Hyundai Motor still at the starting line as Tesla races toward autonomous finish SEOUL, December 18 (AJP) - Tesla’s shares surged to a record high last Tuesday on CEO Elon Musk’s renewed push toward fully autonomous robotaxis — a breakthrough that drew cool look at Hyundai Motor’s lag in self-driving technology. Tesla has been testing its robotaxi service in Austin, Texas since early this year. What began as supervised trials has moved further, with Musk signaling over the weekend that vehicles are now operating without a driver in the seat, reinforcing investor confidence that Tesla is nearing true autonomy. The reaction in South Korea was notably different. Hyundai Motor shares slid 6 percent over the week to close Thursday at 282,500 won ($193.3), even as the benchmark KOSPI gained 1.4 percent on the day. Hyundai AutoEver, the group’s software and autonomous-driving arm, fell 3.37 percent to 272,500 won, extending losses after a sharp sell-off earlier in the week. Autonomous driving — or the perceived lack of progress in it — is increasingly cited by investors as a structural drag on Hyundai’s valuation. While Hyundai Motor shares have risen 33.6 percent this year, the gain is still less than half of the broader market’s advance. Hyundai’s autonomous-driving subsidiary 42dot has been testing self-driving buses in downtown Seoul, but the technology embedded in Hyundai and Kia production vehicles remains largely limited to basic driver-assistance functions such as acceleration, braking and lane-keeping. By global benchmarks, Hyundai has yet to reach the midpoint of the autonomy race. Tesla, by contrast, demonstrated a fully autonomous 296-mile drive from Seoul to Busan in November without human intervention, though the journey was supervised. General Motors has also showcased its “Super Cruise” system on new Cadillac electric vehicles, a technology often compared to Tesla’s Full Self-Driving. Both systems are generally classified as Level 2+ autonomy — legally requiring driver supervision but capable of lane changes, speed control and destination-based navigation. Hyundai has said it aims to deploy Level 3 autonomous driving technology, which handles all driving tasks until the system requests human intervention, by 2027. Leadership reshuffle adds uncertainty Confidence in that timeline has been dented by recent leadership changes. On December 3, Song Chang-hyun, founder and CEO of 42dot and head of Hyundai’s Advanced Vehicle Platform division, resigned. He was followed by Yang Hee-won, president overseeing research and development at both Hyundai and Kia. Yang’s role was filled by Manfred Harrer, a former Apple executive involved in the now-defunct Apple Car project. Following the reshuffle, Hyundai Motor Group Chairman Chung Euisun said the group would “prioritize stability over speed” in autonomous-driving development — a remark widely interpreted as an acknowledgment of setbacks in Hyundai’s transition toward software-defined vehicles. Strategic bet on LiDAR under pressure Beyond leadership churn, Hyundai faces a strategic dilemma rooted in its reliance on LiDAR technology, just as industry momentum pivots away from it. On December 16, U.S.-based LiDAR supplier Luminar Technologies filed for bankruptcy protection following contract cancellations and weakening demand, shortly after Tesla confirmed successful robotaxi tests using only cameras and satellite data. Industry consensus is increasingly shifting toward end-to-end deep learning models that emulate human decision-making rather than rule-based systems, paired with satellite-based data instead of costly LiDAR sensors. Chinese automakers are moving quickly in the same direction. Xpeng recently launched the P7+, the world’s second electric vehicle after Tesla to achieve autonomous driving using cameras alone. Geely affiliate Geespace plans to deploy 72 low-earth orbit satellites by year-end to support high-precision driving data collection. 42dot presses on, but questions linger Despite the shifting landscape, 42dot continues to project confidence. This week, it unveiled Ateria AI, a camera-based end-to-end autonomous-driving system. The announcement follows Hyundai Motor Group’s plan to build an AI factory equipped with 50,000 next-generation Nvidia Blackwell chips to accelerate so-called “Physical AI” initiatives across the group. Still, uncertainty surrounds 42dot’s standing within Hyundai. In Thursday's sweeping year-end reshuffle that replaced more than 200 executives, no successor was named for Song — a signal some analysts interpret as a possible downgrade in strategic priority. “The core reason Hyundai trades at a chronic discount is the fragmentation of its software capabilities across affiliates such as 42dot, Hyundai Mobis, Hyundai AutoEver and Boston Dynamics,” said Choi Tae-young, an analyst at DS Investment & Securities. Analysts argue Hyundai must replicate the model it used to centralize its hydrogen business under the HTWO brand and establish a single command structure for AI and autonomous driving. “Buying 50,000 GPUs or adopting Nvidia’s Drive platform is the easy part,” said Lee Hyun-wook, a researcher at IBK Securities. “The real challenge is empowering one lead entity to standardize data and fundamentally change how the organization works.” The pressure is also mounting on Motional, Hyundai’s joint venture with U.S.-based Aptiv, which has yet to deliver a commercial robotaxi despite aggressive talent recruitment from rivals such as Amazon-backed Zoox. 2025-12-18 17:00:17

Tech slump drags Asian markets lower as investors eye BOJ SEOUL, December 18 (AJP) - Asian equity markets ended broadly lower on Thursday as fallout from an “Oracle shock” weighed on technology shares and investors stayed cautious ahead of the Bank of Japan’s (BOJ) interest rate decision. Most major benchmarks declined, though mainland China’s Shanghai Composite showed relative resilience, appearing largely insulated from weakness in U.S. technology stocks. South Korea’s benchmark KOSPI fell 1.53 percent to 3,994.51, slipping back below the psychologically important 4,000 level and posting one of the steepest losses among major Asian markets, alongside the Shenzhen Component. Foreign investors were heavy sellers, offloading 356.3 billion won ($241 million), while institutional investors sold 101.2 billion won. Retail investors bucked the trend, buying a net 424.2 billion won. The Korean won extended its weakness, trading at 1,478.7 per dollar at 4:10 p.m. local time, down 0.2 won from the previous session. The currency remains under pressure from sustained foreign outflows and expectations of a BOJ rate hike. Heavyweight stocks outperformed the broader market. Samsung Electronics slipped 0.28 percent to 107,600 won. Losses linked to Oracle-related sentiment were partly offset by strong earnings from Micron Technology, which lifted the outlook for the memory chip sector. SK hynix edged up to 552,000 won but pared earlier gains after hitting a session high of 563,000 won. The secondary battery sector suffered sharp losses after Ford, a key customer for South Korean manufacturers, scrapped contract plans and dissolved a joint venture, citing the electric vehicle market “chasm.” LG Energy Solution plunged 8.9 percent to 378,500 won, Samsung SDI fell 6.1 percent to 277,000 won, and SK Innovation, the parent of SK On, dropped 5.16 percent to 104,800 won. Materials supplier EcoPro Materials slid 6.35 percent. Korea Zinc sank 5.7 percent to 1,306,000 won amid controversy surrounding its joint venture with the U.S. Department of Defense. Investor sentiment deteriorated following reports that warrants issued during the process carried an exercise price of just 1 cent, while the U.S. side is set to receive more than $100 million a year in fees. In Japan, the Nikkei 225 dropped 1.03 percent to 49,001.5, pressured by technology weakness and caution ahead of the BOJ policy meeting. Semiconductor-related stocks led declines, with Advantest falling 3.32 percent to 18,805 yen ($120.6), Tokyo Electron down 3.22 percent, and Ibiden sliding 4.33 percent. Automakers showed mixed performance. Honda fell 2.53 percent to 1,543 yen following news of a brake-related recall in the U.S., while Toyota rose 0.42 percent to 3,363 yen, benefiting from apparent rotation within the sector. Financial stocks posted more moderate losses, with Mitsubishi UFJ Financial Group and Mizuho Financial Group down about 1 percent. Taiwan’s TAIEX was relatively steady, slipping 0.21 percent to 27,468.53. TSMC ended flat at 1,430 Taiwan dollars ($45.3), while MediaTek and Hon Hai Precision Industry (Foxconn) recorded modest declines. Mainland Chinese markets were mixed. The Shanghai Composite rose 0.16 percent to 3,876.37, while Hong Kong’s Hang Seng Index edged down 0.25 percent. Technology shares underperformed, with the Shenzhen Component falling 1.29 percent. Battery maker CATL dropped 2.98 percent and automaker BYD slid 1.76 percent. 2025-12-18 16:47:20

Panmunjeom: The Cold War relic awaiting inter-Korean thaw SEOUL, December 18 (AJP) - Located within the Joint Security Area (JSA), Panmunjeom is the historic site where the Korean War armistice agreement was signed in 1953. Today, it remains a unique zone jointly managed by North and South Korea, partitioned by the Military Demarcation Line. While the area currently sits in silence due to strained inter-Korean relations and a total freeze in diplomacy, it remains the primary stage for global attention whenever dialogue resumes on the peninsula. Once an anonymous hamlet consisting of only a few thatched-roof houses, Panmunjeom rose to international prominence when it became the venue for armistice negotiations on Oct. 25, 1951. After nearly two years of talks, the armistice agreement was finally signed here on July 27, 1953. The site also facilitated the exchange of prisoners of war between August and September of that year. The JSA features seven functional buildings situated directly atop the MDL, including those used by the Neutral Nations Supervisory Commission (NNSC). Facilities on the southern side include Freedom House and Peace House, while the northern side is home to Panmungak and Panmungwan (formerly known as Tongilgak). Public access to the site has been restricted for over two years. Following the unauthorized crossing of a U.S. soldier into North Korea on July 18, 2023, general tours of Panmunjeom remain indefinitely suspended as of December 2025. 2025-12-18 16:38:42

Construction site collapse leaves one in cardiac arrest, several injured SEOUL, December 18 (AJP) - A steel bar collapsed at a subway construction site near Yeouido in Seoul, trapping several workers, police authorities said on Thursday. According to rescue officials, the collapse occurred at around 1:20 p.m., and all seven workers were rescued shortly afterward. Among them, one man in his 50s was found in cardiac arrest and was taken to a nearby hospital, while another man in his 50s suffered a minor ankle injury. A foreign worker in his 30s escaped on his own and was later treated at the scene for an injury to his wrist. The accident is believed to have occurred about 70 meters underground when the steel bar fell during concrete pouring work. Police said they plan to investigate whether there were any safety lapses during the work. 2025-12-18 16:22:44

Samsung tests LPDDR-based server memory as AI data centers seek lower power alternatives SEOUL, December 18 (AJP) - Samsung Electronics is testing a new LPDDR-based server memory module as artificial intelligence data centers increasingly prioritize power efficiency over raw performance, signaling a potential shift in how memory is deployed in next-generation AI infrastructure. The company said it has begun sampling its second-generation SOCAMM (Small Outline Compression Attached Memory Module), a server memory module built on low-power LPDDR technology, to global customers. The move comes as operators of AI servers grapple with rising electricity costs and thermal constraints driven by GPU-intensive workloads. SOCAMM2 is designed to address those pressures by bringing mobile-class low-power memory into the server environment — a domain long dominated by RDIMM-based DRAM. Samsung said the module delivers more than twice the bandwidth of earlier LPDDR-based solutions while cutting power consumption by over 55 percent compared with conventional server memory configurations. The product is not positioned as a replacement for RDIMM, which remains the industry standard for general-purpose servers. Instead, SOCAMM2 targets specific AI workloads, particularly inference-oriented systems where power efficiency and heat management increasingly outweigh peak compute performance. According to Samsung, the Korean tech giant is working with Nvidia to validate SOCAMM2 in AI server platforms, reflecting broader efforts to optimize memory architectures for GPU-driven systems. Nvidia did not disclose details of the collaboration, but Samsung said the two companies are jointly evaluating performance and compatibility. The development highlights a growing reassessment of memory design in AI data centers. While DRAM capacity and speed have historically been the primary focus, power consumption is emerging as a critical bottleneck as AI deployments scale. Samsung added that discussions are under way to standardize SOCAMM through JEDEC, the industry body that defines memory specifications. Standardization would be a key step toward broader adoption, allowing system makers and cloud providers to integrate the module beyond limited pilot deployments. Analysts at TrendForce and Omdia have noted that while LPDDR-based server memory offers clear efficiency gains, its adoption will hinge on compatibility with existing server architectures and performance trade-offs at scale. For Samsung, the move underscores an effort to expand its memory portfolio beyond conventional DRAM and HBM products as AI infrastructure evolves. Whether SOCAMM2 becomes a niche solution or a wider industry option will hinge on customer uptake and standardization progress in the coming quarters. 2025-12-18 16:10:52

Weapons testing deal to sharpen KF-21 fighter jet's strike capability SEOUL, December 18 (AJP) - Korea Aerospace Industries (KAI) said on Thursday it has signed a contract with South Korea’s Defense Acquisition Program Administration (DAPA) to conduct additional weapons testing for the KF-21 fighter jet. The contract is valued at 685.9 billion won ($500 million) and is intended to support continued development of the aircraft by enabling flight-test verification of air-to-ground capabilities, KAI said. The additional weapons testing program will run through December 2028. Under the plan, testing and performance verification will expand the KF-21’s operational envelope from its current focus on air-to-air weapons to include air-to-ground armaments. KAI said it will also conduct tests of air-to-ground functions for the aircraft’s active electronically scanned array (AESA) radar and other core avionics, with the goal of securing broader combat capability by the end of the program. Based on the test results, KAI said it plans to begin sequentially fielding air-to-ground capabilities from the first half of 2027, earlier than the original target of the end of 2028. The expanded weapons capability is expected to enhance the KF-21’s competitiveness in the global fighter aircraft market and increase interest from overseas customers, the company said. KAI is currently producing the first mass-production batch of the KF-21, with deliveries to the South Korean Air Force scheduled to begin sequentially in the second half of 2026. The company said a number of countries, including those in the Middle East and Southeast Asia that already operate the FA-50 light attack aircraft, have expressed strong interest in the KF-21. “Successfully carrying out the phased test and evaluation of additional KF-21 armaments will provide an opportunity to demonstrate testing and verification capabilities tailored to future customer requirements,” KAI CEO Cha Jae-byung said. 2025-12-18 16:03:16

K-steel strains to stay afloat amid prolonged slump and gov't relief Editor's Note: This is the third installment in AJP's 2026 outlook series on South Korea's key industries, based on forecasts by the Korea Chamber of Commerce and Industry (KCCI). SEOUL, December 18 (AJP) -Stagnation is set to extend into 2026 for Korean steelmakers as demand remains sluggish and global markets stay flooded with low-priced Chinese exports — a downturn severe enough to draw legal protection for the industry. According to data compiled by the KCCI, steel output is expected to remain virtually unchanged at 63.9 million tons in 2026, extending a decline that has persisted since 2021. Exports, which rose 1.5 percent this year to 28.8 million tons, are forecast to fall 2.1 percent to 28.2 million tons next year, as Chinese mills accelerate overseas shipments while the United States and Europe harden trade barriers. Domestic demand offers little relief The prolonged slump in construction and automobiles continues to weigh heavily on domestic steel consumption. Apparent steel consumption fell 9.1 percent to 43.4 million tons in 2025, with only a modest 1.2 percent rebound expected in 2026. Construction investment has been in retreat, with building starts through September down 4.6 percent year-on-year. Automotive production through October also slipped 1.5 percent, compounding weakness in flat products such as hot-rolled coil and thick plates that are closely tied to construction and manufacturing demand. China's import share surges despite trade remedies Steel imports fell 8.7 percent to 13.4 million tons in 2025, reflecting softer demand and the impact of anti-dumping measures. Even so, China's share of Korea's steel imports surged to 62.2 percent, up sharply from 47.7 percent in 2022, intensifying concerns that low-priced Chinese products continue to undercut domestic producers. Data from the Korea Iron and Steel Association show Chinese steel imports nearly quadrupled from 338,000 tons in 2021 to 1.26 million tons in 2023. Hot-rolled coil imports reached 1.53 million tons in the first 11 months of 2023 alone, with Chinese products priced up to 30 percent below Korean equivalents. The pressure has been especially severe for specialized producers. SeAH CSS, a major maker of special steel bars, saw operating profit plunge 91 percent, from 125.7 billion won in 2022 to 11.4 billion won in 2024, as Chinese special steel bar imports jumped 50 percent over two years to 670,000 tons, accounting for 92 percent of total imports in the category. Two headwinds define 2026 The outlook for 2026 is shaped by two overriding challenges: China's relentless outbound push and escalating trade walls in advanced economies. China's steel production capacity still far exceeds domestic demand, forcing mills to ship out excess supply and further depress prices. This erodes the competitiveness of Korean producers, which tend to compete on quality and specialized grades rather than volume. Beijing said in March it would aim to cut annual crude steel output by about 50 million tons, potentially bringing production below 1 billion tons for the first time in six years. POSCO Group said during its third-quarter earnings call that it expects Chinese output to decline about 5 percent this year and possibly 10 percent next year, though skepticism remains after past pledges failed to meaningfully absorb oversupply amid a prolonged property downturn. At the same time, the United States and the European Union (EU) are tightening import controls. Washington imposed 50 percent tariffs this year on steel and aluminum derivatives, scrapping a quota system that had allowed Korea limited duty-free volumes and forcing Korean suppliers to compete more directly on price. In Europe, the Carbon Border Adjustment Mechanism (CBAM) is moving closer to full implementation, imposing carbon-based costs on imports. The EU remains Korea's largest regional steel export market, with shipments totaling $4.48 billion last year, slightly ahead of the United States at $4.35 billion. K-Steel Act opens restructuring path A rare legislative breakthrough in late November injected cautious optimism into the industry. The National Assembly passed the "Special Act on Strengthening Steel Industry Competitiveness and Carbon Neutrality Transition," widely known as the K-Steel Act, marking the first comprehensive government support framework for the sector. The law establishes a special committee under the Prime Minister's Office and mandates five-year master plans and annual roadmaps by the Ministry of Trade, Industry and Resources. Crucially, it allows coordinated capacity reductions and production cuts without triggering antitrust penalties — a long-standing obstacle to industry-wide restructuring. "Article 38, which provides an antitrust exemption for joint production adjustments, gives companies legal cover to coordinate capacity cuts in response to oversupply," said Kwon Ji-woo, an analyst at Hanwha Investment & Securities. The act also includes measures aimed at shielding domestic producers from unfair imports and calls for national infrastructure planning for hydrogen pipelines and power grids, both seen as essential for hydrogen-based steelmaking and expanded electric-arc furnace capacity. Industry officials caution that legislation alone will not reverse structural headwinds, but welcomed the framework as a foundation for coordinated action that could reshape the competitive landscape from 2026 onward. Hyundai Steel bets on U.S. expansion Against the domestic malaise, Hyundai Steel is moving to deepen its U.S. footprint. The company said it will form a joint venture with POSCO Group to build a 2.7-million-ton electric-arc furnace mill in Louisiana, targeting automotive steel demand tied to Hyundai Motor Group's expanding U.S. manufacturing base. The $5.8 billion project will be funded equally through equity and external borrowing and will produce hot-rolled and cold-rolled coil for Hyundai Motor's Metaplant America in Georgia. The plant began mass-producing the Ioniq 5 in October 2024 and is ramping toward a long-term capacity target of 1.2 million vehicles annually. The mill is slated to come online in 2029, positioning Hyundai Steel to navigate rising protectionism and intensifying competition in North America, including changes triggered by Nippon Steel's $14.9 billion acquisition of U.S. Steel. 2025-12-18 16:01:31

Constitutional Court upholds impeachment of police chief over martial law involvement SEOUL, December 18 (AJP) - The Constitutional Court of Korea on Thursday unanimously upheld the impeachment of police chief Cho Ji-ho over his involvement in disgraced former President Yoon Suk Yeol's martial law martial law debacle last year. With the verdict, the commissioner general of the National Police Agency was immediately stripped of his post. The decision comes nearly a year after the National Assembly voted to impeach him for allegedly blocking lawmakers from entering the National Assembly to oppose Yoon's Dec. 3 declaration of martial law. The court said Cho carried out "unconstitutional and illegal" orders from Yoon, violating the principles of democracy and the separation of powers. His grave violations were deemed sufficient grounds for dismissal. Cho was indicted in January this year while in custody on charges related to the debacle. He was later granted bail due to treatment for blood cancer and is now standing trial without detention. 2025-12-18 15:56:35

South Korea's Daesang to buy German amino-acid maker for $36 million SEOUL, December 18 (AJP) - South Korea's Daesang Corp. said on Thursday it will enter the pharmaceutical biotechnology sector through the acquisition of AMINO GmbH, a German company specializing in pharmaceutical-grade amino acids. In a regulatory filing, Daesang said it will acquire a 100 percent stake in AMINO for about 50.2 billion won ($36 million). The company said it is in the process of securing the necessary regulatory approvals and aims to complete the transaction by March 2026. Founded in 1958, AMINO manufactures pharmaceutical amino acids used in intravenous solutions, clinical nutrition products and cell culture media, as well as excipients used in biopharmaceutical production. The company operates a research center and three manufacturing facilities in the Prellstedt area of northern Germany and supplies major global biopharmaceutical companies and medical nutrition specialists. Daesang said the acquisition will allow it to enter the high-value pharmaceutical amino-acid market, citing steady growth in demand for IV solutions and patient nutrition. The company also pointed to rising demand for inputs linked to the growth of biopharmaceuticals, including protein-, gene- and cell-based therapies. AMINO’s purification technology, manufacturing infrastructure and experience navigating European regulatory requirements are expected to be key assets as Daesang expands into pharmaceutical biotechnology, the company said. “This acquisition is a strategic investment that enables Daesang to expand beyond its existing materials business into the high-value pharmaceutical biotech market,” CEO Lim Jung-bae said in a press release. “We will strengthen our competitiveness in pharmaceutical amino acids by leveraging AMINO’s technology and global network.” 2025-12-18 15:29:38

Pro-Pyongyang paper slams Washington for omitting North Korea from US security policy SEOUL, December 18 (AJP) - What is most "notable" in the U.S.' National Security Strategy (NSS) released early this month is that it does not mention North Korea at all, said a pro-North Korea newspaper in Japan. In a column published on Thursday, Choson Sinbo, a mouthpiece for Pyongyang run by the General Association of Korean Residents in Japan or Chongryon said failing to mention North Korea would amount to the U.S. admitting the "complete failure" of its denuclearization policy for the Korean Peninsula. The paper also criticized the NSS as lacking strategic depth, describing the "self-contradictory and distorted" document as containing little international analysis and being driven primarily by U.S. President Donald Trump's "America First" principles. The rebuke followed similar remarks last Friday when the paper slammed Washington for trying to shift from "world police" to "fortress America." Released on Dec. 4, this year's NSS, which outlines U.S. security visions and strategies, made no mention of North Korea or its denuclearization. The omission marks an unusual departure from previous administrations, raising concerns here about shifting U.S. security priorities. 2025-12-18 15:25:16