Hanwha Ocean Tops 1 Trillion Won in Operating Profit After 3 Years, Labor Tensions Loom Hanwha Ocean has reached 1 trillion won in operating profit three years after its launch, strengthening earnings stability across Hanwha Group as the shipbuilder focuses on LNG carriers and specialty vessels. According to the industry on Tuesday, Hanwha Ocean said in a regulatory filing that its 2025 consolidated revenue rose to 12.6884 trillion won and operating profit climbed to 1.1091 trillion won as sales of commercial and specialty ships increased. Revenue was up 18% from a year earlier, and operating profit jumped 366%, driven by higher LNG carrier and specialty-ship sales. It was the first time the company’s annual operating profit topped 1 trillion won since 2018, and the first such result since it joined Hanwha Group. Hanwha Group acquired Daewoo Shipbuilding & Marine Engineering in 2023 and relaunched it as Hanwha Ocean. After joining the group, Hanwha Ocean accelerated restructuring, ending three straight years of losses that began in 2021. It posted 237.8 billion won in operating profit in 2024, then expanded that figure by more than fivefold in 2025 to re-enter the “1 trillion won club.” The company credited a strategy of focusing on higher-value ships, including LNG carriers, specialty vessels and defense ships, while screening out orders with uncertain profitability and improving cost structure and production efficiency. Hanwha Ocean said it was the only South Korean shipbuilder to post more than $10 billion in orders last year. It said it has booked total orders of $10.05 billion so far, including 13 LNG carriers, 20 very large crude carriers and 17 container ships. The rebound has also lifted Hanwha Group’s valuation, the report said, as investors refocused on the group’s core businesses in defense, energy and shipbuilding and shares of key affiliates rose, pushing the group’s market capitalization above 150 trillion won. Hanwha Ocean gave a positive outlook for this year, citing expectations for revenue growth as high ship prices for LNG carriers and other vessels persist, and for steady profitability as the share of high-margin projects increases. Labor-management relations remain a key challenge. The company has said it plans to be the first in the shipbuilding industry to pay the same performance bonuses to prime contractors and subcontractors, but tensions have not fully eased at worksites. Some have warned that any gap between the principle of equal bonuses and the actual payment structure could reignite conflict. A business group official said, “Hanwha Ocean’s normalization has led not only to improved results at an individual affiliate but also to a revaluation of the group as a whole,” adding, “Uncertainty in labor-management relations over performance bonuses could become a burden for Hanwha Ocean ahead of major projects.”* This article has been translated by AI. 2026-02-04 17:18:00

Mortgage Rates Top Unsecured Loan Rates at South Korea’s Five Biggest Banks Mortgage rates at South Korea’s five biggest banks — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — have risen above unsecured personal-loan rates across the board, upending the usual pricing rule that secured loans cost less. The shift is increasingly being seen as a new normal, leaving borrowers facing maturities or rate resets weighing whether to use cheaper unsecured loans to pay down part of their mortgages. As of Feb. 4, the banks’ five-year fixed or hybrid mortgage rates ranged from 4.13% to 6.73% annually. Unsecured loans tied to a six-month floating rate were lower, at 3.84% to 5.42%. That put unsecured loans 0.29 percentage points cheaper at the low end and 1.31 points cheaper at the high end — a clear “rate inversion.” Typically, mortgages carry lower rates because collateral reduces the risk of loss. But all five banks are now charging more for mortgages than for unsecured credit. A key driver is diverging market rates used as loan benchmarks. Over the past year, bank bond yields moved in opposite directions by maturity. The six-month yield slipped to 2.824% as of Feb. 3 from 2.994% in early February last year, while the five-year yield climbed to 3.766% from 2.983% — up nearly 1 percentage point. Different expectations across maturities helped push the rates apart. Banks’ tighter management of household lending is reinforcing the inversion. Financial authorities changed capital rules this year to require banks to hold more risk-weighted assets, or RWA, when issuing new mortgages. The minimum RWA weight for mortgages rose to 20% from 15%, meaning banks’ financial soundness can deteriorate more even if they lend the same amount as in past years. To protect capital, banks are under pressure to curb mortgage supply and raise entry barriers, including by increasing add-on rates. Woori Bank has already raised add-on rates by 0.30 to 0.38 percentage points since Feb. 2 for apartment-backed mortgages and its “Woori Jeonse Loan” product, citing more efficient household-debt management. Other banks are also expected to follow with similar increases. Mortgage rates may not fall easily as overall household lending is expected to tighten further. Financial Services Commission Chairman Lee Eok-won said the banking sector’s household-loan growth rate was 1.8% last year and that authorities plan to set this year’s management target lower, adding that a separate management target would be set for mortgages. The unusual pricing has complicated decisions for borrowers nearing maturity or a rate change. Taking out a cheaper unsecured loan to repay part of a mortgage could reduce interest costs, but it is constrained by debt-service ratio rules and a cap that limits unsecured borrowing to 100% of annual income. With top mortgage rates nearing 7%, some borrowers have said they are afraid of upcoming rate resets. A banking industry official said the inversion is unlikely to be resolved soon because mortgage rates have become more sensitive to policy factors. The official added that banks will keep reviewing ways to reduce mortgage supply, also in light of the government’s comments about normalizing real estate finance.* This article has been translated by AI. 2026-02-04 17:03:00

Lotte Chemical posts 2025 operating loss of 943.6 billion won as deficit widens Lotte Chemical said Tuesday it posted 2025 consolidated revenue of 18.483 trillion won and an operating loss of 943.6 billion won. Revenue fell 7.1% from a year earlier, while the operating loss widened 3.2%. The company has remained in the red for four straight years since 2022, citing oversupply of commodity petrochemical products from China. In the fourth quarter, revenue totaled 4.7099 trillion won and the operating loss was 433.9 billion won. Its basic materials business — Lotte Chemical Basic Materials, LC Titan, LC USA and Lotte GS Chemical — reported revenue of 3.3431 trillion won and an operating loss of 395.7 billion won. Revenue slipped 1.2% from the previous quarter, and profitability weakened due to the startup of Lotte Chemical Indonesia (LCI) and seasonal off-peak demand. The advanced materials business posted revenue of 929.5 billion won and operating profit of 22.1 billion won. Profitability declined from the previous quarter as sales volumes fell amid seasonal weakness and year-end inventory adjustments by customers. Subsidiary Lotte Fine Chemical reported revenue of 439.1 billion won and operating profit of 19.3 billion won. Lotte Energy Materials posted revenue of 170.9 billion won and an operating loss of 33.8 billion won. Lotte Chemical said it plans to pursue a strategy centered on two tracks this year: reducing the share of commodity petrochemicals in its business portfolio and building a foundation for future growth.* This article has been translated by AI. 2026-02-04 17:00:00

South Korea eyes top-10 finish at Milan-Cortina Winter Olympics SEOUL, February 4 (AJP) - South Korea aims for a top 10 finish with at least three gold medals at this year's Winter Olympics which kick off in Cortina d'Ampezzo and Milan later this week. At the previous Olympics in Beijing four years ago, the country finished 14th, winning two gold, five silver, and two bronze medals. Its most recent top-10 finish came at the 2018 Pyeongchang Games, where it placed seventh overall with five gold, eight silver, and four bronze medals. The opening ceremony of the quadrennial sporting event is slated for Friday in Milan, marking a return to the European country for the first time in about two decades since the 2006 Turin Games. South Korea will field 71 athletes in snowboarding, bobsleigh, speed skating, short-track skating, and figure skating. The country's first medal could come from snowboarding, where Lee Sang-ho, the Pyeongchang silver medalist who is considered a dark horse contender, will compete in men's parallel giant slalom on Sunday. But the country might have to wait a few days for its first gold medal, which could come on Feb. 10, when South Korea's ace short-track speed skaters compete in the mixed 2,000-meter relay. Teen snowboarder Choi Ga-on is also aiming for a gold medal in the women's snowboard halfpipe final on Feb. 13, after winning three International Ski and Snowboard Federation (FIS) World Cup events leading up to the Olympics. Figure skater Cha Jun-hwan, who finished fifth at the Beijing Games, has his sights set on becoming the first South Korean man to win an Olympic medal in the sport. On Feb. 16, speed skating favorites Kim Min-sun and Lee Na-hyun will race in the women's 500 meters. Meanwhile, the two-week-long Olympics on snow and ice will run until Feb. 22, bringing together around 3,500 athletes from over 90 countries to compete for 116 medals across 16 disciplines. 2026-02-04 16:44:44

Korean tire makers weather US tariff headwinds, turn focus to high-end segment SEOUL, February 04 (AJP) - South Korean tire manufacturers reported higher sales last year despite the impact of U.S. tariffs on auto parts, supported by solid replacement-tire demand and price increases. Hankook Tire & Technology said Wednesday its tire business recorded sales of 10.32 trillion won ($7.7 billion) last year, up 9.6 percent from a year earlier and surpassing the 10 trillion won mark for the first time. Operating profit, however, fell 4.4 percent to 1.68 trillion won. The company said it maintained steady growth in both global original-equipment (OE) and replacement markets despite economic uncertainty, supported by rising demand for larger-diameter tires. Hankook said it expanded supply partnerships with automakers including Porsche, BMW, Xiaomi, Lucid Motors, Cupra and Kia, and now provides original-equipment tires to more than 40 brands across over 300 vehicle models. Nexen Tire reported sales of 3.19 trillion won last year, up 12 percent and marking its fifth consecutive year of revenue growth. Operating profit edged down 1.07 percent to 170.2 billion won. The company attributed sales growth to stable contributions from the second phase of its European plant expansion, along with continued gains in OE supply for both electric and internal-combustion vehicles supplied to more than 30 global automakers. Replacement tire sales also grew steadily, supported by region-specific product strategies. "U.S. tariffs weighed on profitability but we mitigated the impact through diversified regional distribution and a stronger product mix driven by higher sales of larger-diameter tires," a Nexen Tire official said. "Lower raw material prices and easing ocean freight rates, together with cost-efficiency measures, also helped improve margins." Kumho Tire, which is scheduled to release earnings on Thursday, is also expected to post revenue growth. According to financial data provider FnGuide, the company’s sales last year are estimated at 4.74 trillion won, up 4.6 percent, while operating profit is projected to fall 6.8 percent to 548.2 billion won, partly reflecting the impact of a fire at its Gwangju plant in May last year. Based on these estimates, combined revenue for the three tire makers is projected to reach 18.25 trillion won, up 8.7 percent from the previous year. This year, the companies plan to sustain growth through overseas capacity expansion and a focus on premium segments. Hankook said it will continue expanding production at its Tennessee plant in the United States and its facility in Hungary, while strengthening partnerships with premium automakers. The company aims to raise the share of high-inch tires to 51 percent and increase the share of electric-vehicle tires to at least 33 percent of passenger-car and light-truck OE revenue. Nexen said it will concentrate on improving sales capabilities and growth quality through marketing efforts aimed at increasing brand exposure and strengthening customer partnerships. It also plans to leverage its premium OE track record to further expand replacement-tire sales. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2026-02-04 16:34:41

FTISLAND’s Choi Min Hwan Says He Is Recovering After Fainting on Stage FTISLAND drummer Choi Min Hwan has updated fans on his health after collapsing on stage. On Monday, Choi wrote on a fan community platform that he had never fainted since his debut and said he was surprised by what happened. “You must have been really shocked. I was, too,” he said. He said he had not been feeling well but did not realize it was that serious. “I’m recovering well now, eating well and resting, so I don’t think you need to worry too much,” he added. Choi said he would return to his usual self soon and show fans him playing drums again. He apologized to fans and audience members who were startled and thanked festival staff for their concern. Choi previously collapsed after losing consciousness during the “2026 First Music Station” performance on Jan. 31 at KINTEX in Ilsan, Goyang, south of Seoul. His agency, FNC Entertainment, said on a fan platform that he showed signs of temporary exhaustion during the show and was checked by medical staff. The company said no major health issues were found and that he is resting while his recovery is monitored. It apologized for causing concern and said it would more closely monitor the artist’s condition going forward.* This article has been translated by AI. 2026-02-04 16:24:22

South Korea’s Rising Winter Sports Stars to Watch at the Milan-Cortina Olympics The 2026 Milan-Cortina d’Ampezzo Winter Olympics are expected to be a key test of South Korea’s next generation in winter sports. The Games will show whether South Korea can broaden its medal hopes beyond ice events to snow sports, while a younger core takes on leading roles. ◆Short track: Lim Jong-eon, Kim Gil-li in focus Short track remains South Korea’s strongest Olympic sport, and Lim Jong-eon, 19, has emerged as a headline prospect. The International Olympic Committee said on its website on Feb. 2 (local time) that Lim was one of its “10 rising athletes who will shine at the 2026 Winter Olympics,” the only South Korean on the list. The IOC called him “the next ace of the South Korean team,” noting he won the national trials by beating 2022 Beijing Olympic gold medalist Hwang Dae-heon. Lim earned the national team spot last April with 102 points, finishing ahead of Hwang and Park Ji-won. In his World Cup debut season on the International Skating Union circuit in 2025-26, he won gold in the 1,500 meters and silver in the 1,000 in October in Montreal. He added a 1,000 win in November in Dordrecht, Netherlands, and finished fourth overall in the 1,000 standings in his first senior season. On the women’s side, Kim Gil-li, 22, is set for her first Olympics and will skate five events: the mixed 2,000-meter relay, women’s 3,000 relay, and the 500, 1,000 and 1,500. Her main event is the 1,500. On Feb. 4, Canadian sports analytics firm Shoreview Sports Analytics projected that “Kim Gil-li will win” the 1,500. Kim moved into the senior ranks in the 2022-23 season and quickly rose. In 2023-24, her second senior season, she won the overall ISU World Cup title to become world No. 1, the first South Korean women’s short-track skater to claim the Crystal Globe. At the Harbin Asian Winter Games last February, she won the women’s 1,500 and the mixed relay for two gold medals. She took silver in the 1,000 and 500 behind South Korea’s top skater, Choi Min-jeong, 28. ◆A new wave after Lee Sang-hwa and Kim Yu-na In women’s speed skating, Lee Na-hyeon, 21, is aiming to fill the sprint void left after Lee Sang-hwa’s retirement. In the 2023-24 season, Lee Na-hyeon set a junior world record of 37.34 seconds in the women’s 500 at the fifth ISU World Cup stop. In the 2025-26 World Cup season, she ranked fourth in the women’s 500 across stops 1-4. She also raised her profile at the Harbin Asian Winter Games, winning the women’s 100 by beating South Korea’s sprint star Kim Min-seon, 27. Lee Na-hyeon added gold in the team sprint and silver in the women’s 500. Figure skater Shin Ji-a, 18, will also make her Olympic debut. South Korea has not produced an Olympic figure-skating medalist since Kim Yu-na won gold at the 2010 Vancouver Games and silver at the 2014 Sochi Games. Shin dominated as a junior, winning silver at the junior world championships four straight years from 2022 through 2025. She also took silver at the 2024 Gangwon Winter Youth Olympics. After becoming age-eligible for seniors, she won both the first and second national team trials to secure an Olympic berth. ◆Choi Ga-on, Lee Chae-woon aim at first snow gold Snow events have long been a weak spot for South Korea at the Winter Olympics. The country’s only medal in a snow sport is Lee Sang-ho’s silver in snowboard parallel giant slalom at the 2018 Pyeongchang Games. This time, South Korea’s snowboard halfpipe team has drawn talk of possible medals for both men and women. Choi Ga-on, 18, is viewed as a top gold contender in the women’s halfpipe. Forbes reported on Feb. 3 that Choi could be “the strongest challenger” to Chloe Kim, who is seeking a third straight Olympic title. Forbes added that if Choi wins gold, she would also break the record for the youngest Olympic snowboard gold medalist. Choi won the pipe event at the X Games in January 2023 at age 14 years, 3 months, setting a record as the youngest champion. In the 2025-26 season, she won three times on the International Ski and Snowboard Federation World Cup circuit and is ranked No. 1 in women’s halfpipe. On the men’s side, Lee Chae-woon, 20, is the leading halfpipe hope. He broke through in 2019 by winning big air at the World Rookie Tour at age 13, then became the inaugural champion of the FIS Snowboard Halfpipe Asian Cup in 2020. At the 2022 Beijing Winter Olympics, he competed as the youngest athlete on South Korea’s team and finished 14th. His rise continued in 2023 at the Bakuriani world championships, where he won gold at age 16 years, 10 months, becoming the youngest champion and South Korea’s first snowboard world champion. He later won two gold medals at the Gangwon Winter Youth Olympics in halfpipe and slopestyle, and took gold in slopestyle at the Harbin Asian Winter Games. Lee’s momentum was interrupted by a torn knee meniscus in August 2024, followed by knee surgery last March. He struggled in World Cup events this season, but showed signs of a rebound on Jan. 18 at the Laax World Cup in Switzerland, finishing eighth for his best result of the season. * This article has been translated by AI. 2026-02-04 16:15:00

Seoul, Washington likely to set 2028 target for wartime command handover SEOUL, February 04 (AJP) - South Korea and the U.S. are expected to set 2028 as the target year for the transfer of wartime operational control (OPCON) at their annual Security Consultative Meeting (SCM) in Washington this October, reflecting growing confidence in Seoul’s ability to lead combined defense operations. According to government sources on Wednesday, the allies are considering 2028 as the most realistic timeline, aiming to complete the handover during the respective terms of South Korean President Lee Jae Myung and U.S. President Donald Trump. Ahead of the SCM, the two sides plan to complete verification of Full Operational Capability (FOC), the second stage in the three-step OPCON transition process, and seek formal approval from their defense chiefs. The transition consists of three phases: Initial Operational Capability (IOC), Full Operational Capability (FOC) and Full Mission Capability (FMC). Having completed the FOC evaluation, the allies are now in the final verification stage, with only confirmation of the future Combined Forces Command reportedly remaining. Once the FOC results are approved, the defense ministers are expected to announce a target year for the transfer. With Trump’s current term ending in January 2029, 2028 is viewed as the most viable option. Following the announcement, the allies will move to the final FMC phase, during which the precise timing of the handover will be determined. While FOC involves extensive quantitative assessments, FMC relies more on qualitative judgments, making political leadership a decisive factor. Lee has repeatedly expressed his determination to complete the OPCON transfer during his term. Trump, who has consistently urged allies to shoulder greater security responsibilities, is also regarded as supportive of the transition. Under the 2026 National Defense Strategy released last month, Washington emphasized that South Korea should, as much as possible, take primary responsibility for countering North Korea’s conventional threats. The document describes South Korea as a country with high defense spending, a strong defense industry and a conscription-based military, capable of defending itself with “critical but more limited” U.S. support. If FMC verification begins in 2027 as expected, the long-delayed OPCON transfer—often described as a two-decade-old task for the alliance—could be realized in 2028. Operational control refers to the authority to command designated forces to carry out specific missions within a defined time and space. Currently, South Korea’s Joint Chiefs of Staff chairman exercises peacetime control, while wartime control rests with the commander of the Combined Forces Command, a U.S. four-star general. After the transfer, a South Korean four-star general will assume wartime command. The process gained momentum in 2005, when the Roh Moo-hyun administration formally proposed the transfer. In 2014, under the Park Geun-hye administration, Seoul and Washington agreed to pursue a conditions-based transition without a fixed timetable. Under that agreement, the transfer depends on three conditions: South Korea’s ability to lead combined operations, the alliance’s capacity to counter North Korea’s nuclear and missile threats, and a security environment conducive to a stable transition. To support verification this year, the allies plan to proceed with the Freedom Shield exercise, scheduled for March 9–19, with a crisis management drill from March 3–6. Freedom Shield is a command post exercise designed to rehearse combined operational plans through simulations of a full-scale conflict on the Korean Peninsula. It covers scenarios ranging from defensive and counteroffensive operations to securing weapons of mass destruction. Pyongyang has repeatedly condemned the drills as “war rehearsals,” and retaliatory provocations, including missile launches, cannot be ruled out during the exercise period. Against this backdrop, observers say Seoul is likely to adopt a low-key approach, as it did during last year’s Ulchi Freedom Shield exercise, by issuing conciliatory messages in advance. At last year’s opening ceremony, Lee stressed the importance of inter-Korean relations, and the joint statement notably avoided references to “North Korea,” “threat” and “provocation.” 2026-02-04 16:13:04

Singer Kim Ho Joong Loses Lawsuit Against 180 Alleged Anti-Fans Singer Kim Ho Joong, who is serving a prison sentence over a drunk-driving hit-and-run case, has lost a damages lawsuit he filed against 180 alleged anti-fans seeking about 700 million won. The Seoul Central District Court ruled at 2 p.m. Tuesday in the case Kim brought against Kang, identified only by the surname, and 179 others. Kim filed the lawsuit in June 2021, seeking 764 million won in damages from the 180 people over negative posts about him online. They were reported to have raised issues related to his military service. Kim was indicted after prosecutors said he crashed into a taxi while driving after drinking in Apgujeong-dong, Seoul’s Gangnam District, in May 2024, then fled and had his manager make a false confession. The court sentenced him to 2 1/2 years in prison after finding him guilty of charges including dangerous driving causing injury and fleeing after causing injury under the Act on the Aggravated Punishment of Specific Crimes. He is serving his sentence at Somang Prison in Yeoju, Gyeonggi Province, and is scheduled to be released in November.* This article has been translated by AI. 2026-02-04 16:03:00

Heritage agency unions file complaint against former chief over Kim Keon Hee allegations The controversy over allegations that Kim Keon Hee, wife of former President Yoon Suk Yeol, improperly used national heritage sites has escalated into an internal clash at the Korea Heritage Service. The agency’s internal audit led to heavy discipline for working-level officials who followed instructions, while excluding Choi Eung-chon, who led the agency at the time — a result unions described as scapegoating. Some in the civil service say the fallout will be hard to resolve unless administrative structures that leave officials vulnerable to improper demands from those in power are changed. The Korea Heritage Service branch of the Government Employees’ Union and the broader union held a news conference Feb. 4 outside Jongno Police Station in Seoul and filed a complaint with investigators against Choi. They accused him of abuse of authority, dereliction of duty and obstruction of business. They said investigating Choi, the top decision-maker at the time of the alleged incidents, should come first. Hwang Jin-gyu, head of the agency’s union, criticized the lack of action against Choi, saying it has long been common for political appointees to avoid responsibility after a change in administration or retirement while shifting blame to lower-level staff. He added that, based on Choi’s position and past actions, it is “common sense” to conclude Choi had a close relationship with Kim, and said it was “contradictory” that only working-level officials would be punished. Last month, the Korea Heritage Service filed a complaint with Jongno Police Station against Kim on suspicion of obstructing official duties and violating the Cultural Heritage Protection Act. The agency’s internal probe found Kim held a private tea gathering at Mangmyoru Pavilion at Jongmyo Shrine. It also said she inspected a storage facility at the National Palace Museum of Korea and sat on the royal throne at Geunjeongjeon Hall at Gyeongbokgung Palace, interfering with the agency’s management activities. The unions objected that the audit did not hold Choi accountable, while the agency removed Lee Jae-pil, former head of the Royal Palaces and Tombs Headquarters, from his post and asked the Ministry of Personnel Management to impose heavy discipline. Hwang said the unions “cannot accept” the audit results and urged police to thoroughly investigate Choi as the top official responsible at the time so that “legal justice” can be realized. Kim Ik-hwan, a lawyer at Law Firm Suseong representing the complaint, said it alleges four offenses: abuse of authority, dereliction of duty, aiding obstruction of official duties and violations of the anti-graft law. He said additional complaints could follow. Some civil servants warn similar incidents could recur unless conditions change that make it difficult for junior officials to refuse orders from superiors. In November, South Korea revised Article 57 of the State Public Officials Act to remove a “duty of obedience” provision, allowing officials not to follow illegal orders. But critics say the change has limited effect because it includes no penalty provisions for those who issue such orders. 2026-02-04 15:57:00