Chinese sanctions on Hanwha Ocean could affect MASGA project, Seoul official warns SEOUL, October 17 (AJP) - South Korea’s top defense procurement official warned on Friday that recent Chinese sanctions against Hanwha Ocean’s U.S. subsidiaries could eventually hinder a joint shipbuilding initiative between Seoul and Washington. During a parliamentary audit session, Suk Jong-geon, commissioner of the Defense Acquisition Program Administration, said the Chinese sanctions could affect the Make American Shipbuilding Great Again (MASGA) project, an effort to bolster collaboration between the two allies’ naval industries. “The impact may not be immediate, but there is a potential for future disruption,” Suk told lawmakers in response to a question from Rep. Yoo Yong-won of the main opposition People Power Party. Earlier this week, China’s Ministry of Commerce announced a ban on transactions with five subsidiaries of Hanwha Ocean, including Hanwha Philadelphia Shipyard and Hanwha Shipping. The South Korean conglomerate is a key participant in MASGA, a project that gained visibility when President Lee Jae Myung visited the Philadelphia shipyard during his U.S. trip in August. Suk said that while no contracts have yet been signed under MASGA, the sanctions could complicate the procurement of specialized shipbuilding equipment from outside the United States. He added that his agency had not yet conducted a detailed assessment of possible financial losses. Rep. Yoo estimated that the sanctions could lead to losses of up to $60 million. The lawmaker also called for the swift conclusion of the Reciprocal Defense Procurement Agreement (RDP-A), which would allow South Korean firms to participate directly in U.S. government defense contracts. Suk confirmed that the agreement is awaiting approval from the White House National Security Council and emphasized that it is critical to the success of the MASGA initiative. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-17 16:33:23

Chipotle lands, In-N-Out pops up — Korea rises as test kitchen for Western tastes SEOUL, October 17 (AJP) - South Korea is fast becoming the test kitchen for Western food giants eyeing Asia. Chipotle, one of America’s leading fast-casual chains, has chosen Seoul to gauge Asian palates for its Mexican flavors, while California-based In-N-Out Burger has returned with a second pop-up event — underscoring how Western brands increasingly view Korean “Zenners” as the first benchmark to crack the regional market. Chipotle last month partnered with Korea’s SPC Group to open its first restaurants in South Korea and Singapore in 2026, marking its first Asian venture in a decade. The U.S. burrito chain, which operates more than 3,800 locations worldwide, posted $3.06 billion in second-quarter 2025 revenue, up 3 percent on year, following double-digit growth through 2024. “I’ve been waiting 13 years for Chipotle to come to Korea. Now I can finally taste the same burrito bowls I had in the U.S.,” said Jennifer, a 30-year-old Seoul resident who frequented the chain while living in California. Whether the enthusiasm can last is another question. Korean consumers are notoriously demanding and adventurous, often flying overseas purely for new dining experiences. Five Guys debuted in Seoul’s Garosu-gil in June 2023 with much fanfare, selling 30,000 burgers in its first week, but its importer Hanwha Galleria is now reportedly reviewing its partnership amid slowing sales. Shake Shack Korea, which topped global sales in 2017 after its Gangnam launch a year earlier, has also lost luster as boutique local burger brands won over customers with greater customization and freshness. That demanding market has long fascinated In-N-Out, whose pop-ups spark feverish anticipation. Its latest event on Wednesday in Seoul’s Cheongdam district — the second after 2019 — drew hours-long lines. “I tried to get an Animal-Style burger at the 2019 pop-up but couldn’t — it sold out after I waited two hours. This time I came three hours early,” said James Kim, 32. Still, both the chain and its local partners remain cautious about sustaining that buzz. Timing, experts say, is crucial. “When Taco Bell entered Korea in 2010 and 2014, the timing wasn’t right — Korean consumers had little exposure to Mexican food. But now their tastes have broadened, so Chipotle might fare differently,” said You Hyun Alex Suh of the Consumer Trend Analysis Center. Success will hinge on how fast newcomers adapt to local preferences — sometimes at the cost of brand identity. A Cinnabon Korea spokesperson said the chain drastically reduced sugar content to suit local tastes. “We had to tone down the sweetness significantly because most Koreans don’t like overly sweet desserts,” the spokesperson said. The shifting landscape mirrors a wider change across Asia’s food scene, where Korean consumers are seen as early adopters setting trends for neighboring markets while insisting on customization, quality, and health consciousness. “How well Chipotle manages to balance authenticity with adaptation will determine whether it thrives here — or ends up like others who couldn’t,” said Suh. 2025-10-17 16:30:23

Hyunmoo-5 deployment to begin by year-end amid rising North Korean ICBM threat SEOUL, October 17 (AJP) - South Korea will begin deploying its 8-ton "Hyunmoo-5" ballistic missile by the end of this year, as part of its effort to reinforce deterrence against North Korea's advancing nuclear threat. The Defense Ministry confirmed the plan to AJP on Friday, saying the Hyunmoo-5 — dubbed the "monster missile" for its unprecedented payload — has entered the operational fielding phase and is planned for mass production, with deployment set to begin by year-end. The Hyunmoo-5, an intermediate-range ballistic missile with an estimated warhead wight of eight tons, was first unveiled during last year's Armed Forces Day ceremony. The missile was designed to strike underground bunkers and command posts, as North Korea conceals much of its weapons infrastructure underground, serving as a key asset in Seoul's Korean Massive Punishment and Retaliation (KMPR) strategy — one of the three pillars of the nation's defense framework, alongside the Kill Chain and Korea Air and Missile Defense (KAMD) systems. Defense Minister Ahn Kyu-baek recently said in an interview with Yonhap that a next-generation missile system with greater range and payload capacity is also under development to reinforce what officials describe as a credible conventional deterrent against Pyongyang's growing nuclear arsenal. "The Hyunmoo-5 was designed both as a deterrent against North Korea's advancing nuclear capabilities and as a powerful means of retaliation should deterrence fail," said Shin Seung-ki, research fellow at the Korea Institute for Defense Analyses (KIDA). He added that its operational impact could be comparable to a nuclear weapon depending on how it is employed. Pyongyang recently unveiled its new Hwasong-20 intercontinental ballistic missile (ICBM) during a military parade marking the 80th anniversary of the Worker's Party, escalating concerns over its strategic reach. The new weapon is believed to be a solid-fuel, multi-stage ICBM with an estimated range of around 15,000 kilometers, potentially capable of reaching the U.S. mainland. In comparing the two systems, analysts note that Hyunmoo-5's heavier warhead weight, Mach-level speed, and bunker-penetrating design are optimized for neutralizing underground command facilities, while Hwasong-20's strength lies in strategic nuclear deterrence and long-range strike capability. "If North Korea has dug more than 100 meters to hide key command posts or important weapons systems, we now possess a weapon capable of destroying those sites," Shin said. "Just as we feel threatened by North Korea's nuclear arsenal, they can regard the Hyunmoo-5 as a comparable threat." Since North Korea currently has no ballistic-missile interception capability, there is effectively no system that can stop Hyunmoo series once launched. There was also a strategic rationale behind the decision to reveal the weapon. Systems like the Hyunmoo-5 had not been publicly displayed before, and details such as production volume and deployment schedules usually remain classified — a rare disclosure that also signals Seoul's intent to project confidence in its conventional deterrence amid escalating tensions on the peninsula. 2025-10-17 16:26:29

Exchange, brokers warn as Korea's margin loans surge nearly 50% SEOUL, October 17 (AJP) - Leveraged stock investment in South Korea has soared nearly 50 percent this year to surpass 23 trillion won ($16.4 billion), as the benchmark KOSPI’s 50-percent rally fueled aggressive borrowing for equity trades — prompting warnings from regulators and market participants. The balance of margin accounts at securities firms reached 23 trillion won, up 49 percent from 15.8 trillion won at the end of 2024, according to data released Friday by the Korea Financial Investment Association (KOFIA) and the Korea Exchange (KRX). In a joint statement, KOFIA and KRX cautioned investors about the risks of leveraged trading, emphasizing that excessive borrowing could amplify losses in the event of a market downturn. They noted a particularly sharp increase in margin borrowing among investors under 30 and over 50, raising concern about overexposure among retail investors and retirees. Margin trading allows investors to borrow funds from brokers to purchase shares, with those shares serving as collateral. If stock prices fall below maintenance levels, the collateral value erodes, triggering forced liquidations, or margin calls, at depressed prices — a process that can exacerbate market volatility. 2025-10-17 16:13:26

Lee's approval rating drops to lowest level since taking office SEOUL, October 17 (AJP) - President Lee Jae Myung's approval rating has dropped to a record low since he took office in June this year. According to a survey of over 1,000 adults conducted earlier this week by pollster Gallup Korea and released on Friday, Lee's approval rating stood at 54 percent, down one percentage point from a similar survey at the end of September. His disapproval rating also rose to 35 percent, while about 10 percent of respondents remained undecided. Most positive responses toward him were attributed to his performance in the economic and diplomatic areas, cited by 16 percent and 15 percent of respondents, respectively. However, diplomacy was also the top reason for negative ratings at 18 percent, followed by pro-China moves including temporary visa-free entry for Chinese visitors, difficulties in livelihood, authoritarian-style decisions, political wrangling, and excessive populist policies. But Lee's approval rating surpassed 50 percent in all regions except Seoul (48 percent) and the conservative stronghold of Daegu and North Gyeongsang Province (42 percent). Gwangju and the Jeolla provinces had the highest approval at 78 percent, followed by Incheon and Gyeonggi Province (56 percent). By age, support was highest among those in their 40s (74 percent) and 50s (64 percent), but fell below 50 percent among people in their 20s and those aged 70 and older. Support for the ruling Democratic Party (DP) and the main opposition People Power Party (PPP) inched up to 39 percent and 25 percent, respectively, each rising one percentage point from the previous survey, while a whopping 28 percent of respondents said they do not support any party. Gallup analyzed that while overall ratings remained stable, the reasons for disapproval shifted slightly, adding that a set of recent measures to curb the real estate market announced earlier this week were not yet fully reflected in the latest poll. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-17 15:54:15

Korea's job growth in September hits 19-Month high, manufacturing still tepid SEOUL, October 17 (AJP) - South Korea saw the largest job addition in 19 months in September, driven mainly by service-sector hiring under government stimulus measures, while manufacturing and youth employment remained sluggish, data showed Friday. According to the Ministry of Data and Statistics, the number of employed people aged 15 and over reached 29.15 million in September, an increase of 312,000 from a year earlier. It was the largest on-year gain since February 2023, when employment rose by 329,000. The headline employment data has stayed positive throughout the year, but gains were uneven across sectors and age groups. Employment among young people aged 15 to 29 fell by 146,000, marking the steepest decline among all age groups. Workers in their 50s also continued to lose jobs for the ninth consecutive month. In contrast, those aged 60 and older added 380,700 positions, more than offsetting the declines in younger cohorts. By industry, the largest job gains were seen in health and social welfare services, which added 304,000 positions (a 10.1 percent increase), followed by arts, sports and recreational services with 75,000 (up 14.5 percent) and education services with 56,000 (up 2.9 percent). The nation’s traditional backbone sectors continued to shed workers. Construction lost 84,000 jobs (down 4.1 percent), and manufacturing contracted by 61,000 (down 1.4 percent). The agriculture, forestry and fisheries sector also saw a sharp fall, losing 146,000 jobs (down 9.1 percent). Among self-employed workers, those with employees increased by 30,000, partly reflecting government support programs such as livelihood recovery subsidies. In contrast, self-employed without employees declined by 80,000, and family workers decreased by 20,000. The number of unemployed persons stood at 635,000, up 12,000 from a year earlier, led largely by workers in their 30s to 50s. Meanwhile, the population classified as “inactive,” who have given up job hunting, increased by 42,000 (up 1.7 percent) to 2.52 million. On a brighter note, the number of inactive people aged 15 to 29 and those in their 30s fell by 34,000 and 12,000, respectively. 2025-10-17 15:36:19

INTERVIEW: K-Park in Kazakhstan's smart city embodies fortitude of ethnic Koreans — past and future SEOUL, October 17 (AJP) - The K-Park Project, rising in Kazakhstan’s flagship smart city of Alatau, encapsulates both the endurance of the Koryo-saram—descendants of Korean settlers across the Russian Far East in the 19th and early 20th centuries—and their forward-looking confidence as a thriving minority in Kazakhstan’s digital transformation drive. "K-Park is not merely a memorial project. It is a symbol of gratitude toward the Kazakh people who embraced our ancestors—and a message to the next generation: never be afraid," said Yuriy Tskhay, founder of the Caspian Group, one of Kazakhstan’s largest conglomerates with business interests spanning urban development and finance, in an interview with AJP. Tskhay, named among Kazakhstan’s 50 most influential business leaders by Forbes, described K-Park as "a collective endeavor of the entire Koryo-saram community," noting that "nearly every Korean business leader in Kazakhstan has contributed to the effort." Tskhay and the Caspian Group play a central role in the Kazakh government’s grand campaign to build Alatau, a fully digitalized and AI-powered city north of Almaty. He joined a high-level government delegation to Seoul this week to seek Korean participation and partnership in the project. The first Korean migrants crossed the Tumen River into Russian territory in 1863, with larger waves following Japan’s annexation of Korea in 1910. Neither North nor South Koreans, the community’s fate changed in 1937 when Stalin’s Soviet regime deported roughly 172,000 Koreans to Central Asia. Tskhay, himself born into one of those deported families, said the K-Park project embodies "the endurance, gratitude, and aspirations of all Koryo-saram descendants." Located within Alatau City, K-Park is envisioned as a cultural and business hub for ethnic Koreans across Eurasia. The sprawling Alatau project—spanning 880 square kilometers, roughly 1.1 times the size of Busan—involves a 25-trillion-won (about $18 billion) government investment and is designed to host 1.9 million residents and 1.1 million jobs. It will feature four major zones for industry, finance, tourism, and education. "The idea emerged when Koryo-saram leaders from different fields—culture, business, journalism—came together to create a symbolic space," Tskhay explained. "After many discussions, we agreed on a center that would blend culture and commerce, and serve as a Eurasian hub for Korean cultural industries." Ground was broken in September, with completion scheduled for 2027—coinciding with the 90th anniversary of the 1937 deportation. "When our ancestors arrived, Kazakhstan itself was struggling," said Tskhay. "Yet the Kazakh people shared their land and food. K-Park is our way of passing that gratitude on and showing how far we’ve come." More than 300 people attended the groundbreaking ceremony, which culminated in a moving rendition of the Korean folk song "Arirang," echoing across the site. "It was one of the most emotional moments of my life," Tskhay recalled. "Kazakhstan gave me the chance to study, build a business, and earn respect—it shaped who I am." A former boxer and coach, Tskhay credits his athletic background with his grit and perseverance. "When I first visited New York, the cultural shock was transformative," he said. "But my first ten years in business were brutally hard—I knew nothing beyond boxing. No one believed in my vision, but that struggle became my foundation." To younger generations, Tskhay offers a message of self-belief. "There’s no such thing as impossible. If you set a goal and work toward it daily, you’ll achieve it," he said. "My parents once told me to 'live quietly' to survive—but that era has ended. Now is the time to act, to speak, and to lead." Looking ahead, Tskhay hopes K-Park will serve as both a tribute and a springboard—connecting ethnic Koreans across borders under a shared vision. "Our ancestors focused on survival; now it’s our turn to focus on progress," he said. "K-Park should stand as a living testament—not only to the generosity of the Kazakh people, but also to the enduring spirit of the Koryo-saram." 2025-10-17 15:17:40

South Korea's Hyosung Heavy opens research center in Netherlands SEOUL, October 17 (AJP) - South Korea's Hyosung Heavy Industries has opened its first European research and development center in Arnhem, the Netherlands, as part of efforts to strengthen its position in next-generation power technologies and eco-friendly energy solutions. The new facility marks the company’s first global R&D hub outside Asia and will focus on developing gas-insulated switchgear — a key component in power substations that traditionally relies on sulfur hexafluoride, a potent greenhouse gas. Researchers at the Arnhem center will also work on high-voltage direct current (HVDC) technology to support the region’s shift toward renewable energy and more efficient power grids. Located near KEMA, a major international testing and certification body for power systems, the facility will allow Hyosung to gather testing data more rapidly and incorporate results into its product development cycle. Hyosung said the surge in artificial intelligence and data centers is reshaping the global energy landscape, driving demand for high-efficiency, low-emission power systems. Europe, with its strict environmental standards and aggressive renewable energy goals, has become a key market for innovation in grid technology. “By collaborating with research institutions in the Netherlands and across Europe, we aim to set new standards in power technology and strengthen Hyosung’s global technological leadership,” said Hyosung Group Chairman Cho Hyun-joon said in a press release. * This article, published by Economic Daily, was translated by AI and edited by AJP. 2025-10-17 15:05:24

Samsung Biologics officially sheds biosimilar unit to expand as pure CMO SEOUL, October 17 (AJP) - Samsung Biologics Co., already the world's largest contract-based drugmaker by capacity, has won full shareholders' blessing to shed its biosimilar business and double down on its global biological outreach as a pure contract manufacturing organization (CMO). The Songdo, Korea-based pharmaceutical giant said on Friday 99.9 percent of voting shares backed the spin-off proposal at an extraordinary general meeting in Incheon, attended by about 93 percent of eligible votes represented by 1,286 shareholders. The 20-minute session passed the single agenda item with near-unanimous support, paving the way for a Nov. 1 separation that will establish Samsung Epis Holdings as a holding company for the biosimilar business. Under the plan, the new holding company will absorb Samsung Biologics' entire stake in Samsung Bioepis, while the parent company will continue as the surviving entity dedicated exclusively to contract development and manufacturing (CDMO) operations. Both firms are scheduled to begin separate trading on the Korea Exchange on Nov. 24 after a brief suspension period. According to the spin-off ratio, shareholders will receive 0.3496087 shares of Samsung Epis Holdings for each Samsung Biologics share held—roughly one new share for every three existing shares. Ownership percentages will remain unchanged based on absolute share issuance. The restructuring resolves a long-standing conflict within Samsung Biologics' hybrid business model. CDMO operations require clients to transfer proprietary processes and technologies, creating potential conflicts of interest when the same company also develops competing biosimilar products. With Plant 5 beginning operations in April, the separation removes a key barrier to securing new contracts from multinational pharmaceutical firms cautious about intellectual property exposure. "This spin-off is a positive decision. Given CDMO's business characteristics of receiving process and technology transfers from clients, pursuing new drug development in parallel could raise technology leakage concerns and restrict new orders," said Jung Yi-soo, analyst at IBK Securities. "With conflict-of-interest concerns resolved through the business separation, prospects are positive for expanding new CDMO orders." Jung added that the split could unlock significant valuation upside, noting that Samsung Bioepis operates with around 20 percent operating margins, compared to 30–40 percent for Samsung Biologics. "Through the split, independent valuation of high margins becomes possible, raising expectations for considerable upside in Samsung Biologics' corporate value," he said. Investor confidence has already reflected optimism over the breakup, with Samsung Biologics' stock gaining 20 percent this year on restructuring expectations. The move comes nine years after Samsung Biologics' IPO, launched under the ambition to replicate Samsung's global dominance in semiconductors in the bio sector. Founded in 2011, the company broke ground on Plant 1 that year, secured FDA approvals by 2015, opened an R&D center in San Francisco by 2020, and achieved full operations at Plant 5 this year, lifting total production capacity to 784,000 liters. Samsung Biologics, which operates all its factories in Songdo, plans to add three more plants by 2032, expanding combined capacity to 1.32 million liters. It currently supplies drugs to 17 of the world's 20 largest pharmaceutical companies, with a total order backlog exceeding $18 billion. Meanwhile, Samsung Epis Holdings will focus on expanding Samsung Bioepis' biosimilar portfolio and future growth areas such as biotechnology platforms through new subsidiaries. The biosimilar arm aims to secure more than 20 product lines while strengthening research and development capabilities. "This spin-off will provide an opportunity for both CDMO and biosimilar businesses to be transparently valued for their unique worth in capital markets through individual listings," said John Rim, CEO of Samsung Biologics. "Each company will do its utmost to further strengthen core business expertise and competitiveness, leading to enhanced shareholder value." Samsung Biologics is slated to announce third-quarter results on Oct. 28. Analysts expect record earnings of 1.55 trillion won in revenue and operating profit of 505.2 billion won, supported by full-scale operations at Plants 4 and 5 and large contract wins earlier this year. 2025-10-17 15:01:12

Talks underway with Cambodia for repatriation of dozens of South Koreans SEOUL, October 17 (AJP) - Talks are underway with Cambodia to bring back about 59 South Koreans detained over alleged online job scams and other various crimes, a government task force, currently in Phnom Penh, said on Friday. The development comes after the Southeast Asian country said the previous day that the detainees including four women would be deported to Seoul in cooperation with the South Korean Embassy there. "Authorities plan to deport 59 South Korean nationals….. who have been rescued by Cambodian authorities or detained for other crimes to their country with cooperation from the embassy of South Korea," said Cambodia's National Police said in a statement. According to the Ministry of Foreign Affairs, there were initially about 63 detainees, but with several having already arrived home earlier this week, the rest are expected to return by the end of the week. Led by Vice Foreign Minister Kim Jin-ah, the task force rushed to the Cambodian capital earlier this week to investigate the rising number of crimes targeting South Koreans, following recent revelations of kidnappings, human trafficking, and illegal detentions including the case of a South Korean college student who traveled to the Southeast Asian country in August after being lured by an online job scam and was later found to have been brutally tortured to death. "We are working closely with Cambodian authorities to expedite their repatriation as soon as possible," Kim said. She added that Cambodian Prime Minister Hun Manet expressed his "deep regret" over the student's death and pledged to work toward arresting the suspects while ensuring the safety of South Koreans in Cambodia during their meeting the previous day. Thousands of people, many of them Chinese, are allegedly involved in multinational crime rings that exploit victims by forcing them to carry out online scams and phishing schemes. Crimes targeting South Koreans in Cambodia have reportedly exceeded 300 so far this year. Out of roughly 143 reported cases of individuals suspected of being kidnapped or missing, the whereabouts of about 80 South Korean citizens remain unknown. 2025-10-17 14:39:26