Korean battery makers seat ESS at the forefront of AI-age global drive SEOUL, November 05 (AJP) - South Korean battery manufacturers are pressing ahead with aggressive global expansion and investment plans despite multiple headwinds - overcapacity worries, rising trade barriers, stalled growth in electric vehicles and China's overwhelming dominance - as they bet on rechargeable batteries becoming the dominant clean-energy infrastructure of the AI age. Top three battery makers are doubling their U.S. production capacity to 600 gigawatt-hours (GWh) annually by end-2026 from about 300 GWh now, even as U.S. EV sales stagnate. Sales reached roughly 607,000 units in the first half of this year, up just 1.5 percent from 597,500 a year earlier, according to Cox Automotive, and the elimination of the $7,500 federal EV tax credit in September is expected to weaken demand further. The financial impact has already begun to show. LG Energy Solution posted third-quarter revenue of 5.7 trillion won ($3.93 billion) with operating profit of 601.3 billion won. Samsung SDI reported revenue of 3.05 trillion won but swung to an operating loss of 591.3 billion won. SK On logged revenue of 1.81 trillion won with an operating loss of 124.8 billion won. Amid the slowdown in EV demand, Korean battery makers are rapidly shifting focus to energy storage systems (ESS), which store electricity generated from solar and wind farms for release during peak demand. The pivot comes as AI data centers require unprecedented and highly stable power loads. According to SNE Research, the global ESS market is projected to expand sixfold from 185 GWh in 2023 to 1,232 GWh by 2035, with the U.S. market also expected to grow sharply as electricity demand surges. China dominates ESS as well, but narrowing access to Chinese batteries under the Trump administration's trade barriers could open opportunities for Korean firms. "The decoupling of the U.S. from China is expected to accelerate in areas with high Chinese dependency such as ESS batteries and graphite, which will serve as an opportunity for Korean battery companies," said Lee Jin-myung, an analyst at Shinhan Securities. LG Energy Solution has already begun converting EV battery lines to ESS production. The company started mass production at its Holland, Michigan plant in June after retooling the facility. The plant now has 16 GWh of capacity, which LG Energy aims to expand to 30 GWh by end-2025. "It could grow beyond 30 GWh," said Kim Dong-myung, president of LG Energy Solution, at an industry event on Oct. 30. The company is reviewing additional conversions. On Monday, LG Energy and Stellantis said their joint venture in Canada will convert some of its nickel manganese cobalt (NCM) battery lines to cheaper lithium iron phosphate (LFP) production for ESS. Samsung SDI has secured substantial ESS orders as well. The company plans to convert its Stellantis joint venture in the United States to ESS production with a target of 30 GWh annual capacity by end-2025. Samsung SDI will also supply Tesla with more than 3 trillion won worth of ESS batteries over three years, delivering about 10 GWh annually starting this year, according to industry sources on Nov. 3. SK On is joining the bandwagon. The company won a 1 GWh ESS supply contract in the United States in September and will convert part of its standalone Georgia plant to meet the order, with additional U.S. lines possibly repurposed depending on demand. Industry experts say Korean firms are preparing for strategies that go beyond ESS, as Chinese batteries remain difficult to beat on price and performance. "With the introduction of cell-to-pack technology, cheap LFP batteries have proven quite competitive against NCM batteries for lower-priced EV models like Tesla's Model 3 or Model Y," said Kim Ki-jae, professor of battery science and engineering at Sungkyunkwan University. He added that Korean manufacturers are working to improve nickel-based batteries to match their cheaper counterparts, with companies such as EcoPro continuing to focus on high-nickel cathodes. "Korean firms could also focus on developing batteries for urban air mobility and robotics. They could really capture significant portions of market share," said Kim. 2025-11-05 16:58:27

Korea's platform giant Naver reaps best quarterly revenue with AI help SEOUL, November 05 (AJP) - South Korea’s internet platform leader Naver Corp. posted its highest-ever quarterly revenue for the July–September period, powered by broad adoption of artificial intelligence across its businesses. According to the company’s regulatory filing Wednesday, operating profit rose 8.6 percent from a year earlier to 570.6 billion won ($394 million), while revenue jumped 15.6 percent to 3.138 trillion won ($2.17 billion). It is the first time in the company’s 26-year history that quarterly revenue has exceeded 3 trillion won. Naver said AI-driven ad optimization and its ADVoost Shopping tool sharply strengthened performance in commerce advertising. ADVoost Shopping automatically adjusts and improves ad results for Naver’s shopping products in real time using AI, a feature the company credited as central to the quarter’s growth. Commerce—anchored by Naver Shopping—led the earnings momentum. Sales increased 35.9 percent year-over-year to 985.5 billion won, up 14.4 percent from the previous quarter. Transaction volume at its Smart Store marketplace rose 12.3 percent on-year, supported by enhanced personalization in product discovery as well as expanded delivery and membership benefits. “Under our ‘On-Service AI’ strategy, we have focused on enhancing AI capabilities across all services and businesses, which translated into broader business opportunities and profit growth,” said Chief Executive Choi Soo-yeon in a conference call. “We will continue to extend AI integration into more areas, strengthen core competitiveness, and secure new growth engines for global expansion.” The broader market fell sharply, with the KOSPI down 2.9 percent on Wednesday, but Naver shares bucked the trend, closing 3.8 percent higher at 277,000 won. 2025-11-05 16:55:08

Asian stocks under broad foreign selloff, KOSPI and Nikkei biggest casualties SEOUL, November 05 (AJP) - Asian stocks tumbled across the board on Wednesday, with recent winners in Seoul and Tokyo turning into the day’s biggest losers. South Korea’s benchmark KOSPI closed down 2.85 percent at 4,004.42, barely holding the psychologically important 4,000 level. The index had plunged more than 5 percent in early trading, triggering a sidecar halt. The selloff followed mounting fears of a potential U.S. market bubble after steep losses in Palantir Technologies and other major AI-linked stocks. Sentiment deteriorated further as the U.S. Supreme Court began hearings on the legality of the Trump administration’s reciprocal tariff structure, unsettling investors in Korea and Japan, both heavily exposed to U.S. trade flows. Warnings from U.S. asset manager Scion Asset Management on Tuesday that key AI-related stocks were “overheated” reinforced concerns. The caution echoed remarks in recent days from Goldman Sachs CEO David Solomon and Morgan Stanley CEO Ted Pick, which helped spark a sharp correction in U.S. equities. Foreign investors offloaded a net 2.51 trillion won ($1.72 billion) in Korean shares, driving the downturn, while retail investors bought 2.56 trillion won to absorb the selling. Index bellwethers Samsung Electronics and SK hynix led the slump. Samsung fell 4.1 percent to 100,600 won after briefly dipping to 96,700 won before trimming losses. SK hynix also slid sharply intraday, dropping below 550,000 won before recovering part of the decline to finish 1.19 percent lower at 579,000 won. Amid the market turmoil, Naver defied the downtrend. The tech giant jumped 4.31 percent to 278,500 won after reporting record third-quarter earnings earlier in the day on the back of expanded AI integration, standing in sharp contrast to the broader AI-driven rout across global markets. The KOSDAQ also slid, losing 2.66 percent to 901.89 after triggering a mid-day sidecar before rebounding above the 900 level. Japan’s Nikkei 225 dropped 2.5 percent to 50,212.27. SoftBank Group plunged 10 percent to 22,640 yen ($147.4), while Hitachi Construction Machinery nosedived 12.17 percent to 4,382 yen after Hitachi Ltd. said it would divest its stake, ending the unit’s subsidiary status. Elsewhere in Asia, Taiwan’s TAIEX shed 1.42 percent to 27,717.06, pressured by the same U.S.-led “AI bubble” fears. In contrast, Chinese and Hong Kong stocks held up better than their regional peers. The Shanghai Composite Index rose 0.23 percent to 3,969.25, while the Hong Kong Hang Seng Index slipped just 0.36 percent to 25,860 as of 4:30 p.m., marking the smallest decline among major Asian markets. 2025-11-05 16:54:41

South Korea begins efforts to spur commercial use of quantum technologies SEOUL, November 05 (AJP) - South Korea’s Ministry of Trade, Industry and Energy on Wednesday launched a team designed to accelerate the transition of quantum technology from laboratory research to industrial application. The so-called K-Quantum Industry Alliance brings together companies, universities, research institutes, and financial organizations in a coordinated effort to strengthen the country’s quantum ecosystem. During a ceremony in Seoul, participants signed a memorandum of understanding pledging to collaborate on industry-specific projects, improve standards and regulatory frameworks, and support the global expansion of Korean quantum firms. As part of the initiative, the ministry unveiled a project aimed at boosting domestic production of key components such as superconducting quantum processing unit (QPU) packaging and cryogenic coolers — both essential for stable quantum computing systems. The project will also expand efforts in quantum software development and validation, while building a platform that integrates quantum and supercomputing capabilities. The goal, officials said, is to allow companies to design and test quantum models directly, shortening the path from research to real-world use. “We will help domestic component makers join the global value chain and ensure that quantum technologies can be rapidly deployed to solve industrial challenges,” said Vice Minister Moon Shin-hak during the ceremony. The project came as South Korea is seeking to stake a stronger claim in the global race for quantum leadership — a field expected to reshape computing, communications, and advanced manufacturing in the years ahead. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 16:20:31

Former first lady admits to accepting luxury bags while seeking bail SEOUL, November 5 (AJP) - Former First Lady Kim Keon Hee on Wednesday admitted to accepting luxury bags, which have been among multiple allegations against her, but claimed they were not bribes given in return for favors. In a statement released by her legal representatives, the wife of disgraced former President Yoon Suk Yeol said she received two Chanel bags from Jeon Seong-bae, a dubious religious leader and shaman, but denied accepting high-end jewelry including a Graff necklace from secretive religious sect Unification Church, better known as the Moonies. They added, "Initially Kim refused the bags, but she ended up accepting them as Jeon persistently persuaded her. She later returned them to him without using them at all." Referring to them as "nothing but mere expectations," her lawyers said there was no collusion or any form of bribery between Kim and Jeon, or with the church. The abrupt admission from Kim, who had previously denied all allegations - including accepting bribes, being involved in a stock manipulation scheme, and interfering in candidate nominations during the 2022 by-elections - came with an apology for her "inappropriate actions as the spouse of a public official," expressing "deep regret for disappointing the public." The reversal appeared to be related to her recent request for bail. Besides, Jeon also recently reversed his testimony in court, saying he had delivered the gifts from a church official to a then-presidential aide, after previously claiming he had lost them. Requesting bail for health-related reasons, Kim, who has been detained at a remand prison in southern Seoul since August, claimed she has been suffering from dizziness, memory loss, and other ailments. A hearing for her request has not yet been scheduled. 2025-11-05 15:44:17

Majority of South Koreans distrust national pension system, survey finds SEOUL, November 05 (AJP) - More South Koreans say they distrust the national pension system than those who express confidence in it, according to a new survey highlighting deepening public skepticism toward the country’s social safety net. The poll, commissioned by the Korea Employers Federation and conducted by Mono Research, found that 55.7 percent of respondents do not trust the national pension system, compared with 44.3 percent who said they do. Distrust was most prevalent among workplace subscribers — those enrolled through their employers — with 57.8 percent expressing skepticism. Among regional subscribers, who pay independently, 51.8 percent said they did not trust the system. In contrast, 56.1 percent of voluntary subscribers, typically those more motivated to join, expressed trust in the pension. Generational differences were stark: respondents over 50 were more likely to trust the pension system, while younger adults in their 20s through 40s were significantly more doubtful. When asked about the burden of pension premiums, nearly seven in 10 respondents (69.7 percent) said they found the payments burdensome. Workplace subscribers, who split premiums with their employers, reported higher levels of strain (72.9 percent) than regional subscribers (62.2 percent), whose lower reported income and contributions may ease the perceived burden. As of late 2024, the average monthly premium stood at 306,985 won ($219) for workplace subscribers and 79,886 won for regional subscribers. Public sentiment also turned sharply negative toward the government’s recent pension reforms. Following an April amendment to the National Pension Act — which will raise contribution rates by 0.5 percentage points annually to 13 percent by 2026 — 73.4 percent of respondents viewed the changes unfavorably, while only 19.7 percent expressed support. Concerns about the system’s long-term sustainability were widespread. More than 80 percent of respondents said they worried that raising the income replacement rate to 43 percent by 2026 would expand benefits without addressing the pension fund’s looming fiscal shortfall. When asked what should be the top priority for pension reform, 30.7 percent of respondents cited ensuring the fund’s financial sustainability, followed by 27.6 percent who pointed to intergenerational fairness, and 18.4 percent who emphasized securing adequate retirement income. “Public trust is essential to any successful pension reform,” said Lee Dong-geun, executive vice chairman of the Korea Employers Federation. “It’s more important to assure people that they will receive benefits proportional to their contributions than to simply increase the payout rate.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 15:29:51

BOK governor to attend BIS meeting, Singapore fintech forum SEOUL, November 05 (AJP) - Bank of Korea Governor Lee Chang-yong will travel to Basel, Switzerland, on Thursday to attend a meeting of the Bank for International Settlements (BIS) governors. During his visit, Lee will join discussions with fellow central bankers on the global economy and financial markets. As a BIS director, he will also take part in meetings of the board and the Economic Consultative Committee. In his capacity as chair of the Committee on the Global Financial System, he is expected to lead talks on international financial stability and policy coordination. Following the meetings in Basel, Lee will head to Singapore to participate in the 10th Singapore FinTech Festival, one of the world’s largest gatherings for financial technology. Scheduled to speak on a panel, he plans to present the Bank of Korea’s digital currency project, and discuss the evolving role of central bank digital currencies in the global financial landscape. The festival, to be held from Nov. 12 to 14 at the Singapore Expo, will bring together central bank governors, policymakers, and executives from leading financial and fintech companies. Lee plans to return to Seoul on Nov. 13. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 15:16:02

KRW falls to weakest in 7 mo as forex data implies limited room for Seoul to defend currency SEOUL, November 05 (AJP) - The South Korean won’s recovery — fueled by the Korea-U.S. trade deal during APEC week and a bullish stock market — proved short-lived as the U.S. dollar climbed to a seven-month high amid renewed concerns over frothy AI-related stocks. The dollar hit 1,446.3 won on Wednesday, its strongest level since April, as foreign investors dumped more than 2 trillion won worth of KOSPI shares as of 2:00 p.m., dragging the benchmark index down more than 3 percent. While the heavy foreign profit-taking reflects the KOSPI’s staggering 70 percent gain so far this year, the upward pressure on the dollar-won exchange rate is largely driven by external factors — leaving Seoul with limited policy options. According to central bank data released Wednesday, South Korea’s foreign reserves stood at $429 billion at the end of October, up $6.8 billion from the previous month. It marked the sixth straight monthly increase and the highest level in 21 months, occurring despite verbal interventions aimed at curbing excessive bias toward a weaker won. The rise in reserves suggests authorities have refrained from deploying significant firepower to defend the currency. Foreign currency deposits increased $7.4 billion to $25.9 billion, supported by robust export performance. Exports in October climbed 3.6 percent year-on-year to a record $59.6 billion, with the cumulative trade surplus already surpassing last year’s total — a factor likely boosting foreign-currency deposits. Improved investment returns at domestic pension funds and financial institutions also contributed. The National Pension Service’s Investment Management Division reported an 8.6 percent return on its overseas equity portfolio — including major U.S. stock market holdings — from January through August. Globally, South Korea moved up one notch to ninth place in foreign-reserve rankings, overtaking Hong Kong, whose holdings fell by about $2.5 billion in October. Despite strong exports and a buoyant stock market, the won has remained weak after briefly strengthening to 1,430 per dollar following Seoul and Washington’s final agreement on payment terms for Korea’s $350 billion investment package last week. The dollar, which averaged 1,453.39 won in January, had eased to 1,364.66 won in June before rebounding to a monthly average of 1,431.17 won as of Nov. 4. According to Park Sang-hyun, researcher at iM Securities, the pressure largely reflects a renewed risk-off mood. “The chance of another rate cut at the January 2026 FOMC meeting is diminishing,” Park said. “Concerns over the financial instability of U.S. regional banks and the prolonged federal government shutdown have restricted liquidity flows, pushing the dollar higher.” Park added that the U.S. Supreme Court’s review of the cross-tariff legality case has further supported the dollar. The court began hearings Wednesday on a lawsuit filed by Democratic-led states and small-business associations challenging the legality of the mutual tariff framework. A ruling against the policy could invalidate the bilateral tariff agreement, dimming prospects for future rate cuts and bolstering the dollar’s strength. The launch of Prime Minister Takaichi Sanae’s new cabinet in Japan — which reaffirmed a policy stance favoring a weaker yen — also weighed on the won-yen pair. Since South Korea and Japan compete directly in key export markets and product categories, Seoul has little choice but to partially align its monetary stance with Tokyo’s to maintain competitiveness. 2025-11-05 14:47:42

Crowds flock to Gyeongju museum after APEC summit SEOUL, November 5 (AJP) - A couple of exhibition rooms and halls at the Gyeongju National Museum, which were used as the main venues for last week's Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city, are set to open for general admission, starting this week. Capitalizing on the momentum from the city's successful hosting of the multilateral gathering, the museum is running a special exhibition from Thursday through the end of next month, featuring the actual tables where global leaders met, official diplomatic protocol items, and memorabilia from various sideline meetings and events. Visitors will be allowed to tour the summit's various venues including those where President Lee Jae Myung met with U.S. President Donald Trump and Chinese President Xi Jinping. They can also take photos at several photo zones set up throughout the museum. Located in the heart of the city, once the capital of the ancient kingdom of Silla that flourished for over 1,000 years, the museum is known for its rich collection of artifacts and other relics of historical and cultural significance. "We are pleased to present this special exhibition, offering visitors an immersive journey into the spaces and atmosphere of the recently concluded summit," said the museum's director Yoon Sang-deok, expressing his excitement. Meanwhile, another exhibition there showcasing ornate, gold-plated ancient crowns has become a hit after news spread that a replica was among the lavish gifts given to Trump during his visit. Swamped with hordes of visitors, the museum has capped daily admissions at 2,250, allowing only 150 people per session. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-11-05 14:17:11

Bear returns to the Asian market on AI bubble concerns SEOUL, November 05 (AJP) - Asian stocks slumped Wednesday as a wave of bearish sentiment swept through regional markets. South Korea’s benchmark KOSPI index plunged 4.1 percent to 3,950.96, falling back below the 4,000 mark just seven trading days after breaking it for the first time in history. The small-cap KOSDAQ tumbled even further, down 4.4 percent to 886.00. The downturn was led by heavyweight chipmakers. Samsung Electronics dropped 5.5 percent to 99,100 won ($68), while SK Hynix sank 7 percent to 545,000 won. Foreign investors sold a net 212.1 billion won worth of shares, while retail investors — who had bought more than 2 trillion won the previous session — continued to purchase stocks, adding 102 billion won, offering only limited support to the market. Analysts attributed the rout to overnight weakness on Wall Street, where concerns about stretched valuations in artificial intelligence stocks triggered a broad sell-off. The Dow Jones Industrial Average, S&P 500 and Nasdaq all retreated on Tuesday, while AI beneficiary Palantir plunged 7.9 percent amid warnings it had become overvalued. Adding to the pressure, reports emerged that Michael Burry — the investor famed for profiting from the 2008 subprime mortgage collapse — had placed bets against Palantir and Nvidia, two of the most high-profile names in the AI rally. Lee Kyung-min, an analyst at Daishin Securities, said that while the long-term outlook for Korea’s leading growth stocks remains strong, short-term corrections are becoming increasingly likely. “The market may test lower levels around 3,700 on the KOSPI, corresponding to a forward price-to-earnings ratio of about 10.3 times,” he noted. Japan’s Nikkei 225 also declined, falling 2.4 percent to 50,238.38, tracking losses in Seoul. CNBC reported that the slump in Asian equities followed warnings from Goldman Sachs and Morgan Stanley urging investors to brace for a market pullback over the next two years. “It’s likely there’ll be a 10 to 20 percent drawdown in equity markets sometime in the next 12 to 24 months,” Goldman Sachs chief executive David Solomon said at the Global Financial Leaders’ Investment Summit in Hong Kong. “Such pullbacks happen even in positive market cycles — they don’t rewrite fundamental convictions about capital allocation.” Morgan Stanley CEO Ted Pick, speaking on the same panel, echoed the view. “We should welcome the possibility of 10 to 15 percent drawdowns that are not driven by a macro cliff effect,” he said, calling them “healthy developments rather than signs of crisis.” The Shanghai Composite Index fell 0.6 percent to 3,936.53, while Hong Kong’s Hang Seng Index dropped 1.2 percent to 25,655.06. Taiwan’s TAIEX also declined 1.9 percent to 27,592.06. 2025-11-05 11:32:45