Hanwha Aerospace on a roll on soaring global defense spending Editor's Note: This article is the 39th installment in our series on Asia's top 100 companies, exploring the strategies, challenges, and innovations driving the region's most influential corporations. SEOUL, October 16 (AJP) - Since Russia's invasion of Ukraine in February 2022, global defense spending has soared. Europe's rush to rearm has opened new markets for Asian manufacturers, pushing South Korea into the front line of the world's fast-growing arms trade. Among the companies leading this surge is Hanwha Aerospace, which has evolved from a domestic supplier into one of Asia's most active defense exporters. Global rearmament and Hanwha Aerospace's rise So-called "K-defense" exports jumped from $7.2 billion in 2021 to $17.3 billion in 2022, according to South Korea's defense ministry. SIPRI — a Stockholm-based institute that tracks international arms transfers — ranked Seoul among the world's top 10 arms exporters, alongside the United States, France, Russia, China and Germany. The surge, fueled by competitive pricing and flexible production, marks a structural shift in the nation's export portfolio long dominated by semiconductors, cars and ships. At the center of this export boom stands Hanwha Aerospace, South Korea's largest defense contractor by sales. Since 2022, the company has secured a series of contracts with Poland, including billions of dollars' worth of K9 self-propelled howitzers and K239 Chunmoo multiple rocket launchers. These deals were followed by exports of Redback infantry fighting vehicles to Australia and new artillery and ammunition agreements with Romania, reflecting a broader push into NATO and EU markets. Founded in 1977 as Samsung Precision, Hanwha Aerospace began with aircraft engines and joined Hanwha Group in 2015. It has since grown into South Korea's leading defense manufacturer, spanning technologies from artillery systems to space propulsion. A soaring stock and divided performance The company's rapid expansion has also been mirrored in financial markets. Hanwha Aerospace's stock has surged nearly twentyfold since early 2022—just before the Ukraine war—jumping from around 50,000 won (about $36) to more than 1 million won (about $720) this year. "The surge in Hanwha's stock was largely driven by its export deals with Poland following the outbreak of the war in Ukraine," said Lee Hangyeol, senior analyst at Kiwoom Securities. "Those contracts significantly boosted earnings in the land systems division." Still, risks remain. Defense orders are cyclical and often subject to shifts in global security priorities. The sustainability of Hanwha's export momentum depends on continued demand and its ability to scale production efficiently. Lee added that while the company's land systems remain highly profitable, "the aerospace segment needs greater focus on R&D, particularly in indigenous engine development, to build new growth momentum." In fact, in its latest earnings report for the second quarter of 2025, Hanwha Aerospace's overall operating profit rose 156 percent year-on-year to 865 billion won (about $630 million), driven largely by surging demand in its land systems division. However, the company's aerospace segment posted a 1.8 percent loss. From firepower to future technology Beyond defense exports, Hanwha Aerospace is investing heavily in AI-based unmanned systems, advanced propulsion technologies and satellite engines — areas that bridge defense and commercial innovation. The company played a key role in the country's Nuri space launch project and continues to expand its aerospace portfolio, positioning itself at the intersection of national security and space technology. Analysts expect Hanwha Aerospace's defense business to remain solid in the coming years, as defense spending continues to rise across Europe and the Middle East. "This isn't just a short-term boom," Lee said. "Structural growth in overseas defense projects, combined with persistent geopolitical tensions, would keep exports expanding. As a result, Hanwha's stock is likely to maintain its upward trend over the medium to long term." 2025-10-16 09:00:00

Son of ex-president assumes post as new envoy to China SEOUL, October 16 (AJP) - Roh Jae-heon, the son of the late former President Roh Tae-woo, is set to assume his post ass South Korea's ambassador to China, the Ministry of Foreign Affairs said on Thursday. For his first assignment, Roh, 60, is expected to coordinate Chinese President Xi Jinping's upcoming visit to South Korea for the Asia-Pacific Economic Cooperation (APEC) summit, which is scheduled to be held in the historic city of Gyeongju later this month. Roh's appointment is largely attributed to his father's role in establishing diplomatic ties between the two countries in 1992. Despite not being a career diplomat, Roh junior has engaged in various activities related to China including serving as an adviser to an international council of the Chinese city of Chengdu in 2016 and participating in exchange programs to foster ties with Beijing through his role as director of the East Asia Culture Center in Seoul. In late August, Roh visited China as part of a special delegation led by former National Assembly Speaker Park Byeong-seug, delivering a personal letter from President Lee Jae Myung to President Xi. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 08:58:39

Korea, US racing toward a trade deal before APEC summit SEOUL, October 16 (AJP) - South Korean and U.S. officials signaled that a settlement may be near in their three-month-long trade negotiations linked to Seoul’s $350 billion investment pledge and a potential tariff cut, with an agreement possibly coming before the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju later this month. “We are about to finish up with Korea,” U.S. Treasury Secretary Scott Bessent told reporters on Wednesday, referring to the ongoing talks with senior Seoul officials in Washington. “The devil’s in the details, but we are ironing them out. I’m sure the differences can be resolved. We are in discussions now, and I would expect something in the next 10 days.” Asked whether the Treasury supports a currency swap facility that Seoul has requested to prevent volatility from the massive capital outflow tied to its investment pledge, Bessent replied, “If I were the Federal Reserve chair — and I’m not — Korea would already have a currency swap facility.” His counterpart, Finance Minister Koo Yun-cheol, who arrived in Washington for the G20 Finance Ministers and Central Bank Governors Meeting and the IMF-World Bank Annual Meetings, told Korean reporters separately that the talks are progressing “at a rapid pace.” Koo is joined by Presidential Policy Chief Kim Yong-beom, Industry Minister Kim Jung-kwan, and Trade Minister Yeo Han-koo, forming a full economic team dispatched to Washington to expedite the settlement. The prolonged delay has unsettled Korea’s foreign exchange market and weighed on exports across key sectors — from automobiles to food products. Seoul has been pushing for the tariff rate on its exports to be reduced to 15 percent from the current 25 percent, in exchange for the massive investment package, which represents nearly 80 percent of the nation’s foreign exchange reserves. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-16 07:56:22

Asian shares lifted by dovish Powell comments SEOUL, October 15 (AJP) - Asian stocks finished broadly higher on Wednesday after dovish remarks from U.S. Federal Reserve Chair Jerome Powell raised hopes for additional monetary easing. The KOSPI jumped 2.68 percent to close at 3,567.28, while the secondary Kosdaq added 2 percent to 864.72. Semiconductor shares extended their rally, powering the broader market. Samsung Electronics surged 3.71 percent to a new high of 95,000 won ($66.83), and SK hynix climbed 2.31 percent to 421,000 won. Hanwha Ocean rebounded 1.94 percent to 105,100 won, recovering quickly from the setback following Chinese sanctions on its units. In China, the Shanghai Composite Index rose 1.2 percent to 3,912.21, even as shares of rare-earth producers such as China Northern Rare Earth Group slumped amid stalled U.S.–China trade talks. Japan’s Nikkei 225 snapped a multi-day losing streak, rising 1.76 percent to 47,672.67, while Taiwan’s TAIEX advanced 1.8 percent to 27,275.71. Asian markets found relief after Fed Chair Jerome Powell signaled an end to quantitative tightening, offsetting jitters over renewed U.S.–China tensions and reviving expectations of further rate cuts this year. 2025-10-15 17:57:58

Weight-loss injections turn diet fad in Korea, raising abuse concerns SEOUL, October 15 (AJP) - Easier access and a wider range of options are fueling misuse of foreign-made weight-loss injections in diet-obsessed Korea amid lax regulations and aggressive marketing by clinics and drugstores. Originally designed strictly for obesity treatment, the costly injections have become easier and cheaper to obtain since Eli Lilly's Mounjaro entered the Korean market in August as a lower-priced alternative to Novo Nordisk's Wegovy. Interest in Wegovy skyrocketed earlier this year after Bang Si-hyuk, the chubby chairman of HYBE, appeared to have shed a significant amount of weight within months, reportedly with the help of the injection. But the fad has since shifted from treating obesity to serving as a quick diet tool. "I wasn't questioned for my intention or any health problem. The doctor just wrote away the prescription," said Oh Eun-ji, a 50-year-old woman who easily received a prescription for two monthly kits of 1.0-mg doses from a local clinic, despite not being overweight. Social media and telemedicine platforms have further accelerated demand. DoctorNow, a telemedicine and prescription app, connects users to hospitals with Wegovy and Mounjaro in stock and provides real-time consultations. Prices vary widely — while clinics often charge 500,000 to 600,000 won ($422) for a monthly kit of Wegovy, it can be found for nearly half the price elsewhere. Competition has also fueled explosive market growth. According to this year's Drug Utilization Review (DUR) data, prescriptions for Mounjaro reached 70,383 cases, closing in on Wegovy's 85,519. Within just ten days of its August debut, Mounjaro logged 18,579 DUR checks, surpassing Wegovy's first-month record. The drug, Korea's first dual GIP/GLP-1 receptor agonist, quickly gained traction after clinical results suggested stronger weight-loss efficacy than Wegovy. Prescriptions are also coming from medical departments unrelated to obesity treatment — including psychiatry (2,453 cases), obstetrics and gynecology (2,247), urology (1,010), ophthalmology (864), dentistry (586), and radiology (104), according to data from the Health Insurance Review and Assessment Service (HIRA). The surge in use has been accompanied by growing reports of side effects. A total of 151 Wegovy users developed acute pancreatitis, while 961 others experienced complications such as cholelithiasis (560 cases), cholecystitis (143), and acute renal failure (63). More alarmingly, Wegovy has reportedly been prescribed to children and pregnant women, groups for which the drug is strictly contraindicated. Between October 2024 and August 2025, there were 69 prescriptions for children under 12 and 194 for pregnant women, according to the Ministry of Health and Welfare and HIRA. The phenomenon has drawn a public warning from the Korean Diabetes Association (KDA). "It is deeply concerning that many young adults are misusing obesity drugs for cosmetic purposes despite having no obesity or metabolic disorders. All medications carry risks of side effects. We urge patients to consult certified obesity or diabetes specialists for safe and appropriate treatment," it said. 2025-10-15 17:46:37

South Korean first responders fight trauma without aid or support SEOUL, October 15 (AJP) - "When I broke the window and stepped inside, I realized I had stepped on a dead body." Lee Chang-seok, a 19-year veteran firefighter, still remembers one of the first fires he responded to in his first year on the job. The fire had already spread through the building—a restaurant below and a home above—and the windows were sealed shut by signboards. "They tried to escape through the window," he recalled. "But the signs blocked them. A mother, her daughter and a tutor—all found dead by the window." The memory of that night—the feel of what was under his boots—never left him. Even years later, the scenes witnessed return without warning. Since the Itaewon crowd crush in 2022, which killed 159 people during Halloween festivities in Seoul's Itaewon, trauma among South Korea's first responders has drawn growing concern. Two firefighters who responded to the Itaewon disaster took their own lives this year, reigniting questions about the country's mental-health safety net for those who rush toward danger. A National Fire Agency survey shows that 7.2 percent of firefighters were at risk of post-traumatic stress disorder (PTSD) and 5.2 percent showed suicide risk last year. Yet many remain reluctant to seek help. Police officers face similar struggles. Between 2020 and 2022, the number treated for depression rose by 67 percent, while PTSD treatments increased nearly 50 percent, according to the National Police Agency and the National Health Insurance Service. National Assembly records show that between 2018 and 2022, at least 105 officers took their own lives, with mental health issues cited as the cause in 44 cases. Voices from the Field Firefighters like Lee say the emotional toll of the job hides behind a culture of restraint. "There's a general perception in our society that getting therapy means you're weak," he said. "It's the same among firefighters—but it carries even more weight for us. Our team leaders give orders that put us inside burning buildings, so they avoid showing any sign of weakness. That mindset runs deep.” Inside the firehouse, colleagues talk about operations, not emotions. "We only talk about it with colleagues who were at the scene," Lee said. "We don't tell our families or those who weren't there. It's too painful, and we don't want them to imagine it." For many, coping becomes a personal effort. Lee spends weekends camping or working out, exhausting himself so sleep will come more easily. Institutional Reality Despite years of discussion, South Korea's safety-and-rescue agencies still lack a consistent system for mental-health care. The National Fire Agency runs Healing Centers and Mobile Psychological Support Units, while the National Police Agency operates Trauma Recovery Clinics. But staff shortages and brief, irregular counseling leave many responders without proper care. One counselor may be responsible for hundreds of personnel, and sessions can be as brief as 20 minutes every few months. "PTSD isn't something you treat every three months," Lee said. "You need follow-up care, sometimes medication, and a real treatment system. Not just 20 or 30 minutes of talk." Every firefighter who attended a major disaster—such as the Itaewon crowd crush or the Muan airport accident that killed more than a hundred people—is required to complete post-incident counseling sessions, but there is still no legal mandate for continued treatment. System Gaps Other countries have moved faster to institutionalize mental-health protection for first responders. In the United States, more than half of states now recognize PTSD as a work-related injury, ensuring full medical coverage and compensation for firefighters and police. The United Kingdom runs the nationwide Blue Light Program, offering free, confidential counseling and resilience training across all emergency-service branches. South Korea, by contrast, still treats trauma support as a discretionary service rather than an entitlement. "Abroad, PTSD is acknowledged as a professional risk," said Oh Eun-kyung, a counseling psychologist and professor at the Air Force Education and Training Command. She said the Fire Agency and the Police Agency operate counseling and trauma centers, but their services remain limited compared with other countries. "Firefighters live with chronic exposure to crisis," Oh said. "They need regular check-ups, not one-time interventions. Prevention, early response, and long-term management should all be part of one cycle." Cultural Barriers Experts say South Korea still struggles to break the stigma surrounding mental health. "Many first responders still think seeking help means they've failed to endure," Oh said. "But trauma is not weakness—it's a natural human response to extreme stress. They need to be told that healing is part of duty, not a sign of fragility." She proposed a nationwide roadmap covering an entire career cycle, from recruitment to retirement, including regular psychological check-ups, anonymous counseling options, and partnerships with mental-health hospitals for specialized treatment. Lee believes post-disaster counseling should be mandatory, noting that delays of weeks or months in getting a counseling appointment often render treatment meaningless. "If someone finally decides to see a psychiatrist or counselor, and then has to wait four to six weeks for an appointment, that window is already lost," he said. 2025-10-15 17:41:05

Kazakhstan turns to South Korea to share vision for 'Alatau City' project SEOUL, October 15 (AJP) - Kazakhstan is betting big on its flagship plan to build a new innovation and AI hub in the Alatau region, located near the borders with Russia and China, and is seeking close partnership with South Korea based on their shared history and development aspirations, officials said Wednesday. The Kazakh government launched a high-profile roadshow titled “Alatau, Rise with Kazakhstan” in Seoul to promote the initiative. The Alatau City project, now designated a national development priority, aims to build Central Asia’s largest smart city in the Alatau area north of Almaty, Kazakhstan’s largest city. The new city will span about 880 square kilometers and be developed in phases through 2048. It is envisioned as the centerpiece of Kazakhstan’s transformation from a resource-dependent economy into a high-tech industrial hub. “Alatau City will become a new hub of investment and innovation,” said Deputy Prime Minister Qanat Bozymbaev in his keynote speech. “We see strong potential for partnership with South Korean companies. By combining Kazakhstan’s human and infrastructure resources with Korea’s technological expertise, the project will create powerful synergy and reach a higher level.” Chairman of Caspian Group Yuriy Tskhay speaks at the Alatau City event hosted by the Kazakh government in central Seoul on Oct. 15, 2025. Aju Press Han Jun-gu Other presenters included Caspian Group Chairman Yuriy Tskhay and vice ministers from the Ministries of Industry and Construction, Transport, and Energy. Tskhay, who leads the city’s development, recalled his first visit to Seoul during the 1988 Olympics as an ethnic Korean from the former Soviet Union. “At that time, I never imagined that in 2025, we Kareisky from Kazakhstan would be hosting such a large-scale event in Korea,” he said, referring to ethnic Koreans living abroad. “The Alatau City project, now a national priority, has the full support of Kazakhstan’s Korean community. One of the reasons we chose Korea as the first stop of the roadshow is our long-standing historical connection,” he added. 2025-10-15 17:31:27

AI boom gushes down to midstream, buoying Asian fab operators SEOUL, October 15 (AJP) - Investors are closely watching third-quarter earnings from Taiwan’s foundry leader TSMC and South Korea’s AI memory powerhouse SK hynix to gauge the depth of surging demand for artificial intelligence chips—especially after stronger-than-expected results from Samsung Electronics. Samsung Electronics on Tuesday reported record quarterly revenue of 86 trillion won (approximately $62.4 billion) and an operating profit of 12.1 trillion won (approximately $8.78 billion), its highest in three years and double the previous quarter, buoyed by the rebound in memory prices and AI-related demand, even as the memory giant trails behind in high-bandwidth memory (HBM) production, a key component powering AI servers. TSMC, which commands about 60 percent of the global foundry market and nearly 90 percent of advanced node chip production—covering most of Nvidia’s supply—sits at the center of the AI-driven datacenter expansion. “TSMC’s third-quarter guidance suggests revenue of $32.4 billion and an operating profit margin of 46.5 percent,” said Lee Seung-woo of Eugene Investment & Securities. “Actual growth could exceed forecasts, potentially reaching the mid-30 percent range.” SK hynix, which has overtaken Samsung in the HBM market, shares the glory of the AI upcycle. “SK hynix’s third-quarter operating profit is estimated at 11.6 trillion won, supported by strong DRAM and NAND shipments amid sustained demand for HBM and DDR5,” said Son In-jun, analyst at Heungkuk Securities. The unrelenting appetite for AI chips is pushing up prices across the memory spectrum. According to market tracker ICsmart, Micron has raised DDR4 and DDR5 prices by 20–30 percent, while Samsung increased contract prices for high-capacity DRAMs such as LPDDR4X and LPDDR5/5X by 15–30 percent as AI workloads shift from training to inference and edge devices tighten supply. The AI boom is now spilling over to mid- and downstream chipmakers, who stand to gain from narrowing gaps between contract and spot prices as AI adoption spreads beyond hyperscale data centers. Kim Dong-won, an analyst at KB Securities, projected that Samsung Electronics could post its highest operating profit in eight years next year on improved foundry utilization and stronger profitability in memory operations. Shares of major Asian chipmakers extended gains on Wednesday, buoyed by strong earnings momentum and AI demand. TSMC rose NT$1,400 (about $43) in Taipei, while Samsung Electronics closed at 95,000 won ($69) and SK hynix ended at 422,500 won ($308). 2025-10-15 16:56:26

Foreign investors turn heavy buyers of Korean stocks and bonds in September SEOUL, October 15 (AJP) - Foreign investors became net buyers of more than US$9 billion worth of Korean stocks and bonds in September, marking a sharp turnaround from a $600 million net outflow in August and signaling a recovery in confidence toward the Korean capital market, the central bank said Wednesday. According to data from the Bank of Korea, net foreign inflows into Korean securities reached $9.12 billion last month — $4.34 billion in equities and $4.48 billion in bonds. Foreign investment in local stocks extended its fifth consecutive month of net inflows, with September's figure the largest since February 2024. The turnaround was even more pronounced in the debt market, where foreign investors injected nearly $5 billion, contrasting with an outflow of $770 million in August. The credit default swap (CDS) premium, a key gauge of sovereign credit risk, narrowed by 1 basis point from August, reflecting improved sentiment toward Korea’s credit standing. Borrowing conditions remained generally stable. The short-term foreign borrowing spread edged up 1 basis point from August, while the medium- to long-term spread climbed 9 basis points. The addition rate on foreign currencies, an indicator of funding costs for raising foreign-denominated capital, also remained steady. 2025-10-15 16:55:42

80 South Korean detainees refuse to return home, Cambodia says SEOUL, October 15 (AJP) - Around 80 South Koreans are being held in Phnom Penh but are refusing to return home, Cambodian authorities said on Wednesday. Touch Sokhak, a spokesperson for Cambodia's Ministry of Interior, told China's state-run Xinhua News the previous day that South Korean officials have contacted these individuals, but they refuse to return to Seoul. But he added that he was unsure whether they are the same as the 80 missing people the South Korean Ministry of Foreign Affairs said remain unaccounted for. According to the Cambodian ministry, police are tracking down two accomplices and expanding their investigation to locate other suspects, working closely with the South Korean Embassy. But the figures vary, with National Security Adviser Wi Sung-lac saying during a press briefing that about 60 South Koreans are currently in custody in Cambodia over alleged online job scams and phishing schemes. "Around 200,000 people from various countries are reportedly involved in numerous crime rings in Cambodia," he said. "Recent crackdowns have led to the arrest of thousands including more than 1,000 Chinese nationals and over 60 South Koreans." He added the government is making efforts to bring them back by this weekend. * This article, published by Aju Business Daily, was translated by AI and edited by AJP. 2025-10-15 16:29:07