OPINION: Investing in innovation is South Korea's best defense SEOUL, November 07 (AJP) - Last week, the world’s attention turned to Gyeongju, where U.S. President Donald Trump and Chinese President Xi Jinping met on the sidelines of the APEC summit. The two leaders agreed to ease trade and resource tensions, offering a glimmer of hope for the global economy. Yet the thorniest issues — Taiwan, security, and the future of global supply chains — remain unresolved. Their meeting, the first since the 2019 G20 summit in Osaka, suggests a possible thaw in U.S.-China relations, and global markets have responded enthusiastically. The KOSPI and Nikkei indices both hit record highs, reflecting renewed investor optimism. For South Korea, whose economy depends heavily on trade and technology exports, these developments carry both opportunity and risk. As the global order shifts, Seoul must prepare for a more volatile environment shaped by the enduring U.S.-China rivalry. Crafting flexible economic and security strategies will be essential to navigate the uncertain years ahead. Recent summits have clarified South Korea’s diplomatic landscape. The South Korea-U.S. summit settled tariff negotiations and strengthened defense cooperation, providing a lift to the stock market. Meanwhile, the South Korea-China summit restored dialogue on trade and economic collaboration, improving bilateral ties that had frayed in recent years. Now, five months into the Lee Jae Myung administration, responding wisely to the Trump administration’s evolving policies will be critical. South Korea must strengthen its alliance with Washington while also deepening pragmatic engagement with Beijing. The goal should be strategic autonomy — building the ability to stand apart from either camp through technological and industrial differentiation. Investment in research and development should be at the core of this strategy. Taiwan’s TSMC offers a compelling example: by dominating the global semiconductor market, it has made itself indispensable to both the United States and China. South Korea’s own champions, SK hynix and Samsung Electronics, are global leaders in high-bandwidth memory (HBM) chips, vital for artificial intelligence applications. Continued investment in next-generation technologies such as Compute Express Link (CXL) and Processing-In-Memory (PIM) could ensure Korea’s long-term leadership. At the same time, Seoul must reassess its relationship with China. Exports to China — once a key growth engine — have declined as Beijing pushes for greater technological self-sufficiency. The recent summit’s pledge to restore cooperation should lead to new export strategies, particularly in high-value sectors like eco-friendly materials and advanced chemicals. Consumer industries, too, hold promise: South Korea’s global cultural influence through K-pop and entertainment can help expand its soft power and market reach. Amid intensifying competition between the world’s two superpowers, South Korea faces a pivotal moment. By strengthening competitiveness, investing in innovation, and pursuing a clear-eyed strategy of autonomy, it can transform today’s challenges into opportunities for sustainable growth. About the author Joo Young-seop is a professor at Seoul National University and president of the Korea Digital Innovation Association. He holds a Ph.D. in industrial engineering from Pennsylvania State University and previously served as CEO of Hyundai Autonet and the chief of the Small and Medium Business Administration. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 09:35:57

South Korea's Lotte Chemical opens petrochemical complex in Indonesia SEOUL, November 07 (AJP) - South Korea's Lotte Chemical said on Friday that it has completed construction of a massive petrochemical complex in Cilegon, a port city in Indonesia’s Banten Province. A completion ceremony was held Thursday, attended by Lotte Group Chairman Shin Dong-bin, Lotte Chemical Chief Executive Lee Young-joon and Indonesian President Prabowo Subianto. The facility — called the Lotte Chemical Indonesia New Ethylene Complex, or LINE — represents a $3.95 billion investment aimed at strengthening the company’s foothold in Southeast Asia’s rapidly expanding petrochemical market. Built on 110 hectares of land, the complex began construction in 2022 and was finished in May. Now in commercial operation, the plant is designed to produce 1 million tons of ethylene, 520,000 tons of propylene, 350,000 tons of polypropylene, 140,000 tons of butadiene, and 400,000 tons of BTX annually, the company said. Indonesia has identified petrochemicals as a strategic sector under its “Making Indonesia 4.0” roadmap for industrial development. The industry has grown by about 5 percent annually, but domestic production has lagged demand, forcing the country to import large volumes of key materials. Indonesia’s self-sufficiency rate for ethylene stood at 44 percent last year. Lotte’s new complex is expected to raise that figure to around 90 percent by supplying most of its output to local manufacturers. The project will also bolster Indonesia’s trade balance, create new jobs, and spur investment in related industries. The Indonesian government has granted Lotte tax incentives to support the venture’s competitiveness. The LINE complex will also supply ethylene to the nearby Lotte Chemical Titan Nusantara plant, achieving vertical integration of production and improving overall efficiency. Lotte Chemical said it plans to use Indonesia as a strategic base for expansion across Southeast Asia while continuing to streamline its domestic petrochemical operations and invest in specialty materials. “This project is one of the largest investments ever made by a Korean company in Indonesia,” Chairman Shin said at the ceremony. “It will serve as a foundation for advancing Indonesia’s petrochemical industry and national competitiveness, generating about $2 billion in economic value and contributing to sustainable growth.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 09:16:54

Seoul reiterates its planned nuclear-fueled submarine fleet built at home SEOUL, November 7 (AJP) — Senior Seoul officials on Thursday reiterated that South Korea’s planned fleet of nuclear-powered submarines must be built domestically, arguing that constructing them in the United States would be “realistically” unfeasible. National Security Adviser Wi Sung-lac told lawmakers during a parliamentary hearing that Seoul aims to develop “cost-effective nuclear-fueled submarines tailored to our operational needs, rather than adopting the U.S. Virginia-class model,” reaffirming earlier remarks made by Prime Minister Kim Min-seok and Defense Minister Ahn Gyu-back during recent government audits. Wi said investing in new submarine facilities at the Philadelphia Naval Shipyard is impractical. He also dismissed suggestions that General Dynamics, the American defense contractor, could take on construction of the vessels. The series of clarifications followed U.S. President Donald Trump’s social-media post last week claiming he had approved South Korea’s plan to build a nuclear-powered submarine — and that the project would be carried out in Philadelphia. Trump offered his endorsement during his visit to South Korea during last week’s APEC summit, after President Lee Jae Myung stressed the need for conventionally armed submarines powered by stable nuclear propulsion. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-07 07:40:54

HOT STOCK: Hyosung Heavy flies to rank as most expensive KOSPI stock SEOUL, November 06 (AJP) - The most expensive stock on Korea’s main bourse is no longer Samsung Electronics or Hyundai Motor, but Hyosung Heavy Industries — trading at 2.3 million won ($1,591) per share and cementing its position as the priciest KOSPI-listed company. The stock has surged 462.6 percent this year as of Tuesday, making it the top performer on a KOSPI that itself has jumped 72 percent year-to-date. Hyosung Heavy manufactures core power-grid equipment such as extra-high-voltage transformers. Its share-price explosion is fueled by soaring global investment in electricity transmission infrastructure amid the artificial intelligence (AI) boom, which is driving unprecedented demand for stable, high-capacity power systems. A major subsidiary of Hyosung Group, the company sits within a conglomerate founded by Cho Hong-jai, who once partnered with Samsung’s founder Lee Byung-chul. The group’s historical ties place Hyosung within Korea’s wider Samsung-origin family network. Investors are increasingly betting on a stock split to make the seven-digit share price more accessible to retail traders. A split reduces the face value and multiplies the number of outstanding shares, lowering the trading price per share while preserving market capitalization. Samsung Electronics undertook a 50-for-1 split in 2018 when its shares exceeded 2.5 million won. Hyosung Heavy has received inquiries from shareholders but says no specific plan is under review. Last Friday, Hyosung Heavy reported a preliminary consolidated operating profit of 219.8 billion won ($152 million) for the July–September quarter, up 97.3 percent from a year earlier. Eleven securities firms subsequently raised their target prices. NH Investment & Securities and Hana Securities both set their targets at 3 million won per share. Based on current outstanding shares, this implies a market capitalization of about 27.97 trillion won. NH Investment & Securities cited the company’s strong position in U.S. utility upgrades and tight supplier dominance, projecting improved profitability from rising North American and European demand. The firm raised its target from 1.5 million won to 3 million won. Shinhan Investment & Securities offered a similar view, expecting the stock to reach 3 million won in the mid- to long-term. Researcher Lee Dongheon noted that despite U.S. tariffs, power-equipment margins widened sharply, and stabilization in the construction division supported record earnings. With North America’s backlog-to-sales ratio at high levels, profit momentum is expected to continue for years. Hyosung Heavy’s meteoric rise reflects mounting confidence in grid-equipment suppliers as AI data centers, renewable energy transitions and power-intensive industrial clusters reshape global electricity demand. 2025-11-06 17:57:06

Asian markets rebound in tandem with Wall Street recovery SEOUL, November 06 (AJP) - Asian stocks closed higher on Thursday, snapping a sharp two-day selloff as easing concerns over an AI bubble and a rebound on Wall Street lifted sentiment across the region. South Korea’s benchmark KOSPI rose 0.55 percent to 4,026.45, recovering from the “Black Wednesday” rout the previous day. Retail investors bought 885 billion won ($611 million) of shares and institutions added 832 billion won, while foreign investors sold 1.7 trillion won, reversing earlier intraday gains of more than 1.5 percent. Semiconductor leaders were mixed. SK hynix rose 2.42 percent to 593,000 won after reaching an intraday high of 607,000 won. Samsung Electronics slipped 1.19 percent to 99,400 won, falling back below the key 100,000-won threshold as foreigners offloaded more than seven million shares. AI-related stocks remained under pressure. Naver, which had surged the previous session on record quarterly earnings, fell 5.21 percent to 264,000 won on heavy profit-taking by foreign investors. Power-grid and transformer names extended recent gains. Hyosung Heavy Industries added 1.62 percent to 2,255,000 won, HD Hyundai Electric rose 0.81 percent to 875,000 won, and LS Corp. jumped 5.58 percent to 217,500 won on optimism over its electricity value-chain businesses including LS Cable and LS Electric. Japan’s Nikkei 225 gained 1.19 percent to 50,810.50, partially recovering Wednesday’s steep drop. Daikin Industries surged 7.79 percent to 19,295 yen ($125.3) after reporting stronger-than-expected earnings on robust industrial cooling demand. China’s Shanghai Composite Index advanced 0.97 percent to 4,007.76, reclaiming the 4,000 mark. Rare-earth producer Inner Mongolia Baotou Steel Union was steady at 2.7 yuan ($0.38) as momentum in the segment eased after U.S.-China trade talks. Cutting-tool maker Beijing Worldia Diamond Tools rose 10.7 percent to 56.13 yuan. Elsewhere in the region, Taiwan’s TAIEX gained 0.66 percent to 27,899.45, and Hong Kong’s Hang Seng Index climbed 2.12 percent to 26,485.90. 2025-11-06 17:56:30

Over-crowded Korean coffee market squeezes small franchises to venture overseas SEOUL, November 06 (AJP) - Koreans are the world's most avid coffee consumers, and the market has now grown so dense that smaller franchises are increasingly looking abroad to survive. According to Euromonitor, Koreans on average drank 416 cups of coffee per person last year, the highest in the Asia-Pacific region. Consumption far outstripped Singapore's 290 cups and Japan's 281 cups, and was nearly six times the regional average of 57. By the end of 2022, Korea had around 100,000 coffee shops nationwide — almost double the 52,000 stores operated collectively by the country's four major convenience-store chains (GS25, CU, 7-Eleven, Emart24). Coffee shops also outnumbered chicken restaurants, which totaled 81,000. Coffee franchise brands numbered 886, exceeding the 669 chicken franchises. With such density, prices vary widely: budget chains sell Americanos for 1,500–2,000 won ($1.38), while premium cafés charge 4,500–5,500 won. Budget chains have expanded rapidly amid long-running economic pressures and high youth unemployment. The top five value brands — Mega MGC, Compose Coffee, Paik’s Coffee, The Venti, and Mammoth Coffee — operate around 11,000 stores nationwide, more than double the 4,800 outlets run by the top five premium chains: Starbucks, Twosome Place, Hollys, Coffee Bean, and Angel-in-us. Even market heavyweight Starbucks Korea shows signs of plateauing. Its store count edged up from 2,009 at the end of 2023 to 2,050 in the first half of 2024. Twosome Place saw similarly modest growth, rising from 1,670 to 1,700 stores. By contrast, Mega MGC Coffee is racing toward the 4,000-store milestone. After passing 3,000 stores in May 2023, it reached 3,500 by March and more than 3,800 by August 2024 — adding roughly 800 locations in just over a year. Its operator, N-House, has posted solid financial gains: revenue grew from 315.8 billion won in 2022 to 455.8 billion won in 2023 and is estimated to reach 545.9 billion won this year. Operating profit jumped from 54.5 billion won in 2022 to 104.3 billion won in 2023 and 118.1 billion won in 2024, keeping margins near 20 percent for three consecutive years. Starbucks Korea, operated by SCK Company, recorded 3.1 trillion won in sales last year, up 5.8 percent from 2022. But its store expansion rate has declined sharply — from 8.7 percent in 2021, when Emart acquired the company, to 6.1 percent in 2023. With domestic expansion reaching its limits, small and mid-sized franchises are turning overseas. Mega MGC Coffee opened its first overseas branch in Ulaanbaatar, Mongolia, last May and has grown to five locations within a year. Paik's Coffee has focused on Southeast Asia, expanding from its first Manila store in 2016 to 18 outlets across the Philippines and Singapore. Compose Coffee launched its third store in Singapore this year and is expected to accelerate expansion after management rights were acquired by Jollibee Foods, a major Philippine restaurant conglomerate. The Venti embarked on global expansion this year with its first store in Canada, followed by openings in Vietnam and Jordan, tailoring Korean-style menus to local tastes. Mammoth Coffee entered Japan with its first store, marking the brand's overseas debut. According to the Food Information Statistics System, the global coffee market has grown steadily since 2019 and is projected to reach $174.1 billion by 2028, up 20 percent from 2025 — offering headroom for Korean franchises seeking growth beyond a home market that has little space left to fill. 2025-11-06 17:56:16

Korea's record Jan-Sept current account flags deepening reliance on chip exports SEOUL, November 06 (AJP) - South Korea’s thriving semiconductor business has pushed the country’s current account surplus to its largest-ever level for September, but the details point to a growing dependence on a narrow set of export engines. Preliminary Bank of Korea data show the current account logged a $13.47 billion surplus in September, lifting the cumulative black to a record $82.77 billion for the January–September period — up 23 percent from a year earlier. The goods balance contributed a surplus of $14.24 billion, supported by a 9.6 percent rise in exports to $67.2 billion. From January to September, the goods surplus totaled $85.9 billion, about $14.2 billion higher than a year age. Semiconductors and shipbuilding remained the primary drivers of growth. Chip exports surged 22.1 percent on-year to $16.79 billion, fueled by strong global demand for high-bandwidth memory (HBM) chips. SK hynix posted an operating profit of 11 trillion won ($7.7 billion) in the third quarter, while Samsung Electronics recorded 7 trillion won in chip earnings, underscoring the industry’s outsized contribution to Korea’s external balance. Ship exports also climbed 23.8 percent to $2.77 billion on robust global orders for LNG carriers and other high-value vessels. Hanwha Ocean reported a record third-quarter operating profit of 290 billion won ($200 million). Steel exports offered further support, rising 2.5 percent to $4.01 billion as signs of stabilization emerged despite continued competition from Chinese producers. Korea’s services sector remained a structural drag. The services balance posted a $3.32 billion deficit in September, widening the cumulative shortfall to $22.7 billion in the first nine months of the year — about $5 billion deeper than a year earlier. The travel account continues to make up the largest red. Inbound visitors climbed 16 percent on-year to 14 million, but revenue gains were subdued as solo and small-group travelers replaced big-budget tour groups, reducing duty-free and package-tour spending. The intellectual property (IP) account logged an $850 million deficit, compared with a $660 million shortfall a year earlier, highlighting Korea’s struggle to monetize its cultural output. A Korea Chamber of Commerce and Industry (KCCI) report found no Korean names among the world’s top 50 IP-based goods revenue earners. The United States dominated the list with 32 companies — including Netflix and The Walt Disney Company, followed by Japan – home to Sony Pictures - with seven. Even the hit K-pop–themed Netflix animation “K-pop Demon Hunters” is based on IP owned by Netflix, which acquired the rights from Japan’s Sony Pictures — a reminder that Korea’s expanding cultural footprint often rests on foreign-controlled intellectual property. 2025-11-06 17:54:56

Ramyeon now spans hundreds of varieties, but the classic spicy still gets the last gulp SEOUL, November 06 (AJP) - Ramyeon, Korea’s signature instant noodle, sits at the forefront of the K-food boom, even being marketed vigorously through K-Pop Demon Hunters as its varieties keep evolving with a widening global footprint. The range now spans hundreds of flavors and formats — from trendy mala and truffle to butter-soy and black-garlic blends — though the original spicy profile remains the undisputed classic. Korea’s agri-food exports surpassed $10 billion (about 14 trillion won) this year, marking the earliest-ever point at which the milestone was reached, according to the Korea Agro-Fisheries & Food Trade Corporation (aT). The United States is the largest consumer at $1.72 billion, up 15.3 percent from a year earlier. Europe grew 15.8 percent to $772 million, followed by GCC countries at $296 million (up 9.6 percent) and the CIS at $461 million (up 5.6 percent). Among export categories, ramyeon led the surge, bolstered by explosive demand in the U.S. and Europe. Ramyeon exports soared 24.7 percent to $1.116 billion. Seaweed exports increased 14.1 percent to $877 million, while kimchi exports rose 3.2 percent to $125 million. Grape exports jumped 45.2 percent to $35 million. The proliferation of Korean restaurants worldwide — propelled by the global boom in K-content — also boosted sauce exports by 9.2 percent to $315 million. For many foreign visitors, tasting ramyeon has become a must-do Korean experience. Convenience stores have reported sharp spikes in sales following the resumption of visa-free group tours for Chinese visitors in late September. Between Sept. 29 and Oct. 12, sales to Chinese tourists at around 20 GS25 stores in Myeong-dong and Seongsu surged 111 percent compared to the previous two weeks. CU stores in Myeong-dong and Hongdae saw an 89 percent rise, while 7-Eleven branches in Myeong-dong reported a 50 percent increase. Buldak-bokkeum-myeon and Shin Ramyun were the top sellers, often stocked prominently at store entrances. The buying frenzy has been amplified by Xiaohongshu, China’s Instagram-like platform, where viral videos on must-buy Korean convenience-store items and travel shopping lists have shaped consumer behavior. Shopping habits once guided by tour agencies are increasingly molded by online micro-trends. Korean ramyeon has also transformed into an experience-based attraction. The rise of 'Ramyun Library' stores — where customers can choose noodles and cook them on-site — has made the ramyeon aisle a tourism hotspot. CU opened its first 'Ramyun Library' in Hongdae in 2023 and has since expanded the model to 55 stores nationwide. According to BGF Retail, ramyeon sales at these locations rose 153.8 percent year-on-year between January and September. Courtney from Canada, visiting Seoul with friends, said she was surprised by the novelty. "It’s like a whole experience here. Back home we don’t have machines that let you cook noodles right in the store," she said. Sophie from Austria said social media influenced her trip. "I first learned about Korean ramyeon on TikTok, and it’s what brought me to Seoul. Korean noodles are thicker and saucier than others. Buldak Ramyeon is my favorite," she said. A CU part-timer in his 20s said spicy varieties dominate tourist purchases. "Buldak and Buldak Carbonara are the most popular. Foreign visitors really love Korean-style spicy noodles," he said. 2025-11-06 17:49:29

South Korean FM to visit Cambodia to discuss measures against scam crimes SEOUL, November 6 (AJP) - Foreign Minister Cho Hyun will visit Cambodia to discuss measures to combat online scams involving South Koreans. He is scheduled to leave for Phnom Penh this weekend, spokesperson Lee Jae-woong said in the ministry's regular press briefing on Thursday. During his three-day trip, Cho plans to meet with Cambodia's foreign and interior ministers to discuss cooperation in combating scam crimes while enhancing bilateral relations. He will also meet with South Koreans living there. Lee said, "Both countries are in discussions to launch a joint task force between their police agencies as early as possible, as agreed last month," adding that it will help address scam crimes in Cambodia involving South Koreans. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-06 17:20:33

Washington requests 'more time' to sign tariff deal with Seoul, FM says SEOUL, November 6 (AJP) - Amid growing speculation over why South Korea and the U.S. are still unable to sign a memorandum of understanding (MOU) for their recent tariff-related deal, which was finalized on the sidelines of last week's Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, Foreign Minister Cho Hyun said on Thursday that Washington has requested "more time." When asked what has caused the delay, Cho said during a parliamentary hearing, "Given the deal's vast scope, it is just taking time to check and fine-tune details between the two sides through an extensive review process." "I have heard that the U.S. side is in the final stage of review with relevant government agencies there," he explained, assuring lawmakers who had raised concerns about possible disagreements over specific terms or other issues. Cho added that both sides have already exchanged near-final drafts, hinting at the deal's imminent signing along with the release of a joint fact sheet outlining all the details. Nevertheless it remains to be seen when it will happen, as it has been repeatedly delayed. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-06 17:00:34