Korean Economy/Business Calendar SEOUL, October 16 (AJP) - Oct. 22, Wed Producer Price Index (Bank of Korea) Economically Active Population Survey (Ministry of Data and Statistics) Oct. 23, Thu Monetary Policy Meeting (Bank of Korea) Q3 Results/ Conference Call (Samsung Heavy Industries) Oct. 24, Fri Finance and Economy Minister’s business trip to the U.S. (- Oct. 27) Oct. 27, Mon 2023 Income Mobility Statistics Results (Ministry of Data and Statistics) Q3 2025 Results (Hanwha Ocean) Oct. 28, Tue October 2025 CSI (Bank of Korea) 2025 Q3 Real GDP (Bank of Korea) Oct. 29, Wed October 2025 BSI (Bank of Korea) 2024 Annual Corporate Performance Analysis (Bank of Korea) Q3 2025 Results (SK hynix) Oct. 30, Thu Q3 2025 Final/Conference Call (Samsung Electronics) Q3 2025 Results (LG Energy Solution) Q3 2025 Results (Samsung SDS) Oct. 31, Fri Sept. Industrial Activity Data (Ministry of Data and Statistics) Q3 2025 Final Results (LG Electronics) 2025-10-16 17:03:30

K-food frenzy fails to lift all Korean food majors in Q3 SEOUL, October 16 (AJP) - Korean food has enjoyed a global surge in popularity following prominent appearances in Netflix's K-Pop Demon Hunters, with Korean flavors sweeping into grocery aisles worldwide. Yet the third quarter tells a more sober story for overall Korean food majors battling U.S. tariffs and a weak won. Major producers including CJ CheilJedang and Lotte Wellfood are expected to post disappointing third-quarter earnings despite the sharp decline in global commodity prices. Of eight major food companies tracked by FnGuide, five are projected to report year-on-year drops in operating profit, extending the first-half slump. Official results are to come soon, Lotte Wellfood scheduled to announce its third-quarter results on Oct. 19, followed by Orion on Nov. 5, Samyang, Nongshim, Ottogi, and Pulumone on Nov. 12, CJ CheilJedang and Binggrae on Nov. 17. The setback comes even as supply conditions improve. Cocoa prices, which hit record highs earlier this year amid crop disease and extreme weather in West Africa, have fallen by nearly half to about $6,000 per ton. Butter and sugar prices have also eased as production rebounded in the United States, New Zealand, Brazil, and India. Demand, meanwhile, has been buoyed by social-media enthusiasm for Korean cuisine. According to the Korea Agro-Fisheries & Food Trade Corp., exports to the United States totaled $1.7 billion as of Oct. 1, up 15.3 percent on-year, while shipments to Europe climbed 15.8 percent. "Aside from export staples such as instant noodles, other food products could have been hit hard by headwinds like currency and tariff issues," said Suh Jae-hyun, professor of international economics at Kyungpook National University. The won has weakened nearly 3 percent against the dollar over the past month to around 1,420 per dollar, touching 1,434 earlier in the week—its lowest in five months—raising import costs for raw materials. Tariff tensions have intensified since U.S. President Donald Trump warned on Oct. 10 of an additional 100 percent duty on Chinese goods starting Nov. 1 after Beijing restricted rare-earth exports. A Goldman Sachs report said U.S. consumers, major buyers of Korean food, now bear roughly 55 percent of total tariff costs. Food companies raised prices earlier this year to defend margins, but weak domestic demand has limited the effect, while the softer currency continues to erode profits. Still, instant-noodle makers Samyang Foods and Nongshim remain resilient, expected to post double-digit operating-profit growth. Samyang's Buldak series continues to dominate overseas shelves, and Nongshim's collaboration with K-Pop Demon Hunters is keeping its products in global demand. "Nongshim showcased its new kimchi-fried-noodle product at Germany's Anuga 2025, tailored to global consumers' growing appetite for Korea's spicy flavors," said Kang Eun-ji, researcher at Korea Investment & Securities. "The company may see stronger returns next year as its global strategy pays off." 2025-10-16 16:28:06

Korean battery biz in US back to normal after damage control SEOUL, October 16 (AJP) - Business operations in the United States are returning to normal for South Korean battery makers six weeks after the turmoil in Georgia that led to the arrest of Korean engineers and the temporary suspension of cross-border work. The recovery follows a bilateral agreement between Seoul and Washington that clarified visa rules for technical staff, removing the uncertainty that disrupted factory operations. LG Energy Solution said its employees resumed business trips to the U.S. on Monday, focusing on essential personnel dispatched to both construction sites for equipment setup and operating facilities. "The safety of our employees and partners is our top priority," said an official from LG Energy Solution, adding that the company is committed to ensuring all business travelers feel safe and supported as they return to work. According to a fact sheet published by the U.S. Embassy in Seoul, travelers admitted under ESTA may engage in the "same activities as contemplated for a B-1 visa holder," and those entering to "install, service, or repair commercial or industrial equipment or machinery purchased from a company outside the United States" are eligible to do so under the B-1 category. It further specifies that such workers must have "unique knowledge essential to the seller's contractual obligation," while "building or construction work" remains excluded except for supervisory or training roles. The clarification effectively resolves the ambiguity that led to the detentions of Hyundai Motor Group and LG Energy Solution engineers working at a Georgia joint-venture plant. Following the update, SK On is also gradually dispatching essential personnel to their U.S. construction and equipment sites. The diplomatic process unfolded quickly: the first U.S.-South Korea Business Travel and Visa Working Group meeting convened in Washington on Sept. 30, less than a month after the incident. Further signaling normalization, Georgia Governor Brian Kemp is scheduled to visit Seoul from Oct. 23 to 25 to meet executives from LG Energy Solution, SK On, Hyundai Motor Group and CJ Foodville, all of which have major investments in Georgia. The meetings are expected to reaffirm the state's partnership with South Korean investors and demonstrate that the incident has not derailed ongoing collaboration. Beyond the travel resumption, South Korean battery makers are also accelerating a shift from electric-vehicle production lines to energy storage systems (ESS) to meet growing demand from AI-driven data centers. Following the phaseout of U.S. electric-vehicle subsidies last month, EV demand has slowed, but the need for large-scale energy storage has surged. Observers said converting EV lines to ESS facilities typically takes six months to a year, and the three major Korean battery firms are racing to secure an early lead in the market. LG Energy Solution recently reported its preliminary earnings for the third quarter of 2025, posting 5.7 trillion won (about $4.2 billion) in revenue and 601.3 billion won (about $445 million) in operating profit – signaling recovery momentum supported by higher ESS output in North America. Since many South Korean battery companies building factories in the U.S. rely on the expertise of Korean engineers dispatched under ESTA and B-1 business visas, the recent clarification of U.S. visa rules has provided crucial relief for ongoing operations. 2025-10-16 16:21:56

Trump throws cold water on trade deal prospects with repeated demand for 'upfront' cash SEOUL, October 16 (AJP) - U.S. President Donald Trump once again claimed on Wednesday that South Korea has agreed to pay US$350 billion "in upfront cash" to fulfill investment pledges as part of a broader trade deal between the two countries. "They've all signed..... Japan, South Korea," Trump told reporters at the White House. "I mean, South Korea -- $350 billion upfront." Throwing cold water on optimistic expectations for a possible settlement in trade talks, Trump's remarks came just hours after U.S. Treasury Secretary Scott Bessent said he expects "something" to come along the way to finalize the deal. "We are about to finish up with Korea," Bessent told American business news channel CNBC. "The devil's in the details, but we are ironing out the details." He added, "I'm sure the differences can be resolved. We are in discussions now, and I would expect something in the next 10 days." Although Seoul agreed with its closest ally in late July to lower reciprocal tariffs from 25 percent to 15 percent in return for massive investments, tariff-related negotiations have remained deadlocked over how to fund them. Meanwhile, Trump will arrive in Seoul on Oct. 29 for a brief two-day visit to attend the upcoming Asia-Pacific Economic Cooperation (APEC) summit in the southeastern city of Gyeongju, the presidential office said in a press release on Thursday. 2025-10-16 15:59:55

Kazakhstan bids Korean companies onboard in its digital, crypto drive SEOUL, October 16 (AJP) - Kazakhstan is envisioning Alatau Smart City as a regional capital of innovation and digital finance and sees South Korea as an ideal partner for the goal, said the country's deputy prime minister. "The government's goal is to position Alatau as an innovation center," Deputy Prime Minister Kanat Bozumbayev said in Seoul this week. He led a high-level delegation for a two-day forum aimed at drawing Korean participation and investment in the country's ambitious initiative. "We welcome all innovations coming from Korea," he said, adding that U.S. and Chinese capital are already committed to the ventures. "The city's industry and infrastructure will be filled with innovation from the very beginning. It will be developed as a smart city built on intelligent systems and digital technologies applied across all sectors," he said. He also described Alatau as a "crypto city," where blockchain and digital finance will be part of daily life. "There will be crypto mortgages, crypto exchanges, and stablecoins in circulation," he said. "This kind of system does not exist yet in Kazakhstan or anywhere else in Central Asia, so we will test it within a regulatory sandbox." Bozumbayev said Kazakhstan plans to introduce AI-driven mobility, drone logistics, and other smart infrastructure as part of the city's growth, and hydrogen energy is one of the most promising fields for collaboration. "We hope that Doosan's innovative technologies will also be implemented in Alatau, particularly in the field of blue and green hydrogen," he said. "Together with Korean partners, we can build the infrastructure for hydrogen production, transport, and storage, and eventually develop hydrogen-powered engines for vehicles and trains." Alatau will operate under a special legal framework that allows faster approval and certification for new technologies. "If national laws do not perfectly fit the city's innovative projects, the city will be able to create its own local regulations to support them," he said. "We plan to make Alatau the first city in the world to combine all of these elements into one system." The project, which consists of four districts — Gate, Golden, Growing, and Green — will bring together finance, education, industry, and leisure in a single ecosystem. The Kazakh government is seeking participation from South Korean construction and engineering firms such as Samsung C&T, Hyundai E&C, and Daewoo E&C during the city's initial development phase. Bozumbayev said nurturing human talent is central to the project. "Around half a million people are born in Kazakhstan every year. In 18 years, that's half a million new workers joining the labor market," he said. "We are a young nation, and we need to train more specialists in technical fields." Talks are underway with Korean institutes to establish a campus in Alatau focused on AI, robotics, and mobility systems. The project also includes plans for a Korean medical cluster and a K-content complex called K-Park. "We are already seen as a regional leader, and many neighboring countries are learning from our experience," Bozumbayev said. "What succeeds in Alatau will later be expanded to other cities across Kazakhstan and beyond." 2025-10-16 15:56:30

Seoul moves to tackle Beijing's rare earth export controls SEOUL, October 16 (AJP) - Amid China’s tightening restrictions on rare earth exports, South Korea has launched a high-level task force to strengthen communication with Beijing and craft a comprehensive supply chain strategy by the end of the year, officials said Thursday. The move follows China’s Oct. 9 announcement of expanded export controls that require foreign companies to obtain government permits for seven types of rare earths — materials vital to advanced technologies such as semiconductors, electric vehicles and defense systems. The new rules also extend controls to five additional rare earths and equipment used in permanent magnet manufacturing, as well as lithium-ion battery materials and diamond powder used for industrial cutting and grinding. While the measures stop short of a full export ban, South Korean officials and industry analysts warned that the new permit process could slow shipments and disrupt supply chains heavily dependent on Chinese materials. China produces about 70 percent of the world’s rare earths and dominates global refining capacity. In response, the Ministry of Trade, Industry and Energy convened an emergency meeting Thursday to coordinate its response. The newly formed task force — led by Vice Minister Moon Shin-hak — will include multiple government agencies and work closely with major private-sector players. Officials said the task force’s immediate focus will be maintaining steady communication channels with Chinese authorities to ensure export permits for South Korean companies are processed quickly. The ministry noted that previous dialogue with Beijing had helped resolve supply issues after earlier export controls were introduced in April. To support local firms, the government will establish a support center to address company concerns, monitor inventories and provide emergency assistance. Information on China’s export procedures will also be made available through South Korea’s trade and investment agencies. Seoul plans to diversify its supply chain by expanding research into rare earth substitutes and recycling technologies, backing overseas mining ventures, and increasing public stockpiles to guard against future disruptions. “Rare earths are critical to our semiconductor and electric vehicle industries,” Vice Minister Moon said. “We will work closely with the private sector to strengthen resilience and safeguard our economy from external shocks.” * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 15:22:55

South Korea's HMM orders $2.3 billion fleet of LNG-powered container ships SEOUL, October 16 (AJP) - HMM, South Korea’s largest shipping company, said Thursday that it will order 12 eco-friendly container ships from domestic shipbuilders in a deal worth 3.05 trillion won ($2.3 billion), marking its first major local order in seven years. The 13,000 twenty-foot equivalent unit (TEU) vessels will be built by HD Hyundai Heavy Industries and Hanwha Ocean, two of South Korea’s leading shipbuilders. Each ship will run on liquefied natural gas (LNG), a lower-carbon alternative to conventional marine fuels. According to DNV, a Norwegian classification society, LNG can cut greenhouse gas emissions by more than 23 percent, nitrogen oxides by over 80 percent, and sulfur oxides by more than 99 percent compared with traditional fuels. The company already operates a fleet of cleaner vessels, including nine methanol-fueled and two LNG-fueled container ships. HMM last placed a major domestic order in 2018, commissioning 20 vessels — twelve 24,000-TEU ships and eight 16,000-TEU ships — for about 3.15 trillion won. It followed up with additional orders for twelve 13,000-TEU ships in 2021 and nine 9,000-TEU methanol-fueled vessels in 2023. “In the increasingly competitive global shipping environment, this investment will allow HMM to expand its capacity and strengthen its eco-friendly capabilities,” HMM said in a press release. “We plan to enhance our competitiveness through ongoing investments based on our mid- to long-term strategy.” The order is also expected to boost South Korea’s shipbuilding sector, which has been recovering from years of cyclical downturns, driven in part by rising global demand for low-emission vessels. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 14:20:07

Korean, Japanese firms to collaborate on Korea's power transmission upgrade SEOUL, October 16 (AJP) - South Korea's HD Hyundai Electric has joined forces with Hitachi Energy, a global leader in high-voltage direct current (HVDC) systems, to take part in South Korea’s ambitious West Coast energy highway project, a key step in the nation’s push toward renewable energy integration. The partnership was formalized on Thursday at the Korea-Sweden Sustainable Partnership Summit in Seoul, where Kim Young-gi, president of HD Hyundai Electric, and Niklas Persson, CEO of Power Solutions at Hitachi Energy, signed a strategic cooperation agreement. Under the deal, the two companies will collaborate on developing and localizing HVDC technology — essential for long-distance, high-efficiency electricity transmission — to strengthen South Korea’s energy infrastructure and align with the government’s localization policy. The agreement includes joint studies on contract models, project execution, and system components such as converters, transformers, and control systems. The West Coast energy highway is designed to enhance grid stability and accommodate the growing share of renewable power. Hitachi Energy has supplied more than 70 percent of related electricity transmission systems and completed South Korea’s first such project, connecting Wando and Jeju Island, in December 2023. HD Hyundai Electric contributed high-voltage transformers for that project. HD Hyundai Electric plans to use its Ulsan plant as a dedicated production base for HVDC transformers. The company said the move will enhance its ability to compete in global energy markets and support the government’s goal of developing domestic expertise in core power technologies. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 13:41:32

Major flour companies of South Korea under probe over alleged price fixing SEOUL, October 16 (AJP) - South Korea’s antitrust regulator has launched an investigation into seven major flour producers, including Daehan Flour Mills and CJ CheilJedang, over allegations of price fixing and other unfair market practices. The Korea Fair Trade Commission (KFTC) is examining whether the companies colluded to set flour prices or coordinated shipment volumes, actions that could have distorted competition and inflated costs for consumers. The probe comes amid broader government scrutiny of rising food prices and corporate practices in essential goods markets. During a Cabinet meeting on Sept. 30, President Lee Jae Myung called for stronger enforcement against unfair business conduct, urging regulators to “respond swiftly and firmly to anti-competitive behavior that harms consumers.” KFTC Chairman Joo Byung-ki said the commission is closely monitoring potential collusion in key raw materials, including flour, sugar, and eggs. The investigation has since widened to include companies such as Samyang Foods, which, along with CJ CheilJedang, is being reviewed for possible coordination in pricing or supply adjustments. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 13:28:14

Asian stocks rise broadly; KOSPI scales new heights, SK shares mixed SEOUL, October 16 (AJP) - Asian stocks traded broadly higher on Thursday, buoyed by renewed bets on another U.S. rate cut, with South Korean shares testing fresh record highs amid optimism over an imminent U.S.–Korea trade deal and a stronger-than-expected chip boom. The benchmark KOSPI climbed 1.7 percent to 3,718.93 as of midday, crossing the 3,700 mark for the first time ever. Investor sentiment improved on expectations that trade negotiations between Seoul and Washington are nearing a breakthrough, spurring foreign buying led by institutional inflows. Heavyweights such as Samsung Electronics and Hyundai Motor hit new highs, while the KOSDAQ rose 0.24 percent to 866.82, reflecting steady gains among small-cap tech firms. Shares of SK Group affiliates were mixed after the Supreme Court sent back the $1 billion divorce settlement case between Chairman Chey Tae-won and his estranged wife to a lower court. SK hynix jumped 5.8 percent, while SK Networks fell 1.7 percent. In Japan, the Nikkei 225 advanced 0.83 percent to 48,068.35, lifted by broad-based gains in tech and export-oriented shares. Mainland Chinese stocks rebounded strongly, with the Shanghai Composite Index rising 1.22 percent, reclaiming the 3,900 level. Taiwan’s main index was little changed, supported by optimism over the island’s tech sector and the debut of Song Chuan Precision Co., Ltd. on the Taiwan Stock Exchange, which boosted turnover expectations. In Hong Kong, the Hang Seng Index edged higher alongside gains in mainland China, though investor caution lingered amid uncertainty over global interest rate trajectories and regional export trends. 2025-10-16 12:48:32