Against that backdrop, the agreement signals that Korea Zinc — an allied-country company with world-class technology and production capacity in nonferrous metal smelting — has been incorporated into the U.S. critical-minerals supply chain as a trusted partner. The deal has the potential to serve as a model for South Korea–U.S. cooperation on economic security and supply chains, aligning with South Korea’s national interests while offering Korea Zinc a meaningful business opportunity. The United States, a global hub for advanced and strategic industries such as semiconductors, batteries, electric vehicles, artificial intelligence, aerospace and defense, also has strong demand for base metals such as zinc and copper, as well as strategic minerals including antimony, indium, gallium and germanium. For Korea Zinc, forming a joint venture with the U.S. government and jointly building a large-scale smelter in a market with sustained demand for strategic minerals represents an attractive opportunity — one that offers both operational stability and long-term profitability. Media reports and corporate disclosures indicate that Korea Zinc, the U.S. Department of Defense and U.S. investors plan to establish a joint venture to carry out the investment and formalize a strategic partnership, with Korea Zinc issuing new shares to the venture. Under South Korean law, such a transaction would constitute a third-party allotment of new shares. While the law generally protects existing shareholders’ preemptive rights, it also allows third-party allotments when a company’s articles of incorporation permit them and when there is a clear management purpose. Given the strategic context of the investment and public statements from U.S. officials, there is little basis to question that the principal purpose of the proposed share issuance is to establish a durable partnership with the U.S. government and help build a U.S.-based critical-minerals supply chain. That clearly qualifies as a management purpose. From a broader investment perspective, it is common in strategic alliances for joint projects to involve cross-shareholdings, whether through the transfer of existing shares or the issuance of new ones. Even in the midst of a management-control dispute, corporate executives retain a responsibility to pursue new businesses and invest when compelling opportunities arise. Large-scale industrial projects require financing, and issuing new shares through a third-party allotment is a standard corporate tool and a matter of reasonable business judgment. It is unconvincing to argue that a company should be barred from issuing new shares solely because it is facing a control dispute, particularly when the transaction serves a clear strategic and commercial objective. Indeed, if a board were to block decisions necessary to seize a valuable opportunity purely because of such a dispute, it could raise questions about a breach of directors’ duty of care. As a citizen, I hope this joint investment with the U.S. government in the critical-minerals sector moves forward smoothly and sets a constructive precedent for future economic security cooperation. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-12-19 09:47:26