HOT STOCK: Hyundai Autoever and Samsung Electro survive AI overvaluation scare SEOUL, November 19 (AJP) - Hyundai AutoEver and Samsung Electro-Mechanics were among a selective KOSPI stocks that managed to survive this week’s sharp rout triggered by fears of an AI-driven bubble ahead of Nvidia’s earnings release scheduled for Thursday. Hyundai AutoEver — the Hyundai Motor Group affiliate responsible for software development and next-generation mobility strategy — gained 2.92 percent to close Wednesday at 186,500 won ($127.1). Its rally was buoyed by Hyundai Motor Group’s pledge of a record 125 trillion won in domestic investment over the next five years. Of the total, 50 trillion won has been allocated for AI, software-defined vehicles (SDVs) and robotics — all core areas under AutoEver’s purview. The company is also expected to participate in the government’s planned “Physical AI” initiative, designed to support Korea’s foundational industries such as shipbuilding and defense. Another key catalyst was AutoEver’s inclusion in the KOSPI 200 index. The Korea Exchange (KRX) announced Tuesday that its stock-exchange steering committee approved the removal of eight constituents and the addition of seven new names, including AutoEver. The index represents roughly 80 percent of the KOSPI’s total market capitalization, firmly establishing AutoEver as a representative blue-chip stock. The company is on track to achieve revenue of 5 trillion won by 2027, said Kim Sung-rae, a researcher at Hanwha Investment & Securities, noting that “SI (system integration) is leading growth this year through higher-margin projects such as next-generation ERP and cloud services.” Samsung Electro-Mechanics also surged, climbing 5.39 percent to 215,000 won, boosted by overlapping tailwinds across its core businesses. The company is a major supplier of multilayer ceramic capacitors (MLCCs) and flip-chip ball-grid-array (FC-BGA) substrates — essential components for AI servers and automotive electronics — and demand has risen sharply. According to its Oct. 29 earnings release, the Components division, responsible for circuit-board production including MLCCs, posted 1.38 trillion won in revenue in the third quarter, up 8 percent quarter-on-quarter and 15 percent year-on-year. Operating profit also climbed to 260.3 billion won, up 22 percent quarter-on-quarter and 16 percent year-on-year. Factory utilization is nearly maxed out, jumping from 86 percent in Q3 2024 to approximately 99 percent this quarter, as demand from AI and automotive customers exceeded supply. Samsung Electro-Mechanics holds roughly 25 percent of the global MLCC market, second only to Murata Manufacturing’s 40 percent. However, in the AI-optimized MLCC segment, Samsung’s share is estimated at around 40 percent — effectively matching Murata and signaling growing competitiveness in next-generation components. The company is also strengthening its position in FC-BGA substrates, which connect high-performance semiconductors to motherboards and are well suited for AI data centers and automotive electronics due to their superior signal-transmission performance. “FC-BGA substrates are expected to remain fully booked through 2027,” said Park Jun-seo, a researcher at Mirae Asset Securities, adding that MLCC demand “will continue to increase as power requirements for AI processing expand.” 2025-11-19 17:24:46

Aju-sponsored Korea-Japan forum calls for bilateral FTA as a stepping stone toward economic bloc SEOUL, November 19 (AJP) - South Korea and Japan — two of the largest economies in East Asia — are increasingly viewed as a single investment destination by foreign capital as their tech-driven manufacturing capabilities grow more interconnected. But the absence of a meaningful bilateral trade framework or policy coordination still constrains the growth potential that could be unlocked if the two nations were to combine their industrial strengths, lawmakers, scholars and business leaders from both countries said Wednesday. The idea of the two neighbors complementing each other in strategically vital sectors such as semiconductors, batteries and defense — and jointly addressing common challenges — has been championed by Korea Chamber of Commerce and Industry (KCCI) and SK Group Chairman Chey Tae-won. He has proposed that the two countries move beyond existing multilateral trade platforms and work toward forming an EU-style economic bloc that could emerge as the world’s third-largest economic power after the United States and China. Chey is expected to reiterate this vision at the Tokyo Forum 2025 at the University of Tokyo on Friday. His argument was highlighted during the 2025 Korea-Japan Economic Forum held Wednesday at the Seoul Foreign Correspondents’ Club. The event was co-sponsored by Aju Media Group and Japan’s NNA Kyodo News Group. The gathering brought together members of the Korea-Japan Parliamentarians’ Union, trade and industry experts, and officials from the Japanese Embassy in Seoul. Participants discussed how both governments should respond to ongoing supply-chain disruptions and rising geopolitical risks that have intensified following the return of the Trump administration in Washington. Matsuo Hirotaka, minister at the Japanese Embassy in Seoul, highlighted Japan’s dramatically expanding investment footprint in Korea. “It rose from just US$500,000 at the time of diplomatic normalization in 1965 to more than US$6.12 billion last year, making Japan Korea’s largest investor,” he said. “The uncertain global trade environment, driven in part by U.S. tariff policy, underscores the importance of stronger economic ties between Seoul and Tokyo.” Lee Ji-pyeong, a professor at Hankuk University of Foreign Studies, warned that without closer coordination both economies could face greater market volatility. “Many production processes already span the two countries, making simultaneous responses essential as protectionist measures rise in major economies and global rules become less predictable,” Lee said. Lee argued that a “deeper” bilateral trade framework is necessary for the two countries to act as a rule-setter in the global economy, noting that their combined GDP is projected to reach US$7 trillion by 2030. Kim Gyu-pan, senior research fellow at the Korea Institute for International Economic Policy (KIEP), noted that “Korea and Japan currently lack a high-level bilateral trade agreement,” calling for renewed discussions on more advanced bilateral or multilateral frameworks. Kim also stressed the need for “greater consistency in Seoul’s Japan policy” and encouraged progress on joint declarations and future high-level exchanges. 2025-11-19 17:24:05

AI cover controversy in New Zealand poses wake-up call for Korean publishers SEOUL, November 19 (AJP) - It took less than a minute for ChatGPT to deliver a fully rendered image of Seoul's landmark Gwanghwamun draped in autumn leaves in the warm, painterly style of Studio Ghibli, the iconic Japanese animation studio. Image-making has become easy and ubiquitous ever since OpenAI added its image-generation feature, allowing users to transform their portraits into Ghibli-style illustrations within seconds. The feature quickly went viral across social media, sharply boosting ChatGPT's global usage: weekly active users jumped 30 percent in the first quarter, and as of last month, the platform counts more than 800 million users worldwide. But the spread of everyday AI assistance in visual and creative work is also complicating life for creators — a reality underscored by a recent case in New Zealand. Two New Zealand writers, Stephanie Johnson and Elizabeth Smither, were disqualified from the country's most prestigious literary prize, the Ockham Book Awards, making them ineligible for next year's NZ$65,000 fiction award. The decision came after the awards committee discovered that the publishers' design team had used artificial intelligence (AI) to create the book covers without informing the authors beforehand. The affected books, Johnson's short-story collection "Obligate Carnivore" (2025) and Smither's novella collection "Angel Train" (2025), shocked the literary world due to the absence of clear regulatory guidelines. A less dramatic but similar case occurred in Korea when it was revealed that the 2023 youth edition of "Almond" — the million-selling bildungsroman by Sohn Won-pyung about a boy who struggles to feel emotions — used AI in its redesigned cover. Before this incident, AI usage had largely been limited to publish-on-demand (POD) or self-published works. This was the first time AI had been used for the re-covering of a major bestseller. The core of the controversy centered on copyright: under current Korean law, AI cannot be recognized as a copyright holder. Korea will put its AI Basic Act into effect in January next year, but it barely touches the broad, day-to-day issues emerging across the many sectors AI has already penetrated. "Without clear rules, everything is judged on a case-by-case basis. But the trend is moving toward acknowledging rights for AI-assisted creations. Even if the themes are similar, different texts receive separate copyright protection," said Kim Hyung-geun, CEO of publishing house Seoul Selection, who added that the lack of regulations places publishers in limbo. AI-generated works differ fundamentally from traditional publishing, with the most notable changes appearing in the dramatic reduction of time and cost. Yet the law does not specify how disclosure requirements should apply to AI-produced covers, illustrations, or text. "Hiring designers for covers is expensive, and works created with ChatGPT are clearly copyright-free, so I don't see a legal issue there," observed Park Han-woo, media and communication professor at Yeungnam University. He suggested that Korea incorporate NFT-style systems to track the provenance of AI-generated content. NFTs, or non-fungible tokens, are digital certificates recorded on a blockchain that verify ownership and trace the history of a digital asset. Even if identical copies of an artwork circulate online, only the NFT-registered version carries true ownership rights — which could help ease confusion while authorities catch up with appropriate regulations, he said. 2025-11-19 17:19:07

PHOTOS: Cold snap delivers early winter in South Korea SEOUL, November 19 (AJP) - South Korea experienced an abrupt onset of winter conditions this week, as temperatures across the nation plunged sharply, bringing unseasonably early snowfall to major mountain ranges. Jeju Island's Mt. Halla and the mainland's Mt. Jiri were blanketed in white, creating picturesque, albeit premature, winter landscapes. Despite only being mid-November, the intense cold snap evoked scenes typical of deep winter. Citizens on city streets were observed heavily bundled up, donning thick padding jackets and scarves as protection against the severe chill. 2025-11-19 17:15:45

Samsung takes laid-back stance in HBM catchup with SK hynix on DRAM strengthening SEOUL, November 19 (AJP) - South Korea’s two dominant memory names Samsung Electronics and SK hynix are showing signs of divergence and avoiding a head-on clash in the red-hot high bandwidth memory (HBM) market, with strengthening DRAM prices reducing the pressure to take risks. Samsung Electronics, a long-time frontrunner in DRAM until the rise of HBM powering AI chips, appears to be in no hurry to ramp up its lagging HBM capacity, holding output at 150,000 wafers per month from late 2025 to 2026 after identifying that margins in high-end DRAM are increasingly outpacing those of HBM. DRAM prices have been rising rapidly due to low yields, with chipmakers devoting most of their wafer space to HBM. “High-value DRAM profitability is now surpassing HBM, which reduces Samsung’s incentive to aggressively expand HBM capacity,” said Cha Yong-ho, analyst at LS Securities, adding that Samsung is positioning itself to “maximize profitability during the P-cycle (price strengthening cycle) rather than chase volume.” Samsung Electronics declined to confirm or deny. “We will ready capacity to readily address market changes as we expect mid- to long-term rise in demand," said a company official. The company has recently given a go-ahead to the structure work on Pyeongtaek Campus Plant 5, a project previously delayed due to unfavorable market conditions. The new line, dedicated to HBM production, is expected to become operational from 2028. The company official, however, disagreed to the reference of advanced chipmaking restricted to HBM these days. “High-value products refer to not only HBM, but also high-spec and high-capacity DRAM such as graphics DRAM. You can view our strategy in that broader context.” The company is prioritizing premium DRAM and next-generation HBM4 while continuing to build out its P4 and P5 fabs in Pyeongtaek using a flexible “first-shell” approach. SK hynix, enjoying its first-ever market dominance and hot earnings streak, meanwhile has all hands on deck in HBM, upping output from 150,000 to 200,000 wafers per month in 2026 upon increased orders from Nvidia. With HBM in structural shortage and Nvidia relying heavily on SK hynix for its AI accelerators, the company has little room to share capacity with general DRAM even as prices climb. SK hynix remains focused, regardless of the decisive strengthening in DRAM prices. "DRAM prices rose because suppliers focusing on HBM shifted wafer capacity to HBM, creating supply-side shortages. It’s more of a market phenomenon than a reason for us to adjust strategy. Our priority remains HBM," a company official said. HBM has already transformed SK hynix’s earnings structure: although it accounts for only 14% of DRAM shipments, it represents 44% of DRAM revenue and more than half of operating profit, driven by unit prices nearly five times higher than DDR5. Most of its HBM supply for 2025 is sold out, with 2026 volumes largely pre-committed. Reflecting the strength of the HBM cycle, the SK hynix official confirmed that “our HBM capacity for 2026 is already sold out.” This divergence reflects the broader transition into a P-cycle, where memory makers benefit more from higher selling prices than expanding output. Monthly HBM demand is expected to surpass one million wafers in 2026, while global supply remains around 400,000 wafers, reinforcing an extended period of tightness. DDR5 contract prices have already risen 165% from the start of 2025, underscoring how performance-oriented AI demand is reshaping the market. A key variable for the next investment cycle is China’s CXMT, whose expansion remains capped at 280,000 to 300,000 wafers per month through 2026 due to U.S. export controls restricting access to advanced DRAM equipment. Beijing’s third semiconductor investment fund is prioritizing equipment localization, raising expectations that CXMT may resume aggressive expansion in 2027 if domestic tools stabilize. Any such shift would force Samsung and SK hynix to restart large-scale capex to defend global market share, reviving Korea’s materials, parts and equipment suppliers. For now, the market is defined by divergence rather than direct rivalry: Samsung leaning into high-performance DRAM profitability during the P-cycle, and SK hynix fortifying its lead in HBM as AI infrastructure investment accelerates. 2025-11-19 17:01:20

Alcoholic beverages to carry bigger warning labels SEOUL, November 19 (AJP) - Warning labels on alcohol bottles are getting bigger, bolder, and harder to ignore, the Ministry of Health and Welfare said on Wednesday. The measure, set to take effect as early as September next year, is part of efforts to raise awareness of health risks and dangers associated with drinking. The ministry believes bigger cautionary labels will help consumers take the warnings more seriously when purchasing alcoholic beverages. The background color of these labels is also required to contrast with the surrounding packaging to ensure they are clearly visible. A similar measure will also take effect in March next year under recently revised guidelines, mandating that these labels, which currently warn against excessive drinking and alcohol consumption during pregnancy, carry additional warnings about drunk driving. The ministry will gather feedback and public opinions by mid-January to reflect these changes before implementation. 2025-11-19 16:37:49

South Korea's HD Hyundai celebrates 5,000th ship delivery SEOUL, November 19 (AJP) - South Korea’s HD Hyundai has become the world's first shipbuilder in the world to deliver 5,000 vessels. The company commemorated the achievement with a ceremony at its flagship shipyard in Ulsan. HD Hyundai delivered its first vessel — the Atlantic Baron, a 260,000-ton very large crude carrier — in 1974. In the five decades since, it has supplied ships to more than 700 customers across 68 countries. The 5,000th vessel, the Diego Silang, is a 118.4-meter patrol ship built for the Philippine Navy. The vessel, 14.9 meters wide, was completed in March and handed over in October. HD Hyundai Chairman Chung Ki-sun attended the ceremony alongside lawmakers Kim Tae-sun and Yoon Jong-oh, as well as senior figures from the shipbuilding sector. Of the 5,000 vessels delivered to date, 2,631 were constructed at HD Hyundai Heavy Industries, 1,570 at HD Hyundai Mipo Dockyard and 799 at HD Hyundai Samho Heavy Industries. The company noted that if all the ships it has built were placed end to end, their combined length would stretch farther than the distance between Seoul and Tokyo. “Delivering 5,000 ships is a testament to South Korea’s shipbuilding prowess and a transformative moment for the global maritime industry,” Chung said. “We aim to build the next 5,000 ships over the coming decades.” * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-11-19 15:48:20

South Korea's first submarine sets sail on final voyage SEOUL, November 19 (AJP) - South Korea's first submarine Jang Bogo embarked on its final voyage on Wednesday, ahead of its retirement later this year. The 1,200-ton vessel, named after a legendary captain and maritime trader from the ancient kingdom of Silla, will retire at the end of this year, concluding its 34-year mission to protect the country's maritime sovereignty. The submarine set off from a naval base in Jinhae for the two-hour farewell cruise with its first captain Ahn Byung-gu, and other crew members on board, returning to the base to the salute of whistles from fellow submarines. Built in Germany in 1988 and officially commissioned in 1993, the submarine has sailed over 342,000 miles during its service. The vessel participated in major international maritime exercises including the Rim of the Pacific Exercise (RIMPAC) and Silent Shark, a biennial drill conducted by South Korea and the U.S. Since last year, the submarine has been used primarily for training crew members. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-19 14:59:32

India's Mukesh Ambani to visit Korea for meeting with Lee Jae-yong SEOUL, November 19 (AJP) - Mukesh Ambani, chairman of India’s Reliance Group known as Asia’s wealthiest individual, is scheduled to visit South Korea next week for discussions on artificial intelligence and next-generation communications technology with Samsung Electronics Chairman Lee Jae-yong. Industry sources said Ambani will arrive on Nov. 25 for a two-day visit accompanied by his son, Akash Ambani, chairman of Reliance Jio Infocomm. The trip will include a tour of Samsung’s Suwon complex and a dinner meeting with Lee. The two sides are expected to explore deeper cooperation in AI data centers and the development of 6G technologies, areas where both companies have been accelerating investment. Reliance Group has diversified businesses spanning telecommunications, petrochemicals, steel, finance and retail. Ambani’s personal wealth is estimated at about $80 billion, securing his position as Asia’s richest individual. Reliance Jio, India’s largest mobile operator, is rolling out a nationwide 5G network while advancing early 6G research and expanding its AI infrastructure — moves that have fueled expectations of closer collaboration with Samsung. Lee, who has stepped up engagement with global tech leaders including Nvidia, Tesla and Meta, is seen as eager to strengthen Samsung’s AI and telecom footprint in India through its ties with Reliance. The Samsung chief has maintained close personal relations with the Ambani family and was the only South Korean business leader invited to the weddings of Ambani’s children, including the youngest son’s ceremony last year. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-19 14:39:09

South Korea's external debt rises to $738 billion, but stability indicators improve SEOUL, November 19 (AJP) - South Korea’s external debt climbed to more than $738 billion in the third quarter, though government officials said the country’s overall financial position strengthened as short-term liabilities declined and long-term debt expanded. The Ministry of Economy and Finance said Wednesday that external debt reached $738.1 billion at the end of the July–September period, an increase of $2.5 billion from the previous quarter. The rise was largely driven by net purchases of Korean bonds by foreign investors, who injected 3.2 trillion won into listed bonds during the quarter, including 3 trillion won in July alone. Short-term debt — often viewed as more vulnerable to market volatility — fell by $5.4 billion to $161.6 billion. Long-term debt rose by $7.9 billion to $576.5 billion, offsetting the decline and contributing to the overall uptick. Borrowing by non-bank entities, including public institutions and private companies, increased by $9 billion, while the government, central bank and commercial banks reduced their external liabilities by $3.2 billion, $1.2 billion and $2.1 billion, respectively. South Korea’s external assets also expanded, rising by $27.1 billion to $1.1199 trillion on the back of strong overseas bond investments and higher foreign currency deposits. As a result, net external assets — the difference between what the country owns abroad and what it owes — increased to $381.8 billion. Key indicators of financial stability improved as well. The share of short-term debt in total external debt declined to 21.9 percent, below the three-year average of 23.8 percent. The ratio of short-term debt to foreign reserves fell to 38.3 percent from 40.7 percent, suggesting greater resilience against potential foreign exchange shocks. Meanwhile, the foreign currency liquidity coverage ratio of domestic banks stood at 160.4 percent at the end of the quarter, far exceeding the regulatory minimum of 80 percent. “Despite uncertainties in global trade and shifts in monetary policy, we will continue to safeguard the stability of our economy,” an official at the Ministry of Economy and Finance said. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-11-19 14:13:45