Bank of Korea chief signals nearing end of easing cycle SEOUL, October 23 (AJP) - The Bank of Korea (BOK) held its key interest rate at 2.50 percent for October, keeping policy steady since the last 25-basis-point cut in May amid foreign exchange and housing market volatility, and signaled that the current easing cycle may be nearing its end unless major external shocks occur. “We are maintaining an easing policy stance, but the pace and timing of additional rate cuts may have to be adjusted,” BOK Governor Rhee Chan-yong said at a press briefing following Thursday’s monetary policy board meeting. Four of the six board members supported leaving room for another rate reduction over the next three months, while two favored holding rates steady. The share of members preferring a freeze rose to two from one at the August meeting, Rhee noted. Whether the central bank delivers this year’s third 25-basis-point cut at its final policy meeting in November will depend largely on the outcome of ongoing trade negotiations between South Korea and the United States, as well as between Washington and Beijing — factors that could shape Korea’s growth outlook, he added. The bond market showed a mixed response, with yields on short-term government bonds falling, while those on longer maturities edged higher. The three-year government bond yield declined by 2.4 basis points to 2.548 percent, while the 10-year yield inched up by 0.02 basis points to 2.871 percent. Equities and currency markets reflected caution. The Kospi retreated nearly 1 percent after briefly touching the 3,900 milestone, while the won weakened toward 1,440 per dollar — its lowest level in six months. The BOK’s policy inertia comes amid heightened political uncertainty, including the June presidential election and renewed tariff pressure under the second Donald Trump administration. The pause has extended as Seoul awaits the conclusion of a trade deal with Washington that could stabilize the won and cool speculative housing demand in the capital region following the latest government curbs. The dollar revisited the 1,440-won threshold for the first time in six months, though Rhee attributed the movement to multiple geopolitical and market factors. “The dollar’s gain of about 35 won over the past month — roughly one-quarter from dollar strength itself — also reflects renewed U.S.–China trade tensions, potential monetary expansion in Japan, and Korea’s $350 billion investment pledge to the U.S.,” he said. Rhee predicted that the foreign exchange market would regain stability once the details and funding structure of the U.S. investment package are finalized. A steady recovery in Korea’s real economy also lessens the need for further easing. Despite global trade uncertainties, the current account surplus is projected to reach $110 billion this year, up sharply from the previous BOK estimate of $82 billion in May. The central bank expects full-year growth to meet its earlier estimate of 0.9 percent. The economy, which contracted 0.2 percent quarter-on-quarter in the first three months of the year, expanded 0.7 percent in the second quarter and is projected to accelerate to 1.1 percent in the third. The BOK will release its preliminary third-quarter GDP data next Tuesday. 2025-10-23 16:41:53

Korean AI company Upstage unveils Japan-focused LLM 'Shin Pro' SEOUL, October 23 (AJP) - South Korean artificial intelligence company Upstage announced Thursday the launch of “Shin Pro,” a large language model (LLM) designed specifically for the Japanese market and developed in partnership with Tokyo-based AI firm Karakuri. Built on Upstage’s proprietary Solar model, Shin Pro is a 31-billion-parameter system fine-tuned for Japanese language nuances and cultural context. The model is optimized for on-premise deployment, offering companies enhanced data security and cost efficiency by allowing them to run AI applications within their own infrastructure. Shin Pro has already drawn attention for its performance, topping the Weights & Biases Nezumi Leaderboard, a key benchmark for Japanese-language LLMs. It achieved the highest score among models with 31 billion parameters or fewer. Notably, Shin Pro is the only model developed and trained in Japan to rank among the top performers on the leaderboard — a space otherwise dominated by models from OpenAI, Google, Anthropic, and DeepSeek. Its emphasis on local deployment and data privacy aligns with Japan’s growing preference for on-premise AI solutions over cloud-based alternatives from U.S. and Chinese providers. “This achievement shows that Upstage’s technology can compete head-to-head with globally trained AI models in Japan,” said Hiroyuki Matsushita, head of Upstage Japan. “With Shin Pro, we aim to help Japanese companies adopt AI that reflects their industry needs, security requirements, and cultural context.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 16:31:54

Singapore's VENA Group pledges $20 billion investment in Korea's green energy, AI sectors SEOUL, October 23 (AJP) - Singapore-based renewable energy company VENA Group plans to invest $20 billion in South Korea to advance projects in renewable energy and artificial intelligence data centers, officials here said Thursday. The announcement came after the company delivered a letter of intent at a ceremony held at the National Assembly in Seoul, attended by Environment Minister Kim Sung-hwan, Vice Minister of Science and ICT Ryu Jae-myung, Democratic Party lawmaker Cha Ji-ho, presidential secretary of national AI policy Kim Woo-chang, and VENA Group Chairman Nitin Apte. The investment pledge builds on a memorandum of understanding signed in September during President Lee Jae Myung’s meeting with BlackRock Chairman Larry Fink at the United Nations General Assembly. That agreement sought to position South Korea as the “AI capital of Asia” by attracting global investors to its energy and technology sectors. Environment Minister Kim hailed the announcement as “a tangible result of the president’s diplomatic and investment efforts,” adding that the partnership would help accelerate South Korea’s renewable energy transition and bolster its AI infrastructure competitiveness. The Ministry of Environment said it plans to channel part of the investment into offshore wind power projects and develop an “energy highway” linking wind farms, national power grids, and AI data centers. Vice Minister Ryu said the government would continue to encourage sustainable development through international partnerships. “This initiative reflects our vision to make South Korea a leading AI and green energy hub in the Asia-Pacific region,” he said. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 16:19:30

US secretary of state expected to accompany Trump at next week's APEC summit SEOUL, October 23 (AJP) - U.S. Secretary of State Marco Rubio will visit South Korea next week as part of his trip to Asian countries, the State Department said Wednesday. In a press statement, the department said Rubio will "travel to Kuala Lumpur, Tokyo, and Gyeongju" from Oct. 26 to 30 to "advance peace and prosperity in the Asia-Pacific region," after wrapping up his trip to Jerusalem where he will "reaffirm America's unwavering commitment to Israel's security and engage with partners to build on the historic momentum towards durable peace and integration in the Middle East." He is likely to accompany U.S. President Donald Trump, who is scheduled to arrive next Wednesday for a brief two-day visit to attend the Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju. The visit will be his first trip to Seoul since he assumed the post with the inauguration of Trump's second, non-consecutive term in January. During his stay here, Rubio is expected to meet with Foreign Minister Cho Hyun and National Security Adviser Wi Sung-lac. 2025-10-23 15:38:22

Hyundai Motor steps on the gas in Indian foray as US and China turn inward SEOUL, October 23 (AJP) - South Korea's Hyundai Motor Group is accelerating its push into India following last year's landmark $3.3 billion initial public offering of its Indian unit, positioning the country as a central pillar of its global growth strategy amid rising protectionism in the United States and China. "India is a strategic priority in Hyundai's global growth vision. India isn't just important to Hyundai's global strategy — India is Hyundai's global strategy," said Jose Munoz, president of Hyundai Motor, at the 2025 CEO Investor Day held in Mumbai last week. The inclusion of Mumbai in the company's first overseas investor roadshow this year underscores its new focus. Munoz announced that Hyundai plans to invest about 7.2 trillion won — roughly $5 billion — over the next five years, matching its cumulative investment in India over the past three decades. The group plans to introduce 26 new models, including its first hybrid vehicle designed specifically for Indian road and lifestyle conditions, as well as premium models under the Genesis brand. The "India pivot" strategy comes as the world's two largest auto markets, the United States and China, grow increasingly protectionist with contrasting tariff regimes and local subsidy incentives. India, meanwhile, has taken a different course — slashing its goods and services tax (GST) in September to cushion potential shocks from the 50 percent U.S. tariffs. Consumption taxes on small cars were cut from 29 percent to 18 percent, and on large vehicles, including SUVs, from 50 percent to 40 percent. New Delhi has also pledged to reduce import tariffs to 15 percent from 100 percent for automakers investing more than $500 million and launching electric vehicle production within three years. Beyond policy incentives, India's vast population of 1.4 billion and low vehicle ownership rate — just 7.5 percent — make it a "blue ocean" for global automakers. The country now ranks third worldwide in vehicle sales behind China and the U.S., with its electric and hybrid markets expanding rapidly. The government's latest GST 2.0 reforms, which further trimmed small-car taxes by up to 13 percent, are expected to boost consumption even more. India's appeal also lies in its manufacturing competitiveness. According to the International Monetary Fund, India's per capita GDP stood at $2,396 last year — less than one-fifth of China's $13,306 — while its median age of 29.8 years makes it one of the youngest major economies. In contrast, Japan's median age is 49.9, South Korea's 45.5, China's 40.2, and the U.S.'s 38.9. This youthful demographic provides both abundant labor and long-term consumer potential. "Hyundai initially found success in India with compact cars — affordable pricing and reliable after-sales service built strong brand trust," said Lee Soon-cheul, professor at the Department of Indian Studies at Busan University of Foreign Studies. "As India's per capita income rises, car demand will expand further, particularly since public transport infrastructure remains underdeveloped and roads poorly maintained." Hyundai Motor India (HMI), which went public last year in India's largest IPO to date, boasts a net profit margin of 8 to 9 percent — the highest among Hyundai's overseas operations. In September, HMI sold 70,347 vehicles, up 10 percent from a year earlier. SUV sales reached a record 37,313 units, accounting for 72.4 percent of domestic sales, while exports of 18,800 units marked a 33-month high. Sister brand Kia India posted 22,700 sales during the same period, up 15.8 percent. Both Hyundai and Kia are projected to achieve record annual sales in India this year. Production capacity is expanding in step with sales. Hyundai, which currently operates two plants in Chennai, will open a new facility next year in the western city of Pune, adding 250,000 units of annual capacity and pushing its total Indian output above one million vehicles. Industry analysts expect Hyundai's local production to rival that of Maruti Suzuki and Tata Motors. In January, the company appointed Tarun Garg as the first Indian chief executive of HMI in its 29-year history — a move credited with sustaining record sales and overseeing the successful IPO. But bumpy roads lie ahead. "India offers affordable yet skilled labor and a vast market for carmakers, but weak infrastructure and tensions between central and state governments may pose difficulties for Korean firms," said Kim Jai-june, professor emeritus at the College of Economics and Commerce at Kookmin University. "Hyundai will also need to navigate shifting environmental regulations, high tax rates, protectionist trade policies, and legal uncertainties in India," Kim added. Despite its rapid growth, India's modest GDP per capita, wide income disparity, and uneven consumer spending continue to limit purchasing power. Industry observers estimate that only about 280 million of India's 1.4 billion people earn more than $10,000 a year — a reminder that while the Indian market is vast, it is far from uniformly affluent. Still, with narrowing options as the U.S. and China turn increasingly inward, Hyundai Motor's best bet for mid-term growth may rest on India’s demographic vitality and reform-driven momentum — a gamble that could define the next chapter of its global expansion. 2025-10-23 15:19:31

Lee backs US efforts to engage in dialogue with North Korea in CNN interview SEOUL, October 23 (AJP) - President Lee Jae Myung expressed his willingness to help facilitate dialogue between Pyongyang and Washington in an interview with CNN conducted on Wednesday and released the following day. "I hope that (U.S. President Donald Trump and North Korean leader Kim Jong-un) will be able to engage in dialogue," he said. "I also believe that wants to achieve world peace, and that is why I have made the recommendation for him to take on the role of a peacemaker." When asked about a possible meeting during Trump's visit to South Korea next week to attend the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, he said it would be a "good thing" if they could "get together." Regarding trade negotiations that are still dragging on despite last July's deal between the two countries to lower reciprocal tariffs from 25 percent to 15 percent in return for Seoul's massive investment in the U.S., Lee admitted there are "differences in opinion" but remained optimistic, saying that "eventually we will get there because the United States is the leading country when it comes to the values of democracy and the free market system." He added, "I believe that we will, in the end, be able to reach a rational result that can be acceptable." Addressing China's "ambitions and growing capabilities in high-tech industries," which have nearly caught up with or overtaken South Korea's, Lee said there still remain "many areas where South Korean firms can win," particularly in sectors like semiconductors and automobiles. He highlighted that South Korea is willing to share its expertise with its closest ally, as the bilateral relationship encompasses "economic, technological, and military cooperation." "In the past we have received a lot of assistance from the United States, and so we are willing to provide assistance for..... efforts to revamp its manufacturing industry to the extent possible," he said. 2025-10-23 14:30:44

HD Hyundai merger plan gets shareholders' approval SEOUL, October 23 (AJP) - HD Hyundai Heavy Industries will officially merge with its affiliate HD Hyundai Mipo Dockyard on Dec. 1, following overwhelming shareholder approval on Thursday — a move the company says will sharpen its competitiveness in the global shipbuilding and defense markets. At the respective shareholder meetings, 98.54 percent of HD Hyundai Heavy Industries’ shareholders and 87.56 percent of HD Hyundai Mipo’s shareholders voted in favor of the merger, including the National Pension Service, one of South Korea’s largest institutional investors. The two companies first announced their merger plan in August, positioning the combined entity as a leader in defense technology and next-generation shipbuilding. The Fair Trade Commission approved the deal in September, saying it would not restrict market competition. The merger will consolidate HD Hyundai Heavy Industries’ shipbuilding expertise with HD Hyundai Mipo’s production capacity and workforce, allowing the new entity to strengthen its foothold in the defense and special-purpose vessel markets. The company also plans to expand its research and development operations to accelerate technological innovation and respond more effectively to tightening environmental regulations. Executives said the integration would help streamline design and production processes, reduce costs, and improve responsiveness to global demand shifts. The company has set an ambitious target of $27 billion in revenue by 2035, up from an estimated $14 billion in 2024, with roughly $7 billion expected to come from the defense sector. “Shareholders have recognized the strategic necessity of this merger,” an HD Hyundai Heavy Industries spokesman said. “By combining our strengths, we aim to lead the future of the shipbuilding and defense industries.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 14:20:49

Bangladesh's investment chief visits South Korea to discuss deepening ties SEOUL, October 23 (AJP) - South Korea and Bangladesh are moving to strengthen economic cooperation as Dhaka prepares to transition from least-developed country (LDC) status, officials here said Thursday. South Korean Trade Minister Yeo Han-gu met with Chowdhury Asik Mahmud Bin Harun, chairman of the Bangladesh Investment Development Authority, in Seoul to discuss ways to expand bilateral trade and investment , according to the Ministry of Trade, Industry and Energy. Yeo underscored Bangladesh’s potential as a key economic partner and reviewed progress on negotiations for a Comprehensive Economic Partnership Agreement (CEPA) — a bilateral trade deal aimed at facilitating market access and industrial collaboration. He expressed hope for “meaningful progress” before Bangladesh’s formal graduation from the United Nations’ LDC category. Both sides noted the complementary nature of their economies — Bangladesh’s young labor force and resource base alongside South Korea’s advanced manufacturing and technology capabilities — and agreed to broaden cooperation in manufacturing, infrastructure, and industrial development. Yeo also raised concerns voiced by South Korean firms operating in Bangladesh, citing customs delays, inconsistent product classifications, and complex licensing procedures as persistent obstacles to investment. He urged Dhaka to address these issues to create a more stable business environment. In a statement, the ministry said Seoul remains committed to strengthening institutional frameworks to boost trade and industrial ties not only with Bangladesh but across the broader South Asian region. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 14:09:37

Korean won weakens past 1,440 per US dollar, hitting 6-month low SEOUL, October 23 (AJP) - The South Korean won slid past 1,440 per U.S. dollar on Thursday, its weakest level in six months, as investors reacted to a mix of global and regional pressures — from U.S. policy uncertainty to shifting dynamics in Japan and China. The won was traded at 1,440.3 per dollar, down 10.45 won from the previous session as of 1:00 p.m., marking its lowest point since April 29. The currency opened at 1,431.8 won. Speaking at a press conference after the Bank of Korea held its key interest rate steady at 2.5 percent, Governor Rhee Chang-yong said that only about a quarter of the won’s recent depreciation could be attributed to the dollar’s global strength. The rest, he noted, stemmed from regional and policy factors, including delayed U.S.-Korea tariff negotiations, Japan’s anticipated fiscal expansion under newly elected Prime Minister Sanae Takaichi, and renewed U.S.-China trade tensions. Rhee cited uncertainty surrounding the U.S.-Korea tariff talks as a particular source of market pressure. “The dollar index shows that negotiation delays are weighing on the won's value,” Rhee said. “A reduction in U.S. tariffs on Korean goods — from the current 25 percent to around 15 percent — would likely ease pressure on the won.” Rhee also pointed to lingering concerns over a $350 billion U.S. investment funding package, saying its details would help clarify its influence on global capital flows. “We are monitoring closely and working to reduce volatility in the foreign exchange market,” he said. Meanwhile, the Japanese yen continued to weaken, trading at 152.45 per dollar, as markets braced for potential fiscal expansion and the Bank of Japan’s continued reluctance to raise rates following Takaichi’s election as the prime minister. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 13:57:04

Korea raises $1.7 bn in FX bonds at lowest spread, 2025 issuance hits $3.4 bn SEOUL, October 23 (AJP) - South Korea has raised $1.7 billion in foreign-currency sovereign bonds at record-low spreads, signaling investor confidence in Asia’s fourth-largest economy despite U.S. tariff uncertainties and slowing global demand, the Ministry of Economy and Finance said Thursday. The ministry said it completed the issuance of $1 billion in U.S. dollar-denominated bonds and 100 billion yen (about $700 million) in yen-denominated foreign-exchange stabilization bonds. The dollar-denominated bond was priced at 3.741 percent, just 17 basis points above the corresponding five-year U.S. Treasury yield — beating the previous record-low spread of 25 basis points set in 2024. The multi-tranche yen issuance spanned two, three, 5.25- and ten-year maturities, with yields as follows: 2-year at 1.065% (TONA mid-swap +16 bps) 3-year at 1.208% (TONA mid-swap +20 bps) 5.25-year at 1.457% (TONA mid-swap +30 bps) 10-year at 1.919% (TONA mid-swap +46 bps) TONA mid-swap serves as the benchmark rate in the yen bond market. With the latest sale, total foreign-exchange stabilization bond issuance this year reached $3.4 billion — the largest since the program was introduced in the wake of the 1998 Asian financial crisis and just shy of the $3.5 billion annual ceiling approved under the May supplementary budget. In the first half, the government issued 1.4 billion euro (about $1.5 billion) in euro-denominated bonds, marking the first time South Korea has completed FX stabilization issuance in all three major global currencies — the dollar, euro and yen — within a single year. “This year’s successful issuance of foreign-exchange stabilization bonds in the world’s three major currencies is expected to improve overall conditions for foreign-currency procurement in the domestic market,” the ministry said in a statement. As of 2 p.m. in Seoul, the won was trading at 1,440.8 per U.S. dollar on Thursday, down 8 won from the previous session. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-23 13:49:04