S&P upgrades LG Electronics' credit outlook, citing India IPO SEOUL, October 22 (AJP) - Standard & Poor’s on Tuesday upgraded LG Electronics’ credit outlook to “BBB Positive” from “BBB Stable,” the company’s first improvement since October 2022. The ratings agency cited robust performances in LG’s home appliance and vehicle component businesses, stronger cash flow from its Indian initial public offering, and a rebound at its affiliate, LG Display. The move came months after Moody’s raised LG’s outlook to “Baa2 Positive" early this year. S&P’s revision signals expectations of financial improvement over the next one to two years, in contrast to the prior “Stable” rating that suggested steady but unremarkable conditions. “Despite U.S. tariff hikes, LG’s core businesses continue to show solid results,” S&P said in a statement, highlighting “a major cash influx from the India IPO and a turnaround at LG Display, where LG holds a 36.72 percent stake.” LG’s home appliance division has maintained its strong market position amid global economic uncertainty, while the company’s air conditioner business is expanding on demand for cooling systems used in data centers. Meanwhile, the vehicle component business continues to improve profitability, supported by a $100 billion order backlog and a more favorable mix of contracts. S&P said it expects LG Display’s recovery to further strengthen LG Electronics’ financial profile, as the company recognizes those gains through the equity method. According to LG, the India IPO will generate more than 1.8 trillion won ($1.3 billion), providing additional funds for debt reduction. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-22 08:16:13

PHOTOS: Kazakhstan embassy marks Republic Day with strategic partnership dialogue in Seoul SEOUL, October 21 (AJP) - The Embassy of Kazakhstan in Korea hosted a roundtable discussion in central Seoul on Tuesday under the theme "Kazakhstan and South Korea: Advancing the Enhanced Strategic Partnership." The event marked Kazakhstan's Republic Day and the 35th anniversary of its Declaration of State Sovereignty, highlighting the shared commitment to deepening bilateral ties. 2025-10-21 23:46:48

INTERVIEW: Europe's largest Korean Cultural Center powers hallyu expansion in Budapest SEOUL, October 21 (AJP) - One in every 200 Hungarians has joined a Korean cultural program in recent years — a sign that Budapest has become the beating heart of the Korean Wave in Central Europe, according to the head of the Korean Cultural Center in Budapest. "In the past three years, more than 51,000 people have taken part in the center’s programs — an impressive figure in a country of only 9.6 million, meaning roughly one in every 200 Hungarians has joined a Korean cultural activity," said Yu Hye-ryeong, director of the center, in an interview with AJP. Opened in 2012, the Korean Cultural Center in Budapest has become a key bridge linking Central Europeans with Korean pop culture, language, cuisine, and traditional arts. Since her appointment last year, Yu has reorganized the center’s programs and expanded partnerships with Hungarian institutions to meet the surging demand. "Participation in our programs has increased sharply," Yu said. "Official data show that the number of classes has risen steadily — from 1,815 in 2022 to 1,928 in 2024 — while total participants have jumped 20 percent, from about 15,000 in 2022 and 17,000 in 2023 to more than 18,000 in 2024." She described Budapest as "the heart of Europe," where enthusiasm for Korean culture continues to grow. According to South Korea’s Ministry of Foreign Affairs, the Budapest center is now the largest of all Korean cultural centers in Europe. Hungarian engagement with Korean culture also ranks among the highest on the continent. Of some 440 active Hallyu fan clubs in Europe, about 130 are based in Hungary — and local media estimate the number has already surpassed 200. "Budapest is now the heart of the Korean Wave in Central Europe, and we are striving to contribute even more to this growing movement," Yu said. She noted that Hungary’s location at the crossroads of Europe — a hub for transport and logistics and home to 200 to 300 Korean companies — amplifies its role as a cultural and economic connector. "The popularity of Korean culture here is linked to Hungary’s geographical advantage and growing cooperation with Korean firms and government agencies," she added. Yu traced the start of the Korean Wave in Hungary back to the early 2000s, when the historical drama "Dae Jang Geum" (Jewel in the Palace) became the first Korean series broadcast in Europe. "It sparked a wave of curiosity about Korean culture," she said. "For a nation of fewer than 10 million, Hungary’s engagement with Korea is extraordinary — and much of that energy flows through our center today." The center offers a wide range of classes — from Korean language and calligraphy to folk painting and temple cuisine, a traditional vegetarian style emphasizing natural balance. "Our cooking classes are especially popular and fill up within minutes," Yu said. "Dishes like kimchi sandwiches and gochujang steak are now common in local restaurants, showing how naturally Korean flavors have blended into everyday life." The center also hosts numerous public events and festivals throughout the year. The annual KoreaON festival, now Central Europe’s largest Korean cultural event, drew more than 11,000 visitors in its sixth edition, covered by over 90 Hungarian media outlets. "The festival showcases the full spectrum of Korean culture — from traditional dance and folk music to K-pop concerts," Yu said. "Our live cooking shows featuring Korea’s traditional fermented sauces, known as jang — soy sauce, soybean paste, and chili paste — received particularly enthusiastic responses." She recalled one highlight: a performance by the K-pop Singers, a Hungarian choir trained by Kim Young-woo of Korea’s renowned vocal group Sweet Sorrow. "The audience stood and sang along — it was unforgettable," she said. This year’s events marking the 80th anniversary of Korea’s liberation also drew wide attention. One of the highlights was a commemorative run held in Budapest’s City Park on August 15, Korea’s Liberation Day, where participants carried Korean flags to celebrate freedom and unity. A piano concert by Korean artist Chin Soo-young, themed around independence and peace, sold out every seat. Looking ahead, Yu said the center plans to deepen its reach across Central Europe. "From the heart of the continent, we’ll continue to fulfill our mission — promoting Korean culture, building mutual understanding, and expanding Korea’s cultural presence throughout Europe," she said. 2025-10-21 21:18:48

Seoul fears rise of new ultra-conservative government in Tokyo may bring out old skeletons SEOUL, October 21 (AJP) - As Japan welcomes its first female state leader, Sanae Takaichi, elected Tuesday as the country’s 104th prime minister, Seoul is watching closely — wary that a rightward turn in Tokyo’s politics could rekindle old tensions. The 64-year-old conservative and head of the ruling Liberal Democratic Party (LDP) won 237 out of 465 votes in the lower house, comfortably surpassing the 233-seat majority threshold. Although the LDP holds 196 seats, Takaichi secured victory in the first round with backing from the Japan Innovation Party (Ishin) and several independent lawmakers. A protégé of the late ultraconservative prime minister Shinzo Abe, Takaichi has pledged to strengthen security ties with the United States and take a harder line against China and North Korea — a stance that contrasts sharply with the Lee Jae Myung administration’s diplomatic approach centered on dialogue, regional inclusivity, and what Seoul officials call “pragmatic diplomacy.” While she has promised continuity with her predecessor Shigeru Ishiba’s policies, her ascent marks a clear ideological shift to the right. Takaichi has long championed “patriotism” in education and asserted stronger sovereignty claims in territorial disputes — positions that could test the fragile thaw between Seoul and Tokyo that began under Ishiba through resumed shuttle diplomacy. For the Lee administration, which came to power in June 2025, the leadership change in Tokyo adds a new layer of uncertainty. President Lee made Japan for his first bilateral visit after taking office, signaling intent to stabilize relations with Tokyo and Washington. Yoshihiro Makino, visiting professor at Hiroshima University, said Seoul hopes to maintain the current momentum but is concerned about possible provocations under Takaichi. “There are concerns that with Takaichi in office, sensitive moves could re-emerge — such as visits to the Yasukuni Shrine, renewed claims over Dokdo, or discussions on the continental shelf agreement,” Makino said. He noted that many of Takaichi’s political allies are deeply attached to historical and territorial issues, heightening the risk of confrontation. “If Japan acts too provocatively, the Lee administration will have no choice but to respond firmly, since public opinion in South Korea reacts strongly to matters of history and sovereignty,” he added. Still, Seoul and Tokyo are expected to find common ground on economic and technological cooperation, particularly in supply chain resilience and semiconductor coordination. Takaichi’s rise also introduces a new variable into the regional power equation among Washington, Tokyo, and Seoul. Both Japan and the United States are now under conservative leadership, but their approaches to North Korea diverge. U.S. President Donald Trump has expressed willingness to reopen dialogue with North Korean leader Kim Jong-un, while Takaichi is expected to pursue a more hardline policy toward Pyongyang. In this shifting regional dynamic, Seoul’s ability to balance between Washington’s unpredictable diplomacy and Tokyo’s tougher stance will be critical in defining South Korea’s role on the Korean Peninsula. 2025-10-21 18:05:25

Red-hot streak of Korean chip stocks spills over to downstream suppliers SEOUL, October 21 (AJP) - South Korea’s semiconductor rally shows no sign of slowing, as record gains by memory giants ripple through the broader chip value chain, drawing in downstream suppliers and equipment makers amid growing concerns over a looming memory shortage in the AI era. Memory bellwethers Samsung Electronics and SK hynix both came close to symbolic six-digit milestones—100,000 won and 500,000 won, respectively. Samsung Electronics closed Tuesday 0.4 percent lower at 97,700 won ($68) after touching 99,800 won, while SK hynix fell 0.9 percent to 481,000 won after reaching an intraday high of 502,000 won. Their bull run lifted suppliers across the Kosdaq and main exchange KRX. Wonik Holdings, which makes chipmaking equipment and materials, slipped 2.7 percent to 25,250 won on profit-taking after soaring 77 percent this month and more than tenfold from its December low of 2,135 won. Hanmi Semiconductor, a key backend equipment producer, gained 55 percent this month on strong demand for its advanced tools used in high-bandwidth memory (HBM) production. Eugene Tech, which supplies to all three DRAM majors—Samsung, SK hynix, and Micron—ended Tuesday at a record 89,600 won after an intraday high of 92,000 won, tripling from a 52-week low of 30,300 won. Analysts widely agree that the sector is entering a new chip super cycle, fueled by surging AI-related demand, constrained supply, and state-led investment in advanced industries. A recent government task force unveiled a 5.7 trillion won national growth fund to support AI and deep-tech startups and strengthen semiconductor and robotics ecosystems. “Artificial intelligence is rapidly reshaping the global economy, and South Korea’s semiconductor industry will remain at the center of this transformation,” said Kang Sung-jin, professor of economics at Korea University. “The rise of AI in the Fourth Industrial Revolution has made semiconductors indispensable, sustaining bullish momentum in equities. Ongoing U.S.–China tensions also enhance Korean firms’ competitiveness in the U.S. market.” Lee Jong-hwan, professor of system semiconductor engineering at Sangmyung University, noted that both memory and non-memory chips are increasingly vital as AI applications diversify. “AI chips are driving explosive demand across the board,” he said. “Non-memory semiconductors—made by foundries like TSMC and Samsung—are just as crucial for AI systems.” Lee added that the real profits in the AI age come from the hardware, not software. “The firms actually making money are the semiconductor manufacturers enabling AI functionality,” he said. “Today’s strong stock performances by SK hynix and Samsung reflect exactly that.” Calling earlier “AI bubble” fears misplaced, Lee predicted the current uptrend would persist as AI adoption accelerates. He urged continued investment in fabs, workforce, and overseas capacity. “Samsung and SK hynix should sustain aggressive semiconductor investment—both domestically in the Yongin cluster and abroad to navigate U.S. trade and tariff risks. Equipment and materials players will rise in tandem.” 2025-10-21 17:55:46

Samsung fields stronger in-house chip-powered Galaxy to counter AI iPhone hype SEOUL, October 21 (AJP) - Samsung Electronics is equipping half of its upcoming Galaxy S26 lineup with its upgraded in-house processor, the Exynos 2600, to counter rising expectations for Apple’s AI-powered iPhone 17 series and to showcase renewed confidence in its AI chipset design and manufacturing capabilities. The tech giant said the new Exynos delivers more than six times the neural processing power of Apple’s latest A-series chip. The move marks the first time in four years that Samsung is mounting its own application processor on its flagship Galaxy S series, a sign of confidence in both hardware design and software integration. The decision comes as Apple’s tight hardware-software ecosystem and expanding AI investments have lifted its shares to record highs this year. Samsung has long split its premium phones between its Exynos and Qualcomm Snapdragon processors by region. However, earlier overheating and performance issues led the company to exclude Exynos from its Ultra models after 2021. Under the new strategy, Galaxy S26 units sold in Korea and Europe will use the latest Exynos chip, while models shipped to the United States, Japan, and other markets will continue to rely on Snapdragon. The reinstatement reflects Samsung’s confidence in resolving the long-standing issues surrounding its application processor — the “brain” of a smartphone — while also improving profitability. The company spent nearly 10 billion dollars on external AP purchases last year, and analysts note that bringing production back in-house could strengthen margins and ecosystem control. Daishin Securities analyst Ryu Hyung-geun said the Exynos 2600, designed for the Galaxy S26, is Samsung’s first 2-nanometer mobile processor and has shown stronger early-stage performance than its 3-nanometer predecessor. “If the performance was really a problem, Samsung would have no reason to choose it,” countered Kim Yongdae, professor of electrical engineering at KAIST. Samsung’s mobile division, known as MX, reported revenue of 29.2 trillion won and operating profit of 3.1 trillion won in the second quarter of 2025, down from 36 trillion won and 4.1 trillion won in the previous quarter, which had been boosted by Galaxy S25 sales. Third-quarter revenue is projected at around 33 to 34 trillion won, with profit near 3 trillion won, supported by solid demand for the Galaxy Z Fold7, Z Flip7, and higher-end AI-enabled smartphones. Samsung commanded about 19.7 percent of the global top-tier smartphone market in the second quarter, shipping 58 million units — up 7.9 percent from a year earlier — while Apple accounted for roughly 15.7 percent with 46.4 million iPhones, a 1.5 percent increase. In the third quarter, Samsung retained a narrow lead with a 19 percent market share versus Apple’s 18 percent. Sales of Samsung’s flagship devices also improved. The Galaxy S25 series sold about 22.7 million units in the first six months after launch, up 12 percent from 20.8 million for the Galaxy S24 during the same period a year earlier. Domestic sales in Korea surpassed 3 million units, two months faster than the S24. Consumers largely await in suspicion. “The Exynos has always been seen as weaker than Snapdragon, and now they’re putting it even in the Ultra model — that makes no sense,” said Kevin Park, a 33-year-old Galaxy user in Seoul. Built with Samsung’s latest nanometer process, the Exynos 2600 integrates a next-generation neural processing unit for running language models, live translation, and image generation directly on-device without a network connection. Apple is expected to introduce similar AI capabilities through its A18 chip in the iPhone 17 lineup next year. Analysts say on-device AI has become a key differentiator in the smartphone industry, as privacy concerns and cloud costs drive companies to process more data locally. Still, they caution that Samsung must prove its ability to manage heat, battery efficiency, and performance parity with Snapdragon-based models to avoid a repeat of past criticism in Europe and Asia. Globally, tech companies are pursuing chip sovereignty to guard against supply disruptions. Apple designs its A- and M-series chips, Google uses its Tensor processors, and Huawei has revived its Kirin lineup despite U.S. sanctions. Governments in South Korea, China, and the United States are all promoting semiconductor self-reliance, reinforcing the trend. Samsung has yet to disclose shipment targets for Exynos-powered Galaxy S26 devices. Suppliers say production will begin in November, with an official launch expected in early 2025. Whether the shift boosts profitability or revives old controversies will depend on how consumers judge its AI capabilities against Apple’s next-generation iPhones. 2025-10-21 17:54:47

Asian markets rally, KOSPI the world's best performer led by chip boom SEOUL, October 21 (AJP) - Major Asian stock markets closed mostly higher on Tuesday amid easing global trade tensions and improved investor sentiment, while South Korea’s benchmark index stood out as the world’s best performer of the month. In Seoul, the KOSPI closed at a fresh record of 3,814.69, up 1.76 percent from the previous session. The secondary KOSDAQ gained 1.89 percent to close at 875.77. Institutional investors drove the rally with strong buying despite continued foreign selling pressure. Technology stocks led the gains, with SK hynix jumping 4.2 percent to a new high of 485,500 won and Samsung Electronics edging up 0.2 percent to 98,100 won. Japan’s Nikkei 225 surged 3.12 percent to 49,186, supported by optimism over political stability and anticipated fiscal stimulus. Tech and AI-related shares, including SoftBank, Advantest, and Tokyo Electron, were among the top gainers. In Taipei, the TAIEX rose 386.26 points, or 1.41 percent, to close at 27,688.63, lifted by semiconductor stocks such as TSMC, which gained 2.07 percent. Vietnam’s VN-Index also advanced, supported by foreign inflows and resilient domestic investor sentiment despite recent volatility. The index closed near 1,700 points, buoyed by expectations of a market reclassification that could draw greater foreign investment. The rally across Asian markets underscores a cautiously optimistic tone, driven by easing geopolitical tensions and sustained momentum in the region’s semiconductor and technology sectors. 2025-10-21 17:53:37

Reunification becomes a distant dream as living divided feels like the norm for South Koreans SEOUL, October 21 (AJP) - "Our wish is reunification. Even in our dreams, we wish for reunification." For South Koreans who attended elementary school in the 1970s and 1980s, these lyrics are etched in memory — a childhood chorus once sung with conviction. But eight decades after the peninsula was divided in 1945 following liberation from Japanese rule, that wish has all but faded. A growing majority of South Koreans now regard reunification with the North as unnecessary. According to the 2025 Unification Survey released this week by the state-run Korea Institute for National Unification (KINU), 51 percent of respondents said unification is "not necessary," compared with nearly 70 percent expressing similar skepticism in 2014. Support for reunification remains weakest among those born between 1991 and 2000, at just 38 percent. Even among those who experienced the Korean War firsthand, the sentiment has declined — with 70 percent now skeptical of unification, compared with 62.1 percent a decade ago. The data reflect a generational and emotional divide. "We are too different now," said 57-year-old Lee Chun-mi. "The cost and time it would take to unify and integrate both sides would be enormous, and I’m not sure the outcome would be worth it." Others, however, continue to hold on to the hope of peaceful reconciliation. "I wish to see it before I die — but only through a peaceful process, not absorption," said another 57-year-old, Son Chun-ae. Younger South Koreans express similar divisions, oscillating between empathy and indifference. "Yes, unification could help North Koreans find better jobs and create a larger, more talented nation. I want them to live better," said Kim Gi-ri, 27. But Park Sun-min, 25, disagreed: "South Korea is doing well already. We're walking entirely different paths — I don't feel reunification is necessary." Another respondent, Kim Jae-hyun, also in his 20s, added, "Too much time has passed. The economic, political, and social disconnect is now too deep to bridge without major sacrifices." According to Min Tae-eun, a senior research fellow at KINU, the shift in perception is part of a natural evolution. "For many, division has become a normalized reality," she said. "It's not natural — but it's something people have lived with for nearly 80 years, and that familiarity has made it feel normal." For younger South Koreans, daily concerns such as jobs, housing, and economic stability now take precedence over questions of national unity. In the latest survey, 63.2 percent — the highest figure yet — responded that "if South and North can coexist peacefully without war, unification is not necessary." 2025-10-21 17:53:20

Korean defense firms join forces to boost KF-21 fighter jet exports SEOUL, October 21 (AJP) - Korea Aerospace Industries (KAI) said Tuesday it had signed a memorandum of understanding with Hanwha Aerospace, Hanwha Systems, and LIG Nex1 to strengthen the export competitiveness of the KF-21 fighter jet, the country’s 4.5-generation aircraft. Under the agreement, the companies will cooperate to reduce production costs, stabilize supply chains, and jointly market the aircraft overseas. The collaboration also includes sharing technology and market intelligence to reinforce trust and coordination across the defense sector. The KF-21, developed as a cornerstone of South Korea’s ambitions to become a major defense exporter, is viewed as a major milestone in the nation’s aerospace industry. Its success in securing overseas buyers is seen as critical to sustaining the program and boosting the country’s standing in the global arms market, KAI said. Hanwha Aerospace specializes in aircraft engines and power systems, Hanwha Systems develops avionics and radar technologies, and LIG Nex1 produces guided weapons and electronic systems. KAI, which leads the KF-21 program, said the partnership will help “maximize global competitiveness and create export synergy.” “The KF-21 will benefit from strengthened networks with major domestic defense companies, paving the way for securing initial export customers and expanding overseas,” a KAI spokesperson said. “This collaboration is expected to enhance the competitiveness of South Korea’s aerospace defense industry and set a new benchmark for supply chain innovation.” The collaboration marks the latest in a series of government- and industry-led efforts to position the KF-21 as a viable alternative to Western-made jets, particularly in markets seeking advanced but cost-effective fighter options. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-21 17:14:49

JCS chief inspects security and military readiness ahead of next week's APEC summit SEOUL, October 21 (AJP) - The final inspection of key military installations and other security facilities was conducted on Tuesday in preparation for next week's Asia-Pacific Economic Cooperation (APEC) summit, which is set to take place in southern South Korea. Chair of the Joint Chiefs of Staff (JCS) Jin Young-seung flew over the East Sea in a P-8 patrol aircraft and inspected a Marine unit in Pohang, emphasizing military readiness ahead of the multilateral gathering, which is scheduled to take place in the historic city of Gyeongju from Oct. 31 to Nov. 1. He instructed soldiers and personnel to stay on alert and be prepared for various scenarios to ensure security, while emphasizing the importance of information sharing and coordination among relevant agencies to respond promptly to any emergencies. The Ministry of National Defense has also been preparing to support the summit since July, with plans to deploy 2,660 personnel in Gyeongju and nearby areas to assist with maintaining order, providing interpretation services, VIP protection, and other security-related duties. The ministry pledged to maintain vigilance and take all necessary measures to ensure the summit's success. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-21 17:12:36