HYBE sells SM Entertainment stake to China's Tencent Music SEOUL, May 28 (AJP) - HYBE, South Korea’s largest entertainment company behind BTS, has sold its entire stake in rival agency SM Entertainment to China's Tencent Music Entertainment. In a regulatory filing, Tuesday, HYBE said it would offload its 9.38 percent stake — totaling about 2.2 million shares — to Tencent Music, a subsidiary of China’s internet giant Tencent. The shares were sold at 110,000 won apiece, bringing the total transaction to approximately 243.3 billion won (about $180 million). The transaction positions Tencent Music as SM Entertainment’s second-largest shareholder, behind Kakao and its affiliate Kakao Entertainment, which together control a 41.5 percent stake in the company. HYBE had acquired its stake in SM in early 2023 during a high-profile battle for management control — a power struggle that eventually ended with Kakao taking the lead. In a statement, HYBE framed the sale as part of a broader strategic realignment, saying it aims to divest non-core assets and reinvest proceeds into “future growth initiatives.” Industry analysts view the deal as a significant move by Tencent to deepen its presence in South Korea’s K-pop industry. “Tencent’s growing footprint is hard to ignore,” said Lee Ki-hoon, an analyst at Hana Securities. “This investment raises expectations for SM, especially if restrictions on Korean pop culture in China begin to ease.” Tencent Music has been active in Korea through distribution partnerships with major agencies, including HYBE and Cube Entertainment. Its broader corporate ecosystem also holds minority stakes in YG Entertainment (4.3 percent) and Kakao Entertainment (4.61 percent), reinforcing its role as a major external stakeholder in the Korean entertainment industry. The acquisition of SM shares offers Tencent a deeper stake in one of K-pop’s most influential players. Known for cultivating first-generation acts such as H.O.T. and pioneering the Korean Wave in China, SM Entertainment remains a key source of intellectual property, artist management, and production capabilities. For HYBE, the sale represents a full exit from SM, closing the chapter on a costly and contentious corporate rivalry. HYBE is estimated to have invested approximately 555 billion won in SM and has reportedly recouped about 560 billion won through this and previous share disposals. The deal also comes amid broader questions about Chinese investment in South Korea’s cultural sector. While political tensions have, at times, limited K-pop’s access to Chinese audiences, some analysts believe the tide may be shifting. A renewed SM-Tencent alignment could position both companies to benefit from any loosening of cultural restrictions in the Chinese market. 2025-05-28 11:16:09

Lee Jae-myung's labor agenda could face resistance from chaebol, foreign firms Editor's Note: This is the second and last in a two-part series examining the economic campaign promises of Democratic Party presidential candidate Lee Jae-myung. SEOUL, May 27 (AJP) - South Korea's leading presidential candidate Lee Jae-myung of the Democratic Party has vowed to overhaul the country’s labor system and market practices in a bold attempt to forge what he calls a “basic society." Speaking days after a fatal industrial accident at an SPC bakery plant, Lee underscored the urgency of reform. “We must improve the shameful reality of a ‘labor-backward' country, where workplaces become sites of death, not life,” he said during a campaign stop on May 20. “As befits the world’s 10th-largest economy, we must correct the contradictions in our labor system.” Lee, a longtime advocate for labor rights, has made revitalizing the labor market a centerpiece of his campaign ahead of the June 3 presidential election. His platform includes backing the controversial Yellow Envelope Act, a legislative effort that seeks to expand the scope of legal labor disputes and limit employers’ ability to sue workers and unions for damages incurred during strikes. The measure, repeatedly vetoed by former President Yoon Suk Yeol, returned to the spotlight during the first televised debate of the campaign. The ruling People Power Party’s candidate, Kim Moon-soo, criticized the act as unconstitutional, while Lee defended it, citing support from both South Korea’s Constitutional Court and the International Labour Organization. The origins of the bill trace back to a turbulent labor dispute at SsangYong Motor in 2009, where a 77-day strike ended in violence and long-term trauma for many of the workers involved. A Supreme Court ruling in 2014 deemed the strike illegal and imposed 4.7 billion won in damages on the workers. In response, civic groups launched a donation campaign, symbolized by yellow envelopes — a gesture that later gave the act its name. If passed, the legislation would extend protections to indirectly employed workers and shield unions from excessive financial penalties. But business leaders warn it could embolden strike activity and deter foreign investment. A 2024 survey by the Federation of Korean Industries found that 59 percent of foreign firms operating in South Korea were skeptical of the proposal, fearing a 20 percent uptick in strike activity and a potential 15.4 percent drop in foreign direct investment. “The act could foster a culture of resolving disputes solely through strikes, rather than dialogue and cooperation,” said Lee Sang-ho, vice president of the FKI’s economic research department. Others have criticized the bill’s legal underpinnings. Cho Dong-geun, a professor emeritus at Myongji University, said it defies civil law norms. “The act obscures the distinction between legal and illegal strikes,” he said, warning that it “disrupts the fine line that defines the relationship between employers and employees.” Lee’s pro-labor vision goes even further. He has pledged to introduce a 4.5-day workweek with no reduction in pay — a move aimed at reducing South Korea’s notoriously long working hours. In a Facebook post in April, he called for aligning the country’s labor standards with the OECD average by 2030, with the ultimate goal of transitioning to a four-day week. Labor unions have welcomed Lee's idea, with both the Korean Confederation of Trade Unions and the Federation of Korean Trade Unions voicing support. Pilot programs at companies like SK Telecom and POSCO have shown early signs of feasibility, allowing employees to take alternating Fridays off. Business groups, however, remain wary. On May 8, leaders of South Korea’s five major business lobby groups, including SK Group Chairman Chey Tae-won, met with Lee to voice concerns that the reduced workweek could hamper competitiveness and widen disparities between large corporations and small firms. According to a recent survey by the Korea Federation of SMEs, 42.4 percent of small business operators already struggle under the current 52-hour workweek. Lee’s labor agenda also includes enhancing workplace safety. He has pledged greater investment in healthcare and protections for workers exposed to hazardous environments. Parallel to his labor reforms, Lee has laid out an ambitious economic plan to boost fairness and transparency in South Korea’s markets. He has promised to crack down on stock price manipulation and pledged to implement a “one-strike-out” policy targeting malicious traders. Central to his economic vision is South Korea’s long-anticipated inclusion in the Morgan Stanley Capital International (MSCI) World Index — a designation that could attract significant foreign investment and enhance market stability. The country has pursued MSCI “developed market” status since 2008, and recent signs suggest momentum is building. In late 2024, the Financial Services Commission expressed optimism, citing progress in transparency and market infrastructure. Lee has also promised to address the so-called “Korea Discount,” a term used to describe the persistent undervaluation of South Korean stocks. In a social media post on May 25, he declared his intention to push the benchmark KOSPI index to 5,000 points — a level that would signal unprecedented investor confidence. “The revitalization of our stock market is the fastest and most accessible path to healthy asset growth for the people,” he wrote. As the June 3 election nears, Lee’s sweeping proposals — from labor rights to market reform — have sparked vigorous debate over whether South Korea can balance ambitious social change with economic competitiveness. But for Lee, the answer is clear. “We must boldly shift our policies to achieve a sustainable work-life balance,” he said. “Only then can our economy and our people truly thrive.” 2025-05-28 11:01:50

Two former acting presidents slapped with travel ban SEOUL, May 27 (AJP) - Former Prime Minister Han Duck-soo and former Minister of Economy and Finance Choi Sang-mok have been slapped with a travel ban over their alleged involvement in former disgraced President Yoon Suk Yeol's botched martial law debacle late last year, policed said on Tuesday. It was revealed a day after investigators summoned them for questioning related to the debacle the previous day. The two briefly served as acting presidents after a motion to impeach Yoon was passed in the National Assembly shortly after the debacle. The similar ban was also extended to former Minister of the Interior and Safety Lee Sang-min, who has already been barred from leaving the country since last December. Based on relevant documents and other evidence, investigators reportedly questioned them about their knowledge of Yoon's Dec. 3 overnight gambit, as they gave slightly differing accounts. Han apparently maintained his position that he was not aware of Yoon's martial law plan in advance and strongly opposed it as soon as he learned of it. 2025-05-27 17:56:42

Tajikistan celebrates Youth Day and UN-recognized World Football Day in Seoul SEOUL, May 27 (AJP) - The Embassy of Tajikistan in Seoul hosted a football tournament in central Seoul last Friday to mark Tajikistan Youth Day and World Football Day, bringing together students, local residents, and embassy staff for the friendly competition. Tajikistan's Ambassador to Seoul Salohiddin Kirom congratulated participants and highlighted Tajikistan's strong focus on youth programs. He stressed the leadership of President Emomali Rahmon in helping young people gain "knowledge and skills." Kirom also praised a recent proposal by Rustam Emomali, Chairman of the National Assembly, Mayor of Dushanbe, and President of the Football Federation of Tajikistan, to establish "World Football Day." The proposal was adopted by the United Nations earlier this year, reflecting Tajikistan's growing role in global sports diplomacy. 2025-05-27 17:15:44

Former PM expresses support for PPP candidate in last-minute move ahead of presidential election SEOUL, May 27 (AJP) - With less than a week left until next month's presidential election, former Prime Minister Lee Nak-yon on Tuesday expressed his support for Kim Moon-soo, the presidential candidate of the ruling People Power Party (PPP). At a press conference in Seoul, Lee said he decided to join hands with Kim to prevent Lee Jae-myung, the presidential candidate of the main opposition Democratic Party (DP), from being elected, describing it as a "monster dictatorship." Lee, who was once a presidential contender from the DP in the previous election but defected amid internal strife to form the splinter New Future Democratic Party early last year, then added that he will work with Kim to form a joint government and pursue constitutional reform. "We agreed to work together to form a joint government and revise the Constitution to implement reforms," Lee told reporters. With Kim still trailing Lee in most polls, the surprise agreement could sway some swing voters or undecided voters ahead of the June 3 snap election, now less than a week away. But it remains to be seen whether their last-minute move will help the PPP candidate win over voters and narrow the gap with frontrunner Lee, as the former prime minister has been losing ground even in his stronghold in Jeolla provinces. Later in the day, Kim also met with disgraced former President Lee Myung-bak, in an apparent push to rally conservative voters. The ex-president reportedly advised him to "make a sincere effort to persuade" Lee Jun-seok of the minor centrist Reform Party (RP) until the last minute to field a single conservative candidate for the election. Meanwhile, next week's election comes after the Constitutional Court of Korea's ruling early last month to impeach disgraced former President Yoon Suk Yeol over his botched martial law debacle late last year. 2025-05-27 17:10:39

Leferi's K-beauty pop-up blends influencer power with retail strategy SEOUL, May 27 (AJP) - As beauty creator LeoJ looked out over the sleek new pop-up store in Seoul’s fashionable Seongsu neighborhood, he explained his approach to choosing products that balance accessibility with impact. “I tend to choose popular picks that are easy for beginners to use but show dramatic and immediate effects,” said LeoJ, who has 1.41 million subscribers on YouTube and served as one of the co-curators for the store. “We’re targeting people who might find beauty intimidating, or who want to get better at it.” The store — Select Store – THE BEAUTY UNIVERSE — opened on May 22 and marks the largest retail venture to date for Leferi, a Seoul-based beauty retail and creator management company. The 300-square-meter pop-up, which runs through June 1, brings together the influence of three top beauty creators to showcase a curated selection of skincare and makeup products aimed at demystifying the sprawling K-beauty landscape. Founded in 2013, Leferi manages around 800 online creators and has trained over 1,500. Now, with this physical retail concept, the company is attempting to translate the digital trust built by influencers into real-world consumer decisions — at a time when the K-beauty market has become both a global force and an increasingly crowded field. Company chairman Choi In-seok sees creator-driven curation as a necessary filter for an oversaturated industry. “We have 6,000 brands exporting with 150,000 different products,” he said. “Consumers are increasingly asking, ‘What should I buy?’ It’s very similar to wine — when you enter a wine store, everything is written in French and you ask the staff.” With beauty creators as de facto sommeliers, Leferi has developed evaluation tools, certification marks, and printed guidebooks to help consumers navigate. “What we need is for someone to create standards and provide evaluation,” Choi said. “I think creators should do this.” The company’s ambitions extend well beyond Seoul. In October, Leferi plans to open a 500-square-meter flagship store in Tokyo’s Omotesando, across from @cosme Tokyo, Japan’s largest beauty retailer. “We’re targeting the most expensive spot in Japan,” Choi said, noting the space is typically reserved for high-end luxury brands. Leferi’s international strategy reflects South Korea’s growing dominance in beauty exports, which hit $10 billion last year. But success abroad, Choi argues, requires more than just volume. “If K-beauty can’t reach France, it will eventually peak and decline or continue competing in the mid-to-low price market,” he said, identifying Europe as the ultimate proving ground for Korean brands’ premium potential. Leferi operates on a membership-based model, charging participating brands fees that cover store operations, influencer marketing, and promotions. Roughly 30 to 40 percent of visitors to the Seoul store are international customers, with Chinese tourists making up about half of that group. 2025-05-27 16:27:49

South Korea probes Chinese solar inverters amid security concerns SEOUL, May 27 (AJP) - The South Korean government has launched a review of the nation’s solar inverter market as concerns mount globally over the security risks posed by Chinese-made energy equipment. The Ministry of Trade, Industry and Energy said Tuesday that it convened a meeting last week with major domestic solar companies — including Hanwha Q Cells, Hyundai Energy Solutions, and Hyosung Heavy Industries — to assess the state of the country’s solar inverter sector. Solar inverters, which convert direct current electricity from solar panels into alternating current for homes, factories, and the grid, are often referred to as the “brains” of solar systems. Their remote connectivity makes them both essential and potentially vulnerable to cybersecurity threats. Alarm bells have been ringing in the United States and Europe after investigators uncovered unlisted communication modules embedded in Chinese-manufactured inverters — raising fears that such devices could be exploited for espionage or sabotage. U.S. officials have warned that compromised inverters could be used to disrupt power grids or leak sensitive operational data. Those concerns are especially acute in South Korea, where Chinese brands dominate the market. Industry sources estimate that 90 to 95 percent of inverters deployed in the country originate from Chinese manufacturers. “There is growing unease about potential vulnerabilities in our power grid,” said one industry source who spoke on condition of anonymity due to the sensitivity of the matter. In Europe, similar fears have surfaced following recent large-scale blackouts in Spain and Portugal. Though investigations are ongoing, some cybersecurity experts have pointed to possible links between foreign-made inverters and the outages. In a related move, South Korea’s trade ministry announced it would, for the first time, incorporate cybersecurity and domestic supply chain considerations into the evaluation process for offshore wind power projects. Under the new criteria, companies will receive higher scores for using domestically produced components and technologies — a shift aimed at reducing reliance on foreign equipment while bolstering grid resilience. The revised assessment will also weigh the stability of energy generation and supply, placing greater emphasis on national security in the country’s energy transition. 2025-05-27 16:10:54

Mt. Kumgang poised for UNESCO World Heritage listing SEOUL, May 27 (AJP) - Mt. Kumgang in North Korea is set to be included on the UNESCO World Heritage list. The International Council on Monuments and Sites (ICOMOS) and the International Union for Conservation of Nature (IUCN), which serve as advisory bodies to the World Heritage Committee, have jointly recommended the North's scenic mountain for inclusion on the list, according to UNESCO's tentative lists released on Tuesday. The recommendation comes after North Korea's application for inscription in 2021, which was delayed mainly due to the coronavirus pandemic. None of their recommendations have been rejected so far. The international body described it as "a strikingly beautiful mountain with numerous peaks and curious rock formations, featuring some 12,000 waterfalls and pools formed by crystal-clear waters flowing through hundreds of gorges, along with a seascape stretching along the coastline." It added, "Mt. Kumgang is permeated with numerous legends and cultural relics handed over down through generations," praising its natural settings with "buildings with long history and unique architectural forms." The listing will be determined at the upcoming session of the UNESCO World Heritage Committee in Paris, France in July. If listed, it will become North Korea's third World Heritage site, after the Complex of Koguryo Tombs inscribed in 2004 and the Historic Monuments and Sites in Kaesong in 2013. 2025-05-27 16:07:45

Bill proposed to curb foreign real estate purchases amid surge in Chinese investment SEOUL, May 27 (AJP) - A South Korean lawmaker has introduced legislation aimed at curbing foreign real estate acquisitions in the greater Seoul area, citing a sharp rise in Chinese purchases that he says are fueling speculation and distorting the housing market. Representative Koh Dong-jin of the ruling People Power Party submitted the bill to the National Assembly on Tuesday, proposing mandatory reciprocity measures and new permit requirements for non-citizens seeking to buy land in Seoul, Gyeonggi Province, and Incheon. The proposed restrictions come amid mounting concern over foreign investment in the country’s residential property market. According to government data cited by Koh, foreign real estate purchases in South Korea rose 12 percent in 2024 to more than 17,000 transactions. Of those, Chinese nationals accounted for approximately 65 percent, or 11,346 buyers. The capital region — already under pressure from soaring housing prices — has become a focal point. Gyeonggi Province recorded the highest number of foreign buyers at 7,842, followed by Incheon with 2,273 and Seoul with 2,089. Koh argued that the current legal framework creates a form of “reverse discrimination,” as South Korean citizens are subject to tight mortgage regulations, while some foreign buyers, particularly Chinese nationals, are able to obtain significant financing through banks in their home countries. “While our citizens are bound by stringent loan restrictions when purchasing homes, foreign nationals — especially from China — can access large-scale funding from overseas institutions and buy property here with relative ease,” Koh said during a press briefing. Although reciprocity clauses already exist in South Korean law, they are not compulsory and lack the enforcement mechanisms needed for implementation, Koh said. His bill seeks to make such measures mandatory, requiring the government to align real estate access for foreigners with the policies that South Korean nationals face in their respective countries. “When countries like China impose discriminatory restrictions on South Korean buyers, our government should respond with equivalent measures,” Koh said. 2025-05-27 16:05:54

LG unveils eco-friendly 'Marine Glass' to restore ocean ecosystems SEOUL, May 27 (AJP) - LG Electronics announced Tuesday that it has developed a new functional glass material, dubbed “Marine Glass,” intended to foster the growth of marine organisms and aid in the restoration of ocean ecosystems. The firm has signed a partnership with the Blue Carbon Business Group at Seoul National University to launch pilot projects employing the innovative, water-soluble glass powder. According to LG, Marine Glass dissolves in seawater, gradually releasing mineral ions that act as nutrients for seaweed and microalgae — key players in blue carbon ecosystems. These ecosystems are considered highly effective in capturing and storing atmospheric carbon dioxide, offering potential climate mitigation benefits that exceed those of terrestrial environments. The company said it has spent more than six years developing the technology, which allows precise control over the rate and concentration of mineral dissolution. The material can be produced in various forms, including dense spherical beads engineered to remain in place in fast-moving currents, as well as flat chips designed to cultivate concentrated underwater forests. “Marine Glass is a milestone in demonstrating how advanced materials can serve environmental restoration,” said Paek Seung-tae, head of LG’s Kitchen Solution Business Division. “This agreement marks the first step toward validating the technology’s capabilities and exploring its diverse applications.” Beyond its ecological promise, the technology presents commercial opportunities. Marine microalgae, which could benefit from Marine Glass, are used in pharmaceuticals, dietary supplements, and biomass-based energy production. LG has filed more than 400 patents related to its glass powder technology and currently operates a facility with an annual production capacity of 4,500 tons at its Smart Park in Changwon, South Gyeongsang Province. The company has previously brought other functional materials to market, including an antibacterial product called PuroTec, launched in 2023 in countries such as Vietnam and India. 2025-05-27 15:28:42