KCC Group pivots to defense tech, semiconductors as construction falters Editor's Note: This article is the 25th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, July 2 (AJP) - As South Korea’s construction industry struggles with a prolonged downturn, KCC Group, once a stalwart of the sector, is reinventing itself through a bold pivot toward advanced semiconductor materials and high-tech defense applications — an ambitious transformation that may redefine the company’s role in the global supply chain. The conglomerate offered a glimpse of its future in May at PCIM Europe 2025, a leading international trade fair for power electronics held in Nuremberg, Germany. There, KCC showcased a range of semiconductor technologies developed through its U.S.-based subsidiary, Momentive Performance Materials, one of the world’s largest providers of silicone-based solutions. Among the highlights were active metal brazing ceramic substrates — materials that improve bonding between copper circuits and ceramics in high-performance semiconductors — drawing strong interest from global manufacturers. KCC also unveiled direct copper bonding substrates for power modules and new high-reliability encapsulation materials, signaling its intention to become a comprehensive supplier to the semiconductor industry. This shift marks a dramatic evolution for a company whose roots lie in postwar reconstruction. KCC traces its founding to 1958, when Chung Sang-young, the youngest brother of Hyundai Group founder Chung Ju-yung, launched Keumkang Slate Industries. It later merged with Korea Chemical, founded in 1974, to become Keumkang Korea Chemical in 2000. The company rebranded as KCC in 2005 and now anchors a group that includes KCC Glass, KCC Engineering & Construction, and KCC Silicone. KCC’s move into the silicone business began with its acquisition of British firm Basildon in 2011, followed by its 2019 purchase of Momentive, a landmark $3 billion deal that gave it a foothold in the global silicone market. In 2020, KCC spun off its synthetic materials division as KCC Silicone, which now drives nearly half of its business. According to Korea Investor Service, silicones accounted for 45.3 percent of KCC’s revenue in 2024, with paints contributing 27.9 percent and construction materials 16.6 percent. But the group’s traditional strengths have been under pressure. KCC’s first-quarter earnings for 2025 showed revenue rising just 0.7 percent year-on-year to 1.60 trillion won ($1.18 billion), while net income plunged 90.4 percent to 44.1 billion won amid continued weakness in the construction sector. Analysts noted that while the company benefited from strong prices in its silicone division and the removal of one-off costs in coatings, losses in construction materials continued to weigh on the bottom line. In response, KCC is aggressively moving into defense — a sector with demanding technical requirements and growing strategic value. The company has secured contracts with major defense firms including LIG Nex1, Hanwha Aerospace, and Korea Aerospace Industries (KAI), and is working to develop advanced coatings that can withstand extreme heat and corrosion. Among its most ambitious projects: coatings for low-orbit satellites and unmanned aerial combat systems, in collaboration with KAI. Over the past three years, KCC has filed 21 patents for defense-related coatings, out of 50 total applications. The urgency of the transformation was laid bare during a New Year’s address by Chairman Chung Mong-jin, who warned employees that 2025 would bring “the most severe crisis since the Asian financial crisis.” He called for "emergency management" and a sweeping digital overhaul of the company’s operations. “Digital transformation based on data, which is a core asset in the AI era, is essential,” Chung said. “All business processes must be innovated around data.” KCC's high-tech reorientation may prove essential for its survival. A company that once helped build the foundations of modern South Korea is now betting its future on the technologies that will shape the next era of global industry — from next-generation semiconductors to space-based defense systems. 2025-07-03 09:35:48

K-pop band TXT gears up for July comeback with preview of fourth studio album SEOUL, July 02 (AJP) - Tomorrow X Together (TXT), often described as BTS' brother band under Hybe, is ramping up excitement for their return with a full preview of their upcoming album, "The Name Chapter: Together," released via Hybe Labels' YouTube channel at midnight Wednesday. The preview offers a glimpse of all eight tracks from the group's fourth studio album, which officially drops on July 21 at 6 p.m. (0900 GMT). The album marks the final chapter in their "Name" series and carries a message of emotional connection and shared identity. A narration at the start of the video, "So now, I’ll call your name, too," sets the tone for a story about saving each other and the world through true empathy. The lead single, "Beautiful Strangers," is a hip-hop track built on trap rhythms, blending dreamy piano lines with powerful synthesizers. The song paints a picture of personal growth supported by others, and celebrates the beauty of standing out. A member of BigHit Music’s upcoming new group, set to debut later this year, participated in its production. Other tracks include "Song of the Stars," a stadium rock anthem that appeared in a previously released concept trailer, and "Upside Down Kiss," which captures the desire to hold onto love even when facing emotional distance. For the first time in their career, TXT is including solo songs by each member on a group album. Soobin’s "Sunday Driver" delivers a breezy portrayal of quiet moments shared with someone special. Yeonjun’s "Ghost Girl" dives into the feeling of surrendering to an elusive presence. Beomgyu, who also worked on producing his track, explores fulfillment through generosity in "Take My Half." Taehyun’s "Bird of Night," which he co-wrote and composed, offers quiet reassurance to listeners navigating turbulent nights. Huening Kai rounds out the solo efforts with "Dance With You," a song that likens the desire to become more like someone to dancing together. TXT will continue to tease the album with additional track previews from July 3 to July 7. 2025-07-02 17:50:03

Reunited BTS members gear up for new album ahead of return next spring SEOUL, July 2 (AJP) - K-pop boy band BTS will resume group activities next spring with the release of a new album, as all seven members recently reunited after completing their mandatory military service. During a live-streamed event on their platform on Tuesday, the first since their reunion last month, they shared their upcoming plans with fans. "We'll soon start working on the album," said leader RM. "We plan to release it by spring, definitely before summer." He added, "We'll then embark on a world tour to promote the album." The album, expected to be produced in the U.S., will be the band's first release since "Proof," which came out in June 2022. Since their debut in June 2013, BTS have topped the Billboard 200 albums chart six times and achieved six No. 1 hits on the Hot 100 singles chart. 2025-07-02 16:47:54

Nokia promotes AI-powered networks as crucial to Korea's tech future SEOUL, July 2 (AJP) - Finnish telecommunications giant Nokia unveiled its latest suite of AI-powered networking technologies in Seoul, Wednesday, positioning robust network infrastructure — not just graphics processing units — as the true backbone of next-generation artificial intelligence systems. The company showcased its 25G passive optical network (PON) and Ethernet-PON (E-PON) technologies, which promise faster, more scalable internet speeds without the need to replace existing fiber-optic infrastructure — a practical appeal for operators facing mounting data demands. While lauding the South Korean government’s focus on acquiring high-performance GPUs, Nokia Korea’s Chief Technology Officer James Han emphasized that AI innovation cannot thrive without a network capable of handling the vast quantities of data GPUs generate. “The transmission of GPU-processed data is only as strong as the networks that carry it,” Han said, underscoring the importance of end-to-end system performance in AI deployments. President Lee Jae Myung has made AI sovereignty a central plank of his administration’s agenda, pledging to acquire more than 50,000 GPUs and expand domestic data center capacity. His government has also appointed high-profile AI experts to public office, reinforcing South Korea’s ambition to lead in global AI development. “Building an AI ecosystem is key to next-generation digital innovation, and Nokia is delivering on that promise by embedding AI into real-world networks,” said Kevin Ahn, CEO of Nokia Korea. He added that true innovation lies not only in compute capacity but also in minimizing network latency and increasing throughput — both essential to real-time AI applications. Nokia also unveiled its vision for AI-integrated radio access networks, arguing that the convergence of AI and telecom will define the approaching 6G era. With international competition intensifying around sovereign AI capabilities and next-generation mobile standards, Nokia is positioning itself as a key partner in South Korea’s 6G R&D initiatives. The company said it remains committed to helping the country develop the foundational infrastructure needed to maintain its edge in digital innovation. “The real bottleneck in AI is no longer just processing power,” said Han. “It’s how fast and reliably you can move the data.” 2025-07-02 16:38:48

Shilla Duty Free, Paradise City partner to attract foreign tourists SEOUL, July 02 (AJP) - Shilla Duty Free has joined forces with Paradise City, a major integrated resort and casino complex, to launch a collaborative marketing campaign aimed at boosting foreign tourist traffic, the companies announced Wednesday. The agreement outlines a strategic partnership that will combine the two companies’ strengths in duty-free retail and hospitality to enhance services for international visitors. As part of the arrangement, Shilla Duty Free will offer exclusive promotions tied to Paradise City experiences, while Paradise City will provide access to Shilla Duty Free benefits for foreign tourists visiting its resort. The initiative includes a series of perks for Paradise Casino members, who will be eligible for upgraded Shilla Duty Free memberships, prepaid cards redeemable in stores, and discount vouchers. Depending on casino membership status, benefits will extend up to Shilla’s highest-tier “black” membership. 2025-07-02 16:30:47

Musinsa to sell fashion, beauty products targeting young consumers at GS25 stores SEOUL, July 02 (AJP) - South Korean fashion platform Musinsa is expanding its collaboration with GS25, one of the country’s largest convenience store chains, introducing a new lineup of summer apparel and debuting its first beauty products at retail locations nationwide, the company announced Wednesday. The partnership extension includes five new items from the Musinsa Standard Express collection — the company’s casual sub-label tailored for retail distribution — and marks the launch of Little Whizzy, a new beauty line under Musinsa’s youth-focused cosmetics brand Whizzy. Musinsa said it will roll out two new Cool Standard T-shirts, along with three styles of summer shorts — nylon banding, basketball sweat, and boxer-fit — designed to emphasize comfort and breathability during Korea’s hot season. The latest collection will be available at 5,000 GS25 stores beginning in July, expanding from the 3,000 locations that carried the initial March release. Purchasers will also be eligible to receive randomly issued discount coupons, some offering up to 90 percent off. The collaboration is now moving beyond fashion with the debut of Little Whizzy, a compact beauty line priced at 3,000 won (approximately $2.15) per item. The launch includes seven lip and eyeshadow products, such as “Bouncy Gloss” tints designed for vivid color and high shine, and pocket-sized two-tone eyeshadow duos intended for everyday portability — a feature designed to resonate with younger, on-the-go consumers. Musinsa, best known for its online streetwear and fashion marketplace, has been increasingly exploring offline and cross-sector strategies to engage younger audiences. 2025-07-02 16:24:36

Hybe names new heads for Americas and APAC as global push accelerates SEOUL, July 02 (AJP) - Hybe, the South Korean entertainment company behind BTS, has appointed Isaac Lee as CEO and Chairman of Hybe America, expanding his current leadership role over Latin America to include the entire Western Hemisphere. The move reflects Hybe's broader push to streamline global operations and build stronger local networks in key music markets. The entertainment powerhouse that nurtured top K-pop acts such as BTS and TXT said Wednesday that Lee, who has served as Chairman of Hybe Latin America since November 2023, will also lead its North American business. He retains his role at the Latin American unit, taking full charge of both regions. Originally from Colombia, Lee is a veteran media executive who previously served as Chief Content Officer for Univision Communications and Televisa, two of the largest Spanish-language broadcasters. He also founded Exile Content, a global media company. His appointment to Hybe America comes just eight months after his recruitment as the first chairman of Hybe Latin America. Hybe America operates several major labels, including Big Machine Label Group, Quality Control Media Holdings, and HYBE x Geffen Records. Its artist roster spans multiple genres and includes names such as Justin Moore, Lil Baby, and Katseye, the K-pop girl group created with Geffen. "CEO Isaac Lee, with his proven creative vision and deep local network, is expected to expand the influence of Hybe artists across the Americas," the company said in a statement. Scooter Braun, who led Hybe America after the 2021 acquisition of Ithaca Holdings, has stepped down from the CEO role. He will remain on the board as a senior advisor. Braun has been widely credited for helping Hybe establish a foothold in the U.S. market. Hybe also announced a leadership reshuffle in its Asia-Pacific music division. Yoo Dong-joo, formerly an executive at Kolon FnC, was named as the new head of Hybe Music Group APAC. Yoo has experience in both corporate strategy and fashion branding, having worked at Hyundai Motor Company and later launching and selling the sustainable fashion brand K.O.A. He also has a background in international development with the United Nations. Hybe said Yoo is expected to contribute to the expansion of its impact-driven business approach in Asia and beyond. Shin Young-jae, who previously led the APAC division, will now oversee a separate project focused on enhancing Hybe’s multi-home and multi-genre strategy. 2025-07-02 16:24:15

Hanwha Ocean to build Korea's next-generation icebreaking research vessel SEOUL, July 02 (AJP) - South Korea has taken a significant step in expanding its polar research capabilities with the selection of Hanwha Ocean as the preferred bidder to construct the country’s next-generation icebreaking research vessel. The vessel, to be built under the supervision of the Ministry of Oceans and Fisheries, is scheduled for delivery by December 2029. The new ship will more than double the capacity of the country’s first and only existing icebreaker, the Araon, launched in 2009. At 16,560 gross tons, the vessel will feature a Polar Class 3 hull capable of breaking through 1.5 meters of ice while operating in temperatures as low as minus 45 degrees Celsius. It is designed to function both forward and backward in heavy ice, allowing for greater flexibility in extreme conditions. Equipped with a dual-fuel LNG-electric propulsion system, the vessel will also adhere to tightening global emissions regulations. Its onboard amenities — including upgraded living quarters, lounges, and dining areas — are being designed to near cruise-ship standards to accommodate researchers during prolonged deployments in remote polar regions. “This next-generation platform is a complete departure from Araon,” a Hanwha Ocean spokesperson said. “It is designed as an entirely new scientific base at sea, optimized for future challenges in polar research and climate studies.” Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering, brings extensive experience to the project. Since 2008, the company has focused on developing icebreaking capabilities, anticipating the future strategic importance of Arctic shipping lanes. It holds the global record for icebreaking LNG carriers built — 21 in total — with major construction peaks in 2014 and 2020. 2025-07-02 15:50:00

TRAVEL: The royal pines of Samcheok — A legacy etched in wood SAMCHEOK, July 02 (AJP) - In the mountainous reaches of Samcheok, Gangwon Province, lies Jungyongmyo, the tomb of General Yangmu, the father of King Mokjo and a fifth-generation ancestor of Yi Seong-gye, the visionary who founded the Joseon Dynasty. Surrounding this sacred ground is a remarkable forest of Geumgang pine trees, a distinctive species deeply woven into the fabric of Korean history and culture. This dense cluster boasts approximately 140,000 pine trees, many of them towering centenarians, aged between 100 and 120 years. What sets the Geumgang pine apart from its more common relatives is its unwavering upright growth. Unlike other pines that often exhibit bends or twists, these trees near Jungyongmyo ascend toward the heavens with remarkable straightness, their trunks reaching skyward in an almost disciplined formation. While pine trees broadly characterize Korea's diverse forests, distributed across its myriad mountains, the Geumgang pine is an anomaly. The bark, a thin and reddish sheath in its youth, matures to crack into a pattern reminiscent of a tortoise's shell. Younger, more vibrant specimens display a particularly striking crimson hue on their main trunks. Some of the most majestic Geumgang pines soar to approximately 35 meters, rivaling the height of a 10-story building. The inherent qualities of the Geumgang pine — its fine grain, exceptional hardness, and remarkable resistance to warping, cracking, and decay — made it the material of choice for royal construction during the Joseon Dynasty. Exclusively indigenous to Korea and found predominantly in the country's eastern areas, these trees were also integral to the creation of the Jaegung, the coffins reserved for kings and queens. Given the demand for aged trees for such sacred purposes, the Joseon court took the extraordinary step of designating specific mountains where Geumgang pines grew, placing them under stringent royal management. A historical stele in Sogwang-ri, Uljin, North Gyeongsang Province, stands as a testament to this ancient policy. In a practice that underscored their reverence for these natural giants, ancient Koreans observed elaborate rituals before felling an old Geumgang pine. The act of logging would commence with a resonant cry of "Eomyeongiyo!," which means "This is by royal command," repeated thrice. This invocation was a plea to the mountain spirit, seeking understanding and permission for an act undertaken at the king's behest. The historical significance of the Geumgang pine continued into modern times. In 2008, twenty trees from the very cluster near Jungyongmyo were meticulously selected and used in the extensive restoration of Sungnyemun in Seoul, which had been tragically consumed by fire in February of that year. Along the serene path leading to Jungyongmyo, visitors encounter the "Miinsong," or "beautiful pine tree." This particular specimen gained renown for its symbolic wedding to the Jeongipumsong, another celebrated pine located in Boeun-gun, North Chungcheong Province. At the time of this ceremonial union in 2001, the Miinsong was 95 years old, stood 32 meters tall, and measured 2.1 meters in circumference at breast height. Its genetic superiority ensures its continued role in propagating high-quality successor trees. To walk through a forest teeming with Geumgang pines is to enter a realm that evokes both mystery and awe. Their singular appearance and profound historical connection distinguish them entirely, offering a unique and compelling experience of Korea's natural heritage. Jungyongmyo/ AJP Cho Bo-hee 2025-07-02 15:43:58

FBI on hunt for disguised North Korean IT workers in crypto theft scheme SEOUL, July 2 (AJP) - U.S. federal investigators have been searching for four North Koreans allegedly involved in an IT scheme to steal cryptocurrency from blockchain firms and launder the illicit proceeds of their thefts. According to the U.S. Federal Bureau of Investigation (FBI), they were placed on a wanted list on Tuesday with a reward of up to US$5 million for information leading to their capture. "Kim Kwang Jin, Kang Tae Bok, Jong Pong Ju, and Chang Nam Il are wanted for their alleged involvement with a scheme to steal virtual currency from two companies, valued at over $900,000 at the time of the theft, and to launder the proceeds of those thefts in 2022," it said, adding that they "speak English and Korean and have ties to the United Arab Emirates and Laos." The U.S. Department of Justice also indicted them the previous day, accusing them of using "fake and stolen personal identities to conceal their North Korean nationality, pose as remote IT workers, and exploit their victims' trust to steal hundreds of thousands of dollars." Such schemes "target and steal from U.S. companies and are designed to evade sanctions and fund the North Korean regime's illicit programs, including its weapons programs," it added. North Korea-linked hackers are believed to have stolen more than $1.34 billion in cryptocurrency through dozens of separate scams last year alone, according to a report by U.S.-based blockchain analysis firm Chainalysis. 2025-07-02 14:25:57